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HomeWall St ‘Living Wills’ & ‘TBTF’?? Watch Your Wallets, Folks!!
Posted by Larry Doyle on August 7th, 2014 9:21 AM |
Little surprise this week that the Federal Reserve and FDIC have assigned failing grades to Wall Street’s ‘too big to fail’ banks assigned to writing ‘living wills.’
As a frame of reference, these ‘living wills’ are required by the Dodd-Frank legislation intended to reform Wall Street and prevent the need for another government bailout of our ‘too big to fail’ banks.
Really? Well, in theory anyways.
Why is it that our ‘too big to fail’ banks cannot write ‘living wills’? (more…)
Will It Take Another Crisis for Real Reform?
Posted by Larry Doyle on July 9th, 2014 9:59 AM |
“Our current cronyism is not the property of one political party or the other. As with any cancer, it does not care who it attacks or where it spreads. In the process of unearthing and exposing these crony Wall Street- Washington paths, we have come to learn that large numbers from both political parties, their well-heeled financial benefactors, and many of our financial regulators, all sit on one side of the table while the general investing, consuming, and taxpaying public — along with a large percentage of Wall Street’s own employees — sit on the other.”
page 187, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy
A full 6 years from the onset of our ongoing economic crisis, I remain convinced that our nation’s markets and economy remain burdened by the cancer that metatstatized from the corrupt Wall Street-Washington dynamic.
I stated as much in my book as quoted above.
Many have asked me if the current crisis was not enough to excise this cancer what might it take. Another crisis? (more…)
Not If But When the Next Crisis Comes . . .
Posted by Larry Doyle on May 14th, 2014 2:39 PM |
With mid-term elections on the near term horizon, I expect we will hear various pols and their selected pundits tout Dodd-Frank as not being perfect but as having brought meaningful reform to Wall Street.
Really? I know, politico-speak is more noise than substance but let’s get real.
When there is not a lot to grab onto in terms of truly meaningful political accomplishments, we should not be surprised that any legislation that has been passed will be used as fodder to feed the masses.
So when you hear a pol from either side of the aisle play this game talking about Dodd-Frank, make sure you hit them with the following insider assessments: (more…)
Global Financial System: Dangerous and Dysfunctional
Posted by Larry Doyle on September 20th, 2013 8:55 AM |
I truly appreciate reading the work and gaining the wisdom of those with informed insights and opinions.
Where do I always find people of this ilk? At one of my favorite stops while navigating the economic landscape: Project Syndicate.
While various and sundry lapdogs from both sides of the political aisle and others well-schooled in the inner workings of the Wall Street-Washington incestuous thoroughfare are touting how our financial system has been reformed, let’s go down a less traveled path and see what a noted observer has to say on this topic. (more…)
Morning Joe : How Wall Street Won
Posted by Larry Doyle on September 13th, 2013 9:27 AM |
Lehman Brothers failed on September 15, 2008.
We are now two days away from the 5 year anniversary of that fateful day and the unfolding of a string of events that continue to ripple across our global economy and markets.
As with the anniversaries of most cataclysmic events, we can now expect an ongoing stream of dialogue as to what led to the crisis and how things have played out since then.
The folks at Morning Joe had a brief 7-minute discussion recently with Time magazine editor Radhika Jones on this topic and these questions. They definitely hit upon some of the key issues but they do not use the one key word to define what really happened both pre and post crisis. What is that word? Let’s take a listen first to what they have to say: (more…)
Dodd-Frank Derivative Reform: Dead on Arrival
Posted by Larry Doyle on September 5th, 2013 8:59 AM |
While many in Washington and elsewhere will look to collect political points for bringing reform to Wall Street, those watching closely knew all too well that the blueprints for this reform were always subject to massive change.
So has Dodd-Frank brought real reform to Wall Street? If you believe so, I would invite you to become a charter member of The Gullible Club.
Let’s dispense with the formalities. Wall Street ultimately answers to nobody but itself. As such, we can unload another truckload of dirt over the casket holding Dodd-Frank.
While many observers of the financial and political scenes are not inclined to draw attention to this service, fortunately those at Bloomberg view this funereal undertaking more seriously. I thank them as they recently pulled back the cloak on Dodd-Frank to reveal a Wall Street dagger protruding from its midst. (more…)
Obama on Dodd-Frank: Is He Serious?
Posted by Larry Doyle on August 20th, 2013 10:10 AM |
Three full years after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, less than 40 percent of the watered-down rules within the reform have actually been written.
And those that have fall mostly under the heading of low-hanging fruit.
President Obama played the populist card again yesterday, calling on Congress and the independent regulators to complete their work on this reform.
Does President Obama think the American public actually believes Wall Street has been or will be reformed via Dodd-Frank? Really? Is he serious?
Paul Ryan: Dodd-Frank Goes In Wrong Direction
Posted by Larry Doyle on May 10th, 2013 7:10 AM |
America is increasingly aware that banks that are too big to fail, trust, regulate, prosecute, and jail are thus — duh — TOO BIG TO EXIST!!
This basic principle espoused by anybody with even a modicum of “sense on cents” is gaining momentum in Washington given the growing bipartisan support for the Brown-Vitter Bill to address the too big to fail reality.
I personally believe the Brown-Vitter Bill should only be an initial pit stop on our way to breaking up these mega-banks that own Washington and run our country. Who recently weighed in on these topics? (more…)
Watch Today 2-3pm: Cliff Asness on Crony Capitalism
Posted by Larry Doyle on May 9th, 2013 7:31 AM |
In May 2010, financier Cliff Asness said in The Wall Street Journal that the Dodd-Frank Act was “perfectly designed to create the largest and most powerful crony system in history. It’s not that the people, regulator or regulated, are personally corrupt. It’s that the system will itself select for, reward and enforce corruption.”
I would not agree with a blanket assessment that all the regulators and regulated are not personally corrupt but I give Cliff Asness credit for going where few in the industry are willing to navigate.
I will be watching Asness this afternoon from 2-3pm EST talk at the American Enterprise Institute about the impact of Dodd Frank — er, that is, aka Fraud Dank here at Sense on Cents — and the state of competition in America’s financial markets. (more…)
“How Washington Hurts Small Community Banks”
Posted by Larry Doyle on January 31st, 2013 9:52 AM |
The other day I addressed the current David vs Goliath situation in the banking industry and presented The Case for Community Banks. There is no doubt that the crisis that emanated on Wall Street required some real regulatory attention. Regrettably the “one size fits all” regulatory changes embedded in Dodd-Frank is not the answer. Not that people in Washington with little background in markets and the economy might understand that.
Let’s listen to former Inspector General for the TARP, Neil Barofsky, who provides a brief 2-minute dose of ‘sense on cents’ on how Washington has hurt the small community banks in our country. Props to American Banker for this clip.
Larry Doyle
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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.
