Archive for the ‘too big to fail’ Category
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…)
Tags: derivatives markets, Dodd Frank living wills, FDIC living wills, Federal Reserve living wills, how to solve too big to fail, ISDA, rewriting derivatives, suspending early termination rights, too big to fail banks, too big to fail problem
Posted in Dodd Frank, General, too big to fail | 2 Comments »
Posted by Larry Doyle on March 27th, 2014 9:19 AM |
In the midst of your morning routine, you can probably lay out a number of situations in which you reach into your pocket to pay people or vendors for services/products provided. I would imagine that many reading this blog pay for a daily coffee and newspaper, perhaps a periodic shoe shine, a highway toll, or train and bus fare.
In addition to these fees, how do you feel about reaching into your pocket on a daily basis to pay a surcharge to support banking institutions on Wall Street that are deemed ‘too big to fail?’ How does that feel? Not very good, does it? I did not think so.
Yet, make no mistake, that daily banking toll you pay, and the subsidy the banks receive, are very much a reality in America circa 2014. (more…)
Tags: banking industry 2014, banking toll, corporate welfare, crony capitalism, derivatives markets, Federal Reserve of New York, Joao Santos, Large and Complex Banks, taxpayer subsidy of Wall Street, too big to fail on Wall Street, too big to fail subsidy, Wall Street Banks
Posted in General, too big to fail | 3 Comments »
Posted by Larry Doyle on March 7th, 2014 7:05 AM |
I inadvertently overlooked a recent commentary written by a Sense on Cents favorite, Simon Johnson, that ran at Project Syndicate.
Johnson writes a fabulous piece entitled Truth From the Top highlighting the work of former Fed governor Thomas Hoenig about just how fragile our banking system truly is and how the politics of promoting the ‘too big to fail’ model have persisted. Let’s navigate.
It is unusual for a senior government official to produce a short, clear analytical paper. It is even rarer when the official’s argument both cuts to the core of the issue and amounts to a devastating critique of the existing order. (more…)
Tags: bank equity capital, equity capital of largest banks, Simon Johnson on Hoenig speech, Simon Johnson Project Syndicate, Simon Johnson Thomas Hoenig, Simon Johnson Truth From The Top, Thomas Hoenig speech February 24 2014
Posted in General, Glass-Steagall, Simon Johnson, too big to fail | 1 Comment »
Posted by Larry Doyle on March 15th, 2013 6:17 AM |
It is not often that an industry insider unleashes a report on a major financial institution that makes me sit up and immediately think, “I need to share this . . . . NOW.”
Well, I just sat up.
If you have any doubts that our “too big to fail” banks are out of control and hence “too big to regulate” and “too big to prosecute,” you will want to read a report written by Graham Fisher’s Josh Rosner.
I can assure you this report will generate a lot of focus from even the generally compliant financial media. I thank the friend of Sense on Cents who brought it to my attention. I recommend you put your coffee down as Rosner writes, >>>>> (more…)
Tags: breakdowns at JP Morgan, Josh Rosner Graham Fisher, Josh Rosner report on JP Morgan, Josh Rosner review of JPM, Josh Rosner torches JPM, JP Morgan internal controls, JP Morgan too big to fail, JP Morgan too big to prosecute, JP Morgan too big to regulate, JP Morgan violations, JPM internal controls, Rosner JPM
Posted in General, JP Morgan, too big to fail | 9 Comments »
Posted by Larry Doyle on March 12th, 2013 8:25 AM |
In December 2011, President Obama was interviewed on 60 Minutes and had the following exchange with CBS’ Steve Kroft in regard to behaviors on Wall Street:
KROFT: One of the things that surprised me the most about this poll is that 42%, when asked who your policies favor the most, 42% said Wall Street. Only 35% said average Americans.
My suspicion is some of that may have to do with the fact that there’s not been any prosecutions, criminal prosecutions, of people on Wall Street.
And that the civil charges that have been brought have often resulted in what many people think have been slap on the wrists, fines. “Cost of doing business,” I think you called it in the Kansas speech. Are you disappointed by that? (more…)
Tags: Department of Justice, Eric Holder comment on banks, Eric Holder indicts too big to fail, holder on too big to fail, Holder on too big to prosecute, Obama on too big to fail, too big to fail, too big to jail, too big to prosecute, too big to regulate, Wall Street regulation
Posted in Bailout, Bank Failure, Banking Institutions, General, Obama Administration, too big to fail, Wall Street, Wall Street Washington Incest | 6 Comments »
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Holder Refutes Obama with “Indictment” of TBTF
Posted by Larry Doyle on March 12th, 2013 8:25 AM |
Tags: Department of Justice, Eric Holder comment on banks, Eric Holder indicts too big to fail, holder on too big to fail, Holder on too big to prosecute, Obama on too big to fail, too big to fail, too big to jail, too big to prosecute, too big to regulate, Wall Street regulation
Posted in Bailout, Bank Failure, Banking Institutions, General, Obama Administration, too big to fail, Wall Street, Wall Street Washington Incest | 6 Comments »