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Home5 Years Later: Banks Still Too Leveraged
Posted by Larry Doyle on September 12th, 2013 9:09 AM |
Do you think there is a reason why bank balance sheets are so convoluted and opaque? Of course there is.
The lack of meaningful transparency allows the banks to continue to employ excessive degrees of leverage across a widely disparate array of businesses and with a paucity of competition all in the hope of generating outsized returns. But who do you think bears the ultimate risk?
They pursue these paths with the support of the Federal Reserve’s zero interest rate policy and a regulatory system that belies meaningful oversight despite those who might want us to believe that Dodd-Frank brought reform to the system.
Former FDIC chair Sheila Bair does not leave much to interpretation on these topics. (more…)
Did We Waste The Crisis? Is the Pope Catholic?
Posted by Larry Doyle on August 13th, 2013 8:16 AM |
Well, here we sit almost 5 years later. Is there any doubt that in terms of utilizing the crisis to implement the necessary meaningful financial regulatory and structural reforms, we have, in fact, wasted this crisis? Come on, do we even have to ask?
Adam Davidson of The New York Times would seem to believe the same as he wrote the following in a recent commentary: (more…)
Tags: Anat Admati, bank leverage, banks borrow too much, Charles Calomiris, Did We Waste a Crisis Adam Davidson, did we waste the crisis, Dodd-Frank financial regulatory reform, financial regulatory reform, government rules are too confusing, is the Pope Catholic, Rahm Emanuel, Rahm Emanuel comment about crisis, the public has been misled, you never want a serious crisis to go to waste
Posted in financial crisis, General, Wall Street Washington Incest | 3 Comments »