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Posts Tagged ‘too big to fail’

Spitzer: Lanny Breuer at DOJ Was a Disaster

Posted by Larry Doyle on June 20th, 2013 8:26 AM |

Hat tip to Barry Ritholtz at The Big Picture and our friends at eWallStreeter

Say what you want about Eliot Spitzer’s personal shortcomings but when it comes to many of the regulatory capture issues addressed regularly at this blog, he is not evasive or deferential as so many former pols and regulators are wont to be.

True to form, Spitzer pulls no punches in a recent Bloomberg Law interview. What does he think of the former Assistant AG for the Criminal Division of the US Department of Justice Lanny Breuer’s tenure? Simply a “disaster.”

What does he think of the revolving door, current SEC chair Mary Jo White, and the practice of “neither admit nor deny”?  (more…)

Weekend Viewing: Moyers and Morgenson

Posted by Larry Doyle on May 25th, 2013 12:26 PM |

A healthy does of ‘sense on cents‘ in this 18 minute exchange between Bill Moyers and The New York Times’ Gretchen Morgenson. Call it what you want but from my standpoint capitalism and democracy are being compromised by cronyism and corruption. The evidence is overwhelming.

The health and well being of future generations require that we must continue to call out the crony collusive conspiracy at play in America. Check this out and pass it along.

Navigate accordingly.

for those receiving this commentary via e-mail, you can access this video here

Larry Doyle

Isn’t  it time or overtime to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

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.

Holder Refutes Obama with “Indictment” of TBTF

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…)

What Is “Too Big To Regulate?”

Posted by Larry Doyle on March 4th, 2013 8:38 AM |

Going on three years since the passage of the Dodd-Frank Financial Regulatory Reform legislation, aside from a few politicians and perhaps the head of the Federal Reserve nobody  — and I mean nobody — believes that our major financial institutions are anything but “too big to fail.”

We have also learned that “too big to fail” has also come to encompass “too big to regulate” and “too big to prosecute” as well.

How is it that the banks have become “too big to regulate?” Let’s navigate and review a bite-sized script from the Wall Street Journal that highlights this point.  (more…)

Will Uncle Sam Expand “Too Big to Fail?”

Posted by Larry Doyle on February 20th, 2013 9:45 AM |

There is not even one credible individual in the world today who would believe that we do not still operate under a “too big to fail” model for our banking industry.

We now know that “too big to fail”also means “too big to regulate” and “too big to prosecute.” Free market capitalism is dying a slow and steady death in the process.

Might we ever get out from under the heavy burden of this model? We can only hope. Yet I awaken this morning and vomited my coffee as I read in the WSJ,

Should the government backstop even more of the financial system than it already does?

Sure, if you love a mix of crony capitalism and socialism, wave it in, right?  (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

Isn’t  it time or overtime to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

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.

Sheila Bair: “They Should Have Let Bear Stearns Fail”

Posted by Larry Doyle on July 9th, 2011 9:34 AM |

How would the last three years have played out if Bear Stearns had been allowed to fail? While we can speculate at length about that topic, we will obviously never know.

Who believes the Bear was nothing more than a second tier investment bank and should have been allowed to fail? The recently departed head of the FDIC, Sheila Bair.

I just finished reading her exclusive exit interview with The New York Times’ Joe Nocera. This article is a MUST read.

Aside from her strong opinion about Bear Stearns, other highlights and “behind the scenes” bombshells include:  (more…)

Jonathan Weil Reviews “The Truman Economy”

Posted by Larry Doyle on September 20th, 2010 7:13 AM |

What can we believe? Can we believe the economic reports put forth by our government? Can we believe the quarterly reports put forth by our financial institutions? Can we believe the price action in our markets? While “the market is the market,” has our country ever experienced a period in which there is such a massive disconnect between the real economy and what Uncle Sam has generated?

I am often reminded of the fabulous hit movie, The Truman Show, when thinking of our current economy and markets. How much of our economy is based on reality and what is merely staged? Bloomberg’s Jonathan Weil once again distinguishes himself in providing an “economic and market reality check” of our ‘Uncle Sam’ economy circa 2010. Weil writes, Zombie Banks Have Us Right Where They Want Us:

Two years after the collapse of Lehman Brothers and what rightfully should have been the death of American International Group, U.S. capital markets face a crucial question.

How long will it take before we see some semblance of robust free-market capitalism return, where the value of an asset is based on what bona fide market participants will pay for it, the cost to borrow money is based on a company’s fundamental financial strength rather than its ability to access a government safety net, and corporations are free to fail no matter what their size? (more…)

Roubini on Greed and Amorality

Posted by Larry Doyle on August 26th, 2010 5:38 AM |

Nouriel Roubini is both revered and derided. While he gains huge credit for having forecasted our economic meltdown, he is equally maligned for having missed the 2009 rally in the markets. I am less concerned with Roubini’s market calls, but I am very interested in his views on the inner workings of our economy and market structures. To this end I was thrilled to review Roubini’s recent Project Syndicate commentary, Gordon Gekko Reborn.

As you read Roubini’s commentary, I encourage you to think whether the recently enacted Financial Regulatory Reform package will fully address and implement the changes Roubini deems necessary. I will add my take as we navigate. On that note, Roubini writes: (more…)

Senator Russ Feingold (D-WI) Rejects Financial Regulatory Reform

Posted by Larry Doyle on June 29th, 2010 8:28 AM |

America was assured by Washington’s political establishment that the financial regulatory reform package would prevent the need for another bailout of ‘too big to fail’ banks as occurred in 2008.

You didn’t believe them, did you?

Who stands up and has the courage to call out the Washington establishment on this charade? Senator Russ Feingold, Democrat of Wisconsin. Feingold writes:

“As I have indicated for some time now, my test for the financial regulatory reform bill is whether it will prevent another crisis. The conference committee’s proposal fails that test and for that reason I will not vote to advance it. (more…)

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