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Monthly Archives: April 2010

Audit the Federal Reserve

The Dodd bill (Senate bill 3271) grants enormous new powers to the Federal Reserve. Senator Bernie Sanders of Vermont is filing an amendment (S. 3738) to “audit the Fed” which currently has fifteen cosponsors. America needs ponder if a private, independent institution should control such a substantial part of financial system without complete and thorough […]

Lehman 2.0

The global financial system is a tight web of connections. While the US Congress debates financial reform the Euro system is being shaken down by its weakest member Greece… In the financial crisis of 2007-2009 everyone was taken by surprise by “mortgage repayment” default risk… The assumption had always been that RMBS were sufficiently varied by […]

6 things worth fighting for in the Senate bill

Excellent table via Rortybomb… although it’s actually 7 or 8 things worth fighting for in the Senate financial reform bill… Mr. Rortybomb misses a big one related to legislation on the Federal Reserve… Ryan Grim of HuffPo writes about it the grant of $4 trillion of lending authority to the Federal Reserve with no Congressional […]

Wall Street banker says “we are close to getting it over the finish line”

From the beginning of the financial reform process it seemed that the goal of the Obama administration and the Senate was to accommodate Wall Street… And here is Barclays President Robert Diamond expressing his pleasure with the legislation.  In fact Wall Street loves it except for Blanche Lincoln’s derivatives legislation… Sorry America… maintenance of the status quo trumps […]

Protect taxpayers and break up the banks

Vermont Senator Bernie Sanders, says “the issue is not whether Congress regulates Wall Street, it’s the degree to which Wall Street regulates Congress.” Time to break up the banks…

Financial overhaul could create financial utilities

Matthew McCormick, a portfolio manager at Bahl & Gaynor Inc., talks about the prospects for legislation to overhaul U.S. financial regulation and the implications for financial stocks. *  *  * Let’s move away from the shadow banking system and go to a new place > > > Narrow banking is a proposed type of bank […]

Glorious sunlight…

It’s so refreshing to see this lovely video of Senator Blanche Lincoln talk about her derivatives reform legislation… here is her draft… Somehow I sense the hand of CFTC Chairman Gensler in this process… and the spirit of House Agriculture Chairman Collin Peterson… yes… substantive forces to rein in Wall Street on derivatives are at […]

Mashup the money!

Kudos to the Sunlight Foundation… we need a way to see what large and powerful corporations are doing on the state and federal level… From Flowing Data… ~~~ “Anyone who’s looked at campaign finance data knows it can get messy really quick (especially if you’re getting it directly from the FEC). Sunlight Labs’ newly launched TransparencyData […]

serious reckoning for those who gamed the system is a win-win

Frank Rich writes in the New York Times… ~~~”… Both as policy and politics, a serious reckoning for those who gamed the system is a win-win. Yet the fear that the Obama administration is protecting its friends persists. On the same morning that Rubin testified last week, Eamon Javers of Politico wrote about his continued influence […]

Is the next global crisis beginning?

It’s very helpful to see this chart. Data points like this show the extra risk that investors believe Greek debt represents. In September, 2008 when Lehman failed the global credit markets froze. Note how that impacted the the risk premium for Greek debt. FT Alphaville pointed to comments made by the Bank of France governor, […]