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 [...]
Also filed in Launching..., Liquidity, Open engines, Recession busters..., Regulatory, Restructuring, Trading, Transparency
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Tagged CFTC, confidence, Congress, derivatives, economic justice, economy, exchange, OTC
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The House of Commons Treasury Committee Ninth Report of Session 2009–10 Report, together with formal minutes Ordered by the House of Commons, to be published 22 March 2010 Too important to fail– too important to ignore Summary The banking crisis of the last two years resulted in government support for the sector around the world amounting to almost a [...]
Also filed in Creativity, Launching..., Liquidity, Open engines, Recession busters..., Regulatory, Restructuring, Transparency, Uncategorized
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Tagged audit the Fed, Congress, credit ratings, crisis, economic justice, Federal Reserve, global hot money, risk, Wall Street
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This is what global hot money sounds like… or put differently the “globalization of capital flows”… moving funds between asset classes and currencies to take advantage of changes in valuations and relative returns. Does this type of financial activity add to nation’s wellbeing or does it just represent a “skimming” of a nation’s productive capacity? [...]
Bond insurance down to 5% of new issues from 50%… BABs have reduced supply… Are credit ratings to be trusted? Municipal revenues has declined… “We don’t expect the muni market to collapse…”
Friday, February 26, 2010
Transparency creates stability in financial markets… this is a foundational precept of our system but is rarely argued… the following is from a speech by CFTC Chairman Gensler to the “Energy Bar Association” on February 24th… ~~~ Transparent Trading Requirement “… It is not enough, though, simply to promote transparency to the regulators. Financial reform [...]
Thursday, February 11, 2010
From FT Alphaville… ~~~ “Looks like Credit Suisse has jonied the conspiracy trying to undermine Spain. Here’s a ranking of countries by perceived risk, taking into account things like current account balances, public and private debt, and CDS spreads. It comes from a note on the impact of sovereign risk on European banks, published on Wednesday [...]
Wednesday, February 10, 2010
The Chicago Fed has published a short paper on high frequency trading… makes you wonder how much economic activity this trading represents for the Chicago area… The fundamental issues around high frequency trading are systemic risk and investor fairness. Unfortunately this paper doesn’t address either one of those issues… From the conclusion of the paper “Controlling risk [...]
Tuesday, February 2, 2010
Senate hearing on prop trading – Feb 2, 2010 Source: PROHIBITING CERTAIN HIGH-RISK INVESTMENT ACTIVITIES BY BANKS AND BANK HOLDING COMPANIES Senate Banking Committee Hearing: Tuesday, February 2, 2010 , 02:30 PM 538 Dirksen Senate Office Building The witness will be: The Honorable Paul Volcker, Chairman of the President’s Economic Recovery Advisory Board. Honorable Neal [...]
Also filed in Liquidity, Open engines, Regulatory, Restructuring, Trading, Transparency
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Tagged accounting, bonds, CDS, prop trading, risk, Volcker, Wall Street
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Thursday, January 28, 2010
In the bond markets Cantor has always been known as the “outer boro guys”…. never a fancy shop like Goldman or Morgan Stanley… but they were a dominant broker before 9/11 wiped out the majority of their employees… it’s good to see them hunting around for new products to make markets and service customers… In [...]
In this short clip from the Senate Banking Committee hearing of September 23, 2008 Senator Evan Bayh questions Secretary Paulson about why they will support foreign banks. Secretary Paulson says it’s on behalf of American taxpayers and Chairman Bernanke explains that these are efforts to prop up prices in markets. From Bloomberg… ~~~ “… The [...]