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Tag Archives: BofA

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…

Do Global Banks Spread Global Imbalances? The Case of Asset-Backed Commercial Paper During the Financial Crisis of 2007–09

Jacques Polak Research Conference at the IMF Financial Frictions and Macroeconomic Adjustment Washington DC, November 5—6, 2009 Session 4: Asset Prices and Crises Chair: Jan Brockmeijer (Deputy Director, Monetary and Capital Markets Department, IMF) Do Global Banks Spread Global Imbalances? The Case of Asset-Backed Commercial Paper During the Financial Crisis of 2007–09 Viral Acharya (New York […]

“In cases like this, the outcome is always along the lines of 50, 60 or 70 cents on the dollar”

~ We still don’t know why the Federal Reserve paid 100 cents on the dollar to the counterparties of AIG… the mystery is another mark against the “too big to fail” banks and their closely woven interconnection with the Federal Reserve … Bloomberg reminds us of a comparable closeout of a swaps transaction around the same time […]

“Money illusion”

Analysis and discussion with Niall Ferguson of Harvard University; Banks still too big to fall and free borrowing helps banks. (Bloomberg News video – running time 8:00) Excellent analysis…

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]

Resolving large banks

An interview with Sen. Richard Shelby of Alabama with his analysis and reaction to BofA and Citigroup’s needing more capital. Shelby says Americans must know stress test results. (Bloomberg News — running time ~ 4:25 minutes)  The FDIC as Systemic Resolution Authority Joseph R. Mason  There has been much discussion lately regarding the appropriate source […]

Rich tools for small banks…

Social media meets Main Street banks and credit unions… right on to Wesabe…  from Finextra: ~~~~ “Wesabe launches money management platform for banks Personal finance site Wesabe has launched a Web-services-based version of its money management platform for banks and credit unions. The SpringBoard platform lets financial institutions offer their customers the range of money […]

they have dominated the system

April is the cruelest month… On April 2nd the ghosts of Japan’s zombie banks will arrive on our shores… On that day the nation’s weakest banks will be granted the right to determine the value of the toxic assets they hold on their books… Our nations leaders, like the Japanese in their banking crisis, have determined […]

Swap risk up

Regulatory reports show 5 biggest banks face huge loss risk By Greg Gordon and Kevin G. Hall | McClatchy Newspapers WASHINGTON — Five of America’s largest banks, most of which have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports […]

Financial system stress…

EconomicPicData has a nice chart this morning on credit default swaps for financial firms… See especially General Electric but all these firms have spreads that are signalling increased risk in owning their debt … instability is roaring back to these undercapitalized, overleveraged firms … Now lets cross reference this to membership on the Board of […]