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Tag Archives: TBTF

So far the reformers of finance have neglected the shadow system

The parallel “shadow” banking system needs fixing: that should mean painful choices for money-market funds Mar 25th 2010 | From The Economist IF THEY were to film “It’s a Wonderful Life” today, the hero would probably not be a banker—and not just because of the optimistic title. The shape of finance has changed radically in the […]

Financial reform — sure — repudiate OTC derivatives

Repost from Chris Whalen’s Institutional Risk Analyst: ~~~ “…  Thus we extend and pretend, a policy choice that ensures years of economic stagnation and perhaps even a new financial crisis when non-bank financial institutions start to fail due to ZIRP and the related predations of OTC derivatives. The Fed argues that the large banks cannot be restructured […]

What, are our banks made out of balsa wood held together by baby tears?

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c Clusterf#@k to the Poor House – Wall Street Bonuses www.thedailyshow.com Daily Show Full Episodes Political Humor Health Care Crisis HT HuffPo…  an aside… the webcast of the Senate Banking hearing of September 23, 2008 where Secretary Paulson and Chairman Bernanke try and explain […]

This is about limiting “collateral damage”…

We have to admit how much more sophisticated the British are about managing their financial sector… but then they have had so many more hundreds of years to do it… they did have a fully blown banking system as we fought them to become independent…  1660’s anyone? Listen to Andy Haldane of the Bank of […]

Shadow banking – the dark side of too big to fail

Restoring American Financial Stability – Discussion Draft

Senate Banking Committee Chairman Christopher Dodd released his version of legislation to reform the financial system today. Here are the summary and full draft. Dodd bill summary link HIGHLIGHTS OF THE DISCUSSION DRAFT Consumer Financial Protection Agency: Creates an independent watchdog to ensure American consumers get the clear, accurate information they need to shop for […]

We’ll see a manager’s amendment next week…

‘Too big to fail’ is too dumb to keep

An excellent opinion piece by John Kay, an economist, in the Financial Times … he begins by naming the litany of institutions that were brought down in the “Credit Crisis of 2007-2009″… He then describes the difficulty of regulating large, complex institutions with these words… “The variety of institutions is matched by the variety of […]

Breaking up the banks

The Guardian reports: ~~~~ “Mervyn King, the governor of the Bank of England, has launched a blistering attack on Britain’s banks, describing the £1tn government support given to them as “breathtaking”. In an outspoken speech last night, in which he made his clearest call yet for the banks to be broken up, King warned that […]

Needed: $600 billion for the banks

Alan Greenspan discusses the too-big-too-fail banks which still face a gaping hole in their balance sheets. Bank loan loss reserves are typically estimated based on historical data and this economic crisis likely will exceed prior recessions/depressions. Mr. Greesnspan says the banks may need as much as $600 billion more in capital to cover losses what […]