Posts filed under “Bailouts”
Awesome column by my BV colleague Mark Gilbert, observing that true ‘Lehman Moments’ must clear certain hurdles — and most that are beinfg termed that simply don’t.
It isn’t a Lehman Moment . . .
• If people are calling it one.
• Unless somewhere in Germany there is a Landesbank up to its neck in trouble.
• If the endangered firm has a friend in its hour of need.
• if the CEO isn’t issuing denials and reassurances, or blaming speculators.
• if it doesn’t contaminate an entire industry.
He concludes that “So far, Lehman is still in a class of its own” — and I agree.
Go read the entire column here.
True `Lehman Moments’ Must Clear These Hurdles
Bloomberg, October 1, 2015
Are BHCs Mimicking the Fed’s Stress Test Results? Angela Deng, Beverly Hirtle, and Anna Kovner Liberty Street Economics, September 21, 2015 In March, the Federal Reserve and thirty-one large bank holding companies (BHCs) disclosed their annual Dodd-Frank Act stress test (DFAST) results. This is the third year in which both the…Read More
Why the Federal Reserve Failed to See the Financial Crisis of 2008: The Role of “Macroeconomics” as a Sense making and Cultural Frame
Now the DOJ Admits They Got it Wrong William K. Black September 10, 2015 By issuing its new memorandum the Justice Department is tacitly admitting that its experiment in refusing to prosecute the senior bankers that led the fraud epidemics that caused our economic crisis failed. The result was the death of…Read More
In a move that can only mean a presidential election campaign is upon us, the Justice Department said it is finally going to pursue individual white-collar criminals. As the New York Times reported, the Justice Department “issued new policies on Wednesday that prioritize the prosecution of individual employees – not just their companies – and put pressure on corporations to…Read More
There have been several theories floating around for why the Federal Reserve won’t raise rates in September: oil at $40 a barrel means there’s no inflation; the volatility in global markets; falling commodity prices suggest a global slowdown is a risk that might become more likely if China’s growth falters. I find none of these…Read More
Around the World in 8,379 Foreign Entities Preston Mui and Friederike Niepmann Liberty Street Economics, August 2015 The largest U.S. financial institutions conduct business around the world, maintaining a strong presence through branches and subsidiaries in foreign countries. This blog post highlights trends in their foreign ownership over the past twenty-five years, complementing recent…Read More