Posts filed under “Bailouts”

Happy 100th Birthday, Mother Merrill. We Miss You

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Source: Bank America



Merrill Lynch Pierce Fenner & Smith turns 100 today. At least, she would have been, if she was a standalone entity, and not a government rescued TBTF entity, forced into a shot-gun wedding with Bank of America.

I have a warm place in my heart for the firm once referred to as Mother Merrill. As a young trader, I interviewed for an entry-level position. Right there on the main trading floor, a cavernous affair the size of several football fields in the downtown office. It was unlike any place I had ever been in before. I had plenty of friends who worked on desks there, and eventually came to know many folks in their research department. There was at one time a sense of camaraderie at Merrill, a real feeling that everyone was rowing in unison. In my experience, it was a unique place, with a sense of passion and purpose. And even though I never worked there, I was mentored by a number of traders who did. It was that sort of place.

The idea of democratizing finance for the middle class was novel. So too was the Cash Management Account (CMA), allowing brokerage customers to combine money market, check-writing and credit card all in one account. Win Smith, son of founding partner (yes, that “Smith”) details this history in Catching Lightning in a Bottle: How Merrill Lynch Revolutionized the Financial World.


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Category: Bailouts, Corporate Management, Digital Media, Investing, M&A

The Federal Reserve: Looking Back, Looking Forward

The Federal Reserve: Looking Back, Looking Forward Chairman Ben S. Bernanke At the Annual Meeting of the American Economic Association, Philadelphia, Pennsylvania January 3, 2014       In less than a month my term as Fed Chairman will end. Needless to say, my tenure has been eventful–for the Federal Reserve, for the country, and…Read More

Category: Bailouts, Federal Reserve, Think Tank

When Might the Federal Funds Rate Lift Off?

When Might the Federal Funds Rate Lift Off? Computing the Probabilities of Crossing Unemployment and Inflation Thresholds (and Floors) Edward S. Knotek II and Saeed Zaman       The Federal Open Market Committee has been providing guidance to help markets anticipate when it will begin raising the federal funds rate target. The most recent…Read More

Category: Bailouts, Federal Reserve

Has the Fed Stabilized the Price Level?

Has the Fed Stabilized the Price Level? Marc P. Giannoni and Hannah Herman Liberty Street Economics, November 27, 2013     The Federal Reserve Reform Act of 1977 established the monetary policy objectives of maximum employment, stable prices, and moderate long-term interest rates. The goal of “stable prices” has long been understood to mean a…Read More

Category: Bailouts, Federal Reserve, Think Tank

Bullard on the Taper: “Everything is on the Table”

Federal Reserve Bank of St. Louis President James Bullard talks about the potential for a reduction in the Fed’s bond buying, asset prices and the U.S. economy. Bullard speaks with Erik Schatzker on Bloomberg Television’s “Market Makers.”

Source: Bloomberg Nov. 20 2013

Category: Bailouts, Federal Reserve, Video

JPMorgan and Uncle Sam Now Partners in Pillaging of America

Source: Yahoo Finance

Category: Bailouts, Media, Video

Too-Big-to-Fail: The Role of Metrics

Too-Big-to-Fail: The Role of Metrics Narayana Kocherlakota – President Federal Reserve Bank of Minneapolis, November 18, 2013     Thanks for the introduction, Ron. It’s a great pleasure to address all of you tonight. First off, let me say welcome to the Minneapolis Fed. I see this workshop as being one more step on an…Read More

Category: Bailouts, Federal Reserve, Think Tank

A Limited Central Bank

A Limited Central Bank Charles I. Plosser Federal Reserve Bank of Philadelphia, November 14, 2013     PDF version (159 KB, 13 pages) Highlights President Charles Plosser discusses what he believes is the Federal Reserve’s essential role and proposes how this institution might be improved to better fulfill that role. President Plosser proposes four limits…Read More

Category: Bailouts, Federal Reserve

QE & Ultra-low Interest Rates: Distributional Effects + Risks

Source: McKinsey & Company     McKinsey has a new study out on the impacts of QE. I have yet to read the full report (or summary) but the graphic above and excerpt below give you some flavor: The impact that ultra-low interest rates have had on banks has been mixed. They have eroded the…Read More

Category: Analysts, Bailouts, Digital Media, Federal Reserve

Why Have No High Level Executives Been Prosecuted In Connection With The Financial Crisis? Jed S. Rakoff, U.S. District Judge 11/12/13     Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation:…Read More

Category: Bailouts, Legal