Posts filed under “Regulation”

US Bank Fines = $95 Billion Dollars

In less than 5 years, these 5 banks have amassed nearly $100 Billion dollars in fines n 81 settlements:

 

 

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Source: Economist via Washington Post

 

Category: Bailouts, Corporate Management, Really, really bad calls, Regulation

Greenspan on Cap Requirements, Self Regulation

Greenspan discusses many of the ideas he had reversed himself on regarding the financial requirement.

Note he has adopted my Partner’s Joint & Thesis Liability explanation (from BN) that states the move to Corporate structure from a Partnership radically reduced the focus on risk management.

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Category: Federal Reserve, Really, really bad calls, Regulation, Video

The Bank War

Click to enlarge     A previous discussion on the founding and dissolution of the First Bank of the United States (BUS) which existed from 1791 to 1811.  After the First BUS recharter was defeated, the United States suffered defeat in the War of 1812, and suffered from a lack of fiscal order and an…Read More

Category: Credit, Legal, Regulation

Household Debt-to-Income Ratio, USA vs Canada

click to embiggen Source: BCA     I have been meaning to get to this since I was in Toronto last week, where I saw my friend (and fishing partner) Martin Barnes of BCA give an excellent presentation at the Toronto CFA Prediction Dinner. One of that charts that really stood out to me was…Read More

Category: Credit, Financial Press, Real Estate, Regulation

Top 10 Bank Fines (Post 2008-09 Crisis)

Fines here, fines there, fines everywhere! The Wall Street Journal discusses the proposed $11 billion dollar JPM fine, but  buries the good stuff in this morning’s article on Jamie Dimon (This Generation’s Greatest Banker! ®) We have been tracking JPM’s fines, but if you want an industry overview, try this collection: Here is a quick…Read More

Category: Bailouts, Corporate Management, Really, really bad calls, Regulation

Global Systemic Risk

click for ginormous graphic Source: NYU VLAB   I mentioned NYU’s VLAB earlier, but one more trick I wanted to share: You can drill down by region or even country to see how much risk is in the system. Note that this is a function of both size and riskiness, i.e., a very small reckless…Read More

Category: Credit, Fixed Income/Interest Rates, Regulation

New Measure of System Risk (circa 2008 Crisis)

Click to enlarge Source: Institute for New Economic Thinking     NYU prof Robert Engle, who long-time blog readers may recall from this post a ways back, won the Nobel prize for his work on Volatility. He has developed new ways to measure “Systemic risk” from his perch at the Volatility Institute at NYU: “We…Read More

Category: Bailouts, Corporate Management, Regulation

JP Morgan Fines Now More Than $8 Billion Dollars

Time to update the tally: Each year, JPM has profits of about $25 billion dollars on revenues well over $100 billion dollars. Part of the cost of generating that revenue in a variety of dubious and even extra-legal ways are fines. Since 2011, JPM has been fined $8B: $56 million (April 2011) $153.6 million (June…Read More

Category: Corporate Management, Legal, Regulation

SEC Regulatory Exemptions Led to Collapse

Go back and reread this post from this day 5 years ago: How SEC Regulatory Exemptions Helped Lead to Collapse Its quite amazing . . .

Category: Bailouts, Really, really bad calls, Regulation

WSJ: SEC Prosecution Fail

5 years after the financial crisis, the WSJ produces this enormous graphic about SEC prosecutions, and the lack thereof.

The key takeaway: If you can write a bog enough check, you do not really need to worry about breaking the law. Settlements are merely another cost factor, a cost of doing business.

After initially rejecting an SEC settlement with Bank of America, U.S. District Judge Jed S. Rakoff sums up this assembly line process: “While better than nothing, this is half-baked justice at best.”

 

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Category: Bailouts, Legal, Really, really bad calls, Regulation