Posts filed under “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.
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
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
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
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
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
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
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.”