Posts filed under “Regulation”

Re-Regulating the Financial Markets

National Economic Council Director Lawrence Summers laid out five principles for re-regulating the financial markets:

1. The government must have the authority to take over and liquidate failing nonbanking financial institutions.
2. Regulators must be able to make certain that financial institutions have enough capital to weather crises.
3. Regulated entities must not be able to choose their regulators,
4. Regulators should not have to fight each other for jurisdiction.
5. The interests of consumers must trump the interests of regulated companies.

Too bad these were mostly ignored over the past 15 months . . .

>

Previously:
Larry Summers: Wrong Man for the Job (April 4th, 2009)

http://www.ritholtz.com/blog/2009/04/summers/

Source:
Summers Deflects Criticism of White House Intervention
JONATHAN WEISMAN
WSJ, JUNE 12, 2009, 5:10 P.M.

http://online.wsj.com/article/SB124484050926810961.html

Category: Bailouts, Regulation

TARP Repayment vs Re-Regulation

Be sure to read Jack McHugh’s comments on the TARP repayment. He specifically asks: 1. With all the chatter about responsible regulatory reform, shouldn’t the rules governing bank conduct (e.g. leverage ratios, off balance sheet vehicles, etc.) be put in place before TARP repayments flow in? 2. Before TARP preferreds can be redeemed, shouldn’t the…Read More

Category: Bailouts, Credit, Regulation

How Congress Betrayed Investors to Help Banks

This morning’s outrage comes to us via the WSJ, and it discusses how our elected representatives rolled over for their overlords, the bankers, in grateful genuflection to their largesse: Huge heaps of lobbying monies: “Not long after the bottom fell out of the market for mortgage securities last fall, a group of financial firms took…Read More

Category: Bailouts, Credit, Politics, Regulation, Valuation

Too Few Banks, Too Many Giants

I have repeatedly mentioned Too Big To Succeed as a cause of the most recent crisis, but have you ever wondered HOW we got that way? One obvious suspect has been the easy M&A environment of the past 20 years. Instead of a very competitive market where mergers for sheer size sake is discouraged, the…Read More

Category: Bailouts, Credit, M&A, Regulation

Financial Overhaul Plan ?

Yesterday, I lamented that “So far, the Obama administration approach to bailouts has been to keep running Bush Economic Term III.” The reference was to the continuation of the Bush policies, by many of the same people involved in that prior, ruinous bailout approach. Soon, we shall find out if Team Obama’s “Change we can…Read More

Category: Bailout Nation, Bailouts, Credit, Derivatives, Regulation

Busted Banks Rebuff Regulation

Front page of the NY Times goes over the shameful behavior of banks — one of the primary causes of the entire crisis — using bailout money to pay lobbyists to maintain the regulatory status quo. Its yet another reason for why they should have been put into bankruptcy once they became insolvent. So far,…Read More

Category: Bailout Nation, Bailouts, Credit, Regulation

Blaming Clinton?

Interesting Sunday Times Magazine article on Bill Clinton. The part I found most intriguing was about the regulatory acts that the Clinton administration was  responsible for: “One thing that thrived during Clinton’s presidency, the economy, has wilted of late. The economic boom of the 1990s created nearly 23 million new jobs during his eight years,…Read More

Category: Bailouts, Politics, Regulation

The Rise of A Financial Stability Regulator

Just as the Great Depression led to the creation of new institutions and financial practices, the Obama administration is on track to impact financial regulations. One of the new concepts involves a financial stability regulator, David Wessel explains.


5/27/2009

Category: Regulation, Video

How to Fix the Financial System

Hey, put a BandAid on that, or it might get infected! > The Committee on Capital Markets Regulation has a proposal to fix the financial. I only gave it a quick look through, but what I saw was pretty milquetoast: Here’s the highlights — a list of obvious fixes — via Real Time Economics: -Keep…Read More

Category: Bailouts, Markets, Regulation

FDIC Bank Failures (by Week)

In light of Friday’s BankUnited Failure, and our earlier post on rising foreclosures, here is an updated version of a chart I ran previously from Ron Griess of The Chart Store, showing bank failures: > Bank Failures reported by FDIC

Category: Credit, Regulation