Obama vs. Taibbi: Obama’s Defense of Dodd-Frank Falls Short

By: Monday October 29, 2012 9:15 am

Taibbi is pretty polite about it, but Obama’s defense involves a lot of misdirection. It assumes that Lehman Brothers, by virtue of having failed, was the only financial institution out there responsible for the collapse, rather than an example of industry-wide behavior.

Finance Lobby Goes to Work With Post-Sandy Weill Damage Control

By: Monday July 30, 2012 10:25 am

Boy, the financial industry is really circling the wagons in the wake of Sandy Weill’s comments endorsing a breakup of big banks and the separation of investment and commercial banking. The finance lobby has revved up their sympathetic sources to ensure the world that change will never come, and anyway that it’s irrelevant. First, they [...]

Former Citigroup CEO Sandy Weill: Break Up the Big Banks

By: Wednesday July 25, 2012 10:23 am

Sandy Weill, the former CEO of Citigroup, became the latest unorthodox figure to endorse the concept of breaking up the mega-banks. Weill joins former and current Federal Reserve regional bank Presidents like Richard Fisher and Thomas Hoenig, as well as several academic conservatives. What’s even more unusual about Weill joining this chorus is the central [...]

JPMorgan Chase Announces $5.8 Billion Fail Whale Loss to Date

By: Friday July 13, 2012 7:35 am

In an earnings statement for the second quarter of 2012, JPMorgan Chase announced that they lost $4.4 billion in Q2 on the “Fail Whale” trades out of their Chief Investment Office in London. Overall they still managed to book a $5 billion profit for the quarter. This comes up on the low end of estimates [...]

JPMorgan Chase Not Threatened by Investigations, Threat of More Regulations

By: Friday June 1, 2012 11:39 am

JPMorgan Chase will spin off a “special investments group” to isolate the Chief Investment Office that created the Fail Whale trades. Basically they are taking the salvageable remains out of the CIO and ring-fencing it, while curtailing the speculative trading that led to the massive losses. That’s the official story, anyway. We won’t know the [...]

Volcker Rule Tightening Just the Beginning of a Financial Reform Strategy

By: Tuesday May 22, 2012 8:20 am

The Fail Whale trades showed that massive, as-yet unregulated risk still exists in our financial system, with the potential to bring down the economy once again and trigger massive taxpayer bailouts. Since the Administration already passed a law that was supposed to deal with that, they’re scrambling to restore what little of value existed in [...]

Elizabeth Warren Expresses No Confidence in Current Bank Accountability Measures

By: Thursday May 17, 2012 4:30 am

This has been the week where we got a taste of how Elizabeth Warren would comport herself as a US Senator. Since JPMorgan Chase’s Fail Whale trade, which has reportedly already grown to a $3 billion loss, nobody in the political arena has been more vocal – or more knowledgeable – about the trade and [...]

Financial Reform Returns to the Political Agenda

By: Tuesday May 15, 2012 6:19 am

If there’s one thing to be gained from the Fail Whale trade, it’s that one section of the political class has rediscovered the need for stronger financial regulations. Whether it’s the reinstitution of Glass-Steagall, limits on bank size or simple accountability, it has suddenly become worthwhile to mention that the status quo, even after Dodd-Frank, [...]

Glass-Steagall or Bank Size? Why Not Both, And More?

By: Monday May 14, 2012 12:19 pm

In the wake of JPMorgan Chase’s Fail Whale trade, proponents of stiffer regulation on Wall Street than what was ushered in with Dodd-Frank have offered a variety of solutions. In truth all of them could be beneficial in tandem to reduce risk and political influence from the financial system. For instance, Elizabeth Warren, who has [...]

Levin and Merkley Confirm: We Didn’t Intend Fail Whale Trades To Be Legal

By: Friday May 11, 2012 1:39 pm

Politicians using Jamie Dimon’s Fail Whale trade as a pretext to call for tighter banking regulations are performing exactly the correct public service in their job description. They’re supposed to respond to events as they happen, and create appropriate safeguards to minimize the risk from those events. And Senators Levin and Merkley make the point [...]

Bair Recommends Scrapping the Volcker Rule

By: Friday December 9, 2011 10:55 am

If you needed to appeal to one authority on banking regulation, you could do worse than to consult Sheila Bair, the former chairwoman of the FDIC. And now she’s advocating scrapping the Volcker rule and starting over. She comes at this by looking at the spectacle of MF Global – a brokerage house that would [...]

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