Banks Have “Recovery Plans,” A Second Living Will, to Deal With Their Demise

By: Friday August 10, 2012 11:46 am

Reuters uncovers a scoop, that there’s apparently a second-layer living will process, a secret one beyond the public living wills we know about. To refresh your memory, banks are required to fill out living wills that detail how they would be unwound in the case of a financial failure. The initial public living wills that [...]

Banks Release Living Wills for Contingency of Winding Down Their Firms

By: Thursday July 5, 2012 6:57 am

As part of Dodd-Frank, systemically important financial institutions (SIFIs) had to put out “living wills” that explained how they would wind themselves down with the least overall disruption in the event of their failure. This was a contested proposition in Dodd-Frank, because many made the compelling point that a megabank with important connections all over [...]

JPMorgan Ignored Risks in Pursuing Fail Whale Trade

By: Tuesday May 15, 2012 8:15 am

One thing to understand about the Fail Whale debacle at JPMorgan Chase is that there were lots of warning signs. The trades were public knowledge for over a month; in fact, that’s part of the reason they failed so spectacularly, as hedge funds got wind of the trades and started taking the other side of [...]

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 [...]

FDIC’s New Resolution Authority Rules Would Still Have to Be Triggered By Others

By: Thursday May 10, 2012 11:35 am

The FDIC has put together a new format for how they would wind down a systemically important financial institution that got itself into trouble. This is part of the resolution authority granted by the Dodd-Frank financial reform law. When the next crisis brings a major financial firm to its knees, U.S. regulators will seize the [...]

Bank of America Sinking, May Pull Out of Geographic Regions

By: Friday January 13, 2012 8:55 am

Because of process issues, foreclosures slowed to their lowest point in four years, at the still-high rate of 804,000 repossessions for 2011. One out of every 69 homes in America received a foreclosure filing last year. Self-proclaimed experts claim that the worst of the foreclosure process issues have been dealt with, and that repossessions will [...]

Fitch: Too Big to Fail Banks Still Too Big to Fail

By: Friday December 16, 2011 6:53 am

Over the past few months, the rating agencies have started to reassess the creditworthiness of US banks, based on the impression that they actually do not have an implicit bailout from the US government, because of the new laws on financial regulation, particularly the ones that give resolution authority to the government on systemically significant [...]

Too Big to Fail Still Looms, a Year After Dodd-Frank

By: Thursday July 21, 2011 11:40 am

In addition to being the launch date for the Consumer Financial Protection Bureau, this is the one-year anniversary of the Dodd-Frank financial reform law. I wrote yesterday about how the law has not really caused much of a ripple on Wall Street. Let’s hone in on one, maybe the most important, aspect of this: ending [...]

Bank of America Rejects Principal Modifications

By: Wednesday March 9, 2011 8:20 am

There’s been a lot of back and forth in the analyst community about the proposed foreclosure fraud settlement. Here’s some more forth, in fact, from Adam Levitin, who says that many of the reiterations in the term sheet bring violations under the jurisdiction of the CFPB and state AGs, even in non-judicial foreclosure states, which [...]

FinReg’s Last Day

By: Thursday June 24, 2010 6:15 am

(Please see the update. The derivatives offer is a lot worse than I thought.) An odyssey that started back in December in the House could finally culminate today, with the finishing touches put on the Wall Street reform bill as the conference committee winds up its work. With so many consequential issues still yet to [...]

Obama Presses G-20 to Continue Global Stimulus

By: Friday June 18, 2010 11:06 am

In a letter to leaders of the G-20, President Obama called for a renewed focus on fiscal stimulus, rather than the austerity measures being promoted in Europe and around the world. He said that the economy risked a stunted recovery if government supports were kicked out at this crucial juncture, and that nations should “reaffirm [...]

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