Break Up the Banks for a Faster Economy

By: Saturday October 27, 2012 9:39 am

This week, ex-banker Charles Morris, who was featured in the documentary Inside Job, brings us compelling evidence that countries with a large financial sector create lesser economic growth than countries that have restrained that sector. While a well-functioning financial system is key to growth, there’s a balance that needs to be struck, Morris writes: Once [...]

Fed Governor Daniel Tarullo: Break Up the Banks

By: Thursday October 11, 2012 8:30 am

In an announcement that would have really helped two years ago, Federal Reserve Governor Daniel Tarullo called for a size cap on the largest financial firms. Tarullo is the point person at the Fed for bank policy, including consumer protection and regulatory measures. So he’d be in the best position in that organization to know [...]

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 [...]

Moody’s: TBTF Still Operative

By: Friday June 4, 2010 8:10 am

Shahein Nasiripour reports that one of the major investor services has concluded that the Wall Street reform bill will not end the practice of “too big to fail,” because mega-financial firms will still remain interconnected, and resolution authority will probably not be able to untangle all the domestic and international obligations in enough time to [...]

Wall Street, White House Admit: Financial Industry Unchanged By Reform Bill

By: Monday May 24, 2010 3:23 pm

One of Wall Street’s finest slipped and told the New York Times that the financial reform bill wouldn’t affect their core business to any major degree. Many executives spent the weekend trying to assess the impact of the legislation, which has yet to take final form. With some crucial differences between the House and Senate [...]

As Wall Street Demands Fealty, Progressives Can Learn From the FinReg Debate, Too

By: Sunday May 23, 2010 4:10 pm

Wall Street is really miffed that their whims aren’t being attended to immediately and without discussion. Wall Street executives say language in the Senate financial reform bill dealing with derivatives is like a horror movie slasher — repeatedly left for dead, only to rise again and again. The move to force banks to spin off [...]

Fed Audit Is Actually Just An Audit

By: Friday May 7, 2010 10:48 am

I am inclined to 100% agree with Dean Baker’s assessment of the audit the Fed compromise hammered out yesterday. To cope with the economic crisis, the Fed created 13 different special lending facilities. At their peak last year, these facilities had lent out more than $2 trillion. The Fed has only disclosed aggregate data about [...]

White House Wants To Stop Audit The Fed Amendment

By: Friday April 30, 2010 12:12 pm

The amendment to audit the Federal Reserve had well over 300 co-sponsors in the House of Representatives, and it passed easily in the House Financial Services Committee. It lives in their version of Wall Street reform. The Senate, as part of a bankruptcy reform bill last year, passed a version of auditing the Fed, through [...]

Republican FinReg Proposal – Pretty Much The Dodd Proposal, Only A Bit Weaker

By: Wednesday April 28, 2010 8:00 am

The Republicans released their own counter-proposal for financial reform last night, and the amazing thing about it is how much it looks like the Dodd draft that they’ve filibustered twice. Sewell Chan reports: Both proposals would seek to monitor systemic risks to the financial markets, allow the government to seize and dismantle financial institutions on [...]

With Wall Street Reform Vote Looming, Will the White House Support The Safe Banking Act?

By: Sunday April 25, 2010 2:21 pm

The Sunday talk shows gave the impression that both sides are moving closer to agreement, but aren’t there yet. I wouldn’t be surprised to see Republicans block consideration of the bill when it gets a vote on Monday night. That doesn’t mean the bill dies, however; Republicans this morning took pains to say they wanted [...]

Krugman Reverses, Acknowledges The Problem Of Financialization

By: Friday April 23, 2010 8:50 am

Paul Krugman has oddly been one of the leading detractors against breaking up the banks and shrinking the financial sector. He doesn’t come right out and say it in this op-ed, but he’s basically re-thought the position. More than that, reform actually should hurt the bankers. A growing body of analysis suggests that an oversized [...]

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