Banks are an important asset for our capitalist economy. In fact it can be argued that a healthy and thriving banking system is at the core of a robust, growing economy. On the other hand, the Great Recession has taught us deregulation of the banking system, combined with fraud and greed, can pose a severe economic threat to the well-being of our economy as well as the global economy. Below please find resource posts on the “too big to fail” banks.
Powerful Fed Board Member Calls for Capping Bank Size
A high profile and powerful member of the Federal Reserve’s Board of Governors, Daniel Tarullo, calls on Congress to cap the size of the nation’s financial firms.
The Relationship between Regulations, Failed or Assisted Banks and S&Ls
The relationship between regulations, failed or assisted banks and S&Ls Also, credit to Marilynn Baker.
Speaking about Who Doesn’t Pay Taxes
Speaking about people not paying taxes…. $21 to $32 Trillion in Off-Shore Jurisdictions “A significant fraction of global private financial wealth — by our estimates, at least $21 to $32 trillion as of 2010 — has been invested virtually tax-free … Continue reading →
The Big Banks Fail Us Again: 800,000 Homeowners were Pushed toward Foreclosure Unnecessarily
An important question: How many people have been pushed toward foreclosure unnecessarily? Based on an a study from the Federal Reserve Bank of Chicago, the government’s Office of the Comptroller of the Currency (OCC), Ohio State University, Columbia Business School, and … Continue reading →
Bank Loans Grow to Post-Recession Peak: U.S. GDP Growth Expected
Good news. Lending by U.S. banks has grown to a post-recession peak, supporting an expected growth in GDP, according to an article in Bloomberg. “Borrowing is the best indicator out there for future growth. If you see the demand to … Continue reading →
Misplacing the Blame for Budget Problems: The False Narrative
The Economist View explains the false narrative of budget problems: “Bankers, with the help of their purse string controlled puppets in government, have been able to successfully blame our budget problems on social insurance and other government spending they oppose. … Continue reading →
Yardeni: Banks are the Achilles’ Heel of Capitalism
Noted economist, Edward Yardeni, President and Chief Investment Strategist of Yardeni Research, is not supportive of the ‘too big to fail’ banks. As he explains in Barron’s, “banks are the Achilles’ heel of capitalism.” “The problem with banks is that … Continue reading →
Titans of Banking, Economics and Finance Call for Breakup of ‘Too Big to Fail’ Banks
The Big Picture compiled an impressive list of noted titans in banking, economics and finance calling for the break up of ‘Too Big to Fail’ banks. “The following bankers are calling for the big banks to be broken up: -Former … Continue reading →
‘Too Big to Fail Banks’ are Much Bigger
Neil M. Barofsky, the special inspector general of the Troubled Asset Relief Program (TARP), observes, “The top banks are 23 percent larger than they were before the crisis. They now hold more than $8.5 trillion in assets, the equivalent of … Continue reading →
Former Citigroup Chairman: Separate Investment Banking from Banking
Guess who’s added his name to the growing list of notable people suggesting that investment banking needs to be separated from banking? No less than former Citigroup Chairman and CEO Sanford Weill this morning on CNBC’s “The Squawk Box.” “What …Continue reading →
Study: Global Most Wealthy Have at Least $21 Trillion Hidden in Secret Offshore Tax Havens
I’ve been sitting on the following study for a few days to see if it came under severe criticism. So far I haven’t seen any debunking of the study. The findings of this study are incredible. The study contends that … Continue reading →
A Must Read: “Failing to Break Up the Big Banks is Destroying America”
Barry Ritholtz has written a very compelling and scary article on the “Too Big to Fail” banks. I highly recommend it. I place the article in the “must read” category. His article has six major, well-documented, sections: The Size of … Continue reading →
The Financial Crisis Was Foreseeable … Thousands of Years Ago
The Financial Crisis Was Foreseeable … Thousands of Years Ago – http://pulse.me/s/bsACC
Canada’s Banking System Helped Canada Surpass the U.S. in Wealth
I forgot to mention in the blog dealing with Canada and 16 other countries surpassing the U.S. in wealth that one of the reasons for Canada’s positive economic growth is Canada escaped in relative terms the great U.S. banking crisis. … Continue reading →
Top GOP Appontee Worried about Banks
I’ll tell you about Sheila Bair in a minute but, most importantly, this is what she has to say about the alleged corruption in the banking system: “I worry that the public is getting cynical. One of the reasons I … Continue reading →
Can you name your banker? I can’t. Yes, I know the name of my drive-up teller, but it’s been years since I knew the name of any key decision-makers in my bank. I recall when my wife and I bought … Continue reading →
Consumer Financial Protection Bureau Puts $140M Back in Consumers Pockets
The newly formed Consumer Financial Protection Bureau (CFPB) bagged its first major win against Capital One Bank. Here’s the release from the CFPB site: WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced its first public enforcement action … Continue reading →
A Must Read Article on Mega Banks
Dr. Peter T Treadway, Chief Economist, CTRISKS Rating, LTD, Hong Kong, writes a long but very worthwhile article on banking and banks (i.e., regulation, Basel III, Dodd-Frank, LIBOR, too big to fail, risk). His article is very informative. I highly … Continue reading→
Bipartisan “Financial Crisis Inquiry Commission” Report Examines Causes of Great Recession
The bipartisan ‘Financial Crisis Inquiry Commission’ was established by Congress “to examine the financial and economic crisis that has gripped our country and explain its causes to the American people.” Their final report is a very comprehensive analysis of the … Continue reading →
Find out why David Frum, a former economic speechwriter for President George W. Bush,, ends his column with this quote. “And then understand why all this talk of “We could be like Greece” so radically misses the point. We’re in … Continue reading →
Best Article on Status of Financial Regulatory Reform
The best article I’ve read, albeit long, on the status of financial regulatory reform is linked below. Regulatory Reform since the Financial Crisis Governor Daniel K. Tarullo Member, Federal Board of Governors Federal Reserve System This article was originally presented … Continue reading →
Banks and Corporations are Sitting on Huge Reserves
Banks Stockpile Huge Excess Reserves The most recent Federal Reserve Statistical Release H.3 ( March 8, 2012 ), dealing with bank reserves, shows the quantity of excess reserves, above and beyond required reserves, has grown substantially following the collapse of … Continue reading →
Despite Dodd-Frank Criticism, Banks on a Roll
Banks Full-Year Net Income Highest Since 2006 Banks insured by the FDIC experienced full-year net income of $119.5 billion, the highest since 2006, according to the latest press release from the FDIC. This outcome appears to be in direct conflict … Continue reading→
Ritholtz has a great article on the cause of the great Recession. It’s captured below. Insane Levels of Leverage by the Too Big to Fail Banks – Not Deadbeat Borrowers – Caused the Financial Crisis The Cause of the Financial … Continue reading →
FBI: Banks Responsible for Mortgage Fraud
Sometime in the past I learned that mortgage fraud involved U.S. major banks. Yet last night I listened to a banker explain on John Stossel’s show on Fox Business the banks were basically not culpable for the mortgage crisis. The … Continue reading →
U.S. Bank Failures, Regulations and Federal Prosecutions
David Cay Johnston, a Pulitzer prize winning journalist, has posted two interesting graphs on TaxProf Blog. The first figure depicts a historical review of bank failures, regulations and inequality. The correlation of these factors is striking, but as Johnston correctly … Continue reading →
Banks – Too Big to Fail or Too Big for Our Own Good?
There is little question that banks are an important and vital component of a robust, capitalist system. Since 2008 however the role of banks in creating the the crisis which led to the Great Recession has caused a re-examination of … Continue reading →
Break Up the Giant, Insolvent Banks?
Are the giant banks too big to fail? Should they be broken up? Are they the “only way to save the economy”? Frankly I don’t know the answers to these complex and important questions. However, I will give leverage to … Continue reading →
Holy Cow! Derivatives Exceed Global GDP by a Factor of 10!
Holy Cow! The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, according to Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group. As reported by Bloomberg, Mobius goes …Continue reading →