Blog Entries tagged 'financial reform' Blog Entries tagged 'financial reform' http://www.cfozone.com Tue, 14 May 2013 13:25:06 +0100 FeedCreator 1.7.2 A better way to boost demand http://www.cfozone.com/index.php?option=com_myblog&show=A-better-way-to-boost-demand-.html&Itemid=713

Bear with me here. This is going to be one of those "out there" posts. But Steve Randy Waldman takes an interesting stab at a problem I've been wrestling with, at least in the furthest reaches of the financial corner of my brain, since the financial crisis began.

And that is how to stimulate the economy without creating another asset bubble. It sounds easy enough to the Keynesians, but as Waldman has pointed out before, rebooting aggregate demand through traditional g [...] ronaldfink6@gmail.com Wed, 18 Aug 2010 23:00:00 +0100 Risk recovery recession financial market reform financial crisis Federal Reserve Fed economy career advancement bubbles Banks bank lending The financial crisis is only "on pause" http://www.cfozone.com/index.php?option=com_myblog&show=The-financial-crisis-is-only-on-pause-.html&Itemid=713

There's some additional recent work out there that's worth citing in connection with Karen's post on Tuesday.


In particular, I would point readers to the piece posted Monday on voxeu.org by Enrico Perotti, a finance professor at the Amsterdam Business School. Essentially, Perotti's piece explains why Kotlikoff's prescription is necessary. As it did the US Congress, the banking industry has fought off international attempts to get the so-called Basel Committee to force the indust [...] ronaldfink6@gmail.com Tue, 06 Jul 2010 23:00:00 +0100 Volcker Rule Risk Regulation Obama Administration financial market reform financial crisis Congress compliance Banks banking reform Banking bailouts AIG vs. Goldman reveals the flaw in financial reform http://www.cfozone.com/index.php?option=com_myblog&show=AIG-vs.-Goldman-reveals-the-flaw-in-financial-reform.html&Itemid=713

The latest revelations  concerning the dispute between AIG and Goldman over collateral show how weak the new financial reform package really is.

After all, Goldman's demands for collateral from AIG as it was failing ended up costing taxpayers billions of dollars. Yet according to the testimony today during the crisis panel's latest hearings, the whole question hinged on what constituted fair value.

 To hear Goldman CFO David Viniar tell it, the Vampire Squid can [...] ronaldfink6@gmail.com Wed, 30 Jun 2010 23:00:00 +0100 Risk Regulation Goldman Sachs GAAP financial reform bill financial market reform financial crisis FASB derivatives credit default swaps Congress compliance Banks banking reform Banking bank failures bailout AIG Accounting Bad governance at root of crisis http://www.cfozone.com/index.php?option=com_myblog&show=Bad-governance-at-root-of-crisis-7142.html&Itemid=713

Anyone counting on regulation alone to prevent the world from falling into another financial black hole will be sorely disappointed, a group of experts warned in an article published yesterday by the International Federation of Accountants.

The experts say that all key parties to the financial disaster--from regulators to managers and investors--share the blame and that tighter regulation alone can therefore go only so far to prevent another crisis from materializing. 

& [...] ronaldfink6@gmail.com Tue, 29 Jun 2010 23:00:00 +0100 Risk Regulation financial reform financial market reform financial crisis executive compensation derivatives corporate culture compliance compensation Banks banking industry Banking bank failures auditors Accounting Bad governance at root of crisis http://www.cfozone.com/index.php?option=com_myblog&show=Bad-governance-at-root-of-crisis.html&Itemid=713

Anyone counting on regulation alone to prevent the world from falling into another financial black hole will be sorely disappointed, a group of experts warned in an article published yesterday by the International Federation of Accountants.

The experts say that all key parties to the financial disaster--from regulators to managers and investors--share the blame and that tighter regulation alone can therefore go only so far to prevent another crisis from materializing. 

& [...] ronaldfink6@gmail.com Tue, 29 Jun 2010 23:00:00 +0100 Risk Regulation financial reform financial market reform financial crisis executive compensation derivatives corporate culture compliance compensation Banks banking industry Banking bank failures auditors Accounting Letting Geithner off easy on the TARP http://www.cfozone.com/index.php?option=com_myblog&show=Letting-Geithner-off-easy-on-the-TARP.html&Itemid=713

Tim Geithner once again says taxpayers are getting a good return on the funds they provided banks through the Troubled Asset Relief Program.

And his line about 75 percent of the money being repaid may be true enough. It may even reflect this uncomfortable fact.

But 91 banks missing their dividend payments last month is hardly something to write home about.

I'll let Yves Smith go on about how bad the deal was for taxpayers from the  go.

(But here's the mon [...] ronaldfink6@gmail.com Tue, 22 Jun 2010 23:00:00 +0100 Timothy Geithner TARP Obama Administration financial market reform financial crisis Congressoinal Oversight Panel compliance Banks banking reform Banking bailouts The Fed once again proves to be a regulatory pushover http://www.cfozone.com/index.php?option=com_myblog&show=The-Fed-once-again-proves-to-be-a-regulatory-pushover.html&Itemid=713

Anyone who thinks the Federal Reserve ought to oversee systemic risk ought to take a close look at this article.

By now, of course, it's no surprise that banks used yet another financing gimmick to make their capital look stronger than it really was. This one, involving Trust Preferred Securities known as TruPS, is doubly gimmicky, in so far as it involves both hybrid securities (i.e., a have your cake and eat it combination of debt and equity) and off-balance-sheet treatment. In te [...] ronaldfink6@gmail.com Tue, 08 Jun 2010 23:00:00 +0100 Timothy Geithner Regulation Obama Administration financial market reform financial crisis Federal Reserve Federal Deposit Insurance Corp. Fed Enron compliance Banks banking reform banking industry Banking EU countries must coordinate new rules http://www.cfozone.com/index.php?option=com_myblog&show=EU-countries-must-coordinate-new-rules.html&Itemid=713

European regulators in countries throughout Europe are in the midst of proposing a wave of new regulations to resolve the current crisis and reduce the threat of future ones. So is the European Commission. But not all of the regulators’ proposals are complementary, which could lead to a wealth of difficulties should conflicting proposals go forward in different jurisdictions, especially if they contradict EC proposals.

As the WSJ reported [...] denise.bedell@tc-worldwide.com Sun, 06 Jun 2010 23:00:00 +0100 Regulation legislation financial market reform European Union Euro area banking reform