Monthly Archives: February 2011

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Asian crisis of 1997-98 similar to 2007-08

The Asian financial crisis of 1997-98 was similar to the crisis of 2007-08, and the fixes proposed a decade ago sound familiar, but they did not prevent the later panic because the developed world saw itself as more sophisticated and … Continue reading

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Geithner supports mega-banks

Simon Johnson, Massachusetts Institute of Technology economist and author of “13 Bankers,” fears Treasury Secretary Timothy Geithner will let U.S. mega-banks grow as large as they want, in hopes they can capture much of the new financial business abroad, and ignore the potential for risk to … Continue reading

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Stern: Regulators need to name names

Prominent economists at the Stern School of Business, New York University, today criticized Treasury Secretary Timothy Geithner and the new Financial Stability Oversight Council for failing to identify systemically risky firms, which the economists claim is the most important task … Continue reading

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Much bank business is with other banks

A big part of bank business these days is just banks doing repo, derivative, hedging and trading deals with each other. This is a point reporter David Reilly makes in the Wall Street Journal’s Heard on The Street column today, … Continue reading

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Did Dodd-Frank end too-big-to-fail?

The New York finance attorney who blogs at Economics of Contempt argues that critics who claim the Dodd-Frank Act didn’t end the era of too-big-to-fail financial institutions are premature in their assessment. The Act establishes a resolution authority, to unwind … Continue reading

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Admati: Banks need much more capital

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Stanford professor Anat R. Admati argues in a Bloomberg column today for much higher capital requirements for banks and urges regulators to disregard “empty” threats from bankers that higher capital requirements will restrict credit and hurt the recovery. She notes … Continue reading

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Can trusts be trusted?

In the repo world, the most serious allegations against mortgage servicers may be that during the housing boom servicers did not correctly transfer mortgage documents to the trusts that created the mortgage-backed securities that became collateral for repurchase loans. This … Continue reading