Monthly Archives: April 2011

Gallery

Accountants failed again in the financial crisis

This gallery contains 1 photos.

A U.S. Senate subcommittee held a hearing April 6 on “The role of the accounting profession in preventing another financial crisis,” and hardly anyone paid attention, probably because no one believes accountants are financial watchdogs anymore. Certainly they don’t seem … Continue reading

Gallery

Securitized banking fueled by myths

This gallery contains 1 photos.

Four myths made securitized banking seem safe before the financial crisis, Eric S Rosengren, president of the Federal Reserve Bank of Boston, said in a speech at Boston University February 28. Securitized banking is securitization financed mainly with repo loans. This is … Continue reading

Gallery

Basel rules let equity vary widely among banks

This gallery contains 1 photos.

JP Morgan CEO Jamie Dimon claims European banks are calculating their risk more leniently than U.S. banks do. This makes U.S. banks have to run their operations with more equity than do European banks, and that eats into profits. Now … Continue reading

Gallery

Repos and shadow banking system still need reform

This gallery contains 1 photos.

While the new Financial Stability Oversight Council tries to identify and then supervise systemically important financial institutions, as required by the Dodd-Frank Act, two other important issues still need attention, said Federal Reserve Board member Daniel K. Tarullo in a … Continue reading

Gallery

Basel’s weak repo-related ratios get little attention

This gallery contains 1 photos.

While much attention seems to be focused on setting higher equity requirements for financial institutions, in hopes they can better survive a financial crash, little attention is being paid to the two rules that would deal directly with the financial panic of 2007-2008 and the run on … Continue reading

Gallery

Economists offer ways to measure and monitor systemic risk

This gallery contains 1 photos.

Economists have produced several studies showing ways the new Office of Financial Research and other experts might measure systemic risk and identifying useful data to spot rising risk. The important point is that regulators were not collecting needed data before the financial criis of 2007-2008, … Continue reading

Gallery

A list: Experts who want to break up the big banks

This gallery contains 1 photos.

(last updated:  February 5, 2013) A growing chorus of economists, analysts and other observers are calling for the mega-banks to be broken into smaller pieces. Whatever the cause of the finanical crisis of 2007-2008, the first step toward a solution … Continue reading