Category Archives: Dodd-Frank Act

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Shadow banking, part 2: Lack of shadow master plan means impact of new rules is uncertain

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The shape of shadow banking reform is now clear. Congress and regulators are going to put a bunch of new rules in place, but they’re not going to articulate a coherent vision of what shadow banking should, or should not, … Continue reading

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Shadow banking, part 1: Failure to reform shadows hurts economy, endangers financial markets

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Updated June 18, 2012 One of the failures of the Dodd-Frank Act was in not restructuring shadow banking, with a sturdy repo market at its heart, so it could safely gear back up to boost credit and help the economy … Continue reading

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Part 1: Still no data – What’s taking so long?

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It’s three years after the financial crisis, and we still don’t have the most basic data that we  need in order to be able to spot a gathering storm in the financial markets. Especially needed is more information about shadow … Continue reading

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MF Global warning: Financial markets have not been fixed

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The October 31 bankruptcy of MF Global Holdings Ltd., a broker-dealer on Fifth Avenue in New York City, is important news for all Americans because it is a warning: The Dodd-Frank Act, which Congress passed 16 months ago to protect Americans … Continue reading

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Leading crisis experts are trying to get our attention

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When three of the economists most knowledgeable about the financial crisis of 2007-2008 start jumping up and down, waving their arms and shouting “fire!” … maybe we should listen? That’s happening now. Three prominent economists are calling for a solution to … Continue reading

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FT: Volcker rule may exempt repos and securitization

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Repos and securitization, the combination that nearly destroyed the credit markets and the U.S. economy in 2007-2009, will not be prohibited by the Volcker rule, according to the Financial Times. The Volcker rule is intended to limit proprietary trading at … Continue reading

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If it walks like a bank, it should be regulated like a bank

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Financial institutions that borrow short-term loans and use that money to lend long-term loans – that is, they borrow short and lend long – should be regulated like FDIC-insured banks. That’s the essence of a new paper by Morgan Ricks, a … Continue reading