In it together: The banking supervisor decision brings the eurozone one step closer to a single banking union
The move will see around 200 of the biggest banks in the eurozone come under the supervision of the European Central Bank (ECB), in a move designed to help protect the single currency from future financial crises.
With the new supervisory powers in place, the ECB will be able to act early on to [...]
Tim Geithner, the US Treasury secretary, acted to shield Citigroup’s bondholders and management from accountability at the height of the financial crisis while taxpayers were left on the hook, a former US bank regulator has alleged.
Sheila Bair, who served as chairman of the Federal Deposit Insurance Corp during the crisis and its aftermath, levelled fresh attacks at Mr Geithner, the Obama administration, fellow financial regulators and bankers such as Vikram [...]
The next collapse will make the 2008 meltdown look like a day at the beach. According to Professor William Black, it looks like a mathematical certainty. Black is a former top bank regulator who helped unwind the Savings and Loan scandal. He is also a professor of both law and economics and studies why we have“reoccurring and intensifying financial crises.” In an interview this week, he told me, “. . . each [...]
by George Washington
Before we can understand what’s really going on with JP Morgan’s loss (which will probably end up being a lot more than $2 billion), we need a little background.
Is the world’s largest publicly-traded company
Is the largest bank in the U.S. … the biggest of the too big to fail banks which are killing the American economy
Is the largest derivatives dealer in the world (and see this), and derivatives are inherently destabilizing for the economy
Essentially wrote the faux “reform” legislation [...]
From The Big Picture:
“When the crisis erupted, we realized we had stuck to a fairly basic rule, which was that the bulk of Tier 1 capital had to be in equity. That turned out to be very, very important.”
- Jamie Dickson, Superintendent, OSFI (Canada’s bank regulator)
Bloomberg Markets has a list of the world’s strongest banks — they are dominated by Canada and Singapore firms.
Read full article…
by Chris Martenson
Bill Black: Our System Is So Flawed That Fraud Is Mathematically Guaranteed
“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it.”
- Frederic Bastiat
Bill Black is a former bank regulator who played a central role in prosecuting the corruption responsible for the S&L crisis [...]
The CBRC says it began an investigation into bank fees on April 1.
SHANGHAI—In a fresh sign of official displeasure with the nation’s state-run banking system, China’s bank regulator has warned lenders they will be “severely punished” for charging excessive fees.
In a notice on its website dated Friday, the China Banking Regulatory Commission said it began an investigation into bank fees on April 1, adding that banks that are found [...]
Beijing: China may be sitting on world’s highest foreign exchange reserves of about USD 3.20 trillion but it is also burdened with USD 2.78 trillion government debt causing great deal of concern among policy makers.
China’s government debt amounts to about 17.5 trillion yuan (USD 2.78 trillion) about 43 per cent of the country’s gross domestic product (GDP), Yang Kaisheng, president of the Industrial and Commercial Bank of China, said Tuesday.
Jurors found Allen Stanford guilty of fraud, conspiracy, money laundering and obstruction of justice [Reuters]
A jury has convicted financier Allen Stanford on all but one of the charges he faced for allegedly bilking investors out of more than $7bn in one of the largest pyramid schemes in US history.
The Texan had pleaded not guilty to bilking 30,000 investors from more than 100 countries through bogus investments with Stanford International Bank.
Jurors on [...]
It could be either for good or bad.
Some of them:
2/20/12 (SWITZERLAND) Credit Suisse Chief Joseph Tan resigns
Some European banks may ultimately need state help to meet new capital ratio requirements.
SPIEGEL: Mr. Enria, the European Banking Authority was established with the aim [...]
If anyone is wondering why the collapse of MF Global after the discovery of its commingling and theft of client funds was the single worst thing that could happen to market confidence, then look no further than the small Baltic country of Latvia where precisely what Jon Corzine’s firm did to its clients, has happened at the bank level. Businessweek Reports: “Lithuanian prosecutors issued an arrest warrant for Vladimir Antonov [...]
WASHINGTON (MarketWatch) — A top bank regulator on Tuesday afternoon raised concerns about potential costs to taxpayers of bailing out parts of the $2.7 trillion money-market fund industry in the event of a future financial crisis.
“Now we have a moral hazard issue,” said outgoing Federal Deposit Insurance Corp. Chairman Sheila Bair during a Securities and Exchange Commission meeting to discuss ways to make sure the [...]
A top federal bank regulator said Thursday that he has directed seven of the nation’s largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry. John Walsh, acting director of the Office of the Comptroller of the Currency, told lawmakers during a hearing on the financial regulatory overhaul enacted this summer that some lenders “clearly [...]