Category Archives: regulation

Why Big Banks Should be Smaller

James Kwak wants to make US financial institutions smaller: There are a few main things that made companies like AIG and Citigroup systematically important. One was interconnectedness: they did business with lots of counterparties. One was complexity: when push came … Continue reading

Posted in banking, regulation | 5 Comments

Did Chanos Break the Law?

The best way of getting lots of angry comments on a blog entry is to be rude about Apple. But the second-best way is nice about short sellers. So it’s hardly surprising that after I made sympathetic noises about Jim … Continue reading

Posted in fraud, regulation | 3 Comments

SEC vs Chanos: Another Silly Sideshow

Has the SEC learned nothing? Its investigations of David Einhorn, rather than the companies he was shorting, were idiotic. Its ban on short-selling financial stocks was idiotic. (The XLF financials ETF was at $22 when the ban was implemented; it’s … Continue reading

Posted in regulation | 1 Comment

Why We Need Federal Insurance Regulation Now

Rolfe Winkler has a great post on Allstate’s finances today, which underscores two things: the urgency of massive regulatory overhaul in the financial sector, and the necessity of including insurance companies under the unified financial-services regulatory umbrella. Unless and until … Continue reading

Posted in insurance, regulation | 2 Comments

More on Lehman Revisionism

I’ve been thinking a bit more about the Lehman Brothers revisionism coming from the likes of Bernanke, Paulson, and Geithner: the fact that although they were quite clear about letting Lehman fail at the time, they subsequently have backtracked on … Continue reading

Posted in regulation | 1 Comment

Phil Gramm’s U-Turn

Phil Gramm, November 2008: “There is this idea afloat that if you had more regulation you would have fewer mistakes,” he said. “I don’t see any evidence in our history or anybody else’s to substantiate it.” He added, “The markets … Continue reading

Posted in economics, fiscal and monetary policy, regulation | 1 Comment

Bank Regulation Datapoint of the Day

From Binyamin Appelbaum: Since 2000, about 240 banks have converted from federal to state charters… About 12 percent of the banks that moved to state charters escaped federal regulatory actions, and experts on bank oversight say such cases are the … Continue reading

Posted in banking, regulation | 1 Comment

Citigroup: Where Was Geithner?

The toughest question for Tim Geithner, at his confirmation hearing, will be something along these lines: "The single most important job of the president of the New York Fed is to prevent the collapse of a systemically-important bank. No bank … Continue reading

Posted in banking, regulation | 1 Comment

The Problems With Mary Schapiro

Mary Schapiro is going to face some very tough confirmation hearings on her way to taking over the SEC, and in the wake of a big WSJ article today, her confirmation is by no means a foregone conclusion. Th article, … Continue reading

Posted in regulation | 1 Comment

Where are the Risk Auditors?

As Roger Lowenstein says, Ezra Merkin was (is?) "a Wall Street sage, noted philanthropist and professional money manager". And yet for all his protestations that he was risk-conscious and diversified and an expert at due diligence, he still ended up … Continue reading

Posted in banking, hedge funds, regulation | 1 Comment