Commentaries

from Rolfe Winkler:

Why not Baby Banks?

January 25, 2010

The President is right to target firm size if he wants to insure no financial firm can cause a system failure. Yet despite clear evidence that banks are already too big, Obama's proposal won't cut them down. It would only limit future growth by acquisition.

from Rolfe Winkler:

The Ascent of Volcker

January 21, 2010

So, wow, the Obama administration has reacted very quickly -- perhaps too quickly -- post the Massachusetts Senate election. After proposing a tax on bank liabilities, Obama is taking an even tougher line, adopting recommendations from Paul Volcker that banks be limited in their size and scope.

from Rolfe Winkler:

Does Volcker give the Fed too much credit?

January 18, 2010

Paul Volcker's speech to the Economic Club of NY last week (pdf) was generally reported as the latest example of the former Fed Chairman calling for more substantive financial system reform. He did repeat those points, but the focus of his speech was about the importance of the Fed maintaining its regulatory and supervisory authority over the banking system. At a certain point, this seems the stuff of absurdist theater. If the Fed never intends to use its regulatory authority, why insist the authority be maintained?

from Rolfe Winkler:

Lunchtime Links 1-15

January 15, 2010

Consumer protection agency in doubt (Paletta, WSJ) Chris Dodd appears willing to trade the CFPA in exchange for Republican support of his financial reform bill.