Fannie/Freddie buyout plan needs killing off
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Daniel Indiviglio
WASHINGTON, May 1 (Reuters Breakingviews) – A plan for
private firms to buy Fannie Mae (FNMA.OB: Quote, Profile, Research) and Freddie Mac
(FMCC.OB: Quote, Profile, Research) needs killing off. The new-found profitability of the
U.S. mortgage finance behemoths has inspired a few big hedge
funds, including Paulson & Co and a Carlyle Group (CG.O: Quote, Profile, Research) fund,
to suggest that Uncle Sam should sell them the two companies,
according to Bloomberg.
Whatever happened to the inflation “Weimarists”?
By Dan Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Whatever happened to predictions the United States would soon experience Weimar Republic-like inflation? When the Federal Reserve kicked off its massive stimulus campaign, critics invoked this dark period of modern German history and its images of wheelbarrows full of valueless cash. Four years later, only the most stubborn hawks still fear such hyperinflation. Consistently low price growth has made Ben Bernanke’s easing look safe – so long as his exit works.
New chief US bank lawmaker needs minimal conflicts
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Daniel Indiviglio
WASHINGTON, March 28 (Reuters Breakingviews) – Less is more
when it comes to the new top American banking lawmaker. The next
chairman of the Senate Banking Committee needs to minimize
conflicts of interest with the industry the body oversees,
giving Ohio’s Sherrod Brown the edge over his New York
counterpart Charles Schumer. Brown may have some fringe views
about breaking up banks, but he’s more likely to challenge the
status quo than a friend of Wall Street.
Cure for U.S. housing malaise may sustain disease
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The cure for the U.S. housing malaise may sustain its disease. A new Senate bill seeks to forbid Congress from raising Fannie Mae and Freddie Mac’s mortgage guarantee fees to pay for federal spending. It sounds sensible. But in the alternate universe that is Washington, it may kill one of the few ways available to reduce taxpayer support for housing and bring back private capital.
Small U.S. banks have too-big-to-fail obsession
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Daniel Indiviglio
WASHINGTON, March 12 (Reuters Breakingviews) -
T oo-big-to-fail still looms large for America’s community banks,
despite the best efforts of lawmakers. At the Independent
Community Bankers of America annual gathering this week, the
little guys, who make up the bulk of American bank charters if
not assets, will argue that Dodd-Frank failed to do the trick. A
study citing an $83 billion subsidy and the U.S. attorney
general admitting some banks are too big to jail re-energized
their opposition. But the small fries would be better off
focusing on their businesses.
Financiers failing own version of Hippocratic Oath
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Financiers are failing their version of the Hippocratic Oath. They aren’t taking the necessary measures to keep client money safe, the U.S. Securities and Exchange Commission warns. The failure is as basic as doctors not washing their hands, despite reminders from the likes of Refco and MF Global. The extent and severity of the problem should worry customers and investors alike.
Review: Conscious companies can revive capitalism
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Free markets often get the blame for such troubling outcomes as inequality, corporate scandals and economic crises. In “Conscious Capitalism,” Whole Foods co-founder and co-CEO John Mackey and business professor Raj Sisodia argue that economic liberty needs a reboot.
U.S. budget cuts more blip than bomb
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
For all the rhetoric from both political parties, the impending U.S. budget cuts are more a blip than a bomb. An initial $100 billion-worth of federal spending reductions won’t do much real damage to the growing economy.
Negative intellectual equity traps mortgage reform
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Mortgage reform is caught in a negative intellectual equity trap. On Monday the Bipartisan Policy Center, a Washington think tank, unveiled its plan to shake up housing finance. Unfortunately, it rests on the usual received wisdom that the market cannot exist without a government backstop. It’s an idea prevalent among lawmakers, bankers and investors. It’s wrongheaded.
U.S. housing quagmire embodied in JPMorgan deal
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Daniel Indiviglio
WASHINGTON, Feb 22 (Reuters Breakingviews) – JPMorgan’s
(JPM.N: Quote, Profile, Research) coming mortgage deal embodies the U.S. housing finance
quagmire. The bank is looking to sell its first home-loan bond
without government backing since the financial crisis. That
hints at a belief in this part of the securitization market
among both lenders and investors. But until housing finance
rules are clarified and Fannie Mae (FNMA.OB: Quote, Profile, Research) and Freddie Mac’s
(FMCC.OB: Quote, Profile, Research) funding advantage is withdrawn, these deals will
remain rare.
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