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Sep 12, 2013
via Breakingviews

2008 retold: Lehman bail-in not one-size-fits-all

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By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Lehman as it might have been … The following  is part of a special feature package marking the fifth anniversary of the collapse of the Wall Street securities firm. Breakingviews writers imagine what might have happened if post-crisis reformers had acted pre-crisis. Herewith a column  from that alternative archive.
New York – Monday Sept 15, 2008

One size won’t fit all when it comes to fixing ailing U.S. banks. For Lehman Brothers, the novel use of a so-called “bail-in” mechanism was the best option. Some variation may also work for other very sick giants Merrill Lynch and AIG. But for smaller fry like Washington Mutual and Wachovia, an outright sale may be preferable. Regulators need to focus their energy on removing systemic risks.

Aug 28, 2013

New U.S. mortgage bond rules at least are simpler

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Daniel Indiviglio

WASHINGTON, Aug 28 (Reuters Breakingviews) – U.S. regulators
have at least come up with simpler mortgage bond rules. They
have reworked heavily criticized proposals for how much of their
own structured finance cooking banks must eat. Though the
watchdogs have given ground on down payments, the streamlined
requirements are a step toward greater mortgage market
confidence.

Aug 26, 2013
via Breakingviews

Trump gives for-profit education an even worse rap

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By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Leave it to American real-estate mogul Donald Trump to give the for-profit education industry an even worse rap than it already has. Schools looking to make a buck have come under scrutiny recently for taking students’ money but providing lackluster job results. New York State’s $40 million lawsuit over Trump’s foray into the industry underscores the need for these institutions to make credentials clear.

Aug 23, 2013

Obama college cost-cutting plan gets gentleman’s C

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Daniel Indiviglio

WASHINGTON, Aug 23 (Reuters Breakingviews) – Barack Obama’s
college cost-cutting plan earns a gentleman’s C. The U.S.
president aims to hold down tuition costs and loans by rating
schools according to the value they deliver. But a proposed cap
on debt repayments could encourage even more student borrowing.
That and similarly counterproductive details pull down the grade
of an otherwise useful program.

Aug 22, 2013
via Breakingviews

Feature: Nest-flyers are poised to supercharge U.S. economy

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By Dan Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Flying the nest should pay big economic dividends in the United States. As jobs return, the expectation is that droves of 20-somethings will ditch their roommates or vacate Hotel Mom & Dad to get their own places. They may rent more than they buy, but the effects still look profound. Between home building and related activity like furniture sales, Breakingviews reckons new household formation could account for up to a whopping 30 percent of GDP growth through 2019.

Residential construction in large part powered U.S. output during the boom last decade. Ground was broken on the building of over 2 million new homes in 2005. According to the Census Bureau, between 2009 and 2011, so-called housing starts plummeted to an average of just 580,000.

Jul 24, 2013

Banks needn’t always eat their mortgage cooking

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Daniel Indiviglio

WASHINGTON, July 24 (Reuters Breakingviews) – Banks needn’t
always eat their mortgage cooking. Making them retain risk
sounds logical, and was part of the U.S. Dodd-Frank reforms that
followed the 2008 crisis. But lenders had lots of home loan
exposure before the crisis, without such rules. Cautious
flexibility on the issue from regulators may help revive private
securitization markets.

Jul 23, 2013

Ailing U.S. mortgage agency needs stronger walls

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Daniel Indiviglio

WASHINGTON, July 23 (Reuters Breakingviews) – The ailing
Federal Housing Administration needs a stronger dose of
medicine. The mortgage agency is already $16.3 billion in the
red after years of lax lending. Now a bipartisan group of
senators is trying to boost the agency’s capital and oversight.
Their bill, though, doesn’t go far enough.

Jul 18, 2013

Breakingviews – Does Ben Bernanke fancy himself a Jedi knight?

By Daniel Indiviglio

WASHINGTON (Reuters Breakingviews) – When the Federal Reserve moves to execute a smooth monetary stimulus exit, there is no try. During a congressional hearing on Wednesday, Chairman Ben Bernanke implied that his most important duty is to ensure markets understand where monetary policy is heading. The past month has shown how hard that can be when investors hear what they want to hear. Unless Yoda he is, tapering and rate hikes are bound to cause painful lurches.

During the crisis, Bernanke was all but the last hope of the U.S. economy. After saving the republic, his next challenge may prove just as great: winding down the central bank’s unprecedented bond buying program. Lawmakers wondered aloud just how the Fed would wean Wall Street off gobs of easy money. At $3.5 trillion, the Fed’s balance sheet is quadruple its size five years ago.

Jul 17, 2013
via Breakingviews

Does Ben Bernanke fancy himself a Jedi knight?

Photo

By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

When the Federal Reserve moves to execute a smooth monetary stimulus exit, there is no try. During a congressional hearing on Wednesday, Chairman Ben Bernanke implied that his most important duty is to ensure markets understand where monetary policy is heading. The past month has shown how hard that can be when investors hear what they want to hear. Unless Yoda he is, tapering and rate hikes are bound to cause painful lurches.

Jul 15, 2013

Republicans add bricks and mortar to mortgage fix

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By Daniel Indiviglio

WASHINGTON, July 15 (Reuters Breakingviews) – U.S.
Republicans are adding bricks and mortar to mortgage reform. A
new bill introduced by leaders of the House Financial Services
Committee including Jeb Hensarling and Scott Garrett offers some
good ways to construct a durable financing market for home
loans. It still has warts, but would reduce reliance on
taxpayers and entice private capital back in. Together with the
Senate’s more politically palatable version, it could be a
winning mix.

    • About Daniel

      "Daniel Indiviglio is a Reuters Breakingviews columnist, based in Washington, where he covers the intersection of politics and business. He joined from The Atlantic, where he covered a similar beat, providing analysis on topics such as financial regulation, housing finance policy, the Treasury, and the Fed. He also wrote for Forbes. He is a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. Prior to becoming a journalist, Dan spent several years working as an investment banker and a consultant for financial services firms. He holds a BA from Cornell University, where he triple majored in economics, philosophy and physics. ..."
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