Americans can’t feel better than companies forever
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Consumers are feeling better than companies these days, but that might not last long. Cheerier shoppers splashing out more cash could transform business’s bad attitude. But gloomy executives may be more likely to pour cold water on enthusiastic Americans if their pessimism leads to slower hiring.
Leveling bank playing field just got jostled
(Refiles Sept. 18 item to insert dropped word “nominee” in
Hoenig’s title.)(The author is a Reuters Breakingviews
columnist. The opinions expressed are his own.)
By Daniel Indiviglio
WASHINGTON, Sept 18 (Reuters Breakingviews) – The worldwide
playing field for banks had been leveling but just got jostled.
One of America’s top regulators said on Friday the Basel III
accord should be scrapped. Thomas Hoenig, nominee vice chairman
of the Federal Deposit Insurance Corp, urged adoption of a
simpler, stricter leverage ratio. A year after Jamie Dimon
called the new worldwide global capital standards anti-American,
the latest sign of resistance will only stoke fears about the
U.S. commitment to new rules.
U.S. political jamborees alienate Mr. Market
By Daniel Indiviglio and Jeffrey Goldfarb
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Mr. Market would have felt unwelcome in Charlotte and Tampa over the last couple of weeks. The political jamborees hosted in the two southeastern U.S. cities offered stark differences in tone that mirror the different options Americans face in November’s elections. Eat the fiscal spinach served up by Mitt Romney and the Republicans, or gorge on the pro-worker red meat dangled by Barack Obama and the Democrats. Voters may be tempted by one or the other, but investors will probably turn their noses up at both.
U.S. leaders could learn from European austerity
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
U.S. leaders could learn from Europe’s austerity. Noting the lessons of the continent’s flubs and fixes would help either Barack Obama or Mitt Romney tackle the policy and politics of a debt load that just surpassed $16 trillion. Waiting too long might give investors time to make a new choice.
Securitizing rent has more problems than promise
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Wall Street’s wizards think they have finally have found a way to clear up foreclosures. The securitization industry is aching to work its magic on blocks of repossessed properties that have been, or could be, turned into rented accommodation. Done properly, that could help finance investors buying such homes from Fannie Mae and Freddie Mac. But creating bonds from monthly tenant payments faces serious obstacles.
Capital One case heralds end of sneaky fees
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The punishment of Capital One should give banks a little clarity. The U.S. credit card issuer is paying $210 million to settle charges it duped customers. The first enforcement action by the new Consumer Financial Protection Bureau suggests that despite industry fears to the contrary, the watchdog can target dubious innovation without outlawing it. Lenders will have to be creative without being deceptive.
U.S. student debt on scary trajectory
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
U.S. student debt is on a scary trajectory. New statistics from the New York Federal Reserve show just how steep it is. Education loans are piling up at an unsustainable rate and delinquencies are rising despite the slowly improving American economy. Instead of trying to tackle the problem, Washington’s policies continue to exacerbate it.
U.S. student loan fix robs the old to pay the young
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Keeping student loan rates low is requiring some devilish financial engineering from U.S. lawmakers. To cover the cost of the education subsidy, they’re blessing some aggressive accounting for government-backed pensions. The plan could put taxpayers on a bigger hook for both retirees and graduates.
New mortgage seizure plan is the nuttiest idea yet
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
A California county’s new plan to seize underwater mortgages from investors may be the most dangerous housing market intervention yet. If it catches on, bondholders could face billions in losses – and taxpayers, too, if local authorities start targeting loans backed by the federal government. That would whack up mortgage costs and may leave Washington as the only lender.
Regulator grudge match redux: Geithner vs Bair
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Get ready for round two of the “Bair versus Geithner” sparring match. Sheila Bair may no longer run the FDIC, but she has formed an independent group to push forward reforms in the U.S. financial system. The primary pressure point will be the council of regulators led by Treasury Secretary Timothy Geithner. While the two have tangled before, their interests are now aligned.
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