The Great Debate

Savers shoulder the inevitable burden of bad loans

November 5, 2010

Britain’s new coalition government likes to remind voters we are all in this together. The phrase is rather glib. But in an important sense savers and borrowers around the world are finding the costs of reckless lending are falling on the innocent and guilty alike.

Senate vote exposes Wall Street impotence

May 21, 2010

Wall Street’s diminished influence in Washington was made plain yesterday when the Senate voted to approve financial reform legislation by 59 votes to 39.

from Rolfe Winkler:

Politics and bank regulation don’t mix

December 8, 2009

The Federal Deposit Insurance Corp tried to seize and sell Cleveland thrift AmTrust last January but local politicians intervened. In the end, the bank still went bust 11 months later - a delay that may have increased losses to the U.S. regulator’s funds. As Congress debates banking reform, AmTrust provides a useful warning that the regulatory apparatus needs to be kept free from politics.

from Rolfe Winkler:

Let’s say RIP to PPIP

September 24, 2009

Remember PPIP? The Public-Private Investment Program was to provide cheap government financing to encourage investors to overbid for banks' toxic assets.

from Rolfe Winkler:

Banks should pay for FDIC fund

September 22, 2009

The banking system is still suffocating under the weight of bad loans, and it's well known that the FDIC doesn't have enough cash to deal with the problem.

from Commentaries:

Time to get tough with AIG

August 28, 2009

It's time for someone in the Obama administration to read the riot act to Robert Benmosche, American International Group's new $7 million chief executive.

from Rolfe Winkler:

For FDIC, a long tunnel and little light

August 27, 2009

There's good news and bad news in the FDIC's quarterly profile of the banking sector. The good news is that FDIC has more resources than you think to handle the problem banks on its radar. The bad news is that the too-big-to-fail banks aren't on it.

from Rolfe Winkler:

Colonial, gone … Did FDIC tip its hand?

August 14, 2009

FDIC will seize Colonial and sell its assets to BB&T.  This is the largest bank failure since WaMu last fall.  Reuters:

from Commentaries:

CIT is a warning sign

July 13, 2009

agnes1If it's not a risk to the financial system, let it fail.

That's the message from the government's reluctance to swoop in and bail out one of the nation's biggest commercial lenders, CIT Group Inc, as it struggles to stay afloat. But even though CIT doesn't have the firepower to take down the global financial system, its failure would certainly be felt by some of the struggling small businesses that rely on its financing.

from Commentaries:

Failing upwards at BofA

June 5, 2009

goldsteinThe ouster of Bank of America's chief risk officer, Amy Woods Brinkley, should not cause anyone to shed any tears.