The Great Debate

Are too-big-to-fail banks being cut down to size?

By Charles R. Morris
August 7, 2014

Financial institution representatives are sworn in before testifying at the Financial Crisis Inquiry Commission hearing on Capitol Hill in Washington

The massive $16-billion mortgage fraud settlement agreement just reached by Bank of America and federal authorities — only the latest in a string of such settlements — makes it easy to lose sight of what good shape banks are in.

Stress and the Citi

By Charles R. Morris
April 7, 2014

Markets are still absorbing the Federal Reserve’s surprising smack-down of Citigroup. Under its chief executive officer, Michael Corbat, Citi had greatly strengthened its capital base — indeed, it had one of the best capital ratios of all the big banks — and had proposed modest dividend increases and stock buybacks.  Instead, City was the only big American bank that failed its review.

Are banks too big to indict?

By Charles R. Morris
January 24, 2014

The great 19th century English jurist, Sir James Fitzjames Stephens, once wrote that murderers were hung not for reasons of revenge or deterrence — but to underscore what a serious breach of the social compact had been committed.

What’s behind JPMorgan’s push for worker training?

January 8, 2014

Just a few weeks before federal prosecutors announced a nearly $2 billion settlement with JPMorgan Chase over Bernie Madoff’s fraudulent accounts, chairman and chief executive officer Jamie Dimon sat alongside former Congressman and White House Chief of Staff Rahm Emanuel at an Aspen Institute forum in the biology lab of Malcolm X College to tout the embattled bank’s five-year, $250 million, multi-city investment in job training. The bank would commit $15 million for “workplace readiness and demand-driven training” in Chicago.

Are the big banks winning?

By Charles R. Morris
October 24, 2012

The Dodd-Frank Act to re-regulate the big banks was intentionally tough. It was passed in the wake of the 2008-2009 financial crash to end cowboy banking; require far more capital  and much less leverage, and rein in the trading-desk geniuses who pumped up serial bubbles. Since Congress is a poor forum for crafting such a complex statute, the details were left to the expert regulatory agencies.

from Commentaries:

Giving props to Wall Street’s risks

September 17, 2009

Wall Street would like you to believe that when investment banks take on risk they are largely doing it for the benefit of investors -- maybe even you and me.