Glass Steagall was 32 pages. Proposed Volcker Rule regs are 300 pages.
Sheila Bair
Bank closures have slowed in 2011 versus 2010 but haven’t stopped. Forty-seven banks have failed year to date, including two on Friday. I guess that these two banks weren’t “too big to fail.” Departing FDIC chairman Sheila Bair says the era of too-big-to-fail banks isn’t just ending, it’s already over. Really? A few weeks back
It’s almost a certainty that the super-conforming loan level in the higher-priced areas will indeed drop to $625,500 from $729,750 on October 1. Here are new loan limit memos from Fannie Mae and FHFA, and here’s an an MSNBC story on jumbo loan implications. Aventur Partners & Aventur Mortgage Capital are turning some heads in
When it comes to powerful women, how does the FDIC’s Sheila Bair—our nation’s top bank regulator—stack up against Lady Gaga or Katie Couric? When it comes to powerful banks, how do they rank for first quarter production? The big four banks originated a combined $186 billion in home loans, down 33% from $281 billion home
Twenty-six banks have failed in 2011. Friday the FDIC closed Advantage National Bank Group (IL) assuming all the deposits (liabilities) of the Bank of Commerce (IL). Which brings up the question, “Do regulators see trends in problem banks?” Generally speaking, regulators see some key characteristics they frequently find in these institutions, none of which be
More Reason For Banks To Hoard Cash, Taxpayer Bill For Fannie & Freddie, Rates Up On QE2 Uncertainty
More Reason For Banks To Hoard Cash FDIC head Sheila Bair said major banks likely will be required to meet higher capital standards than those outlined in Basel III. “I have fairly high confidence there will be higher capitalization requirements for systemic institutions,” Bair said. She also scrutinized the Basel III rules, saying they aren’t
Finreg Summary For Lenders The Financial Reform Bill passed the Senate, and will no doubt be signed by President Obama. It is 2,300 pages. From my limited view, there are hundreds of thousands of questions for regulators and investors to answer in the next several months (at least), and most large mortgage companies are doing
From MarketWatch: The board of the FDIC voted 4-1 Wednesday to require private-equity firms with no history of bank management to maintain a 10% capital-asset ratio and to submit to strong restrictions on lending to their affiliates. The rules also require private-equity firms that bid on banks to commit to owning and operating them for
I heard an esteemed commentator talking about the government paying private parties to carry out certain tasks. She was asking, “Is it really indicative of where we are as a society that someone can receive a credit of $4,500 for a car, but a servicer will only receive $1,000 to modify a mortgage?” This is
Last week, we discussed the Treasury’s Public Private Investment Program which is a way for banks to unload illiquid assets. As we said at the time, it’s a smart program. But the Economist this week points out that it’s only a half plan, and unless banks are forced to sell assets, it’s not likely to
Below is the complete Treasury plan that’s been eagerly anticipated plan to remedy the credit crunch that started August 2007. It’s clearly presented and there are further links at the bottom to follow up Q&As. Bottom line: it’s a plan for private investors to be able to raise money with FDIC backing to be able
Q: What’d the 0 (zero) say to the 8? A: “Nice Belt.” Depression Definition Speaking of belts, and their tightening, a survey says that “48% of all millionaires say the outlook for the economy is gloomy. The other 52% are no longer millionaires.” Will Rogers defined a recession as “when your neighbor is out of
As of February 6, 2009, nine banks failed for the year versus 25 that failed for all of 2008. If it continued at that pace, more than 100 banks could fail this year. Of the nine that have failed, only one wasn’t acquired. FDIC head Sheila Bair can be credited for this strategy where the
Here’s a good link from the Washington Post about the bank package and executive compensation.
Below is a proposal from George Soros on how to bailout the banks. It’s on his website and recently ran in the Financial Times. His proposal weighs two ideas: (1) the ‘bad bank’ idea that’s been floating around which says that the FDIC leads an effort, modeled after the original TARP incarnation, to buy illiquid
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