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Archive for the ‘Regulations’ Category

So says Jon Huntsman:

More than three years after the crisis and the accompanying bailouts, the six largest American financial institutions are significantly bigger than they were before the crisis, having been encouraged to snap up Bear Stearns and other competitors at bargain prices. These banks now have assets worth over 66% of gross domestic product—at least $9.4 trillion, up from 20% of GDP in the 1990s. There is no evidence that institutions of this size add sufficient value to offset the systemic risk they pose.

The major banks’ too-big-to-fail status gives them a comparative advantage in borrowing over their competitors thanks to the federal bailout backstop. This funding subsidy amounts to roughly 50 basis points, or one-half of a percentage point in today’s market.

Read the whole thing.

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So says John Stossel:

I guess Obama doesn’t know that the Transcontinental Railroad was a Solyndra-like Big Government scandal. The railroad didn’t make economic sense at the time, so the government subsidized construction and gave the companies huge quantities of the best land on the continent.

As we should expect, without market discipline — profit and loss — contractors ripped off the taxpayers. After all, if you get paid by the amount of track you lay, you’ll lay more track than necessary.

Credit Mobilier, the first rail construction company, made enormous profits by overcharging for its work. To keep the subsidies flowing, it made big contributions to congressmen.

Where have we heard that recently?

The transcontinental railroad lost tons of money. The government never covered its costs, and most rail lines that used the tracks went bankrupt or continued to be subsidized by taxpayers.

The Union Pacific and Northern Pacific — all those rail lines we learned about in history class — milked the taxpayer and then went broke.

One line worked. The Great Northern never went bankrupt. It was the railroad that got no subsidies.

Read the whole thing.

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Investors Business Daily shines the light on The Black Caucus.

Founded in 1971 by 13 civil-rights leaders as “the conscience of the Congress,” the caucus has strayed far from its original mission. Now boasting 42 politicians — including some of the most radical and unethical in Congress — it chiefly serves its own interests.

Its lavish annual gala is an unseemly shakedown of corporate donors unwittingly funding a war chest for Marxist causes. While the living conditions of average African-Americans worsen, this elite black power club has empowered and enriched its own.

The group has become an embarrassment not just to the black community and the civil-rights legacy it deigns to uphold, but the Democratic Party from which it draws almost all of its members. It should be disbanded. Here’s a bill of indictment.

And here’s something I learned regarding the disaster called Dodd-Frank:

While under investigation, Waters got a provision added to the Dodd-Frank act exempting minority-owned banks from the new oversight. She also inserted an amendment creating 20 offices of “minority inclusion” at financial agencies including the Federal Reserve. The new diversity cops will enforce minority hiring quotas for regulators.

Very un-politically correct.  Fair assessment?  Read the whole thing and you be the judge.

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New international bank capital rules are “anti-American” and the US should consider pulling out of the Basel group of global regulators, Jamie Dimon, chief executive of JPMorgan Chase, has said.

In an interview with the Financial Times, Mr Dimon said he was supportive of forcing banks to have more capital but argued that moves to impose an additional charge on the largest global banks went too far, particularly for American banks.

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From Andy Meek:

But at some point between Juszkiewicz being barred from his office by armed agents who stood outside his door and Thursday, the chief executive and his company launched a full-throated opposition campaign using social media, interviews with right-wing outlets, and direct appeals to like-minded members of the public.

In its fight with Uncle Sam, Gibson decided to go to the mat, turning its set of circumstances into one more front in a much larger battleground.

The company is tweeting regularly about the incident, tagging the tweets with the hashtag #thiswillnotstand. User comments are pouring in to the company’s Facebook wall.

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