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Posts Tagged ‘Dodd-Frank’

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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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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From The New York Times:

Call it Dodd-Frank Inc.  A year after Congress passed the broadest financial overhaul since the Great Depression, the law has spawned a host of new businesses to help Wall Street comply — and capitalize — on the hundreds of new regulations.

Besides the lawyers, there are legions of corporate accountants, financial consultants, risk management advisers, turnaround artists and technology vendors all vying for their cut.

“It is a full-employment act,” said Gregory J. Lyons, a partner at Debevoise, where a team of a half-dozen lawyers has drafted 30-plus comment letters in the last six months.

Plus this:

No one yet is tracking all the money being spent to deal with Dodd-Frank (which in itself could be an entrepreneurial venture), but a back-of-the-envelope calculation puts it in the billions of dollars.

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