Dang it…I gotta leave now…just when I’m starting to understand a financial discussion! Rats! Promise not to kill me if I bring up this subject again tomorrow.
bxgrl, the government needs another carrott or another stick to prod the BANKING SIDE OF THE BUSINESS. Telling the rest of the business it can’t do thiss or that because it’s part of the holding company has noe effect whatsoever on making the banks lend more, NONE.
Obama’s putting the cart before the horse and he doesn’t seem to understand that. Yes, more regulation is necessary but not this sort of ham-fisted, “I’m the boss and here’s how it works” ridiculousness.
He has not addressed the problem at hand which is how to get the banks to lend more.
“So if yo think Obama is wrong, explain to me what would be the way to regulate banks and prevent another economic disaster like the one we just had”
bxgirl, I just did. Roll back requirements on leverage to what they were before WS had them increased in the 1990s. Regulate trading in CDOs and bring them into open marketplaces. Stop abuse of the small investor by techniques like flash trading. Crack down on the rating agencies. Go back to mark to market. Eliminate off-balance-sheet subsidiaries. Increase Tier 1 capital requirements. Monitor and increase margin requirements like the Fed used to do pre-Greenspan.
This is all a bunch of populist horseshit.
Note: I have said I am IN FAVOR of more regulations on the financial industry because of the hole they put us into. But not this set.
Yeah, Obama got beat up cuz the health bill was 2,000 pages. Health care is complicated. So is finance, maybe this bill needs to be 2000 pages also.
denton, Ok, but at the very least at this point, they would be minimizing, or spreading out, the risk, no?
“Administration officials said they were not trying to resurrect Depression-era laws that strictly divided commercial banks from investment operations. Nor would their proposals force existing financial firms to downsize.”
Ok, now I’m confused. If they aren’t doing the above — quoted from WSJ, how would it work?
JB, they refund ATM fees? I normally use my HSBC card. The TD account is simply us taking all our $$$ out of shitibank when it was at $1.00/share. guess I should be using the TD bank card then
“Banks shielded from risk through federal-deposit insurance, or aided in financial crises by low-interest loans from the Federal Reserve Board, would no longer be allowed to engage in trading unrelated to their customers’ interests, one senior administration official said.”
So this will only apply to banks falling into that category? But I thought all banks were FDIC insured? Clearly I went wrong somewhere. Where?
“But I thought all banks were FDIC insured?”
Retail banks accounts are insured by FDIC.
Investment Banks, not so much. They have the Tax payers insuring them!! LOL!!
Dang it…I gotta leave now…just when I’m starting to understand a financial discussion! Rats! Promise not to kill me if I bring up this subject again tomorrow.
Later peeps!
bxgrl, the government needs another carrott or another stick to prod the BANKING SIDE OF THE BUSINESS. Telling the rest of the business it can’t do thiss or that because it’s part of the holding company has noe effect whatsoever on making the banks lend more, NONE.
Obama’s putting the cart before the horse and he doesn’t seem to understand that. Yes, more regulation is necessary but not this sort of ham-fisted, “I’m the boss and here’s how it works” ridiculousness.
He has not addressed the problem at hand which is how to get the banks to lend more.
Denton, I agree, I don’t get it either. I don’t see how that will be possible given the existing structure in these banks today.
“So if yo think Obama is wrong, explain to me what would be the way to regulate banks and prevent another economic disaster like the one we just had”
bxgirl, I just did. Roll back requirements on leverage to what they were before WS had them increased in the 1990s. Regulate trading in CDOs and bring them into open marketplaces. Stop abuse of the small investor by techniques like flash trading. Crack down on the rating agencies. Go back to mark to market. Eliminate off-balance-sheet subsidiaries. Increase Tier 1 capital requirements. Monitor and increase margin requirements like the Fed used to do pre-Greenspan.
This is all a bunch of populist horseshit.
Note: I have said I am IN FAVOR of more regulations on the financial industry because of the hole they put us into. But not this set.
Yeah, Obama got beat up cuz the health bill was 2,000 pages. Health care is complicated. So is finance, maybe this bill needs to be 2000 pages also.
denton, Ok, but at the very least at this point, they would be minimizing, or spreading out, the risk, no?
“Administration officials said they were not trying to resurrect Depression-era laws that strictly divided commercial banks from investment operations. Nor would their proposals force existing financial firms to downsize.”
Ok, now I’m confused. If they aren’t doing the above — quoted from WSJ, how would it work?
What, if any effect, does this have on AIG?
JB, they refund ATM fees? I normally use my HSBC card. The TD account is simply us taking all our $$$ out of shitibank when it was at $1.00/share. guess I should be using the TD bank card then
Ok…from the article LFW linked:
“Banks shielded from risk through federal-deposit insurance, or aided in financial crises by low-interest loans from the Federal Reserve Board, would no longer be allowed to engage in trading unrelated to their customers’ interests, one senior administration official said.”
So this will only apply to banks falling into that category? But I thought all banks were FDIC insured? Clearly I went wrong somewhere. Where?
I don’t get this line from the WSJ:
“Nor would their proposals force existing financial firms to downsize.”
If not them, then who?