Financial Institutions

Regulating Bank Governance: Mandating CEO-Chairman Division at Too-Big-to-Fail Banks

05/27/13

For a while, the battle over whether to split the JPMorgan Chase CEO and Chairman positions looked like the corporate governance battle of the year, but seems to have ended with a whimper, rather than a bang.  The media coverage of the issue, however, largely overlooked the unique, bank-specific aspects of corporate governance.  Specifically, what's at stake in the corporate governance of a too-big-to-fail bank like JPMorgan Chase is not just the share price, but also the public fisc.

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On the Valuation of Hedge Funds (or Hedge Fund Managers)

05/10/13

So Felix Salmon has taken a justifiable swipe at some oddish Bloomberg articles on Citibank's spinoff of its internal hedge fund, as required by the Volcker Rule.

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Who is Mel Watt?

05/08/13

On May 1, President Obama nominated Rep. Mel Watt (D-N.C.) to be the director of the Federal Housing Finance Agency, the conservator for the mortgage giants Fannie Mae and Freddie Mac.

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Obama to replace DeMarco at FHFA

05/01/13

with Mel Watt, according to an AP story today.  Congressman Watt of North Carolina was a moving force behind Miller-Watt-Frank, the mortgage reform legislation that eventually found its way into Dodd-Frank financial reform.  Given that our all-but-nationalized housing finance system is directed by this somewhat obscure agency, the occupant of this post can have a huge influence on the future direction of credit, housing and the economy.

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MF Again

04/24/13
The MF Global trustee filed his lawsuit against
Jon S. Corzine and other former MF Global executives.

But the complaint itself, while quite well done, makes for
rather strange reading upon further reflection.

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Me Too

03/21/13

Some thoughts on Cyprus, over at Dealb%k.

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Banks, Governments and Cyprus

03/19/13

A key point is at risk of getting buried in all the din surrounding Cyprus's deposit levy (apparently poised for parliamentary defeat). To me it comes through most clearly in the latest from the tornado-chasing (or front-running?) duo, Lee Buchheit and Mitu Gulati. 

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Cyprus: Is the Precedent Worth $7.25B?

03/18/13

Stepping back from the Cyprus bail-in, I'm wondering if it is penny-wise, pound-foolish. The depositor tax is only supposed to raise about $7.25 billion (5.8 billion Euros).  Given the risks created by a bailout being rejected and the risk of runs created in other countries, does it really make sense to demand the depositor tax?  $7.25 billion seems like a really cheap price for avoiding the problems that the Cyprus depositor tax is making. Indeed, in the big picture, the whole Cyprus bailout package is only around $23 billion.

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