If TAG is senselessly allowed to expire, many depositors may sever their relationships with the smaller banks in their communities and opt to place their money under the "protection" of the Too Big to Fail institutions.
Central clearing for over-the-counter contracts will undoubtedly reduce risks, but the market still has multiple regulators and multiple sets of rules for different players and for different instruments.
Personal motivations aside, many felt the hire made sense for the Financial Services Roundtable since it fortifies the trade group's relationship with Congress. What impact do you think Pawlenty is likely to have on banking policy?
China blocks U.S. banks from operating there. We should reciprocate. There's nothing to gain from giving keys to our banking system to entities owned and controlled by an adversary state.
A federal charter will allow lenders to provide more credit alternatives with lower costs as well as flexible payback periods and loan amounts to underbanked consumers.
A simpler calculation isn't necessarily the right one. If a capital ratio misrepresents a bank's risk or creates incentives to take on more of it, simple is scarcely an improvement.
The Federal Reserve announced an indefinite round of quantitative easing in hopes of improving the stagnant economy. Some feel the move may help the lagging job market, while others feel it illustrates Einstein's definition of insanity.
Regulators have a legitimate interest in overseeing activities that threaten a bank. But they should lay off bank affiliates and activities that pose no such threats.
