If the networks don't voluntarily implement more reasonable pricing, merchants will steer consumers to cheaper alternatives and there will soon be nothing left to fight about.
It's foolhardy to try to read traders' minds to determine if the inventory they are keeping exceeds the demand they expect from clients. There is a better way.
The effects of a loose monetary policy were compounded by housing policy - not just the "affordable" housing goals set for Fannie and Freddie but also CRA quotas imposed on banks.
Central bank policy rates, overnight unsecured borrowing rates, commercial paper rates, Treasury bills and repo rates all would be open to potential manipulation, just like Libor.
Standard Chartered agreed last week to pay the New York Department of Financial Services $340 million to settle allegations of illegal Iran-related transactions. But that settlement comes with strings.
A mutually respectful relationship may prove superior to efforts of companies that hampered their regulators while engaging in risky practices that brought them to ruin.
Restoring Glass-Steagall would be a palliative just like the Volcker rule: simple to say, hard to do. Even under the 1933 law, financial innovators blurred the lines between commercial and investment banking - almost from the very start.
ING Bank's $1.67 billion settlement with the Office of Foreign Assets Control is a textbook example of the decision-making process such regulators follow in handling violations.
Money funds and non-deposit-taking consumer lenders should be chartered as limited purpose banks by the Fed and CFPB, respectively. This will reduce systemic risk, improve consistency and efficiency, and protect consumers.
