A new report from the Basel Committee says that using public funds to resolve weak banks may be considered in systemic situations. If even capital rule-writers are willing to consider more bailouts, the only way to end "too big to fail" may be to break up the megabanks.
If banks can develop processes that show their credit decisions are consistent, transparent, and easily auditable they will be in a better position insulate themselves from disparate impact judgments, writes Zoot EnterpriseÂ's Eric Lindeen.
Ten years after the adoption of Basel II, the distortion in bank credit allocation produced by risk-weighted capital requirements has not even begun to be discussed.
On one hand, bills supporting deregulation are garnering legislative support. On the other, a number of high-profile members of Congress have spoken out in favor of stricter rule enforcement and prosecution.
Identifying which borrowers are likely to repay short-term, small-dollar loans could help lower costs for both consumers and the financial services industry.
The widely repeated narrative about AIG ignores or downplays a critical aspect of its downfallÂ--the insurerÂ's securities lending program run for the benefit of its regulated life insurance subsidiaries.
The city of Richmond, Calif., wants to team up with another municipality to implement its plan to use eminent domain to seize underwater mortgages. There have been no takers to date. The likely reasons are the FHFA and the continuing threat of litigation.
Potentially dangerous adjustable-rate mortgages are making a comeback. A few simple reforms could stop the financial industry from repeating the mistakes of the past while offering housing opportunities to low- and moderate-income borrowers.
