It goes without saying that you should not weep for the banking industry. In the years following a Great Recession they caused, they still manage to churn out record profits. This is the 13th straight quarterly rise in profits for financial institutions.
|By: David Dayen Wednesday December 5, 2012 6:20 pm|
|By: David Dayen Monday October 29, 2012 12:40 pm|
Taibbi is pretty polite about it, but Obama’s defense involves a lot of misdirection. It assumes that Lehman Brothers, by virtue of having failed, was the only financial institution out there responsible for the collapse, rather than an example of industry-wide behavior.
|By: David Dayen Saturday October 27, 2012 12:00 pm|
This week, ex-banker Charles Morris, who was featured in the documentary Inside Job, brings us compelling evidence that countries with a large financial sector create lesser economic growth than countries that have restrained that sector. While a well-functioning financial system is key to growth, there’s a balance that needs to be struck.
|By: David Dayen Monday September 17, 2012 2:55 pm|
Four years later, we have not seen a systematic dismantling of the conditions that created the crisis. We’ve seen trillions in emergency support thrown at the banks that survived the crash, all of whom have grown bigger and more indispensible, even more “Too Big to Fail” than before. We’ve seen cosmetic regulatory changes, many unrelated to the crash at all, which have not yet been tested and in many not yet implemented. And the core problems of a massive financial sector have not been resolved.
|By: David Dayen Monday June 4, 2012 9:30 am|
James Pethokoukis, a columnist for the American Enterprise Institute, writes in the pages of the Weekly Standard in favor of a breakup of the big banks. He doesn’t get to that conclusion the way I would get to that conclusion, but the fact he does may signal a potential transpartisan alliance on going after the big banks.
|By: David Dayen Thursday May 17, 2012 7:20 pm|
James Bullard, the President of the St. Louis Federal Reserve, has become the second regional bank President in the last couple months to endorse the concept of breaking up large banks.
|By: David Dayen Tuesday May 15, 2012 10:00 am|
One thing to understand about the Fail Whale debacle at JPMorgan Chase is that there were lots of warning signs. The trades were public knowledge for over a month; in fact, that’s part of the reason they failed so spectacularly, as hedge funds got wind of the trades and started taking the other side of the bet. Jamie Dimon simply ignored the red flags.
|By: David Dayen Tuesday May 15, 2012 9:30 am|
If there’s one thing to be gained from the Fail Whale trade, it’s that one section of the political class has rediscovered the need for stronger financial regulations. Even politicians running for office are starting to runn on the need for more reform.
|By: David Dayen Monday May 14, 2012 1:30 pm|
Whale trade, proponents of stiffer regulation on Wall Street than what was ushered in with Dodd-Frank have offered a variety of solutions, including reenacting Glass Steagal or making banks smaller. All of them could be beneficial in tandem to reduce risk and political influence from the financial system.
|By: David Dayen Friday March 23, 2012 6:01 am|
The Dallas Federal Reserve Bank released a report yesterday calling for the end of “Too Big To Fail” and the breakup of the largest and most systemically important banks.
In a letter signed by Richard Fisher, the conservative president of the bank, he endorses the research report, and he says that the Dodd-Frank law did not do nearly enough to end the dynamic of Too Big to Fail, and that more must be done immediately to reach this outcome.