US Bank Depositors Unlikely to Take Losses

By: Thursday April 4, 2013 11:41 am

It doesn’t look likely that US depositors would take losses if a megabank collapsed. Why should we even have to ask the question? Why don’t we just break them up?

 

FDIC Under Scrutiny for Not Announcing Settlements

By: Tuesday March 12, 2013 11:15 am

The Federal Deposit Insurance Corporation (FDIC) has been complying with a “no press release” clause added to its settlements by banks that break the law. The clause is added to keep the regulator quiet on reputation damaging legal settlements. Typically settlements are announced by regulators in hopes of deterring would be law breakers but the FDIC has changed its previous policy without explicitly stating why.

FDL Book Salon Welcomes Sheila Bair, Bull by the Horns: Fighting to Save Main Street From Wall Street and Wall Street From Itself

By: Sunday November 18, 2012 1:59 pm

Bull by the Horns is the story of financial calamity seen from the perspective of this public servant, rendered from detailed notes. We learn with whom she met, what was said, what decisions taken, and how things turned out. She begins with the battles over deregulation of the banks (Basel II), with the gathering sub-prime storm, and proceeds through the disaster: WaMu, Wachovia, Citigroup, Bank of America, AIG, Citigroup again. And then the battles of the aftermath, over among other things Dodd-Frank, Basel III and the robosigning frauds. This is a book for aficionados of infuriating detail.

Banks Charging “FDIC Fees” Against FDIC Wishes

By: Friday August 24, 2012 8:16 am

What we’ve learned over the past few years is that banks base a large segment of their profits on their ability to flat-out rip off their customers. Here’s a great example, courtesy McClatchy. Banks have been charging their business customers what is labeled an “FDIC fee,” presumably to recoup costs from the deposit insurance fund into which they pay. Problem is, there’s no such thing as an FDIC fee, and the FDIC has warned banks to stop using their name to gather fees from their customers.

Banks Release Living Wills for Contingency of Winding Down Their Firms

By: Thursday July 5, 2012 4:40 pm

As part of Dodd-Frank, systemically important financial institutions (SIFIs) had to put out “living wills” that explained how they would wind themselves down with the least overall disruption in the event of their failure.

US Government Backstops Most Derivatives

By: Sunday June 24, 2012 10:40 am

Dimon is right to believe that derivatives are safe for JPMorgan Chase. He has the Fed and the FDIC to backstop him. And it’s really great that you get to backstop the Fed and the FDIC for him and his gambling habit.

JPMorgan Ignored Risk Warnings in Pursuing Fail Whale Trade

By: 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.

Recapping Thursday Action in Congress – There Was Some!

By: Friday March 30, 2012 6:50 am

Let’s briefly recap Congress’ busy day yesterday, as they head out for a two-week recess (Spring Break ’12 Cancun?).

The Broken Regulatory State

By: Monday February 27, 2012 12:43 pm

If anything, the foreclosure fraud settlement has shown a breakdown in the ability of regulatory agencies to deal with the aftermath of fraudulent conduct. They simply have no ability to offer a regulatory response that’s commensurate with the behavior. If the behavior does lead to a negotiated settlement, then it comes with unsatisfying “neither admit or deny” statements that judges have continued to question.

NOT-BREAKING: SEC Is a Doormat for Wall Street

By: Saturday February 4, 2012 9:00 am

The NYT discovers what FDL readers have known for quite some time: the SEC is a doormat outside the banks and financial institutions of Wall Street.

But it’s not just people outside the SEC who see this. The Partnership for Public Service took data from annual OPM employee surveys of government workers and discovered that in 2011, the SEC ranked at or near the bottom in the “large agency” category, dragged down by abysmal ratings for the employees’ views of the effectiveness of the leaders and the leaders’ strategic management.

Whether seen from the inside or the outside, the conclusion is the same: the SEC is failing at its mission. For the banks, this is a feature, not a bug.

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