Home » Archive for September, 2009
Editorial: The Nonsense of “Reining in Bankers’ Pay” and Why Central Planning Never Works
As I mentioned in my last article about the attempt at instituting a bunch global rules on the banking industry not being workable, as the issue is a systemic one, and not one of being underregulated. As long as fractional reserve... More of this article »
China to Implement New Capital Requirements for Banks Over Several Years
China’s chief banking regulators said it will take years for their country to implement stricter capital requirements, seeking to assure investors that new rules will not cause an immediate decline in new lending. In a recent statement,... More of this article »
Global Regulators Agree on New Capital Requirements for Banks
In the recent G20 talks in Basel, Switzerland, global regulators agreed on new capital requirements that will require banks to set aside additional capital to weather hard times. Under the new proposal offered by top central bankers,... More of this article »
Should You Use Lending Club to get a Short-Term Personal Loan?
Peer-to-peer lending services such as Lending Club are growing by leaps and bounds. Consumers are using them because they can get better interest rate for personal loans than they would by borrowing from a local bank and investors... More of this article »
Does the FDIC Have 99 Years to Pay Insured Deposits?
In these uncertain times, many are questioning the safety of their money in the banking system and question whether or not the Federal Deposit Insurance Corporation can provide adequate protection to consumers of failed banks. The... More of this article »
Wells Fargo’s Secrecy Hurting its Stock Prices
Wells Fargo & Co. (NYSE: WFC) dodges difficult questions from investors and the press on a regular basis, and that silence is beginning to take a toll on the bank’s stock. Wells has survived the financial crisis better than just... More of this article »
Nemazee Used Falsified Documents to Repay Citi Loan
Citigroup Inc (NYSE: C) was defrauded to the tune of $74 million by New York businessman and Democratic fundraiser, Hassan Nemazee, by getting a loan using fake loan documents. In a letter to the U.S. Federal Court yesterday, Assistant... More of this article »
Why did the Federal Reserve Devalue the U.S. Dollar to 5 Cents?
The Federal Reserve took control over the United States money supply in 1913. Since then, the buying power of a dollar has decreased by 95% according to data from the Consumer Price Index (CPI). The Federal Reserve’s laissez faire... More of this article »
Kansas City Fed Bank President Says Cut Debt, Be Firm On Interest Rates
President of the Kansas City Federal Reserve, Thomas Hoening said in a speech given at the annual meeting of the Kansas Banking Association that actions need to be taken in reducing the nation’s debt, both federal and consumer. The... More of this article »
Will Rand Paul Take up the Federal Reserve Fight in the Senate?
Over the last few months, there has been a growing movement to bring transparency and new levels of accountability to the US Federal Reserve. Congressman Ron Paul has been leading the fight in the House of Representatives. There’s... More of this article »
Bank of America: Federal Oversight Still Needed
Bank of America (NYSE: BAC) has lost $5.7 billion in 2009 and is not expecting a strong second half of the year. Bank of America is hoping to get out of the eyes of the US Treasury by repaying their TARP loans, but BofA’s financials... More of this article »
Reasoning of FDIC Behind New Supervisory Procedures of Newly Insured Banks
The reasoning behind the FDIC’s decision to increase the supervisory period over new banks from three to seven years is faulty to me, although it won’t hurt the banks in general. What the FDIC drew their conclusion from... More of this article »
U.S. Committed to Implement Basel II Banking Rules, Geithner Says
U.S. Treasury Department officials stated on Saturday that the United States is committed to implementing Basel II capital rules for banks in order to ensure the financial stability of U.S. banks. Some differences have emerged in London... More of this article »
Statement from G20 on How They’re Going to Strengthen Financial System
Over the last couple of days financial leaders from the G20 countries and Central Bank Governors got together to talk about what they should do going forward in strengthening the global financial system, which has broke down in the... More of this article »
InBank, Platinum Community Bank, Vantus Bank and Others Fail
Like clockwork, Federal regulators took over five banks spanning across Arizona, Illinois, Iowa and Missouri today, bringing the total number of bank failures to 89 amid the worst financial crisis since the Great Depression. The two... More of this article »
How Kennedy’s Death Will Impact Congress’s Wall Street Reform Efforts
President Obama’s effort to reboot how the Federal Government regulates wall street could face major problems if Senator Tim Johnson, whose home state of South Dakota is a major hub for Credit Card companies, takes over the chairmanship... More of this article »
HSBC Holdings to bid for ING’s Private Banking Assets
HSBC Holdings PLC (NYSE: HBC) submitted a bid to purchase ING Groep NV’s (ING) private banking assets, according to the Wall Street Journal and several other sources. ING put up both its Asian and Swiss private banking assets for... More of this article »
Private Currencies: What if the US Dollar Went Away?
There’s a growing movement to privatize the banking industry. Many are calling for reform. Some want to audit the Federal Reserve, others, such as Representative Ron Paul from Texas want to end the Federal Reserve all together. Others... More of this article »
Editorial: Is Focus on Bank CEO Pay a Smokescreen for Federal Reserve?
There are a lot of ignorant and clueless writers who attempt to make it sound like the pay structure of Wall Street CEOs could have been behind the failure of the banking system: fractional reserve banking and the Federal Reserve. Now... More of this article »
Senator Schumer Pushes Change In SEC Funding Following Madoff Failures
New York Senator Charles Schumer, Democrat, released a statement on Thursday listing his intent to push a proposal that would change the Securities and Exchange Commission’s method of funding, providing the agency access to millions... More of this article »
Citigroup Shareholders Authorize Common Stock Increase, Gov’t Stock Conversion Begins
Citigroup (NYSE: C) announced Thursday that shareholders approved a proposed authorization to substantially increase the number of outstanding common stock. The move was needed for Citigroup to proceed with a share exchange, giving... More of this article »
Bank of Kentucky Acquires Three Branches of Integra Bank Corp.
Struggling Integra Bank (NASDAQ: IBNK) will sell three of its bank branches based in northern Kentucky to Bank of Kentucky, and sell off assets of two other branches to the bank, which it will close down. “This divestiture will enhance... More of this article »
Editorial: Fractional Reserve Banking and the Federal Reserve
I was reading the other day that the idea of getting rid of the Federal Reserve was based on faulty assertions that the booms and busts we’ve experienced since its inception in 1914, also happened during the 1800s, largely undermining... More of this article »