Financial Reform
Markets Sell off Today, Still Wall Street Wins
The Senate just passed a stupid bill and called it financial reform. [via CBS Marketwatch] The mammoth legislative package — which passed 59 to 39, with three Republicans voting for the bill — requires “too-big-to-fail” banks to install new capital restrictions and divest their derivatives units, sets up a government board to assign credit raters […]
His Cure is Worse than the Disease
I think Senator Dodd’s bill on Financial Reform is no-good, very-bad, ugly bill! I have been investing/trading stocks and options (derivatives) for nearly 20 years. I read a lot of stuff on economy, markets etc etc. These are my 2 cents on Financial Regulation based on whatever I come to know from my exposure and […]
Enemies from Within
Unless there is a meaningful reform which curbs the influence of the financial sector on the economy and politics, the economy will remain vulnerable to major shocks. Yes, by reform I mean regulation. A regulation that worked for several decades, Glass Stegal Act was, eliminated in 1999. Senator Phil Grahm and Treasury Secretary Summers worked […]
Volker: How to Fix the Financial System (Must Read)
I have great respect for Mr. Paul Volker, former Chairman of the Federal Reserve Board. He is widely credited for saving the US financial system from an environment where inflation was 13.5% in 1981 to about 3.3% in two years. He did not bow to business or political pressures and gave the economy the tough […]