Big Wall Street banks are asking the U.S. Federal Reserve to grant them an additional five-year grace period to comply with a financial reform regulation known as the Volcker rule, people familiar with the matter said. If the Fed agrees, the extension would give banks more time to exit fund investments that are difficult to […]
NOT BUYING BAYH FOR BANKING — The reaction from the left was swift and severe to the idea that if Indiana Democrat Evan Bayh returns to the Senate he could leapfrog Sherrod Brown and chair the Banking Committee if Democrats take back the chamber. Hill veterans also dismissed the idea. From one Senior Dem close to […]
The TBTF wars continue. Better Markets’ Dennis Kelleher emails: “When will the TBTF trade groups realize that just because they say something — however stridently — doesn’t make it true? First, TCH citing itself in support of itself is too rich to merit comment. Second, the ABA needs to read the regulators’ findings of deficiency […]
“The UK’s four biggest banks would need to raise another £155bn in fresh capital to withstand a new financial crisis, despite the view of the Bank of England Governor that lenders have an adequate cushion to cope with further turmoil. Those are the results of research from three respected financial academics – and add to […]
“The Bank of England’s annual stress tests of the UK’s banks, designed to ensure Britain’s lenders will not be at the heart of another destructive financial crisis, have been branded “worse than useless”, by a new report. “Kevin Dowd, professor of finance and economics at Durham University, argues in a paper published today by the […]
“It wasn’t supposed to be this way. The regulatory onslaught that followed the 2008 crisis had one big target: ending “Too Big to Fail,” the popular shorthand for large banks’ (and insurers’) ability to hold governments to ransom by threatening to bring down entire economies with them. Among the measures aimed at achieving that goal […]
“The basic business model of high street banking is to profit from the “margin” between the interest rate at which banks lend to borrowers and the interest rate they pay out to depositors. The Bank of England sets the costof borrowing throughout the economy with its base rate, dragging the private banks in its wake. When […]
“An 80-year-old banking law has done the impossible: united Republicans and Democrats. “Donald Trump Republicans and Bernie Sanders Democrats have inserted into their party platforms a call to readopt the Glass-Steagall Act, which limits big banks. The move comes after Hillary Clinton explicitly rejected the idea, and Republicans called for repealing the Dodd-Frank Act, which imposed tougher restrictions […]
“The Republican Party platform calls for the reinstatement of the Glass-Steagall law, but the idea is driven more by politics than policy and probably won’t get very far, financial industry observers say. “Donald Trump is backing the revival of the Depression-era law, which separated the functions of commercial and investment banking, and pushed for its […]
“Wall Street has descended into a state of shock after Donald Trump’s campaign revealed the Republican presumptive presidential nominee would push for the reinstatement of the Glass-Steagall banking law to effectively break up the big banks. “Mr Trump’s campaign manager, Paul Manafort, said at the Republican National Convention in Cleveland on Monday that the party’s […]
“Both major political parties are now calling for an overhaul of the financial industry through the return of Glass-Steagall, a Depression-era banking law. “Paul Manafort, presumptive Republican presidential nominee Donald Trump‘s campaign manager, told reporters gathered in Cleveland Monday that the GOP platform would include language advocating for a return of that law, which was repealed […]
FOR IMMEDIATE RELEASE Tuesday, July 19, 2016 Contact: Nick Jacobs, 202-618-6430 or [email protected] Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued this statement following the release and approval of the 2016 Republican Party Platform: “Donald Trump’s move from the Apprentice to Extreme Makeover now includes fraudulently posing as an anti-Wall Street financial […]
FOR IMMEDIATE RELEASE Monday, July 11, 2016 Contact: Nick Jacobs, 202-618-6430 or [email protected] Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued this statement following the release of a report by the House Financial Services Committee examining the Justice Department’s settlement with HSBC: “Today’s report by the House Financial Services Committee on […]
FOR IMMEDIATE RELEASE Wednesday, July, 6 2016 Contact: Nick Jacobs, 202-618-6430 or [email protected] Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued this statement following comments by Federal Reserve Governor Daniel Tarullo calling for an end to allowing taxpayer-backed banks such as Goldman Sachs and Morgan Stanley to engage in trading physical […]
“Better Markets’ Dennis Kelleher emails with a cogent argument as to why the Fed requires European lenders to keep a lot of capital in the U.S. and subjects them to stress tests.” *** “If U.S. taxpayers are going to bail out European banks during a crisis, then the Fed should regulate them before they crash.” […]
“The influential head of the House Financial Services Committee wants to do away with most of the Wall Street regulations passed by Congress in the wake of the 2008 financial crisis. Rep. Jeb Hensarling, R-Texas, would allow banks that keep more capital on their books than they currently do to be exempt from most of […]
“A replacement for the Dodd-Frank Wall Street Reform and Consumer Protection Act was unveiled Tuesday by House Financial Services Committee Chairman Jeb Hensarling, R-Texas. “The Republican legislative proposal that will be introduced later this month would repeal the Volcker rule and reduce capital demands on banks; end taxpayer-funded bailouts and the concept of “too big […]
” The memo landed on a Sunday in November. It was 2007, and securities backed by subprime mortgages were roiling markets and imperiling banks. Merrill Lynch Chief Executive Officer Stan O’Neal had just resigned under pressure, and Citigroup CEO Chuck Prince was rumored to be on his way out. So the Nov. 4 memo to employees […]
“If I’m ever dragged into court for a financial fraud, I want to throw myself on the mercy of Judge Richard C. Wesley. Wesley is the U.S. appeals court judge in New York who, with his colleagues Reena Raggi and Christopher F. Droney, found a loophole in federal fraud law big enough for the nation’s […]
“Bank of America won a victory over the U.S. government Monday when a federal appeals court reversed a lower court decision against the country’s second-largest bank by assets. The U.S. Court of Appeals for the 2nd Circuit in New York ruled the Charlotte, North Carolina-based bank does not have to pay a $1.27 billion penalty in connection […]
“A Manhattan federal appeals court struck again on Monday — making life a bit easier for those on Wall Street looking to cut corners. The Second Circuit Court of Appeals reversed a jury’s finding that a unit of Bank of America committed fraud by dumping shoddy mortgages on government-sponsored Fannie Mae and Freddie Mac leading up to […]
“Better Markets’ Dennis Kelleher responding to Thursday’s item complaining about Fine’s criticism of Jamie Dimon.” ### “The anonymous ‘former senior Hill staffer’ attack on ICBA Pres Cam Fine is baseless. Community banks would benefit from targeted reg relief and ending the unfair competition from Wall Street’s TBTF banks.” ### “He merely called out those TBTF […]
Living wills are critical to eliminating or minimizing the threat of too-big-to-fail, but the process to date has been far too opaque for anyone to determine if the “living wills” that have been submitted are credible or will do the job as intended. The Dodd Frank Act provided regulators with substantial authority and powers to […]
“For 147 years, Goldman Sachs has been best known as a secretive, Wall Street dealmaker with the ear of the White House. It helps big institutions and billionaires bet on the markets, and large corporations raise money.” “What it hasn’t done — until now — is work closely with the average American. Now, the elite New […]
“Donald Trump’s decisive victory in the Indiana primary late Tuesday has cleared the path for him to become the Republican nominee for president – but hasn’t cleared up the lingering doubts many bankers have about the real estate magnate.” “Just six months out from the general election, Trump’s positions on banking issues remain a complete […]
“Barclays shareholders are restless. The stock price is down even as the market is up. The bank’s shares are trading near the level prevailing in 2012, when Bob Diamond was ousted as chief executive, which was also about the level at which they traded on his arrival at the bank in 1996. There have been […]
“Typically thoughtful but provocative statement by Dennis Kelleher, one of the behind-the-scenes architects of the Dodd-Frank law and now head of the advocacy group Better Markets. Kelleher told Morning Exchange that U.S. banks’ dire first quarter results are a sign “that the banks haven’t won and that taxpayers are better off.” “How so? Kelleher, who […]
“Sir, Jamie Dimon’s annual letter to JPMorgan Chase shareholders makes many good points but fails to connect the dots (“JPMorgan’s Dimon warns of threat to biggest US banks”, April 9). Mr Dimon highlights with pride his bank’s improved capital strength, profitability and shareholder returns. He notes that JPM has posted record results in five of […]
“With the Department of Justice announcing its latest multi-billion-dollar settlement with a too-big-to-fail bank — Goldman Sachs this time — the question we all must be asking is, “Does this mean that real accountability has finally come to Wall Street?” “Unfortunately, we already know the answer is a clear “no.” Too big to fail not […]
“Forty years before Tom Hoenig reached the upper echelons of bank regulation, he was drafted to fight in the Vietnam war. A talented mathematician, he was put to work in an artillery unit doing the calculations that gun crews needed to hit their targets.” “Today he has a different foe in his sights: the US’s […]
Yesterday, the Fed and the FDIC found that the “living wills” submitted by five of the nation’s largest banks—JPMorgan Chase, Bank of America, Wells Fargo, Bank of New York Mellon and State Street—failed to show that they could be safely unwound in a bankruptcy proceeding , and deemed their plans “not credible.” As FDIC Vice […]
FOR IMMEDIATE RELEASE Wednesday, April 13, 2016 Contact: Shanessa Bryant, 202-618-6433 or [email protected] Washington, D.C. – Following the announcement today from federal regulators that the “living wills” of five giant banks, including J.P. Morgan Chase and Bank of America were found to be “non-credible,” Dennis Kelleher, President and CEO of Better Markets, issued this statement: […]
“Since the financial crisis, shareholders and regulators have taken aim at pay and bonuses. They have identified ill-designed pay packages as a factor in encouraging unnecessary risk-taking by bankers and have pushed for restrictions on future pay to deter such recklessness.” “Investors in JPMorgan, Citigroup and Bank of America are proposing that senior staff set […]
“Wall Street bonuses are about to get locked up for even longer. As part of a hard-fought update of crisis-era compensation rules expected in April, regulators plan to require banks to hold back much of an executive’s bonus beyond the three years already adopted by many firms, people familiar with the matter said. “The new […]
“Sir, Brooke Masters’ Top Line column “Prepare for bitter bankers’ chorus of ‘we were right’ ” (March 5) reminds me of the story of the son who killed his parents and, when convicted, asked the court for mercy because he was an orphan. The condition of the biggest global banks today is due to the […]
“The drive to break up the big banks has won a surprising number of adherents from both sides of the political spectrum — everyone from Neel Kashkari, the Republican head of the Federal Reserve Bank of Minneapolis, to Bernie Sanders of Vermont, the Democratic socialist who has made it the heart of his campaign. “The […]
“Better Markets’ Dennis Kelleher in the Huffington Post: “The critics of the financial reform Dodd-Frank Act are fond of saying that it doesn’t work — some going so far as to say that the financial system is just as much at risk as it was in 2008, if not even more so. … But now, […]
“President Obama met with top financial regulators Monday and later praised their efforts to protect consumers, make the financial system safer and stronger, and prevent the recklessness that led to the economic collapse at the outset of his presidency. “The session in the Roosevelt Room at the White House was designed to rebut critics who […]
“Too-big-to-fail banks are generating plenty of anger from the public, but former Secretary of State Hillary Clinton says the real risks to the financial system lie in the vast, lightly regulated corners of the economy called shadow banks.” *** “Unlike commercial banks, the holdings in such entities aren’t insured by the federal government, which means […]
“As Federal Reserve Board Chair Janet Yellen recentlytold the Senate Banking Committee, the regulators’ grades on the latest round of the “living wills” for the nation’s 11 most systemically dangerous banks will be released shortly. It’s not clear who should be the most nervous: the banks, the regulators or the American people. “The banks should […]
“Last year was not a big year for raises in America. Collectively, Americans ended the year seeing their compensation rise just 2 percent. “But bank executives are different from you and me. Case in point: Bank of America chairman and CEO Brian Moynihan. On Friday in filing, the bank said it handed Moynihan a 23 […]
“Wall Street woke up with a new problem Tuesday: a Republican Goldman Sachs alum using his new bully pulpit atop the Federal Reserve to suggest the biggest banks should break up.” *** “For too long too many people involved in creating or responding to the financial crash have remained silent about what happened and what […]
FOR IMMEDIATE RELEASE Tuesday, February 16, 2016 Contact: Daniel Wynn, 202-618-6464 or [email protected] Better Markets Applauds Minneapolis Fed President Neel Kashkari’s Remarks on Ending the Dangerous Too-Big-To-Fail Threat Hanging over the Economy and Americas’ Families Washington, DC — Better Markets President and CEO Dennis Kelleher released this statement regarding Minneapolis Fed President Neel Kashkari’s remarks […]
“Secretary Clinton says that Glass-Steagall would not have prevented the financial crisis because shadow banks like AIG and Lehman Brothers, not big commercial banks, were the real culprits. Secretary Clinton is wrong. Shadow banks did gamble recklessly, but where did that money come from? It came from the federally insured bank deposits of big commercial […]
“(Reuters) – Late Wednesday, Delaware U.S. Attorney Charles Oberly announced the indictment of Wilmington Trust, which is accused of hiding failed loans in its commercial real estate portfolio in 2009 and 2010. The bank’s supposed deception of regulators and investors propped up the bank’s shaky financials as it undertook a $274 million stock offering in […]
“Former U.S. Attorney General Eric Holder was widely criticized in 2013 for suggesting that the nation’s largest banks are too big to jail. “In Delaware, the addition this week of Wilmington Trust as a defendant to the criminal indictment already pending against four top-tier bank executives stands in contrast to that. *** “I applaud [the […]
FOR IMMEDIATE RELEASE Monday, December 28, 2015 Contact: Jeff Gohringer, 202-618-6430 or [email protected] Better Markets Goes to Court to Prevent Attempts by Certain Shareholders of Fannie Mae and Freddie Mac to Put Taxpayers on the Hook for their Losses **Click here to view the motion and brief** Washington, DC — Better Markets announced today that […]
“The stakes for big banks — and regulators — are high as the agencies near the release of their evaluation of the largest institutions’ living wills. “The Federal Deposit Insurance Corp. and Federal Reserve Board are expected to unveil soon how 12 of the largest and most complex banks did on detailing ways they could […]
“Seven years after their dubious lending practices helped push the United States economy to the brink of disaster, the nation’s largest banks are closing in on a long-sought goal: to unseat Fannie Mae and Freddie Mac, the mortgage finance giants, and capture their share of the profits in the country’s $5.7 trillion home loan market. […]
“The battle for the Democratic Party’s presidential nomination has raised the profile of the U.S. economy’s “shadow banking” sector. That’s the portion of the nation’s financial system that operates beyond the jurisdiction of government bank regulators. “Back in the run-up to the 2008 financial meltdown, it was non-commercial banks like Bear Stearns and Lehman Brothers […]
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