Showing posts with label Financial Collapse of 2008. Show all posts
Showing posts with label Financial Collapse of 2008. Show all posts

Saturday, April 19, 2014

Stronger Capital Required

Liberals can't seem to let go of the "Obama is really a corportist" meme just in the same way that conservatives can't let go of the "Obama is a commie" meme. Neither are right, of course, which means the president is doing exactly what he should be doing.

Yet this recent story on FDIC and the Treasury Department's new rule on capital should torpedo the idea that the president is secretly doing the bidding of our financial sector.

Regulators are acting to require U.S. banks to build a sturdier financial base to lessen the risk that they could collapse and cause a global meltdown. The eight biggest banks will have to meet stricter measures for holding capital – money that provides a cushion against unexpected losses – under a rule that regulators are adopting Tuesday.

The Federal Deposit Insurance Corp. and the Treasury’s Office of the Comptroller of the Currency voted to require those banks to raise their minimum ratio of capital to loans to 5 percent from the current 3 percent. The Federal Reserve will vote at a public meeting later Tuesday. The banks’ deposit-holding subsidiaries will have to achieve a ratio of 6 percent. Because the deposits are insured by the government, the subsidiaries are subject to a stricter ratio requirement.

The new regulation won't take effect until 2018 but it is progress. More importantly, it is exactly what I wanted to see in terms of a return to Glass Steagal-type regulation on the financial sector. The banks should not be gambling with my fucking money. Period.

Thursday, June 14, 2012

Blame Bush

A new Gallup poll shows that a majority of Americans still blame President Bush for our economic and financial woes. 68 percent of those surveyed place the blame on W while only 52 percent blame President Obama. 83 percent of that 52 percent are Republicans so that makes sense.

The interesting number is that 49 percent of the 69 percent that blame Bush are also Republicans. That gives me some hope that at least some folks on the right are willing to admit fault. Of course, on my list Bush and the GOP are number 2 as far as blame goes. The fault really lies with the financial sector of this country and their insatiable greed.

So, for those of you who whine about "blaming Bush," are in the minority.

Friday, April 01, 2011

House of Cards

Here is the entire House of Cards documentary from CNBC. It's an excellent bookend piece to Inside Job.