Statement Concerning Too Big To Fail (TBTF)

I found the Opening Statement at the Full Committee Hearing on ‘Too-Big-to-Fail’ Post- Dodd-Frank, made yesterday (June 26) by The Committee On Financial Services’ Chairman Hensarling, to be notable. While I don’t necessarily agree with everything said in this Opening Statement – or with all aspects of the following excerpts – here are the excerpts I found … Read more Statement Concerning Too Big To Fail (TBTF)

Stiglitz Interview – Notable Excerpt

Today’s Barron’s has an interview with Joseph Stiglitz.  I found his answer to the following question to be an interesting perspective: Before we talk about all that, what are the most surprising developments since you won your Nobel Prize? Surprising to whom? The bubble episode surprised so much of the world—Greenspan and Bernanke believed that … Read more Stiglitz Interview – Notable Excerpt

Larry Kudlow Comment On January 13 Regarding “Too Big To Fail”

On Thursday, Larry Kudlow interviewed Rep. Spencer Bachus on CNBC. I found one comment Kudlow made, starting at the 6:17 mark,  to be especially notable: “Many people believe that the top 5,6,8 banks are in fact too big to fail and constitute government sponsored enterprises in effect.  That is an unfair advantage in the credit … Read more Larry Kudlow Comment On January 13 Regarding “Too Big To Fail”

SIGTARP Comments

I found some interesting comments in the SIGTARP January 30 2010 Report to Congress: http://www.sigtarp.gov/reports/congress/2010/January2010_Quarterly_Report_to_Congress.pdf From the Executive Summary, which begins on Page 5: “Many of TARP’s stated goals, however, have simply not been met. Despite the fact that the explicit goal of the Capital Purchase Program (“CPP”) was to increase financing to U.S. businesses and consumers, … Read more SIGTARP Comments

Moral Hazard Speech

Here is a link to an October 20 speech given by Mervyn King.  The speech speaks of the concept of Moral Hazard: http://www.bankofengland.co.uk/publications/speeches/2009/speech406.pdf Although there are various notable passages, I found this line perhaps most interesting:    “The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the … Read more Moral Hazard Speech

Bank Bonuses and Broader Implications

I’d like to make a brief comment about the “bank bonus” story that came out a few days ago.  Here is one article on it, titled “Bank Bonus Tab: $33 Billion” from The Wall Street Journal on 7-31-09: http://online.wsj.com/article/SB124896891815094085.html#articleTabs%3Darticle Needless to say, it seems outrageous that such bonuses, in said amounts, were paid out so … Read more Bank Bonuses and Broader Implications