Guest: Tyler Durden, ZeroHedge and Andrew converse about the state of the markets and what our Government is doing right and doing wrong (more wrong it seems). Andrew poses many questions about the FHA, Sheila Bair and where the economy is going. We discuss November’s economic numbers and how we are investing in Oprah. LISTEN [...] Related posts: TDI Podcast 106: ZeroHedge and Mish-O-Nomics TDI...
Ira Stoll submits: When the FDIC chairman, Sheila Bair, gave a speech in Istanbul on October 5 floating a proposal to limit the claims of secured creditors of failed banks, we commented that the change would "make it harder and more expensive for banks to raise capital." When we checked if her proposed 20% haircut would apply just to newly issued debt or retroactively to existing secured...
Not many heroes emerged from the rubble of the global financial meltdown. Two are Sheila Bair, the chair of the FDIC, and Brooksley Born, the former head of the CFTC. Both warned of the crisis. Both were ignored. In a June 2008 column—written before things got really bad—Steven Pearlstein of the Washington Post described Bair as one regulator [...]
Blue Jersey: Covering NJ like a rug (Free subscription) | 11/20/2009
The US Senate Banking, Housing and Urban Affairs committee has taken up legislation dealing with financial regulatory reform. Mondaq had more on the bill: Senate Banking Committee Chairman Christopher Dodd has introduced a discussion draft of the Restoring American Financial Stability Act of 2009 (the "Dodd Bill"), which comprehensively addresses financial regulatory reform, encompassing...
When the FDIC chairman, Sheila Bair, gave a speech in Istanbul on October 5 floating a proposal to limit the claims of secured creditors of failed banks, we commented that the change would "make it harder and more expensive for banks to raise capital."
Daily Intelligencer - New York Magazine (Free subscription) | 11/18/2009
While a number of senior Citigroup executives will be compensated for the bank's non-death with raises and/or stock packages this year, Vikram Pandit does not need money to continue to do the Best Job in the World. The CEO announced today that he will continue his reign of austerity by paying himself the same as last year: $1. (Looks around for applause, none comes, scuttles offstage.) [ AP ] Read...
The FDIC, already strained as its reserve fund dwindles, may be getting an extension on its temporary loan guarantee program. The move is a preventative measure in case another crisis (cough, commercial real estate) happens again: Bloomberg : The House Financial Services Committee today approved an amendment, introduced by Chairman Barney Frank, to a systemic- risk bill giving the FDIC power to guarantee...
Sheila Bair said last week that the TARP CPP program was, in retrospect, maybe not such a good idea. “I just see all the problems it’s created now,” she said in an interview with PBS economics correspondent Paul Solman. “The...
Bloomberg reports: "Federal Deposit Insurance Corp. Chairman Sheila Bair said using the Troubled Asset Relief Program to pump capital into banks was “not a good idea” and helped erode confidence in the regulatory system. “I just see all the problems it’s created now, the horrible public outcry,” Bair said on PBS’s “The NewsHour with Jim Lehrer” yesterday....
Linus Wilson submits: Another Friday and another bank that was deemed “healthy” by regulators and the U.S. Treasury sees its bailout shares wiped out. Taxpayers this time lost $4.1 million as the Federal Deposit Insurance Corporation (FDIC) seized the southern California Pacific Coast National Bank. Sunwest Bank of California will assume Pacific Coast’s deposits and assets. FDIC...
Edward Harrison submits: The Jamie Dimon piece in Friday’s Washington Post is a must-read. Dimon, head of behemoth JPMorgan Chase ( JPM ) makes the best case for not breaking up large too-big-to-fail financial institutions. His idea: set up a robust resolution process and let reckless lenders fail regardless of size. Now, back in September, I attended a meeting at the Clinton Global Initiative...
Mish's Global Economic Trend Analys (Free subscription) | 11/14/2009
Yesterday I stated FHA Bailout By Taxpayers On The Way . The FHA denies a bailout is coming. Please consider Inside the FHA's financial audit , with David Stevens, FHA commissioner and CNBC's Diana Olick. The Term Bailout Does Not Apply David Stevens: "Bailout is a term widely used with financial institutions. FHA is a government agency so let's just be clear. .... FHA does not operate under the...
Many thanks to Paul Solman for putting my question to Sheila Bair. Her answer is quite astonishing in its chutzpah: Solman : Felix Salmon, who blogs for Reuters and does a lot of very interesting reporting, wanted us to ask this: was the Washington Mutual intervention a mistake, given the knock-on effects it seems to have had on the broader community. And more generally, is there anything you would...
The government does have a handful of people worth listening to. While not always hitting the nail on the head, Sheila Bair , Chairman of the FDIC, seems to be more right than wrong, in my opinion. Now this may be a bit of Monday morning quarterbacking, but she is publicly pointing out how it would have been better to break up some of the financial institutions instead of propping them up with TARP....
Federal Deposit Insurance Corp. Chairman Sheila Bair said using the Troubled Asset Relief Program to inject capital into struggling banks was "not a good idea" and helped erode confidence in the regulatory system. "I just see all the problems it's...
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