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Trading Goddess: Frothy Friday - Churn Baby Churn!
FT Alphaville: Bernanke does bank regulation and supervision
The Big Picture: Financial Regulation and Supervision after the Crisis: The Role of the Federal Reserve
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Wow, Bernanke's even taking questions.Full speech http://federalreserve.gov/newsevents/speech/bernanke20091023a.htm 10/23/2009 |
Frothy Friday - Churn Baby Churn!
Trading Goddess —
... (the World's 6th largest economy) as the economy there SHRANK 0.4% vs the +0.2% expected by economists. Of course, a 300% miss is nothing unusual given the quality of the people they have forecasting the economy and, even as I write this, our Forecaster-In-Chief, Ben Bernanke is doing a song and dance on TV trying to tell US investors to ...
Bernanke does bank regulation and supervision
FT Alphaville —
Has Ben Bernanke been taking a leaf out of Lord Turner ’s banking regulation book? The Federal Reserve chairman has been speaking on the dual subjects of financial regulation and supervision post-crisis. Much like the UK’s Financial Services publication on Thursday — the possibility of a surcharge on capital crops up, as do possible liquidity regulations . Perhaps most intriguing, however, Bernanke talks about the need for legislative changes to the way banks are regulated — including, potentially, bailout costs borne by the financial industry instead of the American taxpayer. You can read the whole speech here , but below ...
Financial Regulation and Supervision after the Crisis: The Role of the Federal Reserve
The Big Picture —
Chairman Ben S. Bernanke
At the Federal Reserve Bank of Boston 54th Economic Conference, Chatham, Massachusetts
October 23, 2009
Financial Regulation and Supervision after the Crisis: The Role of the Federal Reserve
The theme of the Federal Reserve Bank of Boston’s Economic Conference this year–reevaluating regulatory, supervisory, and central banking policies in the wake of the crisis–is certainly timely. Not much more than a year ago, we and our international counterparts faced the most severe financial crisis since the Great Depression. Fortunately, forceful and coordinated policy actions averted a ...
"Bernanke: Smaller Banks Not Necessarily the Answer"
Economist's View —
Ben Bernanke does not want to lose "the
economic benefit of multi-function, international (financial) firms," so he is hesitant to break large banks into smaller sized institutions. I don't have much problem with the economics, if there are efficiencies that
come with bank size we should exploit them, especially if breaking up banks into
smaller entities does little to reduce systemic risk but instead simply
fragments the problem into many more pieces (though I'd still like to know where the minimum efficient scale is, anything larger than that is unnecessary). Obtaining resolution authority
for banks in the shadow system is also very ...
links for 2009-10-23
Economist's View —
The state and journalism - Christopher Caldwell
What pick-your-own-apple orchards teach about the American economy - Daniel Gross
America's public ...
Improving financial regulation and supervision
Econbrowser —
There were some other very interesting presentations at the conference hosted by the Federal Reserve Bank of Boston last week. Fed Chair Ben Bernanke spoke on Financial Regulation and Supervision after the Crisis while Princeton Professor Alan Blinder's message was It's Broke, Let's Fix It: Rethinking Financial Regulation. Here I summarize four key reforms these speakers addressed.
(1) Capital adequacy. The key principle for preventing the "bank run" dynamics of the recent financial turmoil is to make sure that financial institutions have a sufficient cushion of equity capital to be able to absorb liquidation ...
Does Ben Bernanke Have The Facts Right On Banking?
The Baseline Scenario —
Ben Bernanke, chairman of the Federal Reserve, has stayed carefully on the sidelines while a major argument has broken out among and around senior policymaking circles: Should our biggest banks be broken up, or can they be safely re-regulated into permanently good behavior? (See the recent competing answers from WSJ, FT, and the ...
