The Politics of Financial Reform

Larry Summers, President Obama and the Fed Chairmanship

President Obama will make one of the most important decisions of his second administration when he nominates the next Fed Chairman. Election politics are the norm, but does the fate of the nation recede into the background as Larry Summers’ star rises? Is President Obama more comfortable with Treasury officials who helped build the financial…

Read More

Derivatives and Systemic Risk: Jobs Reducers

Mitt Romney got one thing right and one thing wrong about systemic risk, regulation and job creation. He was right that small- to mid-sized banks are the lenders to small businesses, the major creators of new jobs. But he was wrong in saying we don’t need to break up the biggest banks. The biggest banks are about trading. Before…

Read More

The Fed and the FDIC: Building Goldman Sachs’ Fortress

Jamie Dimon, CEO of JPMorgan Chase, claimed his big bank has a “fortress balance sheet.” JPMorgan Chase’s balance sheet was managed better than others over the past decade. But a mighty fortress isn’t quite what the world’s top regulators would call the biggest banks’ derivatives portfolios — contractual promises of future performance that are booked OFF their…

Read More

JPMorgan Chase, Derivatives and Really Crazy Too Big To Fail

Jamie Dimon is still both chairman and CEO of JPMorgan Chase. That was a decision appropriately left to shareholders. Some may have hoped that systemic risk could have been reduced by separating the two roles at the nation’s biggest bank. Why should financial market structure center on the abilities of one man? Mr. Dimon certainly is a very talented…

Read More
Back to the top