We’re All AIG Now

By Emily Eisenlohr | May 28, 2012

Nothing infuriates the average American like the bailout of AIG. Not only was the company rescued by taxpayers from its own poor management and risk-taking. Its credit default swap obligations were also paid out — at 100 cents on the dollar — to Too Big To Fail banks like Goldman Sachs. Politicians and candidates rant…

Front-Running the FDIC

By Emily Eisenlohr | May 18, 2012

The American taxpayer is still backing derivatives trading at our largest banks. JPMorgan Chase’s $2 billion loss on credit derivatives is just the tip of an iceberg. Congress would like us to believe that regulators are going to prevent future taxpayer bailouts of big financial institutions. But what if our regulators disagree with each other?

The Hidden Underbelly of the Auto Bailout

By Emily Eisenlohr | February 24, 2012

Candidates for President from both parties play to voters’ disgust for bailouts. On February 24th the Detroit News reported that President Obama’s campaign launched an ad in Michigan claiming the Republican candidates had turned their backs on GM. Mitt Romney has frequently publicly criticized the government auto bailout. In his January State of the Union speech President…

An Even Playing Field? This Is the Himalayas!

By Emily Eisenlohr | February 16, 2012

An even playing field is an essential component of America’s sense of fair play. Nowhere is it more critical to success than in the very competitive world of our largest banks. So a Bloomberg News article of October 18, 2011, led to a number of surprises in that arena. The article described how the Federal Reserve overrode the FDIC and allowed Bank…

The Lord of Systemic Risk?

By Emily Eisenlohr | May 17, 2011

The Dodd-Frank bill of 2010 increased the political influence of the U.S. Treasury Secretary. He who occupies that position (and it’s been a male to date) has been granted major new powers under the bill.

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