Bailing Out Promises
“No more bailouts!” That’s the latest campaign promise from both presidential candidates. Congressmen have claimed that regularly, too. But bailouts of the biggest banks continue. What they are bailing out may surprise you. In Congressional hearings the biggest banks want us to believe they are like the little savings and loan portrayed in the movie It’s a…
Banks? Heck, No! They’re Great Big Hedge Funds!!!
Paul Volcker knows something you don’t know and that Congressmen don’t want to know. The biggest banks have become massive collectors of hedge funds and other alternative private investment vehicles, hidden behind a facade of traditional banking. To understand this is to understand a major reason why Paul Volcker proposed the Volcker Rule. The largest banks are no longer about traditional…
Exchange Risk: MF Global, Morgan Stanley and Basel IV
It’s their money or the taxpayers’. A global battle. Since the biggest banks remain Too Big To Fail, the only tool protecting taxpayers from bailout duty is bank capital. Jamie Dimon believes this, too, and he runs the largest bank.