Showing archive for: “Financial Regulation”
A Federal Reserve Worth Its Weight in…; or, A Gold Standard for the Modern Era
The Federal Reserve has been working with other international banking regulators in the Basel III process to alter bank capital reserves so that they are no longer pro-cyclical and based on unrealistic assumptions about economic growth during bull markets. The Fed now urges that banks need to hold reserves on a counter-cyclical basis. When times ... A Federal Reserve Worth Its Weight in…; or, A Gold Standard for the Modern Era
The unexpected expected consequences of financial reform
The LA Times expresses surprise that Goldman Sachs will come out quite well from financial reform. Who did they think was calling the shots in Congress? Consumers? Investors? How badly were accountants, the culprits in the last financial meltdown, hurt by Sarbanes-Oxley? Most notably, the LA Times is shocked Goldman is not actually going to ... The unexpected expected consequences of financial reform
Proxy Access At Long Last, & Introducing PA Defense # 5: Whitemail
Reports indicate that the SEC is going to vote on proxy access August 25. The vote will be 3-2 in favor of proxy access. The SEC first considered a proxy access rule in 2003 but never voted on it. Prof. Harvey Goldschmid, now at Columbia Law and then a Commissioner at the SEC, was the central ... Proxy Access At Long Last, & Introducing PA Defense # 5: Whitemail
Will an m & a boom save Big Law?
John Carney thinks a recent notable move of prominent banking partners from Latham to Milbank might signal that “debt financing for takeovers is about to take off,” just as it did when the same team moved from Skadden to Latham in 2004. This would also be consistent “with corporate cash piling up to record levels.” ... Will an m & a boom save Big Law?
Market vs. regulatory incentives for whistleblowing
The Financial Times notes that New US whistleblowing incentives within the Dodd-Frank financial reform act – that could net informants multimillion dollar pay-outs – are likely to generate a surge in allegations against US-listed companies and Wall Street banks, lawyers say. * * *[F]inancial industry bodies and lawyers representing companies warned that the scale of ... Market vs. regulatory incentives for whistleblowing
Behavioral Economics and Consumer Financial Protection for “Nitwits”
In a recent NY Times column largely devoted to improving soccer in various ways and how those methods might be used to improve financial regulation as well, behavioral economist and Nudge author Richard Thaler writes the following about the Consumer Financial Protection Bureau: “Above all, I’d urge the head of this agency to devise rules ... Behavioral Economics and Consumer Financial Protection for “Nitwits”
Singapore, hedge funds and jurisdictional competition
While the US, via Dodd-Frank, has increased its regulation of hedge funds by requiring registration and disclosure, one important jurisdiction is pulling back and poised to reap the benefits. Per Bloomberg, Singapore declined in April to require licensing of hedge funds and attracted several new hedge funds in May and June. “Singapore did not shoot ... Singapore, hedge funds and jurisdictional competition
On Forbes.com: Let the whistleblowers trade
Dodd-Frank has elaborate provisions for encouraging reporting of fraud by rewarding whistleblowers. In my Forbes.com column for this week I propose another idea to elicit information: allowing insider trading.
More on Elizabeth Warren on Theory and Interpreting Data
With all the talk about the CFPB, Elizabeth Warren has been in the news lately. The blogs too. Most of the discussion has been about whether or not Timothy Geithner is a friend or foe to the Democrats’ preferred option of getting Warren nominated as the first chief of the CFPB. Today, Megan McArdle started ... More on Elizabeth Warren on Theory and Interpreting Data
When political preferences masquerade as political necessity
Josh has recently discussed his thoughts about the intellectual trajectory of the newly-minted CFPB and how that intellectual trajectory might influence the selection of the Bureau’s first director–presumed to be either Michale Barr or Elizabeth Warren. His is a brief, dispassionate and intellectually-honest assessment. But given Simon Johnson’s brief, intemperate and intellectually-devoid assessment of the ... When political preferences masquerade as political necessity
Dodd-Frank and unemployment
Perhaps we should thank Dodd-Frank for one thing – its contribution to the sticky unemployment problem. Mary Schapiro says the SEC will need to add 800 people to implement financial reform, which she says promises to be “logistically challenging and extremely labor intensive.” And the SEC did find some money to fund these positions. The ... Dodd-Frank and unemployment
More on Dodd-Frank
Continuing on the Conglomerate Dodd-Frank forum, I have posts on the federalization of insurance regulation and on the provocative question of whether there is anything in D-F worth keeping.
