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Citi,BOA and Wells pay back TARP..free to fall again
20 hours ago ago from seeker401
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504939.html There's the president of the United States, sitting in the Cabinet room at the White House, cameras rolling, talking with the heads of the country's biggest banks, each one of which had benefited from an extraordinary government effort last year to prevent the financial system from collapsing. The purpose of the meeting is to pressure banks to make more ...
Related contentMagnifying the Credit Fallout
12 hours ago ago from Seeker Blog
That's the and part of the But the current approach to bank capital and accounting is exacerbating the ups and downs. When times are good, loans and securities look less risky, and banks increase leverage to make more money without building capital. When times are bad, they do the opposite. This is from March 2008, but David Wessel did a nice job of explaining succinctly why the mortgage losses had such a huge impact on the economy and ...
Related contentDividends, Bonuses May Be Limited at Weak Banks, Regulator Says
43 minutes ago ago from All About Work & Financial
Global regulators urged national authorities to limit bonus and dividend payments by banks with weakened capital safety nets as part of proposals to reduce risks to the financial system. Banks should increase the quality of the capital they hold to cope with losses, the Basel Committee on Banking Supervision said in a report on bank capital and liquidity published today. Banks with depleted capital buffers shouldn’t use predictions of ...
Related contentBanks Must Hold More Capital in Case of Losses, Regulator Says
43 minutes ago ago from All About Work & Financial
Banks should increase the amount of equity and retained earnings they hold to help them cope with losses better, the Basel Committee on Banking Supervision said. Banks’ core capital should exclude stock with preferential dividend rights to reduce risks to the financial system, the Basel-based group said in a proposal on bank capital and liquidity published today. It’s not acceptable for banks that have depleted their capital buffers to use ...
Related contentBanks Given 10 Years To Meet Tougher Capital Rules - Tokyo
23 hours ago ago from The Center of the Universe
[ Skip to the end ] Capital ratios control permissible leverage which initially appear to control bank returns on equity, but longer term spreads adjust and the roe gravitates to a bank's cost of capital. And since higher leverage increases risk to investors, the cost of capital eventually adjusts to the capital ratios, so over time- in the long run when we're all dead to quote Keynes- it all comes down to about the same thing. ...
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International Panel Proposes Raising Bank Capital Requirements
5 hours ago ago from The New York Times
PARIS Banks would have to set aside more capital by the end of 2012 to provide greater protection against downturns, under proposals released Thursday by international financial regulators. The Basel Committee on Banking Supervision said that banks should retain more of their earnings and improve the quality of the assets that they hold as a buffer against the kind of economic shocks that they experienced last year, when a number of lenders ...
Related contentGerald P. O'Driscoll: Obama's War Against Banks
15 hours ago ago from Wall Street Journal
Over the weekend, President Barack Obama went on the offensive against Wall Street for not lending more to Main Street. On CBS's "60 Minutes," the president declared, "I did not run for office to be helping out a bunch of fat cat bankers on Wall Street." He was joined on the Sunday morning circuit by his chief economic adviser, Lawrence Summers, who echoed the message of intimidation. Wall Street fat cats are always a convenient political ...
Related contentRep. Maurice Hinchey: Bring Back the Glass-Steagall Act to Break Up the MegaBanks that Caused the Crisis
17 hours ago ago from Huffington Post
In the midst of the Great Depression, Congress approved the Banking Act of 1933, which among other things, separated investment banking from commercial banking. This measure, more commonly referred to as the Glass-Steagall Act, was adopted after many banks had taken depositors' money, invested it in the stock market, and lost big time. This resulted in people pulling their money out of banks and led to a financial disaster. By separating ...
Related contentBiggest U.S. Stock Deals: The Top Five - MarketBeat - WSJ
35 minutes ago ago from Wall Street Journal
By Matt Phillips It's official. As sloppy as it was , Citigroup's ability to raise $20.5 billion in the public markets makes the combined offering of 5.4 billion shares and 35 million tangible equity units the largest public equity offering in U.S. capital markets history, putting it a nose ahead of Visa Inc.'s March 2008 IPO that raised $19.65 billion. Here's Dealogic's list of the the largest equity raisings on record: ...
Related contentTreasury Quickly Halts Plan to Sell Citigroup Stock
3 hours ago ago from Politics Daily
The U.S. government abruptly halted its plan to begin selling its 34 percent stake in Citigroup after investors demanded a price so low that the Treasury Department would have lost money on the deal, the Wall Street Journal report s. The decision comes an embarrassing two days after the department arranged major tax breaks with the IRS in order to broker a deal to help Citi repay its $20 billion in bailout money. The government's shares in ...
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