“-Senator Blanche Lincoln of Arkansas, the Democratic chairwoman of the Senate Agriculture Committee, is expected to introduce derivatives legislation on Friday that is far stricter for banks than Wall Street had anticipated.“-
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The specific points at issue are ownership or sponsorship of hedge funds and private equity funds, and proprietary trading — that is, placing bank capital at risk in the search of speculative profit rather than in response to customer needs. Those activities are actively engaged in by only a handful of American mega-commercial banks, perhaps four or five. Only 25 or 30 may be significant internationally.
With this 6th episode, The Oracle is finally out of beta. The show is now well structured.
It is both informative and entertaining —-and it has rhythm and style.
Now, watch the show.
New York Times:
Revelation Rocks Bank in Ireland
By MATTHEW SALTMARSH
Published: December 19, 2008
A major Irish bank was shaken Friday by the revelation of 87 million euros, or $125 million, in undisclosed personal loans to the bank’s chairman — prompting his resignation as well as that of the bank’s chief executive. Sean FitzPatrick, chairman of Anglo Irish Bank, announced his resignation late Thursday after regulators discovered that he had hidden the personal loans from shareholders. The bank’s chief executive, David Drumm, also resigned. The scandal sent the shares in the bank plummeting [...]
A statement Friday from the regulator, the Central Bank and Financial Services Authority of Ireland, said it became aware this year of “matters surrounding loans from Anglo Irish Bank to Sean FitzPatrick.”
“While it does not appear that anything illegal took place in relation to these loans, the financial regulator was of the view that the practices surrounding these loans were not appropriate,” the statement said.
Analysts said the scandal could affect the pace of the government’s support for the banking sector. [...]
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- New York Times
- Another one bites the dust:
(Sorry for those who have a narrow screen and don’-t see the right part of this big chart.)
According to InTrade, here are the banks that could fail next:
- Bank United Financial
- Downey Financial
External Links About The Big Bailout:
- Reason magazine have collected opinions from the leading free-market economists on the Bailout issue.
There is no reason to expect the correct solution from the same people who created the crisis in the first place and who until very recently thought the economy was strong and that there was little or no chance of recession. [Mark Thornton]
This is a financial coup d’-etat, with the only limitation the $700 billion balance sheet figure. [Yves Smith]
- Mike Linksvayer has some additional good links…- and some strong words, too.
- Arnold Kling:
UPDATE: Paul Krugman
UPDATE: The Manhattan Institute on financial crisis and the Bailout