Monthly Archives: April 2010

Potential Derivative Loophole #1: Trading Facility

It’s Friday, so for fun let’s play financial reform loophole detective. Here’s the definition of a “swap execution facility” in Senator Lincoln’s original bill (p. 47): This language was passed out of the Ag Committee. Here is the Ag Committee’s … Continue reading

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An Interview with Jane D’Arista on the Volcker Rule

In addition to off-balance reform, I wanted to do an interview about the Volcker Rule that is proposed with Senator Merkley’s amendment. Jane D’Arista is a research associate at PERI and the co-coordinator of the Economists’ Committee for Stable, Accountable, … Continue reading

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An Interview on Off-Balance Sheet Reform

Interview Friday. Tim Fernholz has interviews with Senator Ted Kaufman and Senator Mark Warner on financial reform. Last week I told you about 6 things to fight for in the Dodd Bill, including three amendments. One of them was Senator Menendez’s Off-Balance Sheet … Continue reading

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SAFE Banking Act, What it Does in 2D

Let’s talk about the SAFE Banking Act. First up, what does it do? Well, it caps deposits at 10% of total deposits, non-deposit liabilities at 2% of GDP for banks and 3% of GDP for non-banks. Huh? Let’s put it … Continue reading

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Bloggingheads, New Way Forward, and protests this Thursday

Two things of interest. Bloggingheads I was recently on bloggingheads with Jesse Eisinger, who was one of the two co-writers of the excellent ProPublica story on Magnetar. Magnetar is the hedge fund that help keep the housing bubble alive in … Continue reading

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The Post Reform Financial Sector: Taxes, Size and Franchise

So what will the financial sector look like after whatever financial reform bill passes? I want to raise some specific points. Taxing There’s a lot of talk that the the potential negative effects of concentration and size in the financial … Continue reading

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Raj Date on Resolution Authority, Conservative Arguments on Bailouts

First up, Raj Date has a new paper out, titled: The Killer G’s: Resolution Authority, Financial Stabilization, and Taxpayer Bailouts. It’s definitely worth your time, as it explains how, if the Dodd Bill was in place in January 2008, our … Continue reading

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Paul Ryan on Hart-Zingales and Resolution Authority

Sigh. (This will be denser than normal, but it’s important for where the Senate debate stands.) Representative Paul Ryan is now going on television saying that he wants a market based trigger for resolution based on Hart-Zingales’ model of how … Continue reading

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Producing too little, charging too much.

Chart: Jamie Dimon, the CEO of JP Morgan, worries that derivatives reform will eat into his profits: Revenue lost by dealers could be significant. Research and advisory firm TABB Group estimates the top 20 dealers generate around $40 billion annually … Continue reading

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6 Things Worth Fighting For in the Senate Bill

Wow, so it looks like we could have votes on the Senate Bill starting next week. So this is going to move very quickly. It’s going to move quicker because nobody wants to be tagged as pro-Wall Street with Lehman … Continue reading

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