Category: Market Regulation
The analysis published under this category are as follows.
Wednesday, October 08, 2008
Financial Markets Regulations, Baseball and the Law of Unintended Consequences / Stock-Markets / Market Regulation
By: Frank_Holmes
With the World Series coming up soon, it seems timely to compare some key financial regulations to the rules of baseball.
Say the visiting team scores on an error in the top of the first and the home team fails to score in the bottom of the inning. Under the current mark-to-market rule for securities, known as FAS 157, the game would be over at that point -- there would be no chance to play the other eight innings so the home team could try to get the run back.
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Monday, September 22, 2008
Irony: Fed Decisions To Undermine U.S. Banking System? / Stock-Markets / Market Regulation
By: David_Haas
Let's start with an important quote gleaned from an excellent article in today's Washington Post which describes the Fed's massive and unprecedented bailout plans that are intended to rescue the entire financial system from further implosion:
“The program announced this morning runs the risk in the long run of profoundly changing the nature of our financial system and, specifically, undermining the nation's banking system,” wrote American Banker's Association President Edward Yingling.
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Thursday, September 18, 2008
Obama and McCain Don't Understand the Financial Markets / Politics / Market Regulation
By: Frank_Holmes
I saw both John McCain and Joe Biden on CNBC this week, and I was astounded by the shallowness of their answers on how to address the current economic crisis.
Both offered the typical Capitol Hill solution to any problem – more regulations.
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Wednesday, September 10, 2008
Nouriel Roubini Dead Wrong on Financial Markets Regulation / Stock-Markets / Market Regulation
By: Mike_Shedlock
Before we get to addressing Roubini's blaming of the mess we are in on "free-market laissez-faire" philosophy, let's take a look at calls for Paulson and Bernanke to resign, and one other post on "Socialism For The Rich". Inquiring minds should consider Senator Bunning Says Paulson Acts Like Socialist, Should Resign .
Senator Jim Bunning said Treasury Secretary Henry Paulson, by rescuing Fannie Mae and Freddie Mac, is acting like China's finance minister and both Paulson and Federal Reserve Chairman Ben S. Bernanke should step down.
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Wednesday, July 02, 2008
Coming Wave of Government Regulation and the Risk to the US Dollar / Currencies / Market Regulation
By: Joseph_Brusuelas
Over the past several months it has become clear that there is a cauldron of regulation brewing in Washington. The bursting of the subprime bubble and dislocation in the financial sector has brought with it, in its aftermath, the risk of overregulation. Members of the political class are brimming with confidence that the political, economic and social considerations have aligned to finally tame the market. Serious consideration is being given to policies that would curb the ability of investors to hedge against future instability in markets, engage in financial innovation and even determine the pay of senior managers, much less corporate executives. What is beginning to take shape is not a necessary bout of reform, but a wave of regulation that will stem that necessary flow of investment into the US and put the dollar at greater risk. Read full article... Read full article...
Saturday, June 28, 2008
Turf Wars: Fed, SEC vs. Congress, Treasury / Interest-Rates / Market Regulation
By: Mike_Shedlock
The infighting between Fed governors as noted in Fed Governors Openly Question Bernanke's Competence , has now become a major turf war involving the Fed, Congress, the treasury department, and the SEC.Senators Dodd, Shelby Warn Fed, SEC on Rushing Securities Deal .
Federal Reserve Chairman Ben S. Bernanke and Securities and Exchange Commission Chairman Christopher Cox were ordered by two top senators not to proceed with a deal overseeing Wall Street until consulting with Congress.
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Friday, June 20, 2008
Fed Uses Self Created Credit Crisis to Grab Power / Interest-Rates / Market Regulation
By: Peter_Schiff
Throughout history, governments have always used crises to justify blatant power grabs. Often the crisis subsides, but the expanded government powers remain. In America this week, the tendency came into sharp focus. Congress signaled that it is preparing to perpetuate the Bush Administration's domestic wiretapping program, and has even abandoned the pretense that warrantless surveillance be confined to terrorism. Similarly, even though our financial crisis has yet to reach full flower, Treasury Secretary Paulson announced plans to give the Federal Reserve new and explicit powers to oversee and regulate the financial services industry. However, a sober look at his plan reveals that it is tantamount to giving the fox complete autonomy to guard the henhouse. Read full article... Read full article...
Tuesday, June 17, 2008
The Real Role of Financial Market Regulators / Stock-Markets / Market Regulation
By: Brady_Willett
Having watched the Financial Accounting Standard Board ( FASB ) grapple with the unexpensed stock options problem for more than 3-decades, and still forced to watch the consulting-crazed SEC settle case after case without forcing the wrongdoers to admit culpability, a strange sense of satisfaction arrived last week when the Financial Services Authority (FSA) attacked short sellers. To recap, the FSA said that since short sellers may be ganging up on companies undertaking rights issues the shorts will need to start disclosing their positions in a week. Not in a few month or years after the financial service lobby has severely watered down the original rule. Rather, if you short more than 0.25% during the rights issue process you will disclose your position starting June 20. Period.Read full article... Read full article...
Monday, June 09, 2008
US Fed Regulation of Banking System- Fox Asks For More Authority Over Hen House / Stock-Markets / Market Regulation
By: Mike_Shedlock
Bloomberg is reporting Geithner Calls for More Fed Authority to Prevent Future Crises .Federal Reserve Bank of New York President Timothy Geithner called for greater central bank authority over banks so the financial system can better withstand shocks and recover from the credit crisis.
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Tuesday, April 01, 2008
The Fed Leviathan Grows / Interest-Rates / Market Regulation
By: David_Shvartsman
Well, it didn't take long for the rumors of a new Federal Reserve-led regulatory regime to blossom into a full blown policy announcement. Today, Treasury Secretary Hank Paulson announced plans for the an overhaul of the nation's financial regulatory structure.Read full article... Read full article...
Tuesday, January 29, 2008
FSA - UK Regulator Warns of Breakdown of Business Models of Some Financial Institutions / Stock-Markets / Market Regulation
By: Submissions
The Financial Services Authority (FSA) today published its Financial Risk Outlook (FRO) warning firms and consumers of the risks inherent in a significantly less benign economic environment. Its central scenario identifies the following five priority risks:Read full article... Read full article...
Tuesday, January 29, 2008
Rogue Trader Criminal Mastermind or Example of Incompetent Regulation and Risk Management / Stock-Markets / Market Regulation
By: Adrian_Ash
"We need to stay cool and send positive signals...I repeat: We shouldn't create alarm." Joaquin Almunia, European commissioner for monetary affairs, interviewed by Der Spiegel , Jan 27th
JEROME KERVIEL, fast-overtaking John Law as France's worst-ever financial mishap, claimed on his most recent resumé to enjoy judo and sailing, as well as running up $7.1 billion in losses for his employers in his spare time.
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