n the wake of the Detroit bankruptcy, Paul Krugman has a post pooh-poohing concerns about public pensions. His conclusion:
Healthcare insurance illustrates how incremental increases can lead to systemic collapse.
My name is Romulus Augustus. I was the last Roman Emperor.
Unlikely political bedfellows Senators Elizabeth Warren (D-MA) and John McCain (R-AZ) have put their voices together to call for a 21st century version of the Glass-Steagall Act, also known as the Banking Act of 1933.
Cash holdings are an increasingly large component of US commercial banks’ balance sheets. This demonstrates the fact that thus far the Fed’s monetary expansion is not producing the “optimal” result. Banks are not growing the non-cash portion of their b…
New bank regulation focused on the so-called Leverage Ratio is expected to do major damage to the US repo market. The measure is a blunt tool that does not permit any netting. That means if a client has a repo trade with a bank and an offsetting (rever…
The Thomson-Reuters Insider Sales to Buys ratio was extremely bearish in early May. The market went into sell-off mode within days. In late June the signal turned the most bullish it had been since last November. It has done nothing but go up since.
Found in Yokosuka, Japan.
A new trend has developed in the CLO market. Some of the top managers are now able to place the single-B tranches with investors, thus cutting the size of the equity (unrated) tranche. Since the financial crisis, the lowest rated tranche has been the B…
Glass-Steagall prevented a classic conflict of interest that we know frequently arises in the real world. Commercial banks are subsidized through federal deposit insurance. Most economists support providing deposit insurance to commercial banks for relatively smaller depositors. I am not aware of any economists who support federal “deposit” insurance for the customers of investment banks or the creditors of non-financial businesses.