Tag Archive for Finance

The Cost of (Equity) Capital – James Kwak- The Baseline Scenario

This is a syndicated repost courtesy of The Baseline Scenario. To view original, click here. Reposted with permission. By James Kwak For years, the world’s largest banks have been up in arms over threats by regulators to increase their (equity) capital requirements. Making banks hold more capital, they argue, will force them to reduce lending…

Exclusive: Euro zone discussed capital controls if Greek exits euro: sources | Reuters

European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro. EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely…

Simon Johnson: Will There Be a Meaningful Volcker Rule? – NYTimes.com

The Dodd-Frank financial reform legislation of 2010 stipulates that banks and the corporate entities that own banks should get out of the business of “proprietary trading…” Such bets have the potential to break a bank, creating either an unacceptable liability for taxpayers or a serious risk to the financial system, or both. They also often…

Michael Crimmins: What the Press Refuses to See in JP Morgan and MF Global Scandals « naked capitalism

Two former finance and political influence gods (Jon Corzine and Jamie Dimon) have tumbled back to earth. Yet, troublingly, the mythology that’s cowed the political establishment and the financial press for so long remains very much intact. Almost without exception, mainstream commentators are still desperately trying to frame the train wrecks at MF Global and…