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Dream State: Just stop for a second. Put down your coffee and consider this: the head of the government said the nation’s biggest banks are too strong, make too much money and need to be broken up.
“Frankly, our banks make profits far too easily,” he said. “Why? Because a small number of major banks occupy a monopoly position, meaning one can only go to them for loans and capital.”
OK, bankers, no need to choke on your Niman Ranch bacon and locavore
The Times said Wen’s concerns stem in part for a
Eswar S. Prasad, a former International Monetary Fund official who teaches at Cornell University, told the New York Times that the remarks “reflect a growing consensus among reform-minded officials that breaking up the large banks may be an essential step to reduce their political influence and pave the way for broad, much-needed reforms to the financial system.”
So, two questions:
1) If Wen ran for president of the United States in November, reckon he’d get a few votes?
2) Is this why U.S. banks are turning tail on their investments in China’s big banks?
Wall Street Journal
OK, forget the 1% and the 99%. Tired of them, anyway. Let’s move on to the 3%. As the Journal tells us: “Last April, federal banking regulators cracked down on alleged foreclosure abuses by announcing enforcement actions against 14 major financial companies and promising widespread reforms.
“A year later,
Focus on that last clause for a while.
Only 3% of borrowers have applied for the foreclosure reviews specified in last April's consent orders, the Journal says. Last April, you know, like a year ago. “The post office has returned the banks' own foreclosure-related mailings as undeliverable at almost twice that rate. At least one bank is struggling to get systems in place for handling and testing borrower responses.”
The banks may be paying more on the process of foreclosure reviews than they will end up paying in compensation. (Note to self: next life, go to law school.)
"The letters they sent looked like some of the worst scams people are getting in their mailbox," said Lisa Sitkin, managing attorney at Housing and Economic Rights Advocates, which represents borrowers at risk of foreclosure, trying to explain the low response rate.
Financial Times
Citigroup just got itself a new legal eagle, bringing in
As the FT notes, Citi’s uber-boss, Vikram Pandit, said in a memo that as general counsel Helfer had “worked closely with our regulators during the financial crisis, and he has been instrumental in the back-to-basics restructuring of our company.”
Just to be clear, the FT quotes a senior banking lawyer saying it’s unlikely that Helfer had been shunted aside. “He’s an extraordinarily capable guy … I’ve always viewed him as a really towering figure.”
The FT also notes that while Helfer tried to rescue Citi’s bid for Wachovia back in 2008, he ultimately failed, blocked in part by the Federal Deposit Insurance Corp. In a way, that’s to both his credit and the FDIC’s. Why? Helfer is married to a former chairman of the banking regulator, the FT reports. He met his wife, then Ricki Rhodarmer Tigert, when he was helping her prepare for a Senate confirmation hearing that saw her become the FDIC’s first woman head, in 1994, the paper said.
Love is love and business is business, but sometimes, the cozy ties between industry and government is the people’s business. That’s what Wen Jiabao would say, anyway.
New York Times
Talk about a disconnect. If 92% or so of the country (yes, this country) is employed, why are 99% of the people complaining? Theoretically, only 8% are entitled to gripe.
Perhaps that’s why our central bank feels compelled to just hang out. In their meeting a few short weeks ago, the Federal Reserve’s policy-making committee “
Why does it feel as if every day brings another fine for a bank? Today it's