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"Too little has been changed to avoid a repeat of the problem," says the Boston Fed's Eric...

"Too little has been changed to avoid a repeat of the problem," says the Boston Fed's Eric Rosengren, arguing banks with broker-dealer units continue to hold too little capital. "The status quo represents an ongoing financial stability risk." The largest ones still standing are MS, UBS, GS, C, DB, CS, BAC, BCS, and JPM, and each of the U.S. ones passed the Fed stress test and are returning capital.
Comments (5)
  • PRINT MORE
    17 Apr 2013, 02:05 PM Reply Like
  • The more the merrier!!!
    17 Apr 2013, 03:43 PM Reply Like
  • As long as the financial industry continues to have a strangle hold on representation in congress and the executive office, as well as, the entire gamut of oversight agencies (OCC, SEC, FDIC etc.) , there is absolutely no chance for reform and re-establishment of sound banking in the US (and the World).
    When Senator Glass (of the Glass-Seagull Act) started his investigation, and ultimate conclusions, leading to this very sound Act of Congress, he began by interrogating the known culprits. After jailing one of the master ringleader (the president of National City Bank, forerunner of CITICorp), he got full cooperation and discovered the weak link. No one of such character has so far risen to the task.
    17 Apr 2013, 05:08 PM Reply Like
  • Take a 20 year look at the "S" in the regulators bank rating system. See wiki pedia "CAMELS rating system" market sensitivity, the "S" factor of the rating. Look at the array of field documents since the 90's. Ask yourself, is this all buttoned up, under control? Have the changes since 2007-2008 been highly effective? Are regulators all right up to snuff, singing in complete harmony, effectively regulating both the regular AND the shadow banking side of "market sensitivity"? Take your pick, total overhaul of bank risk management (with effective auditing of basically intact underlying systems), or LOTS more capital!
    17 Apr 2013, 06:39 PM Reply Like
  • This is why Shelia Blair left the FDIC and is lecturing and warning all of us! Most of the politicians are deaf to the warnings! We will be like Cyprus and they will rob our accounts too!
    18 Apr 2013, 01:50 AM Reply Like
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