greedcanbgood

Diana Farrell And The White House Theory Of Bank Size

I doubt anyone at any of the big banks particularly enjoys the oversight they already have. Painting the picture that the governemnt and the banks are in cahoots is WAY off base.

All you "too big" people out there, I wonder why you aren't writing to your congressional representatives to break up Microsoft also. You can't have it one way for one industry and anohter way for a different industry.

Let a free market reign and eventually, the poorly run will fail.

Unsustainability, High Beta, and Liquidity Risk Pervade Capital Markets

Your analysis is pretty good. Watch for the commercial banks to report good, even outstanding, Q2 earnings primarily due to mortgage volume. The bottom falls out in Q3 when mortgage volume has waned, the consumer "hunker-down" gets even more serious (e.g. consumer spending) and unemployment hits existing mortgages harder.

'Too Big to Fail' Should Not Exist

Hmmm....I agree with almost everything you say, except, "...why not have a similar process which prevents the creation of companies that are too big to be allowed to fail." How will you (or, more important the government) ever settle on a "to big to fail" definition? What industries should it(not) apply to? Why should we limit the size of organizations? If they fail, smaller organizations will be able to pick up the pieces at a significant discount and capitalisim will be alive and well. In addition, in today's global economy, you would really need all countries to comply and they won't. No, let free markets reign and let big companies fail if they have to.

U.S. Bancorp Dividend Cut: Anything but TARP

Toeser - right on the money (pun intended)!

Here's the other problem that our wonderful government didn't consider: A number of institutions have been clear that they did not initially need the TARP funds. Once they start repaying early, the public will have a better handle (right or wrong) on who they think are stronger and weaker financial institutions. The result? A potential flight from institutions preceived to be weaker thus creating a self-fufilling prophecy.

Nobody knows how the stress tests will be "graded" and which benchmarks will be used in the various categories. Once again, the government creates the rules AFTER the fact.