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  • Wall Street Breakfast: Must-Know News [View article]
    Let me get this straight. The Senate Agriculture Chairman is drafting swap legislation? As a follow-up story, the Senate Banking Committee Chairman is considering a bill to outlaw corn...
    Apr 15, 2010. 10:35 AM | 3 Likes Like |Link to Comment
  • 10 Proofs the Banks Have Not Paid Back [View article]
    Pay back the value of bank charters? The payment of federal taxes and FDIC insurance premiums are more than adequate. Repay the interest on excess reserves? The banks made the deposits and are due interest in return. Do you pay banks to hold your deposit balances? The rest of your points are equally lame. The bigger issue is that need to get beyond blaming the private sector. How many villians have we identified over the past year? So far we have villified Wall Street, oil companies, health insurance companies, banks, tea party goers, cable news networks and so on. Let's get one thing straight. This recession was caused by a housing bubble which was caused by the federal reserve keeping interest rates artifically low combined with a federal government dead set on making home ownership a right by setting Fannie and Ginnie loose to wrap any mortgage regardless of ability to repay and the Community Reinvestment Act which forced banks to make risky loans.
    Jan 27, 2010. 04:32 PM | Likes Like |Link to Comment
  • The Case for a Supertax on Big Bank Bonuses [View article]
    Yup. It is all the bankers' fault. How is it possible that thousands of "fat cat" bankers from hundreds of banks all "made bad bets with other people's money" at the same time? There is plenty of blame to go around and this administration is very good at finger pointing. But if you look at history, two major factors formed this real estate bubble.

    Number One - Ginnie Mae and Fannie Mae (remember the agencies sponsered by the federal government?) were wrapping home mortgages left and right without regard to structure or ability to repay in order to advance their agenda of houses for everyone.

    Number Two - CRA requirements imposed by the federal government forced (yes forced) banks to make loans to subprime borrowers (borrowers without the ability to repay). And again, GNMA and FNMA were more than willing to wrap this garbage.

    So stop the banker bashing already. As for bonuses, I agree that these numbers seem high in a vaccuum. However, if you are an investment banker that relies on your bonus for the majority of your compensation and clients are willing to pay your firm $10 million for your advice, how much do you think you should be paid?
    Jan 12, 2010. 11:01 AM | 2 Likes Like |Link to Comment