AMERICAblog: French banks "much more solid" than US banks
DCinDC
· 1 year ago
Chris Dodd has some excellent ideas here:
So yeah, the Dodd plan. Good plan. Buying up mortgages for 15% less than the current market value of the house, then reissuing a clean mortgage to homeowners helps the banks while still giving them a slight haircut (but only slight, odds are home prices will drop more than 15% before the slide is over.) It helps homeowners stay in their houses. It sets a market price so that banks know what mortgages are worth and thus what the derivatives based on houses are worth. And giving the mortgages bought to the FDIC, one of the few agencies that Bush didn't cripple, is genius.
Giving the government stock equal to the value of any bailout for the company is also only fair. If they get bailed out, taxpayers should have a chance to get their money back. If they don't like that, well, beggars, and they are beggars, shouldn't be choosers.
Having a review board is a good idea, though having the Treasury Secretary, Fed Chairman and FDIC chief on it is perhaps unwise. Still Congress chooses two of the members. I'd prefer direct oversight through the Congressional Budget Office, which reports directly to Congress, but this isn't too bad.
Clawing back compensation based on fraudulent financial reporting is a stroke of genius and may be what Dodd put in so that he could eventually trade it for something else, because fact is, almost all of these bastards have used dubious accounting to inflate their earnings and therefore their bonuses and salary. They're all guilty and they know it. Under a vigorous Department of Justice (say, oh, an Obama one) they could all be prosecuted.
Having the Fed just casually toss away such transparency reeks of something more. Perhaps a cover for how bad our country is doing economically. We all know it's pretty darn bad. But maybe it's worse than we know. It's not like we can put together our own money supply study since we don't have access to the Federal Reserves books. They are supposed to perform that process. But now an integral piece, as of last year, has been tossed away due to cost... cost?
According to Gary Kuever of econometrician, a retired investor stated, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."
Have a look at the South African banking system. No subprime-type loans, a National Credit Act that was introduced just in time to prevent a complete credit crisis, and the South African banks have weathered this whole storm pretty well, with minimal damage.
zeddy
· 1 year ago
The French are 200 times better at never writing overdrafts and are very meticulous about credit. "Bad credit" is not something in ones vocabulary.
All Comments
So yeah, the Dodd plan. Good plan. Buying up mortgages for 15% less than the current market value of the house, then reissuing a clean mortgage to homeowners helps the banks while still giving them a slight haircut (but only slight, odds are home prices will drop more than 15% before the slide is over.) It helps homeowners stay in their houses. It sets a market price so that banks know what mortgages are worth and thus what the derivatives based on houses are worth. And giving the mortgages bought to the FDIC, one of the few agencies that Bush didn't cripple, is genius.
Giving the government stock equal to the value of any bailout for the company is also only fair. If they get bailed out, taxpayers should have a chance to get their money back. If they don't like that, well, beggars, and they are beggars, shouldn't be choosers.
Having a review board is a good idea, though having the Treasury Secretary, Fed Chairman and FDIC chief on it is perhaps unwise. Still Congress chooses two of the members. I'd prefer direct oversight through the Congressional Budget Office, which reports directly to Congress, but this isn't too bad.
Clawing back compensation based on fraudulent financial reporting is a stroke of genius and may be what Dodd put in so that he could eventually trade it for something else, because fact is, almost all of these bastards have used dubious accounting to inflate their earnings and therefore their bonuses and salary. They're all guilty and they know it. Under a vigorous Department of Justice (say, oh, an Obama one) they could all be prosecuted.
http://firedoglake.com/2008/09/22/chris-dodd-st...
According to Gary Kuever of econometrician, a retired investor stated, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."
http://www.broowaha.com/article.php?id=2234