Tag Archives: too big to fail

Deutsche Bank is Too Big to Fail, Too Big For Big Fines?

NEP’s Bill Black appears on The Real News Network. Topic of discussion is Deutsche Bank, the German bank that was at the center of the LIBOR scandal and is likely to face upwards of $5 billion in a settlement with the Justice Department. Video is below. If you would like to see with a transcript, it is here.

Clinton Vs. Sanders on Big Banks

[Revised 4/18/16. Added Part 2 and link to Part 2]

Bill Black, adviser to Bernie Sanders, and Hillary Clinton supporter Paul Hodes appear on The Real News and discuss whether the Dodd-Frank legislation is effective at preventing systemic risk from Wall Street monopolies. You can view the videos below or on The Real News‘ site with a transcript. Part 2 on Real News.

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By L. Randall Wray

Thank heaven for Tom Hoenig, the only proven-honest central banker we’ve got. Yes, I know he’s moved on from the KC Fed to serve as Vice Chairman of the FDIC. He actually might do a lot more good over there, anyway.

In recent months, we’ve heard how Wall Street’s Blood-sucking Vampire Squids have reformed themselves. They no longer pose any danger to our economy. They’ve written “living wills” that describe how they’ll safely bury themselves without Uncle Sam’s help next time they implode.

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The U.S. Attorney Who Prosecutes JPMorgan Will Be Its First Witness

By William K. Black
(Cross Posted at Benzinga.com)

The U.S. Attorney for the Eastern District of California is Benjamin Wagner.

“Once the U.S. government built a case against J.P. Morgan and settlement talks began, the Justice Department made several threats that it would file its civil lawsuit, and each time J.P. Morgan responded by offering to talk more or increase the amount of money it might pay, the people familiar with the discussions said.

One critical moment came as the department set an internal deadline, Sept. 24, to file a suit against the bank.

The day before the deadline, the bank offered to pay $3 billion to settle a case tied to mortgage-backed securities—an offer the attorney general rejected. That same day, Ben Wagner, the U.S. attorney from Sacramento, Calif., flew to Washington with two large charts he meant to display at a news conference describing the bank’s alleged misconduct. A criminal and civil investigation into J.P. Morgan’s past sale of mortgages bonds had been handled by Mr. Wagner’s office.”

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The “Lessons” that Wall Street, Treasury, and the White House Need You to Believe Five Years After the Collapse of Lehman Brothers

By Robert E. Prasch
Department of Economics
Middlebury College

Five long years have passed since the demise of the once venerable firm of Lehman Brothers. To mark the occasion, Wall Street, the United States Treasury Department, the White House, and their several political proxies and spokespersons have taken to the mass media to instruct the public in the “lessons” to be drawn from the financial crisis of 2007-09. Regrettably, we are witnessing the propagation of several self-serving falsehoods in the hope that the public can be induced to embrace them now that the immediacy of the events in question is in the past. Some of the lessons are so flagrantly false that they demand immediate correction.

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NEP’s Bill Black Appears On CCTV’s Biz Asia America

CCTV America’s Phillip Yin speaks with Bill Black about new US bank regulations. Bill warns against ‘too big to fail institutions’ and the attempts to create a ‘tame tiger’ through policy, which he believes is a reckless path to the next financial crisis

Brown-Vitter Will Not and Cannot Work but it is Criminogenic

By William K. Black


Senators Sherrod Brown (D-OH) and David Vitter (R-LA) have introduced a bill entitled “Terminating Bailouts for Taxpayer Fairness Act of 2013.”  It is a miracle of modern staffing that Vitter, who loves polluters as much as his prostitutes, was able to pull himself away from demanding that President Obama’s nominee to run the EPA answer over 600 questions and join Brown in proposing the bill.  Under Obama, bipartisan bills have a dismal fate because the Democrats negotiate away key elements necessary to create a good bill and add provisions that make parts of the bill harmful – just to pick up a few token co-sponsors – and then the Republicans kill good parts of the bill anyway and try to enact the bad parts. Continue reading

Why did Obama and Cameron save a Criminal Enterprise like HSBC?

By William K. Black

Why is HSBC still in operation?  On the same day (December 10, 2012) that the Obama administration leaked the story of the HSBC settlement a story ran in the New York Times that was full of self-praise by the Obama and Cameron (U.K.) governments for their “cooperative approach” to cracking down on systemically dangerous institutions (SDIs).  SDIs are treated as “too big to fail” because they pose a global systemic risk when they fail.  The HSBC settlement puts the lie to the Obama/Cameron crack-down on the SDIs for it revealed a disgrace – Obama and Cameron treat the SDIs as too big to prosecute.  Indeed, HSBC demonstrates that the SDIs’ senior officers are treated by Obama and Cameron as too elite to prosecute.   The propaganda meme of the NYT story – that the SDIs would never again be given special favors due to reforms being adopted by Obama and Cameron – lasted four hours before it was destroyed by the disgraceful reality of the Obama and Cameron governments’ refusal to prosecute HSBC and its officers for their tens of thousands of felonies.

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Romney implicitly endorses Too Big to Fail Banks

By William K. Black
(Cross posted at Benzinga.com)

I explained in a prior column that Gregory Mankiw, Governor Romney’s lead economist, wrote a column endorsing the regulatory “competition in laxity.”  “Romney’s Lead Economist Urges Policies that will Cause the Next Financial Crisis.”  One of the key events in “winning” the regulatory race to the bottom is welcoming significantly dangerous institutions (SDIs).  The SDIs are the leading contributor to U.S. politicians – and the politicians of many nations).  The difficulty is that “too big to fail” (TBTF) institutions are unpopular with both parties’ voters.  Historically, TBTF was a misleading phrase, for TBTF banks could fail.  TBTF actually meant that the general creditors would be bailed out by the government.

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Embedded Examiners always married the Natives, but now their Bosses Do Hook Ups

By William K. Black
(Cross-posted from Benzinga.com)

Jessica Silver-Greenberg and Ben Protess have written an extraordinarily important column for the New York Times about embedded examiners at JPMorgan.

Embedded examiners’ are federal regulators whose normal work station is a desk at the bank.  We only embed examiners for systemically dangerous institutions (SDIs) – banks so large that they pose a systemic risk to global economy.

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