Category: Banking

NY FED: It’s Time to Rewrite the Rules of Wall Street

Regular readers of this blog know that I strongly believe that the U.S. has so far wasted the opportunity the last financial crisis gave us to reform Wall Street. Despite the chorus of voices saying that it’s time to fix the heart of the capitalist system, regulatory responses have been weak or inconsistent, and that is putting it mildly. So

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Project Syndicate: “Revoking America’s Exorbitant Privilege”

Jose Antonio Ocampo (Professor at Columbia and former Minister of Finance of Colombia) has a short, insightful post on the Project Syndicate website that touches on a subject that barely came up during the recent silliness in Washington but that is, in my opinion, the real major consequence of these repeated budget theatrics: the growing consensus

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The Lure of Quanxi: East and West

The Economist posted an interesting small piece yesterday about the current investigation of US bank’s hiring of Chinese “princelings” in their China offices. Of course, as the article points out, no one in China would be surprised to learn that the latest intern to join a team was the son/daughter/niece/nephew/etc. of a government official. As

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SOMA: History and Analysis

The NY Fed has started an interesting series on its “System Open Market Account” (SOMA), which is basically the Fed’s open market portfolio.   As the Fed notes: Given increased interest in the Fed’s balance sheet and income, we’re writing a series of blog posts on the SOMA portfolio and the income it generates. The

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Recent Read: “The Unwinding” by George Packer

Bottom line: American society is experiencing economic disintegration, driven by selfishness and a disregard for the fundamental rule of law. Rating: Must (if depressing) Read  The book jacket off George Packer’s The Unwinding says that the book is a profile of “a superpower in danger of coming apart at the seams.” After finishing this sweeping and

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The $2 Trillion Round Trip? The Curious Case of the Fed Excess Reserve Rate

I recently came across a post on the “Dr. Econ” web page of the San Francisco Fed that discussed one of the most intriguing changes in the US since the Great Recession started. The phenomenon in question is a change that was brought on by the  Financial Services Regulatory Relief Act of 2006. That law authorized

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