Economics, Regulations

WSJ: Donald Trump May Find Leviathan Hard to Tame

Good article on WSJ on the challenges the new President may find in taming government regulations. An excerpt: Mr. Trump’s order could provide a powerful prod to agencies to look for old, costly rules since, if they can’t find any, they may be unable to issue new rules. Even so, laws and courts can still demand that rules be […]

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Banking, Regulations

Prosecute The Bankers, Not The Banks

DealBook ran an interesting piece by Peter J. Henning on Monday about the continued legal problems faced by major U.S. and European banks. It seems that all the losses, fines, convictions, and bad publicity over the last few years has not stopped the illegal behavior in the sector. In fact, notes Henning, some of the biggest names […]

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Regulations

Michigan Just Chose the Wrong Side of History

In case you missed it, the WSJ had a pretty rough editorial yesterday correctly blasting Michigan governor Rick Snyder for caving into the car dealer lobby and banning Tesla from selling cars in the state. In this case, WSJ laid out clearly that Snyder’s decision is a bad one on just about every level: Direct sale of cars to […]

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Banking, Regulations

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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Economics, Regulations

FTC: Tesla Has A Right To Sell Cars Directly

Bravo to the FTC for standing up for innovation and the right of consumers to decide if Tesla’s business model is right for them. I could not have said any better than this: FTC staff have commented on similar efforts to bar new rivals and new business models in industries as varied aswine sales, taxis, and health care. We […]

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Finance, Regulations

Why Insider Trading Should be Legal

I came across an interesting article on NYT’s DealBook section the other day that documented the on-going appeal against insider trading convictions on behalf of two former hedge fund traders, Todd Newman and Anthony Chiasson. The two men were prosecuted by the office of Preet Bharara’s, who has a perfect conviction record (80 for 80) in insider trading cases. DealBook notes […]

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Regulations

Bloomberg: “Flash Boys” Fallout Starts

Jim Brunsden has a note on Bloomberg today on the new European HFT regulations, inspired, he notes by Michael Lewis’ new book. An excerpt: European Union lawmakers are poised to approve some of the toughest restrictions in the world on high-frequency trading, the first crackdown in the aftermath of Michael Lewis’s latest book, “Flash Boys.” The […]

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Books, Finance, Regulations, Society

Recent Read: “Flash Boys” by Michael Lewis

Michael Lewis’ Flash Boys is a short (I read it on a Seattle-DC flight), well-written, exasperating and flawed look into the world of High Frequency Trading (HFT). HFT, for those not familiar with the acronym, is the term used to describe trading that has two principal features. First of all, HFT is executed primarily by computer algorithms […]

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