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Distant Capitals = Corrupt States

Kevin Spak — Wed, 23 May 2012 13:30:05 CDT

James Madison once said that capital cities ought to be removed from the busiest parts of the country, so they'd be isolated from powerful interests. Well, guess again, Jim. A new study has found that states with distant capitals are much more likely to have rotten governments, the LA Times...

World's New Banking Rules Are 'Welcome Stuff'

John Johnson — Sun, 12 Sep 2010 18:49:54 CDT

The new rules for the world's banking industry emerging from Switzerland today have some real bite to them, writes Felix Salmon at his Reuters financial blog . In broad strokes, banks will be required to hold more capital in reserve to fend off another meltdown. Banks complain that the new standards—...

US, Europe Clash on Banking Reforms

Rob Quinn — Wed, 23 Sep 2009 04:16:50 CDT

The US and Europe are moving further apart on plans for post-financial crisis banking reform ahead of this week's G-20 summit, the Wall Street Journal reports. Both sides agree that banks should be required to keep more capital on hand to cushion them from crises, even at the cost of...

Geithner, Summers Outline New Regulatory System

Kevin Spak — Mon, 15 Jun 2009 08:33:03 CDT

The current financial regulatory system “is riddled with gaps, weaknesses, and jurisdictional overlaps,” Treasury Secretary Timothy Geithner and Obama economic guru Larry Summers write in today’s Washington Post . They outline, in broad strokes, their plan to fix it: Capital and liquidity requirements will be raised across the board. “Too-big-to-fail” firms...

Fed to Release Stress Test Results Next Week

Nick McMaster — Fri, 01 May 2009 13:44:06 CDT

The US will learn the fiscal health of its 19 biggest banks Thursday, when the Federal Reserve and Treasury release the results of the “stress tests,” the Wall Street Journal reports. Delayed somewhat, the results will contain potential loss estimates in specific loan categories for each bank, and aggregate data...

Fed Tells BofA, Citi to Raise Billions

Kevin Spak — Tue, 28 Apr 2009 07:25:37 CDT

Federal Reserve regulators are urging Bank of America and Citigroup to raise more capital, based on their preliminary stress test results, sources tell the Wall Street Journal . Sources familiar with Bank of America say the shortfall numbers in the billions. But both banks are protesting, with Bank of America expected...

We Need New Leadership, Now

Matt Cantor — Sun, 23 Nov 2008 06:32:15 CST

Washington is carrying out “business as usual in the most unusual economic moment of our lifetimes,” writes Thomas Friedman in the New York Times . It’s time for our leaders to wake up to the enormity of the financial crisis, the real "weapon of mass destruction," a problem that only serious...

Morgan in Talks to Keep Critical Mitsubishi Money

Laurel Jorgensen — Sun, 12 Oct 2008 18:19:00 CDT

Morgan Stanley scrambled today to keep an investment from a major Japanese bank as Wall Street held its breath, the New York Times reports. Japan’s Mitsubishi UFJ Financial Group agreed last month to invest $9 billion, but wants better terms after Morgan's market value plunged last week. The talks are...

Goldman Raises $10B After Buffett's Buy-in

Kevin Spak — Wed, 24 Sep 2008 11:01:23 CDT

Where Warren Buffett goes, investors follow. Goldman’s new stock offering pulled in $5 billion this morning, twice the $2.5 billion the firm expected, as investors followed Buffett’s lead, Bloomberg reports. That extra money, combined with Buffett’s $5 billion investment, “should quickly end credit-market debate about the capitalization and liquidity...