Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Dodd-Frank’

Lockerere Regeln: Trump lässt US-Banken von der Leine

Posted by hkarner - 25. Mai 2018

25. Mai 2018, 08:25 derstandard.at

US-Präsident: Halte Wahlkampfversprechen

Washington – US-Präsident Donald Trump hat die Lockerung der nach der Finanzkrise von 2008 eingeführten strengeren Vorschriften für Banken mit seiner Unterschrift bestätigt. Kleine und mittlere Banken sollten nicht auf dieselbe Weise reguliert werden wie die großen Finanzinstitute, sagte Trump am Donnerstag kurz vor der Unterzeichnung des Gesetzes im Weißen Haus. „Als Präsidentschaftskandidat habe ich versprochen, diese Banken vor der Katastrophe des Dodd-Frank-Gesetzes zu retten, und jetzt halten wir dieses Versprechen“, sagte Trump. Das Dodd-Frank-Gesetz war 2010 unter Trumps Vorgänger Barack Obama eingeführt worden, um die US-Steuerzahler vor den Schockwellen durch den Zusammenbruch von Finanzinstituten zu schützen. Im März dieses Jahres hatte der US-Senat die Lockerung der Vorschriften beschlossen, am Dienstag folgte das Repräsentantenhaus. Trump musste die Aufweichung der Bankenregeln nun mit seiner Unterschrift absegnen. (APA, 25.5.2018) – derstandard.at/2000080388742/Lockerere-Regeln-Trump-laesst-US-Banken-von-der-Leine

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Why Reinvent the Monetary Wheel?

Posted by hkarner - 24. Mai 2018

Robert Skidelsky, Professor Emeritus of Political Economy at Warwick University and a fellow of the British Academy in history and economics, is a member of the British House of Lords. The author of a three-volume biography of John Maynard Keynes, he began his political career in the Labour party, became the Conservative Party’s spokesman for Treasury affairs in the House of Lords, and was eventually forced out of the Conservative Party for his opposition to NATO’s intervention in Kosovo in 1999.

Cryptocurrencies promise to realize Friedrich Hayek’s dream of a free market in money. But human societies have discovered no better way to keep the value of money roughly constant than by relying on central banks to exercise control over its issue.

LONDON – Slumps have always been boom times for monetary experiments, and the economic collapse of 2008-2009 was no different. Underlying this recurrence is the instinctive feeling that economic calamities must have monetary causes, and therefore monetary remedies. There is either too much money, which causes inflation, or too little, which leads to depression. So the aim of monetary reformers –among whom are always a large number of quacks and cranks – has been to “keep money in order” and prevent its gyrations from disturbing the “real” economy of production and trade.

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The Making of Lehman Brothers II

Posted by hkarner - 27. Februar 2018

Simon Johnson, a former chief economist of the IMF, is a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-founder of a leading economics blog, The Baseline Scenario. He is the co-author, with James Kwak, of White House Burning: The Founding Fathers, Our National Debt, and Why It Matters to You.

A serious legislative effort, supported by the Trump administration, is underway to reduce the level of scrutiny applied to banks that are on the verge of becoming systemically important. If congressional Republicans have their way, financial stability will be at greater risk than at any time since the 2008 crisis.

WASHINGTON, DC – Last week, with some fanfare, the US Treasury Department released a report on what to do about the Orderly Liquidation Authority. The OLA, created under the Dodd-Frank financial reform legislation of 2010, was intended to prevent a recurrence of what happened in September 2008, when one failing firm, Lehman Brothers, was able to trigger a cascade effect that nearly destroyed the financial system.

The OLA allows the Federal Deposit Insurance Corporation (FDIC), subject to reasonable safeguards, to take over a failing financial firm and wind it down in an orderly manner – very much in line with what happens, with some regularity, when a small bank becomes insolvent. Although the Treasury report reads more like a political document rather than a well-reasoned technical assessment, it still comes to a sensible conclusion: keep the OLA in place. Unfortunately, the report also masks a broader legislative and regulatory agenda that will add unnecessary risk – and a lot of it – to the financial system. Den Rest des Beitrags lesen »

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US-Finanzministerium will umstrittene Banken-Konkursregel erhalten

Posted by hkarner - 23. Februar 2018

Das US-Finanzministerium empfiehlt ein Festhalten an einem umstrittenen Teil der Banken-Konkursregeln und stellt sich damit auf die Seite großer Geldhäuser.

 Die „orderly liquidation authority“ (OLA), geschaffen 2010 als Teil der Dodd-Frank-Gesetze in Reaktion auf die Finanzkrise, solle als „Notfall-Werkzeug“ beibehalten werden, erklärte das US-Finanzministerium am Mittwoch. Viele Politiker haben die Regel als verstecktes Rettungsprogramm für Konzerne auf Kosten der Steuerzahler kritisiert. Präsident Donald Trump hatte im April eine Prüfung der OLA angeordnet.

Die OLA gibt den Behörden Sondervollmachten, um große, komplexe Finanzinstitutionen geordnet abwickeln zu können. Dabei dürfen vorübergehend Steuergelder eingesetzt werden. Eingeführt wurde die Regelung aus der Erfahrung während der Finanzkrise heraus, dass die normalen Konkurs-Gesetze für derartige Fälle nicht ausreichend sind. Großbanken hatten argumentiert, eine Abschaffung der OLA würde das systemische Risiko erhöhen und könnte ausländische Aufsichtsbehörden dazu veranlassen, von US-Banken eine bessere Absicherung in ihren Märkten zu verlangen.

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What Will the Next Crisis Look Like?

Posted by hkarner - 4. November 2017

One of the main topics of discussion everywhere I go is, what will the next crisis look like; along with: Where will it come from; what will the market response be; and what will be the source of the volatility? There is always volatility during a crisis.

I have been saying in writing for some time that I think the next crisis will reveal how little liquidity there is in the credit markets, especially in the high-yield, lower-rated space. Dodd–Frank has greatly limited the ability of banks to provide market-making opportunities and credit markets, a function that has been in their wheelhouse for well over a century. Given the massive amount of high-yield bonds that have been stuffed into mutual funds and ETFs, when the prices of those funds begin to fall, and the ETFs want to sell the underlying assets to generate liquidity, there will be no buyers except at extreme prices.

My friend Steve Blumenthal says we are coming up on one of the greatest buying opportunities in high-yield credit that he has ever seen – and he has 25 years of experience as a high-yield trader. There have been three times when you had to shut your eyes, hold your breath, and buy because the high-yield prices had fallen to such extreme levels. That is going to happen again. But it is going to unleash a great deal of volatility in every other market. As the saying goes, when you need money in a crisis, you sell what you can, not what you want to. And if you can’t sell your high-yield, you end up selling other assets (like equities), which puts strain on them. Den Rest des Beitrags lesen »

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Don’t Bank on Bankruptcy for Banks

Posted by hkarner - 19. Oktober 2017

Mark Roe is a professor at Harvard Law School. He is the author of studies of the impact of politics on corporate organization and corporate governance in the United States and around the world.

As a part of their efforts to roll back the 2010 Dodd-Frank Act, congressional Republicans have approved a measure that would have courts, rather than regulators, oversee megabank bankruptcies. It is now up to the Trump administration to decide if it wants to set the stage for a repeat of the Lehman Brothers collapse in 2008.

CAMBRIDGE – In the next month, the US Treasury Department is expected to decide whether to seek to replace the 2010 Dodd-Frank Act’s regulator-led process for resolving failed mega-banks with a solely court-based mechanism. Such a change would be a mistake of potentially crisis-size proportions. 

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EU Official Sees Trump Team Cooperating Positively on Financial Rules

Posted by hkarner - 17. Oktober 2017

Date: 16-10-2017
Source: The Wall Street Journal

Valdis Dombrovskis sees ‘targeted adjustments,’ not push toward financial sector deregulation

Valdis Dombrovskis, who leads financial-services policy work at the European Union’s executive arm, said fears about President Donald Trump’s financial deregulatory agenda haven’t been realized.

WASHINGTON—European officials see cooperation with the Trump administration on financial sector oversight “developing in a positive way,” according to a top official who met with U.S. regulators on Friday.

European Commission Vice President Valdis Dombrovskis in an interview said European Union fears about President Donald Trump’s financial deregulatory agenda haven’t been realized. Den Rest des Beitrags lesen »

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The Trump Administration’s Economic Potential

Posted by hkarner - 30. August 2017

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A significant Trump nominee for the Fed

Posted by hkarner - 16. Juli 2017

Date: 13-07-2017
Source: The Economist
Subject: Wall Street: A new approach to financial regulation

DONALD TRUMP promised to unshackle America’s financial firms from mounds of stultifying regulation and the grip of bureaucrats with little practical experience of capitalism. One way to put that pledge into practice is to appoint officials with business backgrounds and deregulatory agendas. This element of the Trump strategy was on show this week, with a presidential nomination for a critical job at the Federal Reserve and the first public address by the new head of the Securities and Exchange Commission (SEC), another financial regulator.

Buried in the voluminous pages of the Dodd-Frank act, an Obama-era law passed in response to the financial crisis, was the creation of a new supervisory job at the Fed. Thus far, this powerful post has been informally delegated to an existing Fed board member, first Daniel Tarullo and, since his departure, Jerome Powell. That is set to change. Randal Quarles was formally nominated for the job—technically a vice-chairmanship with a brief covering financial supervision—on July 11th.

Mr Quarles has held a number of jobs—as a lawyer for financial institutions at Davis Polk, a leading law firm; as a senior official in the Treasury; working on bank investments at Carlyle, a private-equity firm; and most recently, as head of Cynosure, a firm investing on behalf of wealthy families. If approved by the Senate, Mr Quarles will have his new office in a building named after Marriner Eccles, chairman of the Fed from 1934 to 1948, and a relative of his wife, Hope.

Mr Quarles is described by former associates as being in favour of policies administered through transparent and direct rules. If so, this would mark a shift from the Obama administration’s approach to finance. It oversaw a profusion of complex, and sometimes conflicting, directives; supervisors kept banks on a tight leash through stress tests that lacked clear criteria. That created vast uncertainty for financial institutions. It also gave regulators great discretionary power (to say nothing of lucrative job opportunities helping financial institutions to navigate their way through the murk). Den Rest des Beitrags lesen »

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US-Banken sollen es leichter haben

Posted by hkarner - 13. Juni 2017

Finanzminister Steven Mnuchin präsentiert ein Konzept, um die US-Finanzaufsicht zu reformieren. Es ist nicht revolutionär, wird aber Bewegung in die Branche bringen.

Wien. Als US-Präsident Donald Trump im Februar gerade frisch im Amt war, beauftragte er in seinem ersten Dekret das US-Finanzministerium, das gesamte Finanzsystem einmal gründlich zu durchforsten. Alle Verträge und Gesetze, die mit „Kernprinzipien“ kollidieren, sollten ausfindig und möglichst eliminiert werden.

Nun, genau vier Monate später, hat US-Finanzminister Steven Mnuchin auf 147 Seiten seine Ausbeute präsentiert und gleichzeitig dargelegt, wie er die US-Finanzaufsicht zu reformieren gedenkt. Auf seine Vorschläge hat die Bankenbranche gierig gewartet. Schließlich, soll ihnen – so forderte es der US-Präsident mit Vehemenz – das Leben endlich wieder erleichtert werden. Insbesonders hat es Trump auf das Dodd-Frank-Gesetz abgesehen. Sein Vorgänger Barack Obama setzte es als Reaktion auf die Finanzkrise 2010 unter großen Widerständen in Kraft. Es verbot Banken etwa auf eigene Rechnung zu spekulieren. Trump bezeichnete das Dodd-Frank-Regelwerk als „Desaster“, das man größtenteils streichen könne. Es habe nämlich weder die Finanzstabilität noch den Konsumentenschutz gefördert.  Den Rest des Beitrags lesen »

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