Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Dodd’

Who Is President Trump?

Posted by hkarner - 11. November 2016

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Jeffrey Frankel

Jeffrey Frankel, a professor at Harvard University’s Kennedy School of Government, previously served as a member of President Bill Clinton’s Council of Economic Advisers. He directs the Program in International Finance and Macroeconomics at the US National Bureau of Economic Research, where he is a member of the Business Cycle Dating Committee, the official US arbiter of recession and recovery.

NOV 10, 2016 Project Syndicate

CAMBRIDGE – Donald Trump’s stunning election victory has pushed the United States – and the world – into uncharted territory. The US has never before had a president with no political or military experience, nor one who so routinely shirks the truth, embraces conspiracy theories, and contradicts himself. All of this makes it almost impossible to know how he will govern.

But Trump’s looming presidency does have a precedent: George W. Bush’s. Several parallels stand out. For starters, like Bush, Trump did not win the popular vote, but may nonetheless assume that he has a mandate for sweeping change. And the direction of that change may produce results that not even his supporters like.

Among Trump’s economic-policy promises, his fiscal proposals are most likely to be enacted: big tax cuts for the rich and increased spending on defense and other items. The result will probably be the same as when Bush pursued similar policies: income inequality will widen, and budget deficits will grow. Den Rest des Beitrags lesen »

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Europas Banken brauchen dringend ein Spekulations-Verbot

Posted by hkarner - 11. Oktober 2016

Die europäischen Banken sind in deutlich schlechterem Zustand als die US-Konkurrenz. Der Grund: Die US-Regierung hat nach der Finanzkrise ein Spekulationsverbot verhängt. Doch die Europäer lehnten diese sinnvolle und wirksame Maßnahme ab. Nun fürchten sie sich täglich vor dem Crash.

Ein spektakulärer Kurssturz der Aktie der Deutschen Bank hätte in anderen Zeiten auch die US-amerikanischen Großbanken mitgerissen. In den vergangenen Tagen war dies nicht der Fall. Im Gegenteil. Man zeigte sich an der Wall Street vom Schicksal der bedeutendsten Bank Europas unbeeindruckt. Diese Entwicklung ist kein Zufall: Die US-Banken sind heute tatsächlich solider aufgestellt als die Deutsche Bank. Vor einigen Jahren galt das genaue Gegenteil.

In den USA wurde eine Spekulations-Bremse eingezogen

Das Geheimnis liegt in der unterschiedlichen Politik begründet. In den USA wurde mit dem Dodd-Frank-Act den Banken bis auf geringe Ausnahmen untersagt, mit Derivaten und anderen Finanzkonstruktionen zu spekulieren. Die Regelung wurde unter der Bezeichnung „Volcker-Rule“ bekannt. Die Bezeichnung trägt dem Initiator Rechnung, dem früheren Präsidenten der US-Notenbank Federal Reserve Board Paul Volcker.

Die Diskussion begann in den USA nach der Finanzkrise 2008, das Gesetz wurde 2010 beschlossen und ist in Etappen bis 2014 in Kraft getreten. Banker und Vertreter der Republikaner lehnen die Volcker-Rule ab und erklären, die Bestimmungen seien wirtschaftsfeindlich, weil sie den Aktionsradius der Institute einengen. Die Demokraten betonen die heute größere Stabilität der Kreditwirtschaft. Den Rest des Beitrags lesen »

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The Republican Bankruptcy Illusion

Posted by hkarner - 1. August 2016

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Simon Johnson

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.

JUL 31, 2016, Project Syndicate

WASHINGTON, DC – There is now near-unanimity that the United States’ Dodd-Frank financial reform legislation, enacted in 2010, did not end the problems associated with some banks being “too big to fail.” When it comes to proposed solutions, however, no such consensus exists. On the contrary, financial regulation has become a key issue in November’s presidential and congressional elections.

So who has the more plausible and workable plan for reducing the risks associated with very large financial firms? The Democrats have an agreed and implementable strategy that would represent a definite improvement over the status quo. The Republican proposal, unfortunately, is a recipe for greater disaster than the US (and the world) experienced in 2008.

On the Democratic side, Hillary Clinton’s campaign materials and the party platform point to a detailed plan to defend Dodd-Frank and to go further in terms of pressing the largest firms to become less complex and, if necessary, smaller. Banks must also fund themselves in a more stable fashion. If Clinton wins, she will draw strong support from Congressional Democrats – including her rival for the Democratic nomination, Bernie Sanders, and his fellow senator, Elizabeth Warren – when she pushes in this direction. Den Rest des Beitrags lesen »

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Could Hensarling’s Dodd-Frank “Off-Ramp” Work?

Posted by hkarner - 13. Juli 2016

Photo of Mark Roe

Mark Roe

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.
 

JUL 12, 2016, Project Syndicate

CAMBRIDGE – Jeb Hensarling, the Republican chair of the Financial Services Committee in the US House of Representatives, delivered a wide-ranging speech last month at the Economic Club of New York, proposing to overhaul US financial regulation. Hensarling blamed regulators and excused Wall Street for the financial crisis; condemned government-funded bank bailouts; characterized the 2010 Dodd-Frank financial-reform legislation as a power grab; and called for increased congressional oversight of the Federal Reserve.

Most of Hensarling’s proposals – even backed, as they now are, by a partisan-sounding document from the House Banking committee and a favorable Wall Street Journal review – are political nonstarters. (They would have to get 60 Senate votes and a presidential signature to pass.) They have already been sharply criticized by Democrats as being too risky and pro-bank – which they largely are. That said, one of Hensarling’s ideas is well worth exploring: an “off-ramp,” as he put it, from Dodd-Frank regulation for banks that willingly increase their available capital. Den Rest des Beitrags lesen »

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The Overselling of Financial Transaction Taxes

Posted by hkarner - 7. Juni 2016

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Kenneth Rogoff

Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University and recipient of the 2011 Deutsche Bank Prize in Financial Economics, was the chief economist of the International Monetary Fund from 2001 to 2003. His most recent book, co-authored with Carmen M. Reinhart, is This Time is Different: Eight Centuries of Financial Folly.

JUN 6, 2016, Project Syndicate

CAMBRIDGE – However November’s presidential election in the United States turns out, one proposal that will likely live on is the introduction of a financial transaction tax (FTT). While by no means a crazy idea, an FTT is hardly the panacea that its hard-left advocates hold it out to be. It is certainly a poor substitute for deeper tax reform aimed at making the system simpler, more transparent, and more progressive.

As American society ages and domestic inequality worsens, and assuming that interest rates on the national debt eventually rise, taxes will need to go up, urgently on the wealthy but some day on the middle class. There is no magic wand, and the politically expedient idea of a “Robin Hood” tax on trading is being badly oversold. Den Rest des Beitrags lesen »

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The End of Big Banks

Posted by hkarner - 29. Februar 2016

Photo of Simon Johnson

Simon Johnson

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.

FEB 29, 2016, Project Syndicate

WASHINGTON, DC – After nearly a decade of crisis, bailout, and reform in the United States and the European Union, the financial system – both in those countries and globally – is remarkably similar to the one we had in 2006. Many financial reforms have been attempted since 2010, but the overall effects have been limited. Some big banks have struggled, but others have risen to take their place. Both before the 2008 global financial crisis and today, just over a dozen big banks dominate the world’s financial landscape. And yet the ground is shifting beneath the financial sector, and big banks could soon become a thing of the past. Den Rest des Beitrags lesen »

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The Case for Breaking Up Too-Big-To-Fail Banks

Posted by hkarner - 10. Februar 2016

By on February 9, 2016, RGE EconoMonitor dolan-1

The presidential campaign has brought new attention to the problem of banks that are too big to fail (TBTF). As everyone agrees, the largest banks are bigger than ever. As the following chart shows, the share of all bank assets held by the four largest banks rose from 33 percent in 2007 to 41 percent by 2015. Over the same period, the combined assets of the four largest banks, as a share of GDP, grew from 28 percent to 40 percent.

P160125-1

The major candidates disagree, not on whether the largest banks are too big to fail, but on what to do about it. Senator Bernie Sanders has made breaking up the banking giants a centerpiece of his campaign. Hillary Clinton favors a continuation of the regulatory approach embodied in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The GOP candidates favor an approach that combines deregulation with market discipline.

Sanders’ anger at the banks seems to resonate well with voters, but influential voices in the media skeptical. The Editorial Board of the Washington Post has argued against breaking up the big banks. The New York Times has done likewise, prominently featuring an opinion piece written by Steve Eisman, a managing director of the investment firm Neuberger Berman. Politico also thinks breaking up the banks would be a bad idea. Den Rest des Beitrags lesen »

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A Crisis Worse than ISIS? Bail-Ins Begin

Posted by hkarner - 30. Dezember 2015

Posted on by Ellen Brown, Web of DebtBrown Ellen

While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  Poverty also kills.

At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the “rescue.”

The pensioner’s bank was one of four small regional banks that had been put under special administration over the past two years. The €3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the country’s healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com: Den Rest des Beitrags lesen »

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Lohnverteilung offenlegen! Europa braucht einen (besseren) Dodd-Frank-Act

Posted by hkarner - 5. November 2015

05. November 2015 l l Arbeitsmarkt und Verteilung, Wirtschaftspolitik, flassbeck-economics

Die Lohnschere öffnet sich auch in der Schweiz immer mehr. Doch die Diskussion darüber ist eingeschlafen. Hier ist ein Vorschlag für eine neue, substantiellere Debatte: Die börsennotierten Unternehmen sollten ihre Lohnverteilung offenlegen.

Vorreiter in dieser Sache sind die USA. Dort müssen die börsennotierten Unternehmen gemäss dem Dodd-Frank-Act ab 2017 den Median, also den mittleren Wert der Löhne ihrer Angestellten ermitteln, mit dem Gehalt des Chefs vergleichen und die Zahlen veröffentlichen. Unser Vorschlag geht etwas weiter: Die börsennotierten Unternehmen sollen den Medianlohn des ärmsten und des reichsten Fünftels sowie des reichsten Ein-Prozent ihrer in der Schweiz tätigen Mitarbeiter veröffentlichen.

Warum diese Idee? In einer (geschlossenen) Volkswirtschaft versorgt der Unternehmenssektor mit seinen Lohn- und Dividendenzahlungen sowie mit den Steuern die übrigen Sektoren mit der Kaufkraft, die diese brauchen, um die Produkte und Dienstleistungen der Unternehmen zu kaufen – und damit den Kreislauf zu schliessen. (Wenn wir Investitionen berücksichtigen ändert sich an diesem Zusammenhang grundsätzlich nichts.) Den Rest des Beitrags lesen »

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Resurrecting Glass-Steagall

Posted by hkarner - 29. Oktober 2015

Photo of Simon Johnson

Simon Johnson

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.

OCT 29, 2015, Project Syndicate

WASHINGTON, DC – A major shift in American politics has taken place. All three of the remaining mainstream Democratic presidential candidates now agree that the existing state of the financial sector is not satisfactory and that more change is needed. President Barack Obama has long regarded the 2010 Dodd-Frank financial-reform legislation as bringing about sufficient change. Former Secretary of State Hillary Clinton, Senator Bernie Sanders, and former Governor Martin O’Malley want to do even more.

The three leading Democratic candidates disagree, however, on whether there should be legislation to re-erect a wall between the rather dull business of ordinary commercial banking and other kinds of finance (such as issuing and trading securities, commonly known as investment banking). Den Rest des Beitrags lesen »

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