Category Archives: Economy

According to both the Mayan and Hindu calendars, 2012 (or something very close) marks the transition from an age of darkness, violence and greed to one of enlightenment, justice, and peace. It’s hard to see that change just yet in the events relayed in the major media, but a shift does seem to be happening behind the scenes; and this is particularly true in the once-boring world of banking. Continue reading →

Dear Mr. CEO of JPMorgan Chase, Mr. Jamie Dimon: There you are sitting with egg on your face and $2 billion plus going deep into the red on bad bets. You, the guy who fought for less and not more regulation is now in the middle of a major mess. You, the guy who hates the Volker rule named after ex-Fed Chief, Paul Volker, and says it went too far and that “if you want to be trading, you have to have a lawyer and a psychiatrist sitting next to you determining what ‘was your intent’ every time you did something.” That was some expensive exaggeration, wouldn’t you say? Continue reading →

Here we go again. Another round of the game we call Congressional Creep. After months of haggling and debate, Congress finally passes reform legislation to fix a serious rupture in the body politic, and the president signs it into law. But the fight’s just begun, because the special interests immediately set out to win back what they lost when the reform became law. Continue reading →

Public sector banking is a concept that is relatively unknown in the United States. Only one state—North Dakota—owns its own bank. North Dakota is also the only state to escape the credit crisis of 2008, sporting a budget surplus every year since; but skeptics write this off to coincidence or other factors. The common perception is that government bureaucrats are bad businessmen. To determine whether government-owned banks are assets or liabilities, then, we need to look further afield. Continue reading →

Facts are stubborn things, said founding father John Adams, a basic truth Ronald Reagan famously mangled at the Republican National Convention in 1988, when he tried to quote Adams and declared, “Facts are stupid things,” before correcting himself. Continue reading →

Just a few months after public outrage forced Bank of America to drop a planned $5 fee for using debit cards to make purchases, the financial institution is at it again. Continue reading →

Seventeen states have now introduced bills for state-owned banks, and others are in the works. Hawaii’s innovative state bank bill addresses the foreclosure mess. County-owned banks are being proposed that would tackle the housing crisis by exercising the right of eminent domain on abandoned and foreclosed properties. Arizona has a bill that would do this for homeowners who are current in their payments but underwater, allowing them to refinance at fair market value. Continue reading →

In an article titled “Still No End to ‘Too Big to Fail,’” William Greider wrote in The Nation on February 15: “Financial market cynics have assumed all along that Dodd-Frank did not end ‘too big to fail’ but instead created a charmed circle of protected banks labeled ‘systemically important’ that will not be allowed to fail, no matter how badly they behave.” Continue reading →

The Wall Street Journal reported on January 19 that the Obama administration was pushing heavily to get the 50 state attorneys general to agree to a settlement with five major banks in the “robo-signing” scandal. The scandal involves employees signing names not their own, under titles they did not really have, attesting to the veracity of documents they had not really reviewed. Investigation reveals that it did not just happen occasionally but was an industry-wide practice, dating back to the late 1990s; and that it may have clouded the titles of millions of homes. If the settlement is agreed to, it will let Wall Street bankers off the hook for crimes that would land the rest of us in jail—fraud, forgery, securities violations and tax evasion. Continue reading →