dagblog - Comments for "Sheila Bair and the bailout bank titans"

Not really. Most of what I

EmmaZahn — Fri, 05 Oct 2012 15:00:38 +0000

In reply to Among the ones you've read on

Not really. Most of what I read is online and often more than I can absorb. I did buy a textbook that was referenced often in footnotes to FRB staff reports. Bonus: It turned out to have an interesting cover considering it is a pre-crisis edition.

Thanks for asking though. It prompted me to check my Amazon wish list where I discovered that A History of the Federal Reserve by Allan Meltzer that I wanted to read now has Kindle editions for much, much less that the hardcovers. Not exactly light reading but necessary for the line of inquiry I am pursuing.

Since I've quoted and

AmericanDreamer — Wed, 03 Oct 2012 17:45:00 +0000

In reply to Sheila Bair and the bailout bank titans

Since I've quoted and otherwise drawn extensively from the Suskind book in this thread I'll link to some of the pushback the book generated at the time of publication, a little over a year ago, in a Washington Post piece : http://www.washingtonpost.com/politics/book-portrays-dysfunction-in-obama-white-house/2011/09/16/gIQAdxloYK_story_1.html

I love Summers' classic non-denial denial in his quoted email. So typical of how this town operates.

Not to mention the

erica20 — Wed, 03 Oct 2012 16:14:03 +0000

In reply to More on what is happening to

Not to mention the "De-Banked."

Among the ones you've read on

AmericanDreamer — Wed, 03 Oct 2012 15:37:47 +0000

In reply to Bair's book is getting

Among the ones you've read on the financial crisis, are there particular ones you liked or found especially helpful, that folks who are not really deep into the weeds on this like you clearly are might hope to be able to at least partially grasp? How about ones you didn't like or did not find on the mark? Just curious, if you're interested and have time to respond. If not, no worries...

Bair's book is getting

EmmaZahn — Wed, 03 Oct 2012 15:22:53 +0000

In reply to A real tell for me will be

Bair's book is getting favorable reader reviews at amazon so far. Have you read it, or, do you plan to?

Not yet. Yes. I will probably read any insider history written. I have spent so much time down this particular rabbit hole since Bear, Stearns was swallowed by JP Morgan in Spring 2008. It was surprisingly difficult during the cascading crises that followed to figure out what was going on and astounding how little leading economists knew about how money actually flows through the system as well as what and where the incentives are that channel it. I try to keep up with the professional stuff but there is just so much of it -- and the verbiage! Some days I feel like my head will explode. Simple narratives sound soothing.

A real tell for me will be

AmericanDreamer — Wed, 03 Oct 2012 14:32:22 +0000

In reply to Sheila Bair and the bailout bank titans

A real tell for me will be whether, if Obama does win, Tim Geithner, or someone with a worldview and commitments similar to his, is our next Treasury Secretary.

Suskind would not state this as his conclusion but I conclude based on his reporting that Geithner--along with Summers and Emanuel--was during the first two years of this Administration simply insubordinate. They did not seem to understand that they are there to serve the President, to carry out the President's wishes. Some of them might have thought they'd *like* to be the President, or at least have the role of decider-in-chief, on economic policy. And some of them clearly did believe they knew better than the President, apparently concluding from that that therefore it was ok to do what they thought rather than what the President wanted. Never mind that no one voted for Larry Summers or Rahm Emanuel or Tim Geithner.

Our country could, for starters, sure use a Treasury Secretary who understands that s/he works for the President and is obliged to carry out the President's wishes whether they agree or disagree with a particular decision. We also could really use a Treasury Secretary who does not see his job as the Wall Street megabanks' chief lobbyist in Washington, strategically located inside the Executive branch of the US government. I tried but was unable to discern, in Suskind's rich account, any evidence of Geithner making any distinction whatever between what Wall Street megabanks wanted, versus what was in the broad public interest. At least during the first 2 years of this Administration, which is as far as Suskind's account extends.

It was famously said during the post-WWII era heyday of General Motors that what was good for General Motors was good for America. For Tim Geithner, what is good for high finance (or, more accurately, what high finance says it wants--the two do not appear to be the same) is good for America. At least during its heyday, when that sentiment was expressed, General Motors didn't arrange for bailouts from the taxpayers, at any time, let alone after their own disastrous and irresponsible decisions had left them in desperate need of one.

Bair's book is getting favorable reader reviews at amazon so far. Have you read it, or, do you plan to?

American Banker reviews

EmmaZahn — Fri, 28 Sep 2012 00:50:06 +0000

In reply to Sheila Bair and the bailout bank titans

American Banker reviews Bair's book and Felix Salmon defends Geithner

Bair Details Inside Story of Regulatory Clash Over Basel III - American Banker Article: Sheila Bair, former chairman of the Federal Deposit Insurance Corp., nearly succeeded in forcing the largest banks to hold at least 10% common equity capital as part of Basel III rules, but was stymied by Treasury Secretary Tim Geithner.

Sheila Bair against the world | Felix Salmon: Geithner has only a few more months left in his job; once he leaves, he will surely be approached with many juicy offers from publishers. I have a feeling that discretion will win out, and that he’ll choose instead to float effortlessly into the world of grey financial eminences. But if he does choose to engage with Bair, expect sparks to fly. I’d give very good money to read his chapter on WaMu.

It's just plain stoopid that

artappraiser — Wed, 26 Sep 2012 06:37:28 +0000

In reply to Found it: Postal Banking to

It's just plain stoopid that the USPS doesn't start offering more of the same services that check cashing industry does. (Now raking in more dough than ever, and getting huge, I just recently read--in any article on them, even in business publications, they use the adjective "predatory" like a 10 times.)

The area I live in the Bronx is very mixed income and ethnicity, but the further south you go, it gets poorer, and my Post Office is closer to the lower income areas.. I go there often. They do a bangup business in money orders to pay bills . It's clear that people go to the check cashing places to get cash and then take the cash to the Post Office to buy the cheaper (and more liquid) money orders that USPS sells and then can mail their bills at the same time.

USPS money orders are cash or debit only. They could have their own debit cards with paychecks going on them, they could be getting a lot of that business that the check cashing folks get, most people using their money orders would be happy to be able to do the one stop thing--deposit check, get money orders, mail bills, rather than run allover the place. They could become bankers that way quite easily. Of course, they'd have to stop cutting hours and staff....

This is an idea so simple and

erica20 — Wed, 26 Sep 2012 04:41:34 +0000

In reply to Found it: Postal Banking to

This is an idea so simple and good that it's breathtaking. What a great way to use currently under-used post offices. And if the accounts were small, all kinds of people could have one! A whole underclass, currently using cash and prepaid cards, could have actual debit accounts again!

So much better than the below article, where people get a high-interest loan so they can buy a "prepaid" debit card.

More on what is happening to

EmmaZahn — Wed, 26 Sep 2012 03:45:40 +0000

In reply to I hadn't heard of the US

More on what is happening to the un- and underbanked:

Comptroller Curbs Florida Bank on Prepaid Cards

A good reason for reestablishing the US Postal Bank.