Sep 09 What Has Been Done to Insulate the U.S. From Systemic Risks Overseas? By Business Desk Question: Chairman Bernanke mentioned in the News Hour forum back in July that the key trigger to Depression 1.0 was the failure of a large central European bank. With Austrian and other banks in deep distress (I believe Austrian banks… Continue reading
Aug 27 Watch FDIC Losing Money as Many More Banks Face Collapse The FDIC reported that its insurance fund shrank 20 percent in the second quarter. Jeffrey Brown speaks with a reporter and analyst about troubled banks. Continue watching
Aug 06 If Banks Just Changed Their Accounting Rules, Why Do They Need Bailout Money? Question: If the banks are doing just hunky-dory due to the change in accounting rules, then why do they need any bailout money? Paul Solman: Hunky-dory? You might find this online etymology of the term amusing. I have to… Continue reading
Jul 30 How Can the Repaid TARP Money Be Used? Question: Is the $68 billion that big banks are paying back in TARP money going back to the taxpayer or can it be reused by the Treasury in some of its other schemes (e.g. Continue reading
Jul 16 How is the U.S. Savings Rate Determined? Question: How is the U.S. savings rate, which has gone from near zero percent in the past to 6.9 percent recently, determined? And a more elaborate question: Is it truly the difference between what is earned and what is… Continue reading
Jun 19 Instead of Capping Pay, Could the Government Police Banks’ Risk Models? Question: Instead of the government trying to prevent risky behavior by limiting bonuses and other compensation for the best performers in the finance industry, would it be possible for the government to review risk models that banks use? Paul Solman:… Continue reading
Jun 10 Watch Administration Proposes New Steps to Regulate Executive Pay The Obama administration outlined a plan for new executive compensation regulations Wednesday, putting the politically charged issue of executive pay back in the spotlight. Analysts examine how more oversight will affect the industry. Continue watching
Jun 09 If Banks Still Followed Mark-to-Market Rules, What Would Their Losses Look Like? Question: What is the actual amount that banks have “lost” if banks still had to follow mark-to-market rules? My understanding is that our large banks would be insolvent by almost a trillion dollars if they had to declare what… Continue reading
May 20 Why Were Banks Allowed to Bet on Derivatives? Question: How did the dollar volume of U.S. mortgages get to be such a huge dollar problem? Did derivatives do that? Why are investment banks allowed to bet 34 dollars for only one they have? Paul Solman: First, a word… Continue reading
May 06 Are Examiners Preventing Banks from Lending? Question: I am a commercial mortgage broker in California. I have had nearly every bank recently advise that their examiners are preventing them from lending. How can we get out of this mess if the examiners, in effect, prevent the… Continue reading