“My own view is that the problem of too big to fail is really about complexity, not size, and thus “break-up” proposals should focus on simplifying the megabanks so that they can be easily resolved in bankruptcy or the FDIC’s
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“We should also recognize that there is a difference between promoting home ownership and promoting home finance. Canada has no mortgage interest deduction, yet it has a comparable rate of home ownership and fewer leveraged home owners. My first preference
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“Not everyone in the industry is bad, and not all members of the industry will be supporting efforts to roll back reform. After two and a half decades in Washington, I have learned that those who are most active in
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“Dodd-Frank fixed some of that by giving both the SEC and the CFTC authority to regulate the derivatives market. Among other things, the legislation mandated that the SEC and CFTC, working with the banking regulators, set standards for the amount
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When the preliminary results from the stress tests came back in mid-March, they matched what we had expected to see: Citi (even with its $45 billion in government capital) and a few others would be insolvent under the stress
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“Another artificial factor stimulating investors’ demand for U.S. debt is the lack of alternatives. Because of Europe’s problems, investors there are limited in their choices of finding safe government-backed securities. In other words, interest rates on U.S. debt remain low
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“I also quoted a favorite passage of mine from Robert Frost’s poem “The Black Cottage”: Most of the change we think we see in life Is due to truths being in and out of favor. The “truths” that form the
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Sheila Bair was the Chairman of the FDIC under Bush and later reappointed under Obama. In Bull by the Horns she gives her perspective on the housing crisis and the financial collapse. Sheila was a Republican and voted for McCain,
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