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No, Making Banks Hold More Capital Is Not Going To Wreck Lending Or The Economy

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Uh-oh, everybody: Bankers are warning that the U.S. economy could be in deep trouble. Not because bankers wrecked it again, like that last time, but because we are being mean to bankers.

Fortunately, these bankers are probably wrong.

Like they do, bank flaks have rushed to warn that the higher bank capital requirements proposed on Tuesday by the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation will slow down lending and economic growth, make U.S. banks less competitive against European competitors and be cruel to puppies and kittens.

The first quote in Wednesday’s Wall Street Journal story (subscription only) about the new capital rules, in fact, is just such a warning from a banking representative:

“Ever-higher capital requirements, while a critically important element of safety and soundness, can become prohibitive and actually lead to reduced capability to lend,” Rob Nichols, president of the Financial Services Forum, a lobbying group for the Too Big To Fail set, tells the WSJ.

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banks capital lending

Jamie Dimon and other bankers complain that tougher regulations and higher capital rules will kill the economy. Fortunately, they’re wrong. Chris Ratcliffe/Bloomberg via Getty Images

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.Click link below for story and video:

http://www.huffingtonpost.com/2013/07/10/banks-capital-lending_n_3573704.html?ncid=edlinkusaolp00000003

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Too-Big-To-Fail Banks Have Raked In $102 Billion In Subsidies Since 2009: Report

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America’s biggest banks want you to believe that they get no special advantage, no subsidies, from being too big to fail. And yet people keep finding evidence of those subsidies.

The latest is World Bank economist Deniz Anginer, in a study for Bloomberg Markets magazine. Anginer estimates that the six biggest U.S. banks have saved $82 billion in borrowing costs since 2009 because investors believe the government will never let them fail and thus don’t charge as much to lend them money as they do smaller banks. The report will be published in the June issue of the magazine.

Together with dirt-cheap government borrowing programs, Bloomberg estimates these banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — have saved $102 billion since 2009 because of their size advantage.

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Too Big To Fail Subsidies

A new study tries to estimate the subsidies enjoyed by too-big-to-fail banks. (Victor J. Blue/Bloomberg via Getty Images)

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.Click link below for story, slideshow, and video:

http://www.huffingtonpost.com/2013/05/10/too-big-to-fail-subsidies_n_3252879.html?ref=topbar

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Too-Big-To-Fail Banks Have Raked In $102 Billion In Subsidies Since 2009: Report

3 Comments

FROM

business

Click link below picture

.

America’s biggest banks want you to believe that they get no special advantage, no subsidies, from being too big to fail. And yet people keep finding evidence of those subsidies.

The latest is World Bank economist Deniz Anginer, in a study for Bloomberg Markets magazine. Anginer estimates that the six biggest U.S. banks have saved $82 billion in borrowing costs since 2009 because investors believe the government will never let them fail and thus don’t charge as much to lend them money as they do smaller banks. The report will be published in the June issue of the magazine.

Together with dirt-cheap government borrowing programs, Bloomberg estimates these banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — have saved $102 billion since 2009 because of their size advantage.

.

Too Big To Fail Subsidies

A new study tries to estimate the subsidies enjoyed by too-big-to-fail banks. (Victor J. Blue/Bloomberg via Getty Images)

.

.Click link below for story, slideshow, and video:

http://www.huffingtonpost.com/2013/05/10/too-big-to-fail-subsidies_n_3252879.html?ref=topbar

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Moara de Vânt

Să facem glume, nu război

🇲🇲Dear all peace-loving people around the world🇲🇲

In the world, human beings are facing various problems. People who are full of greed, anger, and ignorance are seen to be fighting with each other in words and deeds. As the fighting continues, various problems such as civil wars, wars of aggression, and wars of aggression are occurring. As world peace is being destroyed, humans are facing unbearable problems. Innocent children and women are not getting the rights they deserve and deserve. I can't think of one thing every time. What is it? The United Nations. If we look at the responsibilities and duties of the United Nations, I think it is not suitable for solving the problems that are happening in the world today. In fact, the United Nations and the World Security Council, such an organization must rule the world, must be able to give orders, and must have various ways to obey orders. There must be no organization that can influence more than that organization. There should be experts from each country. They can even dominate the superpowers like the US, China, and Britain. Only then will global peace be achieved quickly. Now, if a country with power develops more militarily, economically, or socially than its own country, then powerful countries will jealously seek out enemies and wage war. Or they will attack with fighter jets. In this, innocent people are losing their lives. No one understands the value of a life. You should think about how to achieve global peace by controlling these. If the US continues to be the permanent president of the UN, world peace will never be achieved. If you think carefully, no one sees that they are working for the common good, but for their own benefit, for the benefit of their own country. The permanent president of the UN and the Security Council has rejected this, As a young Rohingya, I have come to realize that only by electing the president and secretary from among the countries in the world through a secret ballot system and governing the world fairly can we achieve global peace. The United Nations and the Security Council are organizations in which any country must govern, give orders, and make them obey their orders. For example, only when a defendant is tried in court can we hold the leaders of the countries in check and control them, can we achieve global peace smoothly. Otherwise, it will not be easy for powerful countries to use various excuses to end this war every year, every year, for the benefit of themselves and their countries. No country's leaders pay any attention to the words of the United Nations and the Security Council. If we look at it in practice, look at the Rohingya issue. Myanmar is a small country. Even that country has been under siege for 8 years. What action can be taken? Why is the UN and the Security Council Powerless? Without such Power, how can the organization bring about global peace? Everyone should think about it. Whether there is a veto or a strong one, all countries in the world can only achieve global peace if they are subject to the UN and the Security Council. Seek peace in the quiet embrace of nature. Peace is an indispensable need of the human race. It is not as if one person can kill another person, and it is as if one country can attack another country, but instead of trying to build peace, we must try to destroy the peace now, and the world is getting hotter and is on the verge of collapse. I especially appeal to all the world experts to urgently try to bring about peace in all parts of the world. Mr, Noor Muhamed Arkhan Rohingya Youth Myanmar

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