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Banking

This tag is associated with 5 posts

Concerns over Succession at Fed Likely Trumping Desire for Simple Transparency

(Analysis) Chairman Bernanke gave forward-looking guidance of Fed policy last week that left markets in some degree of chaos. By stating that continued quantitative easing (QE) would be contingent on an unemployment rate of 7+%, and revealing optimistic forecasts by the Fed of the unemployment rate, Bernanke was interpreted by markets to mean that “tapering” … Continue reading

In just one Word, why Germany Refuses to End the Crisis in the Euro Area: “Leverage”

(Analysis) The drama in the euro area continues with no clear end in sight. Recession, unemployment, and worsening sovereign debt levels – all exacerbated by flawed policies of austerity pursued in weaker performing economies, continue to be reported and forecast into the future. Because the crisis in the euro area directly resulted from the financial … Continue reading

Toxic Asset Shock Impeding Bank Lending to Real Economy

(Analysis) As US banks still remain underwater six years after the onset of the 2007-8 financial crisis, their lending to the real economy – to both business and consumers, is still falling when measured relative to their net assets (see chart. Net assets are total assets minus intangibles like goodwill). This is one very strong … Continue reading

Banks Still Underwater 6 Years Later

(Analysis) There has been a lot of content in different media outlets about how many homeowners are underwater – when the money that they still owe on their mortgage is more than their home’s current market value. Less attention has been paid to a similar phenomenon among banks here in the US: when the money … Continue reading

Failure to Regulate as Super-sized Banks Grow Larger

(Analysis) Even as investigation into criminal activity at super-sized banks continues to uncover more wrong doing, the trend for both larger size and greater industry concentration continues (see chart). Since 1999, when Congress repealed the provisions limiting bank activities and mergers by the Glass-Steagall Act of 1933, the number of banks with more than $100 … Continue reading