crisis

This is a thought experiment, so bear with me. I have written repeatedly how I felt that the U.S. Government's plans to save the banking system were not adequate in the face of a severe capital shortfall in banking. On one level, I…

The leaks about who failed the stress tests are already starting.  Who got a big fat 'F'?  Apparently, Citi and BofA for starters.  But is that any surprise? Regulators have told Bank of America Corp. and Citigroup Inc. that the banks may…

In this much-talked about Charlie Rose roundtable with Nobel Laureate Joseph Stiglitz joined by Bill Ackman of Pershing Square, Andrew Ross Sorkin of the New York Times and Kate Kelly of the Wall Street Journal, these experts discuss the…

It looks pretty clear that the U.S. regulators are going to clean house this year -- at least with small banks.  Hundreds of small banks and credit union will go into receivership in 2009.  However, big banks are getting a free ride. First…

This is from the Globe & Mail: Bank of Canada Governor Mark Carney is signalling frustration with the Obama administration's handling of the financial crisis, saying delays in shoring up the banking system in the United States have…

Bank of America CEO Ken Lewis is fighting to keep his job because earnings at his company have plummeted. BofA's acquisition of Merrill Lynch has been a large part of the problem.  Now, understanding that he is being made out to be the fall…

Irrespective of whether one thinks the stress tests used to test the U.S. banking system is a sham (10% unemployment is not a worst-case scenario), the fact of the matter is these tests MUST show some differentiation in order to be…

Paul McCulley of PIMCO made a few comments back in March which caught my attention.  Given how well banks are doing this earnings season, I thought it relevant to quote him here.  The essence of his remarks was this: Deleveraging is a…

We are a few weeks into earnings season and it should be abundantly clear that financial institutions are firing on all cylinders.  In fact, financials are leading the broader market for the first time since 1993.  Yet, loan losses have…

Below you can watch a video clip of Congressional Oversight Chairperson Elizabeth Warren's introductory remarks at a hearing today on Capitol Hill. Afterward, Treasury Secretary Tim Geithner responds in a 10-minute open statement.