American Banker: Big Banks and America's Broken, Two-Tiered Justice System( June 17, 2015)
Bloomberg: Jamie Dimon Is Now a Billionaire, and He Got There in an Unusual Way (June 3, 2015)
American Banker: Dimon's Defense of Big-Bank Model: An Exercise in Hubris (April 9, 2015)
American Banker: A Subsidy of Any Size Is Still Too Big (August 1, 2014)
Reuters: Big U.S. banks’ funding advantage reduced, could rise in crisis (July 31, 2014)
The Hill: Wall Street Line on Too-Big-to-Fail is Too Good to be True (July 3, 2014)
Financial Press: Bank Regulation: Too Small to Torture (May 18, 2014)
New York Times: Banks’ Immensity Undermines Responsibility (May 16, 2014)
Huffington Post: Even Alan Greenspan Thinks Wall Street Could Blow Up the Budget (May 14, 2014)
Fiscal Times: Too Big to Fail is Too Big to Ignore (April 15, 2014)
American Banker: Surprise, Surprise: TBTF Problem Remains (April 3, 2014)
Wall Street Journal: Size Does Matter When It Comes to Being a Bank, IMF Says (March 31, 2014)
Washington Business Journal: Report: Big Banks Really Do Have Funding Advantage (March 26, 2014)
New York Times: U.S. Banks Enjoy ‘Too-Big-To-Fail’ Advantage: Fed Study (March 25, 2014)
Harper’s Magazine: Sins of the Fatcat (March 20, 2014)
Bloomberg View: Too Big to Fail is Bigger Than You Think (March 2, 2014)
The Fiscal Times: Breaking Up the Big Banks: Here’s How to Do It (January 13, 2014)
The New York Review of Books: The Financial Crisis: Why Have No High-Level Executives Been Prosecuted? (January 9, 2014)
If the financial crisis was the product of fraudulent misconduct—as various governmental authorities have asserted it was—then the failure of the government to bring to justice those responsible bespeaks weaknesses in our prosecutorial system that need to be addressed, U.S. District Judge Jed Rakoff writes in The New York Review of Books.
Wall Street Journal: Biggest Lenders Keep on Growing (January 3, 2014)
The Guardian: UK Banks Benefited from £38B Too-Big-To-Fail Subsidy (December 8)
Britain's biggest banks benefited from a £38 billion too-big-to-fail taxpayer subsidy, according to a New Economics Foundation report featured in The Guardian.
Bloomberg: Celebrations of Too Big to Fail’s Demise Are Premature (December 8)
There is a real danger that senior officials are ready to declare victory over too-big-to-fail, while changing essentially nothing about the reality of what makes a global megabank too big to fail, Simon Johnson writes in a Bloomberg View editorial.
The Fiscal Times: Why Jack Lew Is Kidding Himself About Too Big to Fail (December 5)
Treasury Secretary Jack Lew on Thursday morning declared that in the future, when a systemically important bank or financial institution gets into trouble, there will be no taxpayer bailout and no heroic effort by regulators in Washington to save it. Long-time industry observers think he’s wrong.
Reuters: U.S. plans new bank fraud cases in early 2014 (December 4)
The Justice Department plans to bring mortgage fraud cases against several financial institutions early in 2014, using JPMorgan Chase’s $13 billion settlement case as a template, U.S. Attorney General Eric Holder said in an interview with Reuters.
Associated Press: JPMorgan $13B deal may not end bank's legal woes (November 20)
The $13 billion settlement that JPMorgan Chase agreed to Tuesday is the largest ever between the Justice Department and a corporation. Yet it isn't likely the end of the bank's legal troubles over the risky mortgage securities it sold before the financial crisis.
CNNMoney: Yellen: Let's address too big to fail (November 14)
The nominee to lead the Federal Reserve Board, Janet Yellen, testified before Congress on the need to address too-big-to-fail, according to CNNMoney’s Nin-Hai Tseng.
American Banker: How Big Banks Killed a Plan to Speed Up Money Transfers (November 13)
A handful of large banks have blocked a proposal to expedite the processing and settlement of electronic payments that would benefit consumers and smaller financial institutions, according to an American Banker article by Kevin Wack.
New York Times: JPMorgan’s Fruitful Ties to a Member of China’s Elite (November 13)
A New York Times review of confidential documents, Chinese public records and interviews reveals JPMorgan Chase’s broader strategy for accumulating influence in China: Put the relatives of the nation’s ruling elite on the payroll.
Huffington Post: Sen. Warren Says ‘Too Big To Fail’ Is Worse Than Before Crisis (November 12)
Sen. Elizabeth Warren (D-Mass.) warned in a speech Tuesday that the problem of banks considered "too big to fail" has only gotten worse since the 2008 financial crisis, potentially sowing the seeds of a future crisis, the Huffington Post’s Luke Johnson writes.
Wall Street Journal: Former Fed Official Says Quantitative Easing Greatest Backdoor Bailout of All Time (November 11)
Former Federal Reserve official Andrew Huszar wrote in a Wall Street Journal op-ed that the agency’s program of quantitative easing has provided only trivial relief for Main Street and represents “the greatest backdoor Wall Street bailout of all time.”
Bloomberg: Fed Really, Really Wants to End Too Big to Fail (November 11)
Concerns over too-big-to-fail have been expressed repeatedly by Federal Reserve leaders in recent speeches, Bloomberg View columnist Barry Ritholtz writes.
MarketWatch: Fed’s Dudley blasts big banks for ethical lapses (November 7)
MarketWatch’s Greg Robb reports on New York Federal Reserve Bank President and CEO William Dudley’s speech citing evidence of deep-seated cultural and ethical failures at many large U.S. banks.
Washington Post: Big banks undergoing greater scrutiny by government agencies (November 2)
Government authorities have expanded investigations into multiple business lines at some of the nation’s largest banks, a sign that the legal morass enveloping the industry has no clear end in sight.
Associated Press: Fed Proposes Big Banks Keep More Cash and Assets on Hand (October 24)
The Federal Reserve proposed that big banks keep enough cash, government bonds and other high-quality assets on hand to survive during a severe downturn on par with the 2008 financial crisis, the Associated Press reported. The proposal subjects U.S. banks for the first time to so-called “liquidity” requirements.
News York Times: Jury Finds Bank of America Liable in Mortgage Case (October 23)
Bank of America was found liable of having sold defective mortgages, and the jury also found a top manager at Bank of America’s Countrywide Financial unit liable, pinning some—if not all—of the responsibility for the bad acts on an individual, the New York Times’ Landon Thomas Jr. reported.
Bloomberg: BofA Said to Face Three More Probes of Mortgage-Bond Sales (October 22)
Bank of America Corp., sued by U.S. attorneys in August over an $850 million mortgage bond, faces three more Justice Department civil probes over mortgage-backed securities, Bloomberg’s Keri Geiger and Hugh Son write.
Washington Post: Justice Dept. Sees $13B JPM Deal as Settlement Template (October 21)
The Justice Department plans to use its tentative $13 billion settlement with JPMorgan Chase as a blueprint for reaching similar deals with other banks in probes related to bad mortgages and the 2008 financial crisis, the Washington Post’s Danielle Douglas and Sari Horwitz report.
Bloomberg: JPMorgan Is Too Big to Whine (October 21)
Those who say JPMorgan Chase’s $13 billion tentative settlement with the Justice Department is an injustice are pointlessly whining, MIT professor Simon Johnson writes on Bloomberg View.
Wall Street Journal: Record Pact Is on the Table, But J.P. Morgan Faces Fight (October 21)
JPMorgan Chase reached a tentative deal to pay $13 billion to end a number of civil investigations into its sale of mortgage securities before the 2008 financial crisis, but a separate and potentially more serious criminal probe into the bank and its executives will continue, the Wall Street Journal’s Devlin Barrett reports.
National Review: How to Fix Too Big to Fail (October 21)
Stricter capital requirements are among several policy alternatives to continue taking on the too-big-to-fail problem, Ammon Simon writes in the National Review.
Reuters: JPMorgan Launches Sale of Commodity Business (October 9)
JPMorgan Chase launched the sale of its physical commodities business following heightened scrutiny on their role in the natural resources supply chain, Reuters’ Michael Erman and David Sheppard report.
Reuters: Wall Street’s Hot Trade: Compliance Officers (October 9)
As the U.S. government steps up enforcement of anti-money-laundering laws, it has created a red-hot market on Wall Street for compliance officers, who oversee a bank's systems that prevent it from violating regulatory requirements and monitor transactions for any suspicious activity, Reuters’ Aruna Viswanatha writes.
American Banker: GAO Must Ensure Accurate Accounting in TBTF Study (September 24)
The Government Accountability Office must use accurate calculations in its pending report on the too-big-to-fail issue to fully account for the taxpayer-funded advantages the major banks enjoy, according to an American Banker op-ed by Boston University professor Cornelius Hurley.
Reuters: Regulators haven't solved 'too big to fail' -Morgan Stanley exec Libor (September 24)
The problem of some banks being too big to fail remains because global regulators have not come up with a coordinated way to wind them down without causing market-wide disruptions, a senior Morgan Stanley executive said, according to a report from Reuters’ Lauren Tara LaCapra.
Bloomberg: 13 Megabanks Said to Be Sued Over Libor (September 24)
JPMorgan Chase, Barclays Plc, Credit Suisse Group and 10 other international lenders were sued by a U.S. credit union regulator alleging they illegally manipulated benchmark Libor interest rates, Bloomberg’s Andrew Harris writes.
Reuters: U.S. government to sue JPMorgan in mortgage case (September 23)
The U.S. Justice Department is preparing to sue JPMorgan Chase & Co over mortgage bonds it sold in the run-up to the financial crisis, a sign the bank's legal troubles are not yet over, Reuters’ Aruna Viswanatha and Emily Flitter report.
Reuters: Bank of America goes to trial over U.S. mortgage fraud charges (September 23)
Bank of America Corp heads to trial over allegations its Countrywide unit approved deficient home loans in a process called "Hustle," defrauding Fannie Mae and Freddie Mac, Reuters’ Nate Raymond reports.
Reuters: Bank of America goes to trial over U.S. mortgage fraud charges (September 23)
Bank of America Corp heads to trial over allegations its Countrywide unit approved deficient home loans in a process called "Hustle," defrauding Fannie Mae and Freddie Mac, Reuters’ Nate Raymond reports.
New York Times: A Lack of Full Accountability (September 20)
The London Whale settlements open the door to the possibility of other investigations that can lead to real accountability, but whether regulators and prosecutors will follow through remains a question, the New York Times editorial board writes.
Bloomberg: JPMorgan Pays $920 Million to Settle London Whale Probes (September 20)
JPMorgan Chase’s “London Whale” episode shows that after weathering the worst financial crisis since the Great Depression, executives at the biggest U.S. bank engaged in what watchdogs called a “pattern of misconduct” by maintaining poor internal controls, failing to keep their board informed and allegedly misleading regulators, Bloomberg’s Dawn Kopecki reports.
Reuters: Scandals cost JPMorgan $1 billion in fines (September 19)
In agreements with regulators totaling $1 billion, JPMorgan Chase settled four civil investigations into its "London Whale" trading scandal and two more into the wrongful billing of credit-card customers, Reuters’ David Henry and Emily Flitter write.
Los Angeles Times: Forget too big to fail: Some banks now too small to succeed (September 17)
While the too-big banks have gotten even bigger, smaller community bankers are finding it increasingly tough to survive, in part because they must commit more of their limited resources to complying with new regulations stemming from the global near-meltdown, the Los Angeles Times’ E. Scott Reckard reports.
Los Angeles Times: Several banks considered too big to fail are even bigger (September 17)
Five years after the financial crisis, several of the nation's largest banks are even larger, the Los Angeles Times’ Jim Puzzanghera writes. Total assets at the nation's 10 biggest banking companies shot up 28 percent to $11.3 trillion at the end of June.
New York Times: JPMorgan Chase Said to Admit Fault in Trade Loss (September 16)
JPMorgan Chase has agreed to pay about $800 million to a host of government agencies in Washington and London—and make a groundbreaking admission of wrongdoing—to settle allegations stemming from a multibillion-dollar trading loss, the New York Times’ Ben Protess and Jessica Silver-Greenberg report.
Reuters: 5 Years Later, Risk of Repeat of Lehman (September 15)
Measures to address many of the crucial problems leading up to the bankruptcy of Lehman Brothers have been taken or are in the works, but if a Lehman went bust today, there would still be havoc, Reuters’ Hugo Dixon writes.
American Banker: Americans Perceive Big Banks as Government Darlings: Pew Survey (September 13)
The vast majority of Americans believe that government policies favor big banks over the poor and middle class, according to a new Pew Research Center survey reported by American Banker’s Sarah Todd.
Forbes.com: Six Reasons Why the Financial System is Still Unsafe (September 13)
Five years after the Lehman Brothers failure and financial meltdown, megabanks have gotten bigger and are an even larger threat to the global money system, Forbes.com contributor John Wasik writes.
Dallas Morning News: Why we must downsize banking behemoths into ‘too small to save’ (September 12)
Government policy should require that giant banking institutions restructure and streamline their disparate operations into separately owned companies, less complex and opaque, and more manageable and focused, the Dallas Federal Reserve’s Richard Fisher and Harvey Rosenblum write in a Dallas Morning News op-ed.
CNBC.com: Crisis cost up to $14 trillion, Dallas Fed says (September 10)
The financial crisis cost the U.S. economy $6 trillion to $14 trillion—and possibly twice that—along with untold costs from "special treatment" that too-big-to-fail banks received, according to a Dallas Federal Reserve analysis reported by CNBC’s Jeff Cox.
Bloomberg News: Banks Seen at Risk Five Years After Lehman Collapse (September 10)
While the amount of capital at the six largest U.S. lenders has almost doubled since 2008, policy makers and some Wall Street veterans say that’s not enough, write Yalman Onaran, Michael J. Moore and Max Abelson of Bloomberg News.
Financial Times: Culture clash means banks must split, says former Citi chief (September 10)
Former Citigroup CEO John Reed says the old Glass-Steagall division between commercial and investment banking should be reinstated to control financial risk, the Financial Times’ John Authers writes.
New York Post: The real-life costs behind the JPM 'Cult of Jamie' (September 7)
In a letter to John Crudele, a reader says that we have underestimated the amount that Jamie Dimon has cost shareholders. He goes on to say that JPMorgan Chase has been assessed an additional $680 million-plus in fines — most of that for the so-called "whale trade" in London but also $80 million for identity theft by the bank's credit card group.
Wall Street Journal: John Thain Says Too-Big-To-Fail Still Reigns (September 6)
The nation’s biggest financial institutions have only gotten bigger, and if one were to falter, the regulations that have been started aren’t ready to handle it, CIT chief executive and former Merrill Lynch CEO John Thain told the Wall Street Journal.
The Hill: Financial panel pushes G-20 to combat ‘too big to fail’ (September 3)
The Financial Stability Board encouraged the Group of 20 to do more to combat too-big-to-fail risks, such as empowering regulators to share information, passing laws for institutions that operate internationally and ensuring that supervisors have the tools they need, The Hill’s Julian Hattem reports.
Washington Post: The lesson of Lehman: Be prepared for unexpected consequences. And we’re not. (August 30)
We should have broken up and simplified giant financial institutions that hold federally insured deposits and limited their ability to get themselves (and U.S. taxpayers) into trouble, Fortune magazine editor Allan Sloan writes in The Washington Post.
Wall Street Journal: U.S. Overseas Hiring Probe Has Wide Net (August 29)
U.S. authorities are questioning numerous banks and hedge funds on their international hiring practices for interns and other employees—extending the scrutiny beyond a previously disclosed probe of JPMorgan Chase, the Wall Street Journal’s Robin Sidel and Cynthia Koons write.
New York Times: JPMorgan Hiring Put China’s Elite on an Easy Track (August 29)
A two-tiered hiring process in Asia that could have prevented questionable hiring practices at JPMorgan Chase instead fostered them, the New York Times’ Jessica Silver-Greenberg and Ben Protess report.
Bloomberg: JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found (August 28)
A probe of JPMorgan Chase’s hiring practices in China has uncovered red flags across Asia, including an internal spreadsheet that linked appointments to specific deals pursued by the bank, Bloomberg News’ Dawn Kopecki reports.
Huffington Post: Taxpayer Dollars Paid A Third of Richest Corporate CEOs (August 28)
More than one-third of the nation's highest-paid CEOs from the past two decades led companies that were subsidized by American taxpayers, according to a report covered by the Huffington Post’s Zach Carter and Katherine Burkhart.
Bloomberg News: Megabank Legal Bills Exceed $100 Billion (August 28)
The six biggest U.S. banks have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years, Bloomberg’s Donal Griffin and Dakin Campbell report.
Wall Street Journal: 'London Whale' Penalties Put at $500 Million to $600 Million (August 27)
JPMorgan Chase’s penalties for the "London whale" trading fiasco are expected to total $500 million to $600 million as part of a far-reaching settlement that could wrap up as soon as next month, the Wall Street Journal’s Dan Fitzpatrick, Nick Timiraos and Christopher Bjork write.
Reuters: JPMorgan’s Former 'London Whale' Supervisor Arrested (August 27)
Spanish police arrested former JP Morgan Chase trader Javier Martin-Artajo as he prepares to fight possible extradition to the United States over a $6.2 billion financial scandal at the United States’ largest bank, Reuters’ Sarah White and Carlos Ruano report.
New York Times: Regulators Prepare Penalties for JPMorgan (August 27)
The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are preparing a series of enforcement actions and fines against JPMorgan Chase stemming from its dealings with consumers during the recession in the latest legal woes facing the nation’s biggest bank, the New York Times’ Jessica Silver-Greenberg and Ben Protess write.
Financial Times: JPMorgan Woes Deepen as U.S. Demands $6 Billion Penalty (August 27)
The Federal Housing Finance Agency is demanding JPMorgan Chase pay more than $6 billion to settle allegations it mis-sold securities to government-backed mortgage companies in the run-up to the financial crisis, the Financial Times’ Kara Scannell and Tom Braithwaite report.
New York Times: We’re All Still Hostages to the Big Banks (August 26)
Implicit guarantees of government support perversely encouraged banks to borrow, take risk and become “too big to fail,” Stanford professor Anat R. Admati writes in The New York Times. Recent scandals—JPMorgan’s $6 billion London trading loss, an HSBC money laundering scandal that resulted in a $1.9 billion settlement, and inappropriate sales of credit-card protection insurance that resulted in a $2 billion settlement by British banks—suggest that the largest banks are also too big to manage, control and regulate.
Wall Street Journal: Justice Department Plans New Crisis-Related Cases (August 21)
Attorney General Eric Holder said the Justice Department is nearing decisions on a number of probes involving large financial firms and that he plans to announce new cases stemming from the economic meltdown in the coming months, the Wall Street Journal’s Devlin Barrett writes.
Wall Street Journal: On Wall Street, a Reversal of Fortune (August 21)
Aluminum deliveries into warehouses run by big banks and trading firms have plunged this summer, highlighting Wall Street's retreat from the once-lucrative commodities business amid stagnant markets, new rules and regulatory scrutiny, the Wall Street Journal’s Christian Berthelsen and Tatyana Shumsky report.
Financial Times: FDIC’s Hoenig Writes that Safe Banks Need Not Mean Slow Economic Growth (August 20)
Proposed rules to limit the largest banks’ ability to finance themselves with excessive amounts of debt will enhance their ability to withstand financial shock and without inhibiting their ability to lend, FDIC Vice Chairman Thomas Hoenig writes in a Financial Times op-ed.
Wall Street Journal: JPMorgan Faces New Probe on Energy Trades (August 20)
The Justice Department is investigating whether JPMorgan Chase manipulated U.S. energy markets, marking the latest legal hurdle for a bank already facing a mountain of litigation and regulatory scrutiny, The Wall Street Journal’s Dan Fitzpatrick and Devlin Barrett report.
Wall Street Journal: Regulatory Headaches Worsen for JPMorgan (August 20)
A growing number of lawsuits and investigations could force JPMorgan Chase to absorb $6.8 billion in future legal losses above its existing reserves, The Wall Street Journal’s Dan Fitzpatrick writes.
Reuters: Judge Endorses Use of Fraud Law against Bank of America (August 19)
A federal judge has endorsed a broad interpretation of a savings-and-loan-era law that the Justice Department is trying to use in cases against Wall Street banks, Reuters’ Nate Raymond writes.
New York Times: Hiring in China by JPMorgan Under Scrutiny (August 18)
Federal authorities have opened a bribery investigation into whether JPMorgan Chase hired the children of powerful Chinese officials to help the bank win lucrative business in the booming nation, The New York Times’ Jessica Silver-Greenberg, Ben Protess and David Barboza report.
Financial Times: Many Megabanks Hire “Princelings” to Make Inroads in China (August 18)
In their rush to capitalize on China’s economic growth, virtually all the big Wall Street and European financial institutions with operations in the country have habitually hired “princelings,” as the children of senior Chinese officials are known, Tracy Alloway and Jamil Anderlini write in the Financial Times.
Yahoo! Finance: JPMorgan Reveals It Faces Criminal and Civil Inquiries (August 13)
JPMorgan Chase disclosed on Wednesday that it faced a criminal and civil investigation into whether it sold shoddy mortgage securities to investors in the run-up to the financial crisis, the latest legal threat to the nation’s biggest bank.
Wall Street Journal: Regional Lenders Disclose Mortgage-Loan Probes (August 9)
Regional lenders PNC Financial Services Group and SunTrust Banks disclosed that the government is probing their mortgage practices, the latest banks to reveal investigations. Prosecutors are looking at whether the banks broke the law for various home-loan activities, The Wall Street Journal’s Andrew Johnson writes.
Bloomberg: UBS Agrees to Pay $120 Million to Settle Lehman Claims (August 9)
UBS, Switzerland’s largest bank, agreed to pay $120 million to settle claims by investors in Lehman Brothers Holdings Inc. securities in a lawsuit tied to the investment bank’s 2008 collapse, Bloomberg’s David McLaughlin reports. UBS was accused of violating federal securities laws in underwriting and selling the securities to investors, who claimed that offering materials contained misleading information about Lehman Brothers’ financial condition.
New York Times: SEC Said to Press JPMorgan for an Admission of Wrongdoing (August 8)
Federal regulators are seeking to level civil charges against JPMorgan Chase and extract a rare admission of wrongdoing from the nation’s biggest bank as an investigation into a multibillion-dollar trading loss enters its final stage, the New York Times’ Ben Protess and Jessica Silver-Greenberg report.
Reuters: U.S. steps up probe of JPMorgan over Bear Stearns mortgages (August 8)
The U.S. Department of Justice has stepped up a probe in recent weeks into Bear Stearns mortgage dealings in the run-up to the financial crisis, adding to JPMorgan Chase & Co's legal problems, Reuters’ Emily Flitter, Karen Freifeld and David Henry write.
New York Times: JPMorgan Reveals It Faces Criminal and Civil Inquiries (August 7)
JPMorgan Chase disclosed that it faced a criminal and civil investigation into whether it sold shoddy mortgage securities to investors in the run-up to the financial crisis, the latest legal threat to the nation’s biggest bank. JPMorgan acknowledged for the first time the existence of the investigation—one of several mortgage-related problems looming for the bank—in a quarterly regulatory filing, the New York Times’ Jessica Silver-Greenberg and Ben Protess report.
Reuters/The Guardian: U.S. government sues Bank of America (August 7)
The United States is suing the Bank of America for investor fraud over the sale of $850 million worth of residential mortgage-backed securities. The lawsuits are the latest legal headache for the second-largest U.S. bank, which has already agreed to pay in excess of $45 billion to settle disputes stemming from the 2008 financial crisis, according to a Reuters report on The Guardian’s website.
Los Angeles Times: UBS to pay $50 million to settle SEC charges (August 7)
UBS will pay $50 million to settle charges by the U.S. Securities and Exchange Commission that the Swiss bank misled investors, The Los Angeles Times’ Ricardo Lopez reports. Regulators said UBS Securities failed to disclose that it retained $23.6 million in upfront cash in the course of acquiring collateral for a collateralized debt obligation marketed in 2008.
Wall Street Journal: Senate Panel Opens Probe of Banks' Commodities Businesses (July 31)
The Senate Permanent Subcommittee on Investigations opened a new front in a probe of bank dealings in aluminum, oil and other raw materials, signaling intensifying scrutiny of possible conflicts of interest across the financial markets, the Wall Street Journal’s Christian Berthelsen, Jamila Trindle and Dan Fitzpatrick report.
New York Times: JPMorgan Looks to Pay to Settle U.S. Inquiries (July 30)
JPMorgan Chase is pulling out its checkbook to help mend frayed relationships with the government, but its new and conciliatory approach is yielding mixed results, The New York Times’ Jessica Silver-Greenberg and Ben Protess report.
Bloomberg News: JPMorgan to Pay $410 Million in U.S. FERC Settlement (July 30)
JPMorgan Chase will pay $410 million to settle U.S. Federal Energy Regulatory Commission allegations that the bank manipulated power markets, enriching itself at the expense of consumers in California and the Midwest from 2010 to 2012, Bloomberg’s Brian Wingfield and Dawn Kopecki write.
Bloomberg News: Regulators Plan to Boost Scrutiny of Banks on Commodities (July 30)
Federal regulators told lawmakers at a Senate hearing that they will boost scrutiny of banks’ commodities holdings and use their authority to pursue evidence of fraud and manipulation, Bloomberg’s Cheyenne Hopkins and Silla Brush report.
Wall Street Examiner: A Very Long Week for the Too-Big-To-Fail Banks (July 25)
A recent post on the Wall Street Examiner blog recapped the long week too-big-to-fail financial firms experienced due to high-profile manipulation of the commodities market. The blog post notes that the Federal Reserve Board’s announcement that it is reviewing its 2003 decision to allow some large bank holding companies to be involved in certain commodity-related activities kicked off a turbulent week.
New York Times: Aluminum Shuffling Is Megabank Gold (July 21)
Megabank maneuvering in commodities markets has led to billions of dollars in profits for the largest financial firms while forcing consumers to pay higher prices, The New York Times’ David Kocieniewski reports.
Bloomberg: Bernanke Says Too-Big-to-Fail Banks May Face New Capital Demands (July 18)
Federal Reserve Chairman Ben Bernanke said large banks could face further demands for capital if the latest efforts still leave the financial system vulnerable to a failure by one of the biggest firms, Bloomberg’s Jesse Hamilton writes.
The Hill: FDIC Official Backs Bill to Create Banking Firewall (July 18)
A top federal regulator—the FDIC’s Thomas Hoenig—is pushing for Congress to approve legislation that would separate investment banking from commercial lending and savings activities, The Hill’s Julian Hattem reports.
Forbes.com: An Unhappy Birthday For Dodd-Frank: The 'Too Big To Fail' Problem Gets Bigger (July 18)
Once again, political leaders are faced with a choice in case a megabank gets into financial trouble—watch the dominos fall and risk the entire financial system or step in with government funds. Given where we are today, the question isn’t if it happens, but when, Forbes.com contributor and former U.S. senator Ted Kaufman writes.
U.S. News and World Report: Should Big Banks Be Broken Up? (July 18)
On the U.S. News and World Report website, proponents of breaking up the largest financial institutions argue that it would prevent future bailouts, get taxpayers off the hook and limit the problems posed by too-big-to-fail institutions.
New York Times: High Profits Signal Danger for Big Banks (July 18)
High profits for the nation’s largest megabanks suggest that engaging in risky business with a government backstop for cheap funding pays off, the Peterson Institute’s Simon Johnson writes in the New York Times.
Wall Street Journal: Challenges in Bid to Revamp Banks (July 17)
Treasury Secretary Jacob Lew and Federal Reserve Chairman Ben Bernanke said some U.S. banks remain “too big to fail” five years after the financial crisis, opening the door to even more aggressive regulation if current efforts fail to address the problem, The Wall Street Journal’s Michael R. Crittenden reports.
American Banker: Big Banks’ Warnings About Leverage Ratio Fail the Smell Test (July 17)
Apparently, markets do not share the big banks’ concerns with a regulators’ proposal to increase the leverage ratio at the nation's largest banks and their bank holding subsidiaries, Loyola University Chicago instructor J.V. Rizzi writes on the American Banker website.
Reuters: U.S. Seeks New Tactic in Financial Crisis Prosecutions (July 17)
Federal prosecutors are considering a new strategy for criminally charging Wall Street bankers who packaged and sold bad mortgage loans at the height of the housing bubble, Reuters’ Emily Flitter reports.
Huffington Post: Too Big to Ale: Brewers Blast Wall Street Anticompetitive Behavior (July 16)
A loose coalition of beer brewers, automakers, Boeing and Coca-Cola is accusing the nation’s largest banks of anti-competitive behavior in the aluminum market, fueling regulatory concerns and prompting a Senate probe, the Huffington Post’s Shahien Nasiripour and Zach Carter write.
Politico: FDIC’s Hoenig Fires Back at Megabanks (July 14)
Separating broker-dealer activities from the federal safety net and the subsidy that comes with it would subject large financial firms to greater market discipline, reducing the likelihood of taxpayer bailouts and the institutionalization of too-big-to-fail, FDIC Vice Chairman Thomas Hoenig wrote in a message to Politico’s Morning Money.
Poughkeepsie Journal: Feds must counter 'too big to fail' (July 14)
Through tougher regulations and no-nonsense oversight, the odds of future taxpayer bailouts of the largest financial institutions can be greatly diminished, the Poughkeepsie Journal writes.
New York Times: Bankers Are Balking at a Proposed Rule on Capital (July 13)
A proposed rule to implement enhanced supplementary leverage ratio capital standards on the largest and riskiest financial institutions would make needed improvements to megabank capital rules, New York Times business columnist Gretchen Morgenson wrote.
New York Times: MIT’s Johnson Says Leverage Rules Open New Phase in Megabank Debate (July 11)
The proposed rule to implement stricter leverage ratios on the largest financial institutions opens an important new phase in the debate over too-big-to-fail, MIT professor Simon Johnson wrote on The New York Times Economix blog.
Reuters: Risk council designates AIG, GE Capital for tougher oversight (July 9)
The Financial Stability Oversight Council designated AIG and GE Capital as systemically risky, making them the first set of "systemically important" non-bank firms set for stricter regulatory oversight, Reuters’ Emily Stephenson writes.
Washington Post: A ‘too big to fail’ crackdown: U.S. regulators hit big banks with tougher standards (July 9)
Regulators told the country’s eight largest banks that they will have to raise billions of dollars to guard against future problems or reduce their size and complexity, The Washington Post’s Danielle Douglas writes.
Bloomberg View: Why Big Banks Are Insisting They Can Fail (June 26)
The executives of the largest U.S. banks have lately been trying to make the case that they are as subject to market discipline as anyone else and that they would be allowed to fail if they get into trouble. If only it were true, Bloomberg View editors write. It’s crucial to ensure that banks are less likely to fail in the first place by boosting capital levels, the editors write.
Dallas Morning News: Dallas Fed president Richard Fisher urges Congress to limit big banks’ safety net (June 26)
Dallas Federal Reserve Bank President Richard Fisher urged Congress to yank the federal safety net out from under many of the financial activities of the nation’s largest banks to end too-big-to-fail risks to the economy, the Dallas Morning News’ Jim Lander writes.
Bloomberg: FDIC’s Hoenig Says Another Crisis May Resurrect Bailout Specter (June 26)
Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., said that while his agency can handle the wind-down of one big failing bank at a time, a larger crisis could lead to talk of bailouts, Bloomberg’s Jesse Hamilton writes.
Wall Street Journal: Fed’s Lacker: Dodd-Frank May Not Curtail Emergency Powers (June 26)
Federal Reserve Bank of Richmond President and CEO Jeffrey Lacker said that despite new laws to curb too-big-to-fail bailouts by federal regulators, the impact on the Federal Reserve’s emergency lending powers remains an open question, the Wall Street Journal’s Michael Crittenden writes.
Bloomberg: Biggest Banks’ Wind-Down Plans Seen Failing to Cut Risks (June 26)
An increasingly vocal chorus of current and former U.S. regulators says the biggest banks still have not provided adequate plans to safely wind down in bankruptcy and may need to be restructured to reduce the risk they pose to the financial system, Bloomberg’s Jesse Hamilton and Craig Torres write.
Bloomberg: Fed Presidents Say Dodd-Frank Failed to Dispel Too-Big-to-Fail (June 25)
Two Federal Reserve district bank presidents said the 2010 Dodd-Frank Act hasn’t eliminated creditor expectations for federal bailouts of financial firms, perpetuating the idea that large banks are too big to fail, Bloomberg’s Craig Torres and Cheyenne Hopkins write.
Heritage Foundation: Too Big to Fail: Some Questions for the House Financial Services Committee (June 25)
Ahead of the House Financial Services Committee’s June 26 hearing on too-big-to-fail, the Heritage Foundation’s James Gattuso has a series of questions for committee members. Too-big-to-fail is perhaps the most important—and most vexing—problem facing financial regulators today, he writes.
Bloomberg: Fed’s Fisher Urges Bank Breakup Amid Too-Big-to-Fail ‘Injustice’ (June 25)
Federal Reserve Bank of Dallas President Richard Fisher said an implicit government guarantee for the biggest U.S. banks is an “injustice” that prompts them to take excessive risks and that they should be allowed to fail, Bloomberg’s Jeff Kearns and Jesse Hamilton write.
Kansas City Star: Reining in centers of unaccountable power (June 25)
Wall Street financial institutions are so large, have such a monopolistic grip on our financial system and exercise so much power over Washington that we as a nation have cause for concern, University of California professor and former Labor Secretary Robert Reich writes in the Kansas City Star.
American Banker: Too Much Equity? If Anything, Brown-Vitter Asks Too Little (June 24)
Requiring more equity is the simplest and most effective way to reduce the large distortions associated with the largest banks’ high indebtedness and to prevent instability and crises, Stanford University finance and economics professor Anat Admati writes on the American Banker website.
Baseline Scenario: Goldman Sachs Concedes Existence Of Too Big To Fail (June 17)
Goldman Sachs analysts make clear that, even under the most favorable interpretation (i.e., theirs), very large financial institutions were able to borrow more cheaply than other financial firms at the height of the financial crisis, MIT professor Simon Johnson writes on his Baseline Scenario blog.
Bloomberg: CIT’s John Thain Says Too-Big-To-Fail Bigger Problem Than During Crisis (June 12)
Too-big-to-fail is a bigger problem now than it was before the financial crisis because the biggest financial institutions are more concentrated today, CIT Group CEO John Thain told Bloomberg TV.
Wall Street Journal: Fed’s Plosser Calls for Too-Big-to-Fail Banks to Hold More Capital (June 6)
Federal Reserve Bank of Philadelphia President Charles Plosser said the current regime that would push too-big-to-fail financial institutions to hold more capital is falling short, The Wall Street Journal’s Michael Derby writes.
New York Times: Multinational Corporations’ Support for Big Banks Is Not Persuasive (June 6)
MIT’s Simon Johnson writes in The New York Times that there are three reasons to worry about the thinking behind large multinational nonfinancial companies’ intervention on behalf of too-big-to-fail financial firms: the motivation, the facts and the implications for our ability to limit systemic risks.
Money Morning: Too Big To Prosecute: Goldman Skates Again (June 6)
This story examines why the latest news that former Goldman Sachs (NYSE: GS) Vice President Neil M. M. Morrison was fined a record $100,000 by the SEC and barred from the securities business for five years for breaking municipal securities rules, didn’t make it into many newspapers.
New York Times: Better Late Than Never on Deeming Nonbanks Too Big to Fail (June 4)
New systemic-risk tags on nonbank financial institutions by the Financial Stability Oversight Council are no-brainers, though watchdogs are still bogged down in the last crisis rather than looking out for the next one, The New York Times’ Agnes Crane writes.
CNBC.com: Goldman Wants You to Forget About Too Big to Fail (June 4)
Goldman Sachs wants you to believe that too-big-to-fail banks do not actually enjoy a funding advantage, but its researchers are practicing sleight-of-hand, CNBC.com’s John Carney writes.
CNN Money: Are we at risk of another banking crisis? (June 3)
The nation continues to have a system that's way more prone to crisis than it needs to be because megabanks continue to be much too highly indebted and interconnected, Stanford professor of finance and economics Anat Admati tells CNNMoney.
Bloomberg: Fed’s Yellen Urges Higher Megabank Capital Requirements (June 2)
Federal Reserve Vice Chairman Janet Yellen said she favors forcing the largest U.S. banks to hold additional capital, such as through a steeper capital surcharge curve, to offset remaining too-big-to-fail subsidies, Bloomberg’s Steve Matthews reports.
USA Today: Can FDIC handle the failure of a megabank? (May 31)
Downsizing systemically risky financial institutions might be the only way to make sure they are not too big to fail, USA Today’s Darrell Delamaide writes.
Bloomberg: Tax Banks to Shrink Too-Big-to-Fail Lenders: Cutting Research (May 30)
Large banks have access to cheaper funding than smaller ones and need to shrink, according to a new International Monetary Fund working paper reported on by Bloomberg’s Shamim Adam.
American Banker: Goldman's TBTF Study Used Flawed Data to Reach Flawed Conclusions (May 30)
Goldman Sachs’ recent report on too-big-to-fail is the latest flawed attempt by a megabank to refute numerous academic studies demonstrating that there is a too-big-to-fail subsidy, ICBA’s Christopher Cole wrote in an op-ed on the American Banker website.
Bloomberg View: Too-Big-to-Fail Myths, Goldman Sachs Edition (May 28)
The largest U.S. banks keep rolling out new arguments to counter the growing impression that they present an unacceptable threat to the economy, with a recent report from Goldman Sachs conveniently sidestepping the issue, Bloomberg View’s Mark Whitehouse writes.
Huffington Post: Too-Big-To-Jail Dogs Obama's Justice Department As Government Documents Raise Questions (May 22)
The U.S. Department of Justice appears to have neither conducted nor received any analyses that would show whether criminal charges against large financial institutions would harm the economy, potentially undermining a key DOJ argument for why the world’s biggest banks have escaped indictment.
ABQ Journal: Community banks target Goliaths (May 21)
Headline: Community banks target Goliaths The Independent Community Bankers Association of New Mexico called on the state’s U.S. senators to support legislation that would raise capital requirements on the nation’s largest banks.
USA Today: Rogue banks remain too big to fail (May 19)
If Congress is serious about wanting to end too-big-to-fail, the TBTF Act’s 15 percent solution is the kind of bold move that would do the trick, the USA Today editorial board writes.
Huffington Post: Andy Haldane Praises Brown-Vitter Bill To End 'Too Big To Fail' (May 17)
A senior Bank of England official influential in global policy debates has praised proposed U.S. legislation that would forever end the perception that the biggest banks are too big to fail, the Huffington Post’s Shahien Nasiripour writes.
American Banker: Fed Ready to Raise Capital Standards If TBTF Remains Unsolved (May 14)
Top Federal Reserve Board officials appear to have reached a consensus on how to deal with the "too big to fail" dilemma: wait for the current reform process to play out, but be ready to significantly increase capital standards if the problem remains unsolved, American Banker’s Donna Borak writes.
Forbes.com: Fixing 'Too Big To Tolerate' Banks (May 13)
Former Sen. Ted Kaufman writes on Forbes.com that he is optimistic that the nation is gradually reaching a consensus that the too-big-to-fail problem still exists. At some point, the banks themselves—perhaps prodded by stockholders who believe that breaking up megabanks would unlock value–may decide to play a more constructive role, Kaufman writes.
The Tampa Tribune: Stop the Strangling of Community Banks (May 12)
ICBA President and CEO Cam Fine’s too-big-to-fail editorial was picked up by the Tampa Tribune. His editorial piece explains why regulations are hurting community banks and Main Streets across the country.
Fox Business: Bernanke: 'Too-Big-To-Fail' Must End (May 10)
Federal Reserve Chairman Ben Bernanke minced no words on the issue of too-big-to-fail banks, saying financial institutions large enough to threaten global economic stability need to be broken up, the Fox Business Network’s Dunstan Prial writes.
Reuters: Fed's Plosser adds voice to too-big-to-fail criticisms (May 9)
Philadelphia Fed President Charles Plosser said the United States is falling short in its effort to end the problem of too-big-to-fail banks and should require higher capital and adopt a fresh approach to winding down firms that face bankruptcy, Reuters’ Jonathan Spicer writes.
Reuters: Fed's Lacker again urges more U.S. work on too-big-to-fail banks (May 9)
Richmond Fed President Jeffrey Lacker reiterated his lingering concerns over too-big-to-fail banks and again urged that more be done to ensure such large firms can be safely wound down if they get into trouble, Reuters reports.
The Washington Post: Can two senators end ‘too big to fail’? (May 10)
By removing competitive advantages megabanks have over smaller institutions, the TBTF Act is a straightforward support of industry competition that appeals to libertarians and consumer advocates alike, Washington Post columnist Barry Ritholtz writes.
Bloomberg Markets: No Lehman Moments as Biggest Banks Deemed Too Big to Fail (May 10)
Bondholders who lend money to the six biggest U.S. banks are so convinced the government will bail out these institutions that they are willing to accept lower returns, according to Bob Ivry of Bloomberg Markets.
Wall Street Journal: Big Banks Push Back Against Tighter Rules (May 9)
The nation's biggest banks are hiring longtime, influential Washington hands to deflect regulatory and political pressure to address the too-big-to-fail problem, the Wall Street Journal’s Deborah Solomon, Robin Sidel and Aaron Lucchetti write.
Politico: Wall Street hires Washington (May 9)
With the big banks on Wall Street now under constant pressure from reformers, regulators and some members of Congress, the flow of top talent from Washington to Wall Street has become a small flood, writes Politico’s Ben White.
American Banker: Fed's Bullard on the 'Simple' Solution to End TBTF (May 9)
Federal Reserve Bank of St. Louis President Jim Bullard is joining the chorus of policymakers arguing that the biggest banks are too big and should be broken up, American Banker’s Barbara Rehm writes.
Forbes: Are Banks Too Big to Tolerate? (May 7)
Ted Kaufman proposes the question of whether or not megabanks are not only too big to fail, too big to regulate or too big to jail, but also too big to tolerate.
U.S. News & World Report: Is Your Money Safe in a 'Too Big to Fail' Bank? (May 7)
American Sustainable Business Council cofounder David Brodwin writes that depositors can seek out community banks to hold their deposits, instead of riskier too-big-to-fail financial firms.
New York Times: A New Fed Thought for ‘Too Big to Fail’ Banks: Shrink Them (May 3)
Federal Reserve Governor Daniel Tarullo proposed requiring financial institutions that make heavy use of wholesale funding markets to hold extra capital, according to the New York Times’ Peter Eavis. The result: megabanks would probably do less wholesale borrowing, which might prompt them to shrink.
New York Times: The Case for Megabanks Fails (May 2)
MIT economist Simon Johnson writes that a megabank law firm opposing the TBTF Act is simply advocating a continuation or expansion of the present distorted incentive structure.
Business Insider: Washington Insiders Are In Awe Of The Number Of Wall Street Lobbyists Descending On The City Right Now (May 2)
Business Insider’s Linette Lopez cites ICBA President and CEO Cam Fine’s prediction that there will be more Wall Street lobbyists swarming Capitol Hill this summer to oppose the TBTF Act than there will be cicadas in the Washington metro area.
New York Times: In Brown-Vitter Bill, a Banking Overhaul With Possible Teeth (May 1)
ProPublica’s Jesse Eisinger dismisses Wall Street’s arguments against the TBTF Act as scare tactics from the people who brought on the latest financial crisis.
Politico: Banking groups split on 'too big to fail' (May 1)
Politico’s Kate Davidson writes that The Independent Community Bankers of America has come out swinging against Wall Street giants by endorsing the TBTF Act.
New York Times: Most Banks Could Still Profit Under Tough New Overhaul Proposal (April 29)
The TBTF Act shows how a simple change to capital regulations could do much to protect the country from the too-big-to-fail threat while allowing the vast majority of banks to earn reasonable returns as they lend to consumers and companies, the New York Times’ Peter Eavis writes.
Huffington Post: The Central Economic Fights of Our Time, Part 1 (April 29)
Mike Lux writes in the Huffington Post that ICBA’s endorsement of the TBTF Act is important to advance the legislation.
Slate: Banks Have Become “Too Big To Fail” Again. Uh-Oh. (April 28)
MIT economist Simon Johnson writes on Slate.com that because implicit government support for “too big to fail” banks rises with the amount of risk that they assume, this support may be among the most dangerous subsidies that the world has ever seen.
Washington Post: Brown-Vitter banking bill aims to address an unhealthy situation (April 28)
The Washington Post writes that the TBTF Act proposes a clear, understandable rule in a regulatory area currently characterized by complexity and confusion.
Bloomberg: Brown-Vitter Rearranges Financial Reform Battlefield (April 28)
Simon Johnson with Bloomberg News writes about the Brown-Vitter legislation that aims to end too-big-to-fail and discusses how community banks might play a large role in regulatory reform moving forward.
The Hill: Small banks and credit unions, usually foes, form alliance on ‘too big to fail’ (April 27)
The Hill’s Peter Schroeder writes that community banks and credit unions find themselves in an unusual position on “too big to fail” — the same side.
New York Times: Trying to Slam the Bailout Door (April 27)
There’s a lot to like, if you’re a taxpayer, in the new bipartisan bill from two concerned senators hoping to end the peril of big bank bailouts, the New York Times’ Gretchen Morgenson writes. But if you’re a large and powerful financial institution that’s too big to fail, you won’t like this bill one bit.
Huffington Post: FSOC Warns on Too-Big-to-Fail Banks (April 25)
The Huffington Post takes a look at how the Financial Stability Oversight Council’s annual report details risks to the financial system.
New York Times: Make Wall Street Choose: Go Small or Go Home (April 24)
Sens. Sherrod Brown and David Vitter write that this is one principle on which we can all agree: The government shouldn’t pick economic winners or losers.
Wall Street Journal: Senators Seek to Shrink Banks or Increase Their Capital Buffers (April 24)
If you’re a bank with more than $500 billion in assets, Sens. David Vitter (R., La.) and Sherrod Brown (D., Ohio) have a proposition for you: get smaller or maintain a capital buffer similar to what banks held around the Great Depression, the Wall Street Journal reports.
Bloomberg: Too-Big-to-Fail Bill Pitched as Fix for Dodd-Frank Act’s Flaws (April 24)
Bloomberg’s Cheyenne Hopkins explains the too-big-to-fail legislation unveiled in April by Senators Sherrod Brown and David Vitter. In the story, it is noted that the four largest banks are nearly $2 trillion larger than they were before getting US aid to help them during the 2008 credit crisis.
Financial Times: Senators seek tough curbs on ‘megabanks’ (April 24)
Sherrod Brown and David Vitter propose new legislation designed to prevent future taxpayer bailouts, which is one of the latest measures taking place to rein in too-big-to-fail financial institutions and megabanks.
Reuters: Senate duo dials back anti-big bank proposal (April 24)
Reuters reporter Douwe Miedema discusses the new legislation proposed by Sens. David Vitter and Sherrod Brown, which would force U.S. banks to drastically raise their capital buffers, in addition to Sen. Vitter announcing part of the bill at ICBA’s Washington Policy Summit.
American Banker: Vitter Lays Out Capital Requirements in “Too Big to Fail” Bill (April 24)
American Banker explains the changes Senator David Vitter and Senator Sherrod Brown made to their legislation to address concerns over “too big to fail” at ICBA’s Washington Policy Summit.
American Banker: Small Bank Support Key to Brown-Vitter TBTF Strategy (April 24)
Sens. David Vitter and Sherrod Brown are looking to build support for their legislation to tackle too big to fail and are hoping community bankers are willing to help.
Wall Street Journal: Big Banks Back in DC Cross Hairs (April 24)
The Wall Street Journal examines the proposal from Sens. David Vitter and Sherrod Brown that would apply stringent capital requirements to too big to fail banks.
Business Insider: Two Senators Just Introduced A Bill That Could Neuter Wall Street (April 24)
According to Linette Lopez and Business Insider, the bill presented by Sens. Sherrod Brown and David Vitter will keep Wall Street bankers up at night. Lopez goes on to explain how the senators were working on legislation inspired by former FDIC Chairwoman Sheila Bear.
Washington Post: Brown-Vitter bill seeks to end ‘too big to fail’ (April 24)
Danielle Douglas from The Washington Post says that Senators Brown and Vitter “want the nation’s largest banks to sock away more capital to guard against a fresh economic downturn,” which would ultimately make these megabanks less dependent on government bailouts.
New York Times: Make Wall Street Choose: Go Small or Go Home (April 24)
Senators Sherrod Brown and David Vitter write an op ed for the New York Times outlining their bill to end too big to fail megabanks.
American Banker: Consensus is elusive on TBTF, Big-Bank Subsidies (April 23)
Donna Borak gives a recap of how banking analysts, former regulators, lawmakers and banking industry representatives debated the best ways to resolve the issue of “too big to fail.” ICBA’s Terry Jorde was part of this roundtable and discussed her take on how to end too-big-to-fail.
American Banker: Small Banks Will Benefit From Big-Bank Breakup (April 17)
In an American Banker op-ed, ICBA Chairman Bill Loving writes that community bankers should be concerned not with what will happen if we address too-big-to-fail, but what will happen if we don’t.
Reuters: Wall Street analysts discuss paradigm shift: breaking up banks (April 11)
Reuters reports that investors might be more willing to support the biggest banks breaking themselves up to boost profitability.
The OBSERVER: CCB Supports ICBA Position on Too-Big-To-Fail Institutions (April 11)
Former ICBA Chairman Salvatore Marranca, president and CEO of Cattaraugus County Bank in New York, released a statement about a Rassmussen Report survey that indicated 50 percent of adults in the United States favor a plan to break up the 12 largest megabanks which control 69 percent of the banking industry.
The New York Times: The Answer to Too Big to Fail? (April 10)
The New York Times’ editorial page editor’s blog discusses Senators Sherrod Brown and David Vitter working together to create legislation that would make banks keep much higher levels of capital.
The Hill: ‘Too big to fail’ legislation catches the attention of Wall Street (April 10)
The Hill’s Peter Schroeder reports that recent too-big-to-fail activity on Capitol Hill has caught the eye of Wall Street.
Rolling Stone: The Growing Sentiment on the Hill For Ending 'Too Big To Fail' (April 3)
Rolling Stone’s Matt Taibbi discusses the ongoing narrative in which more and more people in positions of power are being shocked to action by the apparent incorrigibility of the megabanks.
American Banker: Seven Reasons the Debate over ‘Too Big to Fail’ Is Here to Stay (April 1)
An American Banker story gives seven reasons why the debate over Too Big to Fail isn’t going away any time soon. Victoria Finkle reports that within the last few months, debate over whether large banks are still ‘too big to fail’ has spread like wildfire.
Huffington Post: Too Big to Jail? (March 28)
In a story posted on the Huffington Post on March 28, 2013, U.S. Senator Bernie Sanders discusses his opinions regarding the “Too Big to Jail” situation currently going on in the country and why he is against too big to fail.
New York Times: The Debate on Bank Size is Over (March 28)
In a story written by Simon Johnson in the New York Times blog, Economix, Johnson talks about too big to fail and the situation Cyprus is facing with its banking.
Counter Punch: The Beginning of the End of Too-Big-to-Fail? (March 28)
Robert Weissman writes in an opinion piece about the amendment introduced by Senators Brown and Vitter in a way to end too big to fail and funding advantages for Wall Street mega-banks.
American Banker: >JPM ‘Doing Great’ Despite Whale: Ex-CEO Harrison (March 27)
American Banker reporter Maria Aspan discusses the London Whale crisis with JPMorgan and how its CEO says the company is currently doing.
Washington Post: The White House’s dangerous stance on ‘too big to fail’ (March 27)
“The White House has no desire to reopen any part of Dodd-Frank and believes too-big-to-fail will soon be a closed chapter. A senior White House official told POLITICO the provisions of Dodd-Frank mean no large bank will ever be bailed out again, and new capital standards mean the system is already significantly safer.”
Forbes: Steve Forbes: Here’s How to Deal With Our “Too Big to Fail” Banks (March 27)
Steve Forbes gives his expert opinion on how to deal with our too big to fail banks in the U.S. in an opinion piece in Forbes Magazine.
Savannah Morning News: Our economic times: still too big to fail (March 27)
American Banker: Big Bank CEOs Must Rally Against Breakup Talk (March 26)
Timothy Alexander writes an open letter to the 10 largest banks in the U.S. in an American Banker article.
Huffington Post: High-Speed Trading Totally Fine, Says Columbia Researcher Financed by High-Speed Trading Firm (March 26)
A highly publicized research paper from Columbia University claiming that high-frequency trading benefits society and shouldn't be regulated too much was paid for by -- surprise -- a high-speed trading firm.
Washington Times: ‘Too big to fail’ fears rise as banks bulk up; lessons from past forgotten? (March 26)
Nearly three years after Congress passed the most far-reaching new regulations on Wall Street since the Great Depression, worries have resurfaced that the biggest U.S. banks have only grown in size and remain bailout candidates because they are “too big to fail.”
Idaho Statesman: Idaho’s community banks fight for borrowers (March 26)
Washington Post: Who wants to break up big banks? The Senate, apparently (March 25)
During its marathon “vote-a-rama,” as the Washington Post describes it, the Senate took up a budget amendment from Sen. David Vitter (R-La.) to “end ‘Too Big to Fail’ subsidies or funding advantages for Wall Street mega-banks (over $500 billion total assets).” The non-binding amendment passed unanimously, 99-0. The $500 billion threshold would encompass the six largest U.S. banks.
Huffington Post: Senate Shows Unanimous Support for Ending Too-Big-To-Fail Subsidy (March 25)
The U.S. Senate agreed unanimously, by a vote of 99-0, to end whatever financial-market subsidy banks get by being too big to fail.
Forbes: Banks still too-big-to-fail: Six things the Fed must do (March 24)
Forbes’ reporter gives six things the Fed must do in order to eliminate too big to fail megabanks.
The Hill: Community banks enlist Congress to pressure regulators on new capital rules (March 24)
The American Prospect: Banks Are Too Big to Fail Say…Conservatives? (March 21)
With all the current gridlock in Congress, breaking up the banks may actually represent a rare moment of agreement between the right and left, the American Prospect’s David Dayen writes.
New York Times: The London Whale, Richard Fisher and Cyprus (March 21)
American Banker: Big Banks Should Break Up to Save Their Image (March 14)
Should "too big to fail" financial firms seriously consider slimming down, given public opinion of banks has fallen to record lows? Should they voluntarily reduce the size and scope of their operations? Not only to repair their image, but to streamline management and oversight of their companies?
American Banker: ‘Too Big to Fail’ a Myth? What a Relief (March 11)
In a March Bank Think opinion piece, ICBA President and CEO Cam Fine discusses too big to fail and its impact on the U.S.
Politico: Morning Money (March 8)
San Antonio Express News: For cities to prosper, community banks vital (March 5)
Bloomberg View: Why Should Taxpayers Give Big Banks $83 Billion a Year? (February 20)
The 10 largest U.S. banks have a taxpayer subsidy of $83 billion a year, the editors of Bloomberg View write.
Bloomberg: Hoenig Is Right: Exams Should Home In on Big Banks (February 20)
In an opinion piece on American Banker, ICBA President and CEO Cam Fine discusses why FDIC Vice Chairman Thomas Hoenig is right – exams should home in on big banks.
American Banker: Hoenig Is Right: Exams Should Home In on Big Banks (February 15)
In an opinion piece on American Banker, ICBA President and CEO Cam Fine discusses why FDIC Vice Chairman Thomas Hoenig is right – exams should home in on big banks.
National Review: The New York Times and Big Banks (February 12)
“While small banks have difficulties complying with onerous regulatory requirements, large banks rely upon lawyers, lobbyists, and in-house regulatory-compliance divisions to bear their regulatory burden.”
American Banker: FDIC’s Hoening Proposes ‘Full Scope’ Big Bank Exams (February 11)
FDIC Vice Chairman Thomas Hoenig says large bank reviews are missing key fundamentals and calls for "systematic reviews," similar to what examiners do for community banks.
CNBC: Breaking up banks won’t solve ‘too big to fail’ (February 7)
Washington Post: The case for the too-big-to-fail banks (February 5)
America is still spitting mad over the financial crisis that hit the country half a decade ago and that continues to hang over the U.S. economy. And in the last few months, there’s been a new wave of calls to break up the “too big to fail” banks that were at the center of the crisis — and the beneficiaries of a massive wave of bailouts.
Credit Union Times: Fed’s Duke: Reg Burden Quantifiably Tougher on Small Banks (February 5)
Federal Reserve Board Member Elizabeth Duke, speaking at a banking conference in Georgia, said banks with fewer than $50 million in assets suffer a larger loss of return than banks between $500 million and $1 billion in assets when hiring employees to comply with the same regulation.
Washington Post: Michael Lewis wants to break up the big banks. So do a lot of other people. (February 4)
Lewis, the most celebrated financial reporter in the country, calls for breaking up the big banks.
Charlotte Business Journal: Too-big-to-fail distorts competitive landscape (February 1)
ICBA President and CEO Cam Fine writes an op-ed piece in the Charlotte Business Journal regarding too big to fail and how it distorts competitive landscape.
American Banker: JPMorgan Defends Big Banks’ Lending Levels (January 28)
Federal Reserve Bank of Dallas: Ending ‘too big to fail’: A proposal for reform before it’s too late (January 16)
Wall Street Journal: Fed’s Fisher Urges Bank Restructuring to Limit Government Aid (January 16)
Federal Reserve Bank of Dallas President Richard Fisher made a push to restructure the biggest banks Wednesday at a time when the idea is gaining currency with policymakers on both sides of the aisle.
Time: Are State-Owned Banks the Antidote to the Too-Big-to-Fail Epidemic? (January 15)
TBTF Stories in 2012
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New York Times: Too Big to Indict (December 12)
It is a dark day for the rule of law. Federal and state authorities have chosen not to indict HSBC, the London-based bank, on charges of vast and prolonged money laundering, for fear that criminal prosecution would topple the bank and, in the process, endanger the financial system.
Reuters: HSBC: How Simple Became Complicated and Costly (December 12)
Business Week: HSBC Mexican Branches said to be traffickers’ favorites (December 12)
Chicago Tribune: HSBC became bank to drug cartels, pays big for lapses (December 12)
Institute for Local Self-Reliance: Small Business Lending: Local Banks vs. Big Banks (October 17)
CNBC: Wall Street Legend Sandy Weill: Break Up the Big Banks (July 25)
Clark Howard: Busting up the big banks is the solution to 'Too Big To Fail' (May 18)
CBS Evening News: Small town bank with a big heart (May 15)
Wall Street Journal: The Big Danger With Big Banks (May 15)
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