This must be surtax appreciation week in DC. On the heels of the recession busting proposed surtax on high income earners to fund healthcare "reform", the SheBair is set to push for new fees for bank holding companies that engage in prop trading and pretty much everything else that doesn't qualify as traditional lending. To the extent these fees are severe enough and firms scale down or close down targeted areas, the FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks. Between potentially paying an addition 5%+ in taxes and worrying about whether your employer is willing to go along with the FDIC's pay-to-play proposal, it has been a rough week for 7-figure club members working on prop desks.
Bair, Bernanke Want Tougher Curbs on Biggest Banks [Bloomberg]
Posted by guest , Jul 15, 2009 2:26PM
You were doing so well with pictures today but just couldn't help yourself, could you?
I guess things always do revert back to the mean.
Posted by guest , Jul 15, 2009 2:29PM
It's good to be a non-US bank.
Posted by guest , Jul 15, 2009 2:31PM
@1- Thinking the same thing. You were so close, Greg. We are ADD-stricken males, give us SOMEthing, ANYthing, to look at.
Posted by guest , Jul 15, 2009 2:35PM
Fucking hell Greg. I'm going to sodomize you if I see you on the street. You could maybe say something about the on-going pissing match between Shelia and Ben, maybe something about the FDIC getting hosed when it comes to regulating MS and GS? Perhaps even mentioning the OCC and their unholy spot stuck in the middle.
Hack.
Posted by guest , Jul 15, 2009 2:50PM
Greg,
You are as useful as tits on a bull.
Posted by guest , Jul 15, 2009 2:53PM
I second what @4 said.
Posted by guest , Jul 15, 2009 2:58PM
"To the extent these fees are severe enough and firms scale down or close down targeted areas, the FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks."
Greg, for us mere mortals, would you care to explain what the fuck you could possibly mean by this bald-faced assertion?
No, really, The Joint House and Senate Committee to Save the World by Pulling the Heads of Bankers and Hack Financial Journalists Out of Their Own Asses would really, really like to know.
Thanks.
Posted by guest , Jul 15, 2009 3:01PM
"[T]he FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks."
Not necessarily. It may divert this kind of prop trading to hedge funds, where it has been trending anyway.
Posted by KevinB , Jul 15, 2009 3:02PM
Canada has about the same population as California, and only has six big banks, not one of which, by the way, came close to failing last year. I don't see why having fewer banks is necessarily a bad thing.
Posted by guest , Jul 15, 2009 3:03PM
@ 7,
Save Greg the trouble by Googling 'Markowitz'
Posted by guest , Jul 15, 2009 3:05PM
Damn it. BLANUS!
Posted by guest , Jul 15, 2009 3:07PM
Yep - it sure is a tough week, Greg. I'm moving to Paris to work for SocGen.
- GS 7 figure club member.
Posted by guest , Jul 15, 2009 3:13PM
"the FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks."
http://www.youtube.com/watch?v=fEkWH8DB7b0
Posted by guest , Jul 15, 2009 3:15PM
“There’s an old saying in Tennessee — I know it’s in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can’t get fooled again.”
Greg
Posted by Seaman Bodine II , Jul 15, 2009 3:17PM
Will this bill be called Goldman Shekels?
Posted by guest , Jul 15, 2009 3:30PM
@15 ftw
Posted by guest , Jul 15, 2009 3:31PM
"FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks"
That statement is plain dumb. Sorry.
Posted by Anal_yst , Jul 15, 2009 3:33PM
Actually this would do the exact same thing as shifting risk off-balance sheet (+/-). Banks would simply (generalizing here) spinoff their prop businesses so they were outside the jurisdiction of whatever legislation is enacted.
Seriously, anyone in their right mind think GS is gonna just bend over and take it in the a$$ when the Gov't tries to reign-in their prop desk? Gimme a break, seriously.
Posted by guest , Jul 15, 2009 3:36PM
Greg, I'm so ashamed of you.
-Your indigent, drug-addicted albino midget amputee fugitive father
Posted by guest , Jul 15, 2009 3:53PM
Greg,
Seriously, I will rape and sodomize you if I see you on the street.
"FDIC may wind up actually adding risk to the banking system through the creation of a nation of less diverse, average-sized banks" - pure, unreasoned, hack journalism.
Do you have one point of data to justify your comment? Please look at regional banks vs. national / international banks, look at profitability and credit quality - any reasonable period of time will show it is better at the 'less diverse, average sized banks' when run well with disciplined underwriting...
@ 1,3,4,5,7 - well done folks.
The Joint House and Senate Committee to Save the World by Pulling the Heads of Bankers and Hack Financial Journalists Out of Their Own Asses (hat tip #7)
Posted by guest , Jul 15, 2009 4:50PM
^ 20 is a gay- "rape and sodomize"... that's gross
Posted by guest , Jul 15, 2009 9:58PM
adding risk to the banking system...this is the lamest post i have ever read.
what ever happened to john carney?