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]
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
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.
It’s good to be a non-US bank.
@1- Thinking the same thing. You were so close, Greg. We are ADD-stricken males, give us SOMEthing, ANYthing, to look at.
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.
Greg,
You are as useful as tits on a bull.
I second what @4 said.
“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.
“[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.
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.
@ 7,
Save Greg the trouble by Googling ‘Markowitz’
Damn it. BLANUS!
Yep – it sure is a tough week, Greg. I’m moving to Paris to work for SocGen.
- GS 7 figure club member.
“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
“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
Will this bill be called Goldman Shekels?
@15 ftw
“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.
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.
Greg, I’m so ashamed of you.
-Your indigent, drug-addicted albino midget amputee fugitive father
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)
^ 20 is a gay- “rape and sodomize”… that’s gross
adding risk to the banking system…this is the lamest post i have ever read.
what ever happened to john carney?