Dodd-Frank

Among the many, many provisions of Dodd-Frank is an awfully useful one for the SEC, allowing the regulator to force any defendant to play on its home-field. This is vexing to those defendants. Unfortunately for them, the law is the law. Read more »

Happy Birthday, Dodd-Frank! You’re four years old and useless—nay, worse than useless—and Rep. Jeb Hensarling and his fellows thinks still think that the perfect gift is a dose of euthanasia with a side of not doing anything else, as they explain in a new 100-page Hallmark card. Read more »

Deutsche Bank, as you all know, owns a Las Vegas resort and casino called the Cosmopolitan. The bank never set out to be the proprietors of such an establishment, but after a developer who they loaned money to defaulted, they didn’t have much choice, did they? So now, here we are, 6 years and $4 billion later. Senior execs at the bank won’t be seen there. Guests aren’t particularly interested in gambling at the place. And, by the way, it’s never turned a profit. So it wasn’t entirely surprising to hear the Germans had decided to try and find someone to take the investment off their hands and that was before this happened: Read more »

U.S. regulators proposed new rules Wednesday that would require public companies to disclose the pay gap between chief executives and rank-and-file employees, a controversial requirement that thrusts executive compensation into the spotlight. A divided Securities and Exchange Commission voted 3-to-2 to float a less onerous measure than what the SEC was ordered to adopt in the 2010 Dodd-Frank financial law, giving companies flexibility in how they calculate the ratio to cut back on its expected costs. [WSJ]

So he had Mary Jo and Gary and Co. over for tea yesterday, just to make sure they knew that he wasn’t playing a big joke on everyone when he signed Dodd-Frank three years ago, and that he’s not paying them to not write the rules they’ve been mandated to write. Read more »

The constitution does not protect small Texan banks from hypothetical but non-existent damages that might be one day be perpetrated by a federal agency that has done precisely nothing yet. Read more »

  • 07 Jun 2013 at 10:30 AM
  • Banks

Foreign Banks Get Two-Year Reprieve From Failed Populist Effort

Once upon a time, Blanche Lincoln was a United States Senator from Arkansas, which is no longer as friendly to Democrats as it was when she was first elected in 1998. So, facing a tough re-election battle in 2010, she pushed hard for a seemingly ill-advised rule forcing banks to hive off some of their swaps trading, believing that it would put her over the top.

It didn’t, and she got trounced. Now, Blanche Lincoln is no longer a U.S. Senator, but her swaps push-out rule survives as part of the Dodd-Frank law, much to everyone’s unhappiness. So everyone’s getting together to agree to put off actually enforcing it for a while. Read more »