But he does have to explain himself to Senate banking committee, several members of which have taken issue with his 3-year internship under Chuck Prince at Citigroup. Read more »
Elizabeth Warren introduced a bill today to split nice old-timey banking (taking deposits, making loans to people and corporates) from investment banking and other assorted eeeeevil activities (trading, derivatives, etc.) and it comes with a poster. It also comes with a throwback name, “The 21st Century Glass-Steagall Act of 2013,” after the guys who last split commercial and investment banking from 1933 until their Act’s repeal in 1999ish. Some people are calling the new proposal the Warren-McCain bill, because John McCain is a co-sponsor of this/every bill. I will compromise and refer to it as “The Warren-McCain 21st Century Glass-Steagall Act of 1933 of 2013.”
That’s roughly all I have to say about it? It probably won’t happen, and the goal of keeping depositors safe by limiting depository institutions to boring regular banking is mostly a silly one.1 Mortgages! Mooooooooooooooooortgages! The boring, take-deposits-and-make-real-estate-loans banks in Spain and Ireland and Cyprus and Bedford Falls and 1989 managed to blow themselves up just fine without any help from investment banking.
But you knew all that, gah. This bill is not really about depositor safety in any sort of empirical way. It’s a more ancient and anthropological theory of the dangers posed by banking: there are pure activities and impure activities, and the danger comes from mingling the pure and the impure. You build two buckets and you keep them apart, not because one bucket is riskier than the other but because things just belong in their own buckets: Read more »
Elizabeth Warren, Director of the Consumer Financial Protection Bureau, Doesn’t Sound So Bad Anymore, Does It?By Jon Shazar
Not much of a surprise at this point, but Massachusetts Senator-elect and former Republican Elizabeth Warren was formally nominated for a seat on the Senate Banking Committee. That appointment still requires a vote of the Democratic caucus, but it’s all but a foregone conclusion that the woman who calls herself the intellectual godmother of the Occupy Wall Street movement and who has pushed for tougher rules for banks will now be among those writing the rules. At the very least, she has won a hell of a bully pulpit. Read more »
She’s got her very own rap video calling for her appointment as head of a federal consumer protection agency but, so far, Elizabeth Warren has received nary a peep of support from Tim Geithner. It’s the White House, and not the Treasury’s call to make, of course, but never you mind that. People are demanding to know why TG hasn’t failed to get behind Liz on this one. You want to know why? According to National Organization of Women president Terry O’Neill, it’s because Tim Geithner is sexist.
“As an outsider,” O’Neill said, “I think he’s a man with such deep ties to Wall Street that I don’t know how the sexism of that industry hasn’t imbued his Treasury…Treasury is a notoriously sexist and misogynist industry and the good old boys don’t like her,” the NOW president said. “It’s the testosterone-fueled attitude that drove our economy off a cliff, and yet the president has advisers that are from that industry….It’s a combination of [Warren's] attitude and her anatomy.”
This Is A (Kenny Powers-Inspired?) Music Video Nominating Elizabeth Warren As “Sheriff” Of The Bureau of Consumer Financial ProtectionBy Bess Levin
No comment on the lyrics but tell me the dancing moves aren’t extremely reminiscent and most likely inspired by these? Read more »
Elitzabeth Warren, the chair of the Congressional Oversight Panel for TARP, believes that the problems couldn’t be more obvious and solutions for financial regulation are as obvious but for some reason, “we can’t seem to put the two together.”
“Six months ago, I thought we were on brink of financial reform, I really did,” Liz told Bill Maher. “The reason we’re not changing things right now is that banks have lobbies in Washington in numbers I’ve never seen. They’re coming not just once a month, once a week or even once a day. These guys are coming two, three times a day. And they just keep slamming in the same direction over and over and over. It’s a David and Goliath story.”
Elizabeth Warren, head of the Congressional Oversight Panel for TARP, said in her monthly report that it would be nice if the government would wake up and do something about the commercial real estate losses yet to come, ’cause until they do, “the crisis will not end.” The “CRE is the next shit to hit the fan” lullaby has been going on for about two years now and despite a lukewarm consensus that something, anything, has to be done, seems like no one has a real clue how to go about it, or dare we say, give two cents about it?
“The most serious wave of commercial real estate difficulties is just now beginning. Experts believe that the volume of bank write-downs and potential loan defaults may swell in the coming years, in the absence of a strong immediate improvement in the economy.”
Riiiight. Given that the unemployment rate is not likely to decrease anytime soon, that vacancy rates are increasing, that the economy’s fundamentals remain weak and that between 2010 and 2014, about $1.4 trillion in CRE loans will reach the end of their terms, it’s totally fine to write a 189-page exposé on the subject, but solutions anyone?