Archive
Big Event in Washington This Week: Elizabeth Warren (Bbama Admin for Financial Reform) Vs. Jamie Dimon (J.P. Morgan C.E.O.)
THE FIGHT IS ON!
Obama administration consumer protector Elizabeth Wareen will face off against James Dimon, from banking giant JP Morgan Chase in Washington this Wenesday. The debate will involve others but will focus on the Dodd-Frank and regulatory reform from a consumer, banking, business, academic and govermental perspective. Legislaters from all over the country are expected to attend and as of now I am not sure if it will be broadcasted on television.
Warren is helping the administration set up the Consumer Financial Protection Bureau (CFPB), a watchdog called for by Dodd-Frank to shield consumers from abusive practices in the mortgage and credit card businesses. The remarks by Warren and Dimon will generate headlines, although analysts said other financial regulation news this week will have more impact on banks and the markets.”The big event next week in Washington is the long-anticipated release of the rules implementing the Dodd-Frank risk retention requirement,” said Brian Gardner, a senior policy analyst at investment firm Keefe Bruyette & Woods.
I will post again after the debate with commentary and hopefully video. I am very curious what Dimon will be arguing because J.P. Morgan was strong during the financial crisis and one of the first banks to pay back the U.S. Treasury debt.
U.S. Agencies may spend over 1 BILLION DOLLARS to initiate the Dodd-Frank Act
Just for fun, this is not real currency (Duh)
News came out today that the American goverment has come to a conclusion that initiation of the Dodd-Frank act in its entirety will cost nearly ONE BILLION DOLLARS. To those who do not know how to compare this to a benchmark, this is more money than the stimuls package took to instate, times 10x. I do not want to project this one billion dollar cost in a negative light because, in my opinion it is necessary and America can not afford to cut any corners. In the whole scheme of things, one billion dollars is a small fee to pay for radical regulation. If the Dodd-Frank Act provides the regulation that is needed, the one billion dollars will be a great and substantially high return investment. However if the Dodd-Frank bill shows to be ineffective, America has wasted money once again.
This story is getting more hits than it should because most people were not expecting the act to cost more than a few million in salaries and fees. The one billion number factors in opportunity costs and purchases that could in itself give America greater return than its t-bond interest rate. We will wait and see what happens. I will be sure to keep you all updated.
Once again, Thank you for reading!
WOW! A New HBO series “Too Big To Fail” outlining the financial Crisis (including Dodd-Frank Bill)
Today I felt excitement that I jhave not fet for awhile. HBO is starting to shoot a series about the most recent credit crisis called “Too Big to Fail”. Paul Giamatti is playing Ben Bernanke, James Caan as “Dick Fuld” (Lehman Brothers CEO) and many more famous, prestigous actors taking roles for this extraordinary event. I am hoping this series sheds a realistic and pejorative light on the financial crisis however as the entertainment industry has shown us in the past, who knows. The link where I found a preview for this miniseries is below. According to inside sources, HBO is trying to make the most realistic story possible, with a script referencing primary sources.
Dodd-Frank Debit Card Fees and Merchants
On Friday, March 25th, Chairman Bernanke released a statement saying the FED is pushing merchants to give out benefits to consumers for using debit cards insttead of credit. This plan of action is important and the reason for it is to reduce the overall consumer debt and stregthen the American Balance sheet. Details from the statement and follow ups tell that merchants will recieve benefits if they enact programs to give incentive to customers to pay cash or debt. These incentives could range from coupons to free items to more consumer points etc. In the long run I believe this is a important, material, positive step to reduce consumer debt and teach America that credit is important and in some cases, detrimental. I also believe regulators should instate mandatory classes in High sChool and College on PErsonal Finance, and I would make a bet this will be done i nthe upcoming years. The link for the article is below
AT&T/T-Mobile Merger ( Huge NEWS!!!!)
Last monday, March 21st, AT&T announced a merger deal with T-Mobile. The merger, if allowed, would cause the largest mobile service providor in the world. If the deal were to go through, the industry would be split between the new, larger At&T and Verizon, diminishing competition and raising barriers of entry. Overall this would most likely be bad for consumers because oligopoly competition usually brings higher prices and reduced quality. However, since our economy is fighting for inches of growth, a natural stumulus like this merger, to stimulate other mergers and free cash for spending could seriously help our economy. If At&T and T-Mobile convince the goverment they will lower prices for cell phone service within the next few years, i believe the goverment will let the deal go through because it woudl free up cash for spending and help stimulate our economy. A better, more professional take on the merger and its consequences/benefits is below in the youtube video.
THERE IS ALWAYS A BULL MARKET SOMEWHERE
Financial Regulation 