Daily Archives: August 1, 2016

No, a New Glass-Steagall Is Not Good News For Citigroup, JPMorgan, Bank of America

For a while now KBW’s Frederick Cannon and Allyson Boyd have been urging big banks likeCitigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM) to break up. A new Glass-Steagall, something backed by both Democrats and Republicans, would not be the ideal way to accomplish that, however. They explain why:

We along with others in the marketplace have shown that there is potential shareholder value creation from the breakup of some of the largest financial institutions, including Citigroup. Investors should not view the reinstatement of Glass-Steagall as a potential way to unleash value in large banks, however. A Congressional approach to breaking up the banks would not be based on economic value creation, but be based on the politics of applying penalties to the largest banks. Therefore it is difficult to develop a positive view on potential regulations for the shares of the largest banks, specifically JPMorgan Chase, Bank of America and Citigroup…

Read on.

UBS rogue trader: Nothing’s changed, and next phase of financial crisis could prove it

The London trader who years ago hobbled Swiss investment bank UBS by racking up some $2 billion in losses told the BBC in an interview posted on Monday that not much has changed since he was jailed in 2012, and that the kind of crime he committed could “absolutely” happen again.

“I think the young people I’ve spoken to, former colleagues I have spoken to, are still struggling with the same issues, the same conflicts, the same pressures to achieve no matter what,” he said. “And this goes back to the structure of the industry. People are required to take risk to generate profit, because yields in the industry are consistently compressed.”

A year after being released from prison, Kweku Adoboli also said there’s an increasing likelihood of another trader going rogue to such a degree as we enter “the next phase of the great financial crisis” over the next couple of years.

Read on.

Standoff? Commission defends debate schedule amid Trump complaints

Stop throwing a tantrum, Donald. Debate Hillary!

 Donald Trump’s campaign is pushing to reschedule two of the presidential debates set for this fall, but the Commission on Presidential Debates, the nonpartisan group responsible for scheduling, is standing firm.

“Our position on the debates is we want as many people, as many voters, to be participants in and to see the debates as possible,” Jason Miller, senior communications adviser with the Trump campaign, said on CNN’s “Reliable Sources” Sunday.

The campaign is concerned that two of the three presidential debates are set to take place on the same nights as nationally televised NFL games.

The debate scheduling process is always difficult. Debates and football games have overlapped numerous times before, including twice in 2012.

In a statement on Sunday afternoon, the commission indicated that the dates will not be changing: “CPD believes the dates for the 2016 debates will serve the American public well.”

Read on.

Hey, Donald,  Jill Stein is challenging you to debate her:

And Gary Johnson? Well, he is having an upcoming townhall event this week:

 

Wikileaks cables reveal Trump’s campaign manager was a secret embassy source

 This was tweeted by Wikileaks today.There has been so much talk about the DNC email leaks being hacked by Russians especially about Trump’s campaign manager Paul Manafort.

Dimon Says European Regulators Should Let Banks Do Their Job

  • Most Europe banks ‘did fine’ in stress test, JPMorgan CEO says
  • Next U.S. president shouldn’t restrict free trade: Dimon

European bank regulators should get out of the way and let banks there “do their job,” JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said.

“They did the stress tests and most of the banks did fine,” Dimon, 60, said Monday in a CNBC interview from California during the company’s annual bus tour. “Continue pounding them and changing the rules and requirements is not good for the people of those countries, because you’re destabilizing a financial system.”

Last week’s European bank stress tests showed that many lenders still need to lift their capital levels, and some need to do it quickly. While there was no pass or fail mark, two of the 51 banks tested by the European Banking Authority — Banca Monte dei Paschi di Siena SpA and Allied Irish Banks Plc — fell below the regulatory minimum threshold, the regulator said Friday.

Read on.

Condo legislation finally a law

Housingwire:

H.R. 3700, the “Housing Opportunity Through Modernization Act,” finally finished the legislation process. President Obama signed the housing legislation into law on Friday, which, according to the National Association of Realtors, “will dramatically improve long-fought restrictions on Federal Housing Administration financing for condominiums.”

In light of the news, NAR President Tom Salomone said, “Realtors have reason to celebrate today as legislation easing restrictions on Federal Housing Administration financing for condominiums is finally signed into law. This is a long-awaited victory for NAR and for homebuyers for whom condos are an important and affordable option.”

The U.S. Senate passed H.R. 3700 on July 15 after the bill passed in the House of Representatives by a unanimous vote back in February.

The new changes will make the FHA’s recertification process much easier and will lower the FHA’s current owner-occupancy requirement from 50% to 35%.

The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.

The FHA’s current restrictions on condominium financing present a significant hurdle for one of America’s most affordable options, according to testimony given on Capitol Hill in 2015 by then NAR President Chris Polychron.

ACLU Honors Khizr Khan: Free Copies Of Constitution To All

I thought I would pass this along if anyone is interested in a free copy of pocket of Constitution. Yes, I always carried a pocket of the Constitution. Thank you Khizr Khan for the reminder of the U.S. Constitution!

Here is the details:

So now the ACLU is giving away a pocket booklet of the United States Constitution (fits in YOUR pocket just like Khzir Khan’s fits in his).

Go to the ACLU website at this link and use the coupon code POCKETRIGHTS (all caps) and they will send it free of charge.