Daily Archives: December 27, 2016

Trump’s Financial Deregulation Might Be Bad News for Banks After All

WASHINGTON—Bank stocks have surged since the election on hopes that President-elect Donald Trump will roll back financial rules. But deregulation, for the biggest institutions at least, might come with a catch: tougher limits on borrowing.

Some influential voices in Mr. Trump’s world insist banks should, as a quid pro quo for rolling back some regulations, maintain higher capital—shareholders’ funds that act as a cushion against losses but can also curb profits.

“Between Trump’s populist victory and the calls for greater capital by…Republicans, it is far from given that the largest Wall Street banks would benefit from their reform efforts,” said Mark Calabria, a former adviser to Senate Banking Committee Chairman Richard Shelby (R. Ala.), and now a fellow at the free-market Cato Institute.

Read on.

Jane Fonda, Lilly Tomlin pull their money out of Wells Fargo to support NoDAPL

 

 

Just days before the holidays, Jane Fonda joined a political movement in support of the NoDAPL protests by heading to Wells Fargo to close her account.

On December 21, the actress, writer, and activist celebrated her 79th birthday by supporting Standing Rock and joined a large protest, the destination of which was a local Wells Fargo branch. Fonda, who had been contemplating closing her account for some time decided that it would make the biggest statement to do so during the protest.

Unfortunately for Fonda, the bank had advance notice of the group’s arrival and blocked Fonda’s entrance.

Speaking with TYT Politics, Fonda said that she was motivated to take part in the protest because it was being held on her birthday, and on the Winter Solstice.

Fonda’s actions are in line with recent political moves by opponents of the pipeline who have moved to remove their money from corporate banks who fund the Dakota Access Pipeline and others like it.

Advocates urge supporters to close their big bank accounts and move to smaller, customer-owned credit unions in order to make a political statement.

Read on.

Low corporate tax rates help lower-paid people: Jamie Dimon

Edited Excerpts:

As recently as September, you thought it would be difficult for people on Wall Street to get into the new administration. Now, President-elect Donald Trump has tapped several Wall Street figures.What do you think they’re going to bring that is different?

Obviously, I was dead wrong about that. I think if you are going to be president, you should have the best people sitting around a table. I think it’s a mistake for the American public to constantly be told that if you work for an oil company or you work for a bank, that automatically makes you bad. I think a lot of these people are very qualified people who are patriots. They’re going to want to help the country. They’re not going to try to help their former company. These are people with deep knowledge that will hopefully do a great job.

 

Wall Street holiday parties are back…but don’t tell anyone

CNBC:
Yes, the banksters are back living the high life..

Wall Street holiday parties this year took place in luxury venues like the Waldorf Astoria, featured women dressed as glowing angels, and had fine wine, scotch and bourbon on hand.

But organizers of the soirées, conscious of tighter budgets and public scrutiny, are not eager to discuss the merriment.

Big financial firms started curtailing year-end bashes in 2008 as taxpayer bailouts, populist outrage and weak profits created an environment where lavish celebrations were frowned upon. Some investment banks stopped sponsoring corporate holiday parties altogether, advising individual teams to use their own budgets for more intimate gatherings.

Catering managers and event planners said that while holiday party spending is still down relative to its pre-financial crisis peak, Wall Street is starting to come back on the scene.

“It’s a more optimistic climate,” said Bill Spinner, director of catering at The Pierre, a Taj Hotel in New York.

The number of Wall Street firms with holiday events at The Pierre was steady this year, he said, but more people attended.

Other planners said the atmosphere was lighter in 2016, with winter wonderland and carnival themes featuring such flourishes as giant snow globe photobooths and game stations.

A Reuters review of the financial industry holiday scene found parties sponsored by Credit Suisse, Bank of New York Mellon, Moelis,BlackRock, Blackstone, KKR, Apollo Global Management, Pimco, AQR Capital Management, Bain Capital, York Capital Management, and Chilton Investment Management, among others.

Spanish Banks Ordered to Repay Billions to Mortgage Borrowers

A full reimbursement for clients who had ‘mortgage floors’ could cost banks billions in back payments

WSJ-

Spanish lenders might have to pay billions of euros back to borrowers after the European Union’s top court Wednesday ruled against the banks in a disputeover variable-rate mortgages.

The European Court of Justice ruled that borrowers in Spain are entitled to be fully reimbursed for excess interest payments on variable-rate mortgages. The ruling follows a 2013 decision by Spain’s top court that outlawed so-called “mortgage floors,” deeming them unfair to clients because banks didn’t clearly explain to borrowers the economic and legal consequences of having a downward limit on how far interest payments could fall.

However, the Spanish court ruling said banks had to stop enforcing the mortgage floors but didn’t have to reimburse clients for any excess interest payments before the date of the 2013 ruling. A full reimbursement, the judges wrote at the time, would have meant “a risk of serious disruption” to Spain’s economy.

[WALL STREET JOURNAL]