Power And Dollar

Geithner: What Did You ACTUALLY Say?

http://www.reuters.com/article/newsOne/idUSTRE52O6JP20090325?sp=true

 

Geithner had a hearing, not quite an announcement on future regulation framework.  And you cannot get much out of a hearing.  So, if you were looking for a pdf of details that can help you get a feeling if Citi (NYSE:C) will get more oversight versus Northern Trust (NASDAQ:NTRS) or Union Bank of California, then sorry.

 

This is the best article I can come up with so far: 

http://www.reuters.com/article/newsOne/idUSTRE52O6JP20090325?sp=true

 

This article says merger of regulators is now a lower priority than before.  The consequence for that is the work force continues to be in limbo.  This is not the time to make these regulator employees second guessing where their jobs will be.  The administration would want them to strengthen enforcement.  The impact of this is on banks, not banks regulated by Federal Reserve (largest banks), but OCC and OTS.

 

Another interesting point is about Mark-To-Market.  Is Geithner really thinking about modifying Mark-To-Market?  This will be a plus for the banks that operate in metropolitans since theirs assets more volatile.  

 

Securitization: Congressmen maybe simplifying the problem.  However, that can be one of the fixes.  Just don’t believe that is THE fix.

 

Most of the consumer protections make sense.  However, it looks like one thing is forgotten, unless will be included in the details: education loans got loads of undesirable business practices behind the scene.  This is a good time to take care of that too.

 

Provision standard:  be careful with this one.  Geithner may end up hurting the small banks as well.  The original intent was to decrease systematic risk, i.e. reduce largest banks’ influence and increase the market share of the small ones.

 

Credit rating agency: Geithner may as well talk about appraisal firms.

 

The international settlement part will play well with countries who want more multi-polar settings.

 

It is now becoming a pattern that Geithner / Obama always gives expectation of a “plan” and then end up with a power point presentation.

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March 26, 2009 - Posted by | banking, Current Events, 美國, economics, Investment, legislation, politics, wordpress-political-blogs

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