As a presidential candidate, Donald Trump’s position on financial regulation was unclear. He promised to restore Glass-Steagall and at one point stated: “I know the people on Wall Street. We’re going to have the greatest negotiators of the world, but at the same time I’m not going to let Wall Street get away with murder.… Read More »
Courtesy of Reza Houston Do bondholders benefit from connections with the federal government? We know that in the United States, there is ample evidence political connections confer benefits on firms. Firms which make PAC contributions, hire lobbyists, or employ former politicians are more likely to be bailed out[1], avoid enforcement[2], and receive lucrative government contracts[3]. … Read More »
Market participants around the world are still reeling from this week’s wild ride that saw major U.S. indexes drop more than 5% and the Dow Jones Industrial Average swing by at least 1,000 points in all but one day. Early causal assessments pointed to the threat of rising interest rates and inflation, political uncertainty in… Read More »
Janet Yellen ended her tenure as Chair of the Federal Reserve with a bang last Friday when the Federal Reserve Board (the Board) voted 3-0 to issue a consent cease and desist order that imposes unprecedented sanctions on Wells Fargo for its phony-accounts scandal and other “widespread consumer abuses.” The primary sanction is a restriction… Read More »
Courtesy of Joseph A. Smith Jr. Regime change at the Consumer Financial Protection Bureau (CFPB) has involved, among other things, issuance of a statement of intention to reconsider a rule to regulate payday, auto title, and other high-cost short-term lending (the Payday Rule). Payday loans are made for fees that, when calculated on an annual… Read More »
