Tag Archives: Lee Reiners

Comments to the Climate-Related Market Risk Subcommittee under the Market Risk Advisory Committee (MRAC) of the Commodity Futures Trading Commission (CFTC)

By | May 13, 2020

Courtesy of Lawrence Baxter, Mercy B. DeMenno,  Lee Reiners, and Joe Smith The following letter was submitted by the Global Financial Markets Center on May 9, 2020, to the Commodity Futures Trading Commission (CFTC) in response to the CFTC’s request for public comment on topics and issues being addressed by the Climate-Related Market Risk Subcommittee… Read More »

The Rise of Rent-a-Charter: Examining New Risks Behind Bank-Fintech Partnerships

By | January 23, 2020

Courtesy of Joseph Caputo and Lee Reiners The emergence of fintech lending – also called marketplace lending or peer-to-peer lending – and its interplay with the United States’ fragmented financial regulatory system, has given rise to a niche market of mid-size banks that cater to nonbank fintech lenders. While these banks may provide their fintech… Read More »

Danske Bank Money Laundering Case Study

By | September 11, 2019

Courtesy of Lee Reiners and Joseph A. Smith Jr. This case study draws primarily—and in some instances quotes verbatim—from the “Report on the Non-Resident Portfolio at Danske Bank’s Estonian Branch” prepared for the Bank on September 19, 2018, by the law firm Bruun & Hjejle.[1] Additional details are derived from other sources, including Danske Bank… Read More »

A New Source of Systemic Risk: Cloud Service Providers

By | August 8, 2019

Courtesy of David Fratto and Lee Reiners Last week’s announcement that a hacker accessed the personal information of approximately 106 million Capital One card customers and applicants has cast fresh light on financial institutions increasing reliance on the cloud. The hacker, a former employee of Amazon Web Services Inc., allegedly breached Capital One’s firewalls to… Read More »

High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »

Why a Bitcoin Bubble is a Good Thing

By | December 5, 2017

Courtesy of Lee Reiners, Ryan Clements, and Sean Semmler In the late 1990s, it was widely understood that Beanie Babies – a line of miniature stuffed animals – were in the midst of a speculative bubble. At one point, Beanie Babies made up 10% of eBay’s sales and over 60% of American households owned at… Read More »

The Case for a Cryptocurrency Market Bubble

By | November 22, 2017

Courtesy of Lee Reiners, Ryan Clements, and Sean Semmler Predicting the future price of Bitcoin and other cryptocurrencies is a fool’s errand. If you believe otherwise, take a look at BitcoinObituaries.com, which provides a running list of articles from publications such as The Economist and The Wall Street Journal that proclaim the end of Bitcoin… Read More »

Wells Fargo Unauthorized Account Openings: A Case Study for Bank Board Directors

By | April 26, 2017

Courtesy of Joseph A. Smith Jr. and Lee Reiners This case study draws primarily – and in some instances quotes verbatim –  from the 113 page report of the Wells Fargo board’s independent investigation of retail banking sales practices.  The case study also relies on the Office of the Comptroller of the Currency’s report titled:… Read More »

Basel Committee is on the Clock

By | December 12, 2016

The great financial crisis was caused in large part by complexity: complex products, complex institutions, and complex counterparty networks. Yet, post-crisis regulatory reforms designed to prevent future financial crises, principally Basel III, are equally complex. Sophisticated actors easily exploit complex systems, and large banks certainly are sophisticated – if nothing else. Several empirical studies have… Read More »

Federal Law Leaves Banks Shying Away from Marijuana Businesses

By | December 5, 2016

Courtesy of Lee Reiners and John W. Matthews This past election day, voters in California, Maine,[1] Massachusetts, and Nevada voted to fully legalize marijuana, joining Alaska, Colorado, Oregon, and Washington as the only states in the union to permit the recreational use of marijuana. Rejoicing amongst legalization advocates has been tempered by the fact that… Read More »