Using a secret enforcement tool, federal regulators in 2005 tried to limit the growth of Vineyard Bank, which was making commercial real estate loans in Southern California at almost double the rate of its peers.
There may be no government action more universally reviled in the U.S. than bank bailouts. Republicans and Democrats, financial industry lobbyists and watchdogs, Wall Street executives and President Barack Obama say taxpayers should never again rescue a failing bank.
Japan’s Financial Services Agency is seeking tougher rules governing the disclosure of information on takeovers to avoid a repeat of the Olympus Corp. accounting scandal, said Shozaburo Jimi, head of the regulator.
As markets convulsed in September 2008, Morgan Stanley Treasurer David Wong briefed the Federal Reserve on a “dark” scenario in which the U.S. firm would need at least $10 billion of emergency loans from the central bank.
The Federal Reserve, chastised by Congress for lending money to foreign institutions including a Libyan-owned bank, is once again the lender of last resort for banks around the world it knows little about.
The finance industry’s lobbyists have publicly challenged our estimate that the largest U.S. banks receive an annual taxpayer subsidy worth $83 billion. We’re glad for the discussion. Understanding this issue is central to fixing the global financial system.