Just read on Bloomberg that FDIC is getting a lot bigger for FY 2010. Maybe some of our undergrads can spin their FINC 4331 grades into a job!
I've had several students take FDIC positions over the years, and it's a great place to work. Lots of travel for some positions, though, or at least that's how it used to be (same with OCC).
Here's the link.
Tuesday, December 15, 2009
Wednesday, December 9, 2009
Maybe We'll Finally Get to use CDSs in Monopoly!!!!!
SEC has announced a new head of investor education, Kathleen M. Floyd, former exec director of the Stock Market Game. More here.
The Stock Market Game helps student math scores!! No kidding. See their info sheet here.
It should be interesting to see what kind of ideas she brings to the task. Investor ed, after all, is one of the most important areas right now. FDIC recently announced that financial literacy and underserved markets are back on the table too. Should be interesting times for educators.
This is the game that pre-college kids play. An interesting note from the article: a little knowledge can be dangerous, because research has found that those who have a little more experience with investments are MORE LIKELY to get scammed.
Who'da thunkit?
The Stock Market Game helps student math scores!! No kidding. See their info sheet here.
It should be interesting to see what kind of ideas she brings to the task. Investor ed, after all, is one of the most important areas right now. FDIC recently announced that financial literacy and underserved markets are back on the table too. Should be interesting times for educators.
This is the game that pre-college kids play. An interesting note from the article: a little knowledge can be dangerous, because research has found that those who have a little more experience with investments are MORE LIKELY to get scammed.
Who'da thunkit?
Tuesday, December 1, 2009
Farewell to a dedicated journalist.
Journalism has had its share of troubles lately. Heck, I'd be willing to say that journalism is dead. Over the last couple of decades it seems that fewer and fewer of those who are supposed to "report" are willing to put their names at risk.
Mark Pittman was an activist of sorts at Bloomberg. My blog posts here and here talk about how he confronted the Fed. I didn't agree with the reasons, but I'm glad he had the cojones to ask for the info.
Mr. Pittman was instrumental in blowing the cover off of the subprime crisis and also (ex post) the ratings fiasco of 2001-2003 that doomed the reputations of Moody's and S&P. It is thanks to him that we even know about some of this stuff. He was a reporter, a real journalist in the traditional sense, and we owe him a lot.
Mark Pittman passed away a few days ago, and some of his exploits are detailed here. I hope you'll give it a look when you can.
I think "he was a great man" is used too much these days. We should save it for people like Mark Pittman.
My condolences go out to his wife, family and colleagues. I hope you can see that Mark's work made a difference in this world, and that's all anyone can ask for.
PS Mr. Pittman refers to a Mother Jones piece in his interview that might be of interest to readers. The print version is here.
Mark Pittman was an activist of sorts at Bloomberg. My blog posts here and here talk about how he confronted the Fed. I didn't agree with the reasons, but I'm glad he had the cojones to ask for the info.
Mr. Pittman was instrumental in blowing the cover off of the subprime crisis and also (ex post) the ratings fiasco of 2001-2003 that doomed the reputations of Moody's and S&P. It is thanks to him that we even know about some of this stuff. He was a reporter, a real journalist in the traditional sense, and we owe him a lot.
Mark Pittman passed away a few days ago, and some of his exploits are detailed here. I hope you'll give it a look when you can.
I think "he was a great man" is used too much these days. We should save it for people like Mark Pittman.
My condolences go out to his wife, family and colleagues. I hope you can see that Mark's work made a difference in this world, and that's all anyone can ask for.
PS Mr. Pittman refers to a Mother Jones piece in his interview that might be of interest to readers. The print version is here.
Wednesday, October 7, 2009
Zombieland! A few lessons for banks
OK, so maybe the "zombie vs. possession" metaphor is lost on Washington these days. But after seeing Zombieland this week, I thought I'd use Columbus' rules to draw some conclusions about the current (and past) banking crises.
For those of you who haven't yet seen this cinematic masterpiece (which, alas, contains a few off-color swear words), the narrator and central character is Columbus, who is trying to get to Columbus, OH to check on his folks. He starts in his "dorm room" in Austin and meets up with other survivors on the way. Mayhem ensues, blah blah blah. It is a classic.
This movie, too, doesn't involve Romeroesque zombies, but more of the neo-zombie we've seen in "28 Days Later" and other recent incarnations. These guys move quick, and there's none of the traditional emphasis on head shots.
Anyhow, Columbus is a real anal retentive type, because sometimes that's what's required to survive the zombie hoards. He has a set of rules that keep him alive amidst all those that aren't. Some are pretty obvious.
Rule #1: Cardio. The first to die in the Zombie Apocalypse (ZA) are those who can't run away (I'm miffed at his conclusion that it's a bunch of "fatties" that get it first -- some of us can run when we have to!) Nowadays, the zombies in the banking sense can run pretty fast, it seems. So perhaps the message is "be ready to run." I hope this doesn't apply too well to our current situation.
Rule #2: Double-tap. Make sure that you use one extra bullet/shell to confirm the demise of each zombie. What military types refer to as the 'double-tap'. Cheap insurance.
Now, if you only have a double-barrelled coach gun, as does our hero for most of the picture, it would pay to count those 18 buckshot per shell as "double" and save the second barrel when possible.
Back to banking, though: even though we bailed out the thrift system in '89, we still had to come back and implement Basel in 1991 with FDICIA (and eliminate some patronage at the same time) and "prompt corrective action". Seems like whatever happens this time is going to be politically approved as well, with some House and Senate members pushing for lending standards to drop again. Hope we've got another barrel left after they decide what to do with Fannie and Freddie (even though I'd argue that they are "possessed" and not the living undead). See here.
Rule #3: Beware of bathrooms. This is where we let our guard down, where we are also most vulnerable for a variety of reasons. In other words, banks, when eliminating the waste, are the most at risk. Maybe we should make sure they don't cut too much.
Rule #4: Seat belts. It pays to take advantage of built-in safety mechanisms. Plus, EVERYBODY is supposed to wear them. Maybe FDIC should start stopping folks just to check. And make sure all vehicles are equipped, too.
Rule #7: Travel light. You never know when all those extra assets will have to be carried at market values. Or when things that were good as gold yesterday will be revalued downward because the ratings agencies were revealed to have no clothes.
Rule #12: Bounty. It's the quicker-picker-upper. Kind of like regulatory capital in the 80s. Good to have some around.
Rule #17: Don't be a hero. Ask Jamie Dimon at JPMorgan how that's going for him these days.
Rule #18: Limber up. The Fed certainly heeded this one back in 2007, as they started to create liquidity programs for any and every purpose. Just in case. This works best alongside cardio. See Rule #1.
Rule #22: Know your way out. Sounds like something for Bernanke to consider in the future. 2006 is calling! Not that all that liquidity wasn't useful, but it's being used (erroneously) to trick the rest of the world into looking askance at the dollar. Not good.
Rule #29: The Buddy System. We're not alone in this, just almost alone. The jackals out there are licking their chops on this, hoping the US takes a big dive and takes a hit for market economies. Hint: Fannie, Freddie, FHA, and CRA/HMDA have nothing to do with market economies. Patronage is patronage, here or in China. Thanks for playing.
Rule #31: Check the backseat. Or, the reset dates and reset rates for that matter. And income. And appraisals. And buyout clauses. And most importantly, don't let anyone in the backseat do the driving.
Rule #32: Enjoy the little things. Like bonuses for the next 5 years. And political contribs for that matter.
Rule #33: Swiss Army Knife. This is from the Boy Scouts -- be prepared. Everything on that knife has a purpose.
If you haven't seen "Zombieland" you'd better hurry up. It looks as though its theatre days are numbered, but there's always the dollar cinema run to consider. I can't wait for folks in Congress to get a chance to watch this -- maybe their favorite zombies (Freddie and Fannie) will collapse under their own weight and keep us from having to finally, finally put them down. Remember, double-taps.
More to come.
For those of you who haven't yet seen this cinematic masterpiece (which, alas, contains a few off-color swear words), the narrator and central character is Columbus, who is trying to get to Columbus, OH to check on his folks. He starts in his "dorm room" in Austin and meets up with other survivors on the way. Mayhem ensues, blah blah blah. It is a classic.
This movie, too, doesn't involve Romeroesque zombies, but more of the neo-zombie we've seen in "28 Days Later" and other recent incarnations. These guys move quick, and there's none of the traditional emphasis on head shots.
Anyhow, Columbus is a real anal retentive type, because sometimes that's what's required to survive the zombie hoards. He has a set of rules that keep him alive amidst all those that aren't. Some are pretty obvious.
Rule #1: Cardio. The first to die in the Zombie Apocalypse (ZA) are those who can't run away (I'm miffed at his conclusion that it's a bunch of "fatties" that get it first -- some of us can run when we have to!) Nowadays, the zombies in the banking sense can run pretty fast, it seems. So perhaps the message is "be ready to run." I hope this doesn't apply too well to our current situation.
Rule #2: Double-tap. Make sure that you use one extra bullet/shell to confirm the demise of each zombie. What military types refer to as the 'double-tap'. Cheap insurance.
Now, if you only have a double-barrelled coach gun, as does our hero for most of the picture, it would pay to count those 18 buckshot per shell as "double" and save the second barrel when possible.
Back to banking, though: even though we bailed out the thrift system in '89, we still had to come back and implement Basel in 1991 with FDICIA (and eliminate some patronage at the same time) and "prompt corrective action". Seems like whatever happens this time is going to be politically approved as well, with some House and Senate members pushing for lending standards to drop again. Hope we've got another barrel left after they decide what to do with Fannie and Freddie (even though I'd argue that they are "possessed" and not the living undead). See here.
Rule #3: Beware of bathrooms. This is where we let our guard down, where we are also most vulnerable for a variety of reasons. In other words, banks, when eliminating the waste, are the most at risk. Maybe we should make sure they don't cut too much.
Rule #4: Seat belts. It pays to take advantage of built-in safety mechanisms. Plus, EVERYBODY is supposed to wear them. Maybe FDIC should start stopping folks just to check. And make sure all vehicles are equipped, too.
Rule #7: Travel light. You never know when all those extra assets will have to be carried at market values. Or when things that were good as gold yesterday will be revalued downward because the ratings agencies were revealed to have no clothes.
Rule #12: Bounty. It's the quicker-picker-upper. Kind of like regulatory capital in the 80s. Good to have some around.
Rule #17: Don't be a hero. Ask Jamie Dimon at JPMorgan how that's going for him these days.
Rule #18: Limber up. The Fed certainly heeded this one back in 2007, as they started to create liquidity programs for any and every purpose. Just in case. This works best alongside cardio. See Rule #1.
Rule #22: Know your way out. Sounds like something for Bernanke to consider in the future. 2006 is calling! Not that all that liquidity wasn't useful, but it's being used (erroneously) to trick the rest of the world into looking askance at the dollar. Not good.
Rule #29: The Buddy System. We're not alone in this, just almost alone. The jackals out there are licking their chops on this, hoping the US takes a big dive and takes a hit for market economies. Hint: Fannie, Freddie, FHA, and CRA/HMDA have nothing to do with market economies. Patronage is patronage, here or in China. Thanks for playing.
Rule #31: Check the backseat. Or, the reset dates and reset rates for that matter. And income. And appraisals. And buyout clauses. And most importantly, don't let anyone in the backseat do the driving.
Rule #32: Enjoy the little things. Like bonuses for the next 5 years. And political contribs for that matter.
Rule #33: Swiss Army Knife. This is from the Boy Scouts -- be prepared. Everything on that knife has a purpose.
If you haven't seen "Zombieland" you'd better hurry up. It looks as though its theatre days are numbered, but there's always the dollar cinema run to consider. I can't wait for folks in Congress to get a chance to watch this -- maybe their favorite zombies (Freddie and Fannie) will collapse under their own weight and keep us from having to finally, finally put them down. Remember, double-taps.
More to come.
Tuesday, September 29, 2009
Fannie & Freddie had to start disclosing trade data last March
Found in the DRAFT folder:
Fannie and Freddie and other govt. types are going to have to start disclosing trade data for their bonds, beginning in March.
WOW!
Transparency is probably a good thing.
Edit 06/10: I wonder if this actually happened or not.
Fannie and Freddie and other govt. types are going to have to start disclosing trade data for their bonds, beginning in March.
WOW!
Transparency is probably a good thing.
Edit 06/10: I wonder if this actually happened or not.
Wednesday, September 23, 2009
Minimum payments got you down? Thank regulators
I've heard a lot of noise lately about everyone's minimum credit card payments going up, especially those over at JP Morgan/Chase/WaMu (or whatever they're calling themselves this quarter).
I found a couple of nuggets from Treasury and OCC advising that banks were going to be expected to raise their minimum credit card payments over time to a level that could reasonably be expected to amortize the balance. This has been the requirement for commercial credit since forever, so it makes sense that it's coming to consumers.
Look here and here. These go back a few years, but we're seeing their effect now.
From a societal standpoint, it's a good thing if people don't carry their credit card debt forever. From an immediate default standpoint, and for what it is doing to the economy right now, it's not good. Bloomberg, in fact, just announced today that defaults are way, way up here.
I have friends and family who are dealing with this, and it's no fun. Especially with Chase, who's raised some minimums to 5% of the card balance. Wow. That's hard to keep up with if you're not used to it. Another thing, they're raising rates to reflect people's creditworthiness. So some folks are paying upwards of 20% this month when they were below 10% up to this point.
My recommendation: Get thee to a credit union ASAP. If you're credit report is clean enough, you should be able to refinance that credit card debt and pay it off before Chase starts coming after various body parts.
I found a couple of nuggets from Treasury and OCC advising that banks were going to be expected to raise their minimum credit card payments over time to a level that could reasonably be expected to amortize the balance. This has been the requirement for commercial credit since forever, so it makes sense that it's coming to consumers.
Look here and here. These go back a few years, but we're seeing their effect now.
From a societal standpoint, it's a good thing if people don't carry their credit card debt forever. From an immediate default standpoint, and for what it is doing to the economy right now, it's not good. Bloomberg, in fact, just announced today that defaults are way, way up here.
I have friends and family who are dealing with this, and it's no fun. Especially with Chase, who's raised some minimums to 5% of the card balance. Wow. That's hard to keep up with if you're not used to it. Another thing, they're raising rates to reflect people's creditworthiness. So some folks are paying upwards of 20% this month when they were below 10% up to this point.
My recommendation: Get thee to a credit union ASAP. If you're credit report is clean enough, you should be able to refinance that credit card debt and pay it off before Chase starts coming after various body parts.
Saturday, September 5, 2009
Still waiting on all that Fed disclosure, Bloomberg
I haven't heard anything else about the August 25th NY Court ruling that requires the Fed to release their data, other than this. So they have until 9/30 to appeal. Thank goodness!!!!
I emailed Mark Pittman (the Bloomberg reporter on this story) about this yesterday, and I'll post anything I get back from him.
Update! Mr. Pittman says we should expect resolution in months, not weeks. I guess this is sort of a big deal. Thanks to him and Bloomberg for keeping us up-to-date.
I emailed Mark Pittman (the Bloomberg reporter on this story) about this yesterday, and I'll post anything I get back from him.
Update! Mr. Pittman says we should expect resolution in months, not weeks. I guess this is sort of a big deal. Thanks to him and Bloomberg for keeping us up-to-date.
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