Posts tagged "Dodd-Frank"
Why do EU TTIP negotiators want to weaken bank regulations designed to protect taxpayers after the financial crisis?

Why do EU TTIP negotiators want to weaken bank regulations designed to protect taxpayers after the financial crisis?

TTIP talks took place in Brusseks last month, where Eurobanks aim to undermine proposed regulations for foreign banks by the Federal Reserve.  We want to know, what is Deutsche Bank– and Germany– doing behind closed doors? What will the EU trade to help get financial services included in TTIP?   The new Federal Reserve rule finalized in January 2014 will require Deutsche Bank, like all other too-big-to-fail banks operating in the US, to maintain minimum capital and liquidity as a backstop against taxpayer losses in the event of another financial crisis. But the Association of German Banks has lobbied against this rule and is pushing for a clause in the TTIP that would allow banks like Deutsche Bank to weaken its effect.  Why would European negotiators push for a process that would weaken bank solvency rules designed to protect all of us?  Conservative economist Simon Johnson wrote a piece on the lack of... {read more}
New FBO rules impact on DB: No Big Deal?

New FBO rules impact on DB: No Big Deal?

  During its January 31st earnings call, the bank seemed to want it both ways—objecting strongly to the imposition of the new FBO rules requiring more capital in the U.S., and yet downplaying the bank’s need to move or raise capital. From transcript of the call: Jernej Omahen, Goldman Sachs analyst: The first question I’d like to ask relates to the Fed proposal. And I have to say so, and maybe it’s me, but I’m just confused because I don’t understand whether Deutsche Bank believes this is a big deal or whether you think it’s not a big deal. Because on the one hand you’re telling us we won’t have to raise any capital as a consequence of this, it’s not going to have a meaningful impact on our operations, and on the other hand you’re telling us this is such a big deal that it’s going to spike retaliation from European... {read more}
Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

  “Our most important relationship is with our regulator—guess where I was this afternoon?” — Anshu Jain, quoted in The Economist, 1/24/13 In a previous post, we commented on Federal Reserve Governor Dan Tarullo’s understated view that the “likelihood that some home-country governments of significant international firms will backstop their banks’ foreign operations in a crisis appears to have diminished.” {read more}
Deutsche Bank Whistleblowers Make Headlines

Deutsche Bank Whistleblowers Make Headlines

Today, three whistleblowers from Deutsche Bank made front-page news in the Unit­ed States and Europe.  DBRiskAlert would like to congratulate these courageous employees – especially former Bank Risk Analyst Eric Ben-Artzi, who brought forward his concerns with the help of the Government Accountability Project. If you haven’t yet seen the Financial Times articles, read them here, here and here.  (free registration required.) Also, check out a recent post in the Free Exchange blog on how these issues (and TBTF) are impacting shareholder value for the big banks. We will be following this unfolding story in the days, weeks and months to come. {read more}