Quite a few readers excitedly sent a link to a Bloomberg editorial, “Why Should Taxpayers Give Big Banks $83 Billion a Year?” which summarizes a study by Kenichi Ueda of the International Monetary Fund and Beatrice Weder di Mauro of the University of Mainz that the editors used to extrapolate that the five biggest US banks are “barely profitable” if they weren’t able to borrow
Richard Suttmeier submits: The Number of Deadbeat Banks is on the rise - TARP money was intended to increase business lending and to help homeowners avoid foreclosure. Unfortunately these objectives have not been achieved, and now 55 out of almost 700 TARP recipients have reneged on their dividend payments due on November 16th.
BASEL, Switzerland/LONDON — Global regulators on Monday proposed new rules to ensure that bank creditors rather than taxpayers pick up the bill when a big lender collapses.
Mark Carney, chairman of the Financial Stability Board and Bank of England governor, said the plans marked a watershed in ending banks that are too big to be allowed to fail.
Day after day, whenever anyone challenges the TBTF banks' scale, they are slammed down with a mutually assured destruction message that limitations would impair profitability and weaken the country's position in global finance. So what if you were to discover, based on Bloomberg's calculations, that the largest banks aren't really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S.
By Simon Johnson
Goldman Sachs is investing $450 million of its own money in Facebook, at a valuation that implies the social networking company is now worth $50 billion. Goldman is also apparently launching a fund that will bring its own high net worth clients in as investors for Facebook.
OTTAWA — The Conservative party has pocketed almost $100-million from the taxpayer-funded per-vote subsidy that will be eliminated by next spring — by far the largest financial windfall of any political party.
As Canada’s federal parties build up their war chests for an expected October 2015 election, the subsidy is winding down.