WASHINGTON — New York Federal Reserve Bank President William Dudley came under fire on Friday from Democratic senators who blasted the bank for lax oversight of major financial institutions.
“Is there a cultural problem at the New York Fed? I think the evidence suggests that there is,” said Massachusetts Democrat Elizabeth Warren, a frequent critic of the big banks who is seen as a possible 2016 presidential candidate.
“Change has to come from the top,” she added. “Either you need to fix it Mr. Dudley or we have to get someone who will.”
Perhaps the biggest farce to result from the Dodd-Frank legislation designed to "rein in" banks was the ridiculous notion of "living wills" - a concept that makes zero sense in an environment where the failure of even one bank assures a systemic crisis and could - as the Lehman financial crisis showed - lead to the collapse of all other interlinked financial institutions.
By Simon Johnson
Experienced Wall Street executives and traders concede, in private, that Bank of America is not well run and that Citigroup has long been a recipe for disaster. But they always insist that attempts to re-regulate Wall Street are misguided because risk-management has become more sophisticated – everyone, in this view, has become more like Jamie Dimon, head of JP Morgan Chase, with his legendary attention to detail and concern about quantifying the downside.
Germany recently made big news by announcing its plan to bring home part of its massive gold reserves. By retrieving 300 tons from New York and all 374 tons from Paris, 19% of its holdings – $36 billion worth – will be repatriated. By 2020, Deutsche Bundesbank expects to have 50% of its gold reserves stored in its Frankfurt vaults.
Earnings season for the fourth quarter of previous year is expected to kick off soon. Following the Federal Reserve’s first rate hike in almost a decade and the recent market selloff, analysts and investors look forward to the banks’ earnings results.
NEW YORK (Reuters) - JPMorgan Chase & Co. has expanded into the physical commodity markets aggressively over the past five years, first with the purchase of Bear Stearns in 2008 and most significantly with a $1.7 billion deal to buy RBS Sempra's global oil and metals business in 2010.
Today’s AM fix was USD 1,688.00, EUR 1,269.08, and GBP 1063.58 per ounce.Friday’s AM fix was USD 1,690.00, EUR 1,265.82and GBP 1,060.49 per ounce. Gold was up 1.26% for the week and silver was up 4.60%. Gold fell $2.80 or 0.17% in New York on Friday and closed at $1,684.10/oz. Silver surged to a high of $32.11 before it also edged off, but it still finished with a gain of 0.47%.
Editor’s Note: H. Rodgin Cohen is a partner and senior chairman of Sullivan & Cromwell LLP focusing on acquisition, corporate governance, regulatory and securities law matters. This post is based on a Sullivan & Cromwell LLP publication by Andrew R. Gladin.