Tag Archives: Banking

Some Common Sense at Last about Banks- Volcker

This strikes me as the right approach.

Volcker Calls for Restricting Banks’ Risk, Trading Activity – WSJ.com
The comments reflect Mr. Volcker’s long-held view that banks should act more in line with their traditional role and not take extremely risky gambles, which could threaten the viability of commercial banks and expose the Federal Reserve and taxpayers to large risks.

People keep yapping on about how the financial systems is the “circulatory” system of the economy.  Fine.  Then by extension, the amount of risk we have been allowing into the commercial banking systems is akin to eating four hamburgers every day for every meal, and then doing amphetamines, adn then running a marathon while smoking and hoping it won’t give us a heart attack.

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Where Did they Learn This Stuff?

Economic Meltdown Bankers – Harvard MBA, Stern School of Business – Business School | wowOwow
Which schools are the Academies of the Apocalypse, and who and how many went to each?

Is how Deborah Barrow launches into her list.  Harvard is on top.  THis si amusing, but not a very systematic pool of candidates.

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All that is solid melts…

My thoughts exactly…

Daily Kos: State of the Nation
Now that the People own a major insurance company, it’s fair to ask how the People’s Insurance Company, along with the People’s Mortgage Companies and the People’s Investment Banks, will benefit the People who Own them. Can we expect lower premiums, equity sharing, and corporate perks for our hundreds of billions of dollars?

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Filed under economics, humor, macroeconomics, Political Economy, Politics, Power, Activism

FDIC does not publish its problem bank list

15 minutes of web searching for this mythical list of problme banks leads me to learn that the FDIC does not publiish the list.

Of course not.  It might cause people to worry about their deposits!  So, we have to protected from our own self-interest.

It is always the most critical information that is hidden.  One site did say I could pay for bank quality/soundness information.  Lovely, that won’t exacerbate inequality in America or anything.

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Thoughts on SL Banking ban

I know I’ve talked to people about virtual worlds and when they point out that it is “odd” or somehow “wrong” for people to adopt other identities, I sometimes repsond that the ability to do so, or at least, the ability to do anything meaningful as your alter ego, will be limited by how porous the boundary between virtual and real wrold is.  moreover, that barrier is getting more porous in most cases.  As virtual worlds develop, what people want to do in and iwth them will bump against the very real world of durable identity and the need for regulation

So, the fall out from the banking crisis as described in his WSJ article seems to affirm my point.

First, only in SL  :>):

Cheer Up, Ben: Your Economy Isn’t As Bad as This One – WSJ.com
On Sunday night, the female character was wandering topless through the virtual lobby of a Second Life bank called BCX Bank, where a sign said it was “not currently accepting deposits or paying interest.”

I still don’t get very well what these banks’ business model was?  What is their loan portfolio?  How could they possible deliver 100% returns?  The answers are not clear.  I suppose partly it is speculative dynamics around land.  Do the bankers know about Linden’s plans to control land supply?  Would that constitute insider information?  Or, through fast growth SL business; this was the story behind Ginko Financial which failed last summer and was purportedly investing in gambling in SL (another story of regulation).

For example, how can this guy say the ban will not effect his business?

Cheer Up, Ben: Your Economy Isn’t As Bad as This One – WSJ.comSteve Smith, who runs BCX bank under the avatar name Travis Ristow, yesterday said depositors — who are owed a total of $20,000 — will be able to get their money back next week. The bank, which had promised to pay depositors more than 200% in annual interest, is now allowing only small withdrawals.

“This won’t affect us long term. It’s just a short-term difficulty,” said Mr. Smith, 40 years old, who also has significant land and real-estate interests in Second Life. He said he retired from the real-life mortgage business to devote his time exclusively to his Second Life enterprises.

Finally, there is one mention that one bank was arbitraging Linden-US exchanges to the tune of $15,000/year in profit. and

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Filed under Banking, Business, policy, Political Economy, Second Life, virtual worlds