Category: American Banker

GAO Must Ensure Accurate Accounting in TBTF Study

September 25th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, OP-EDs by BU Professors, School of Law 0 comments

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By Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Lost in the retrospectives about the failure of Lehman Brothers five years ago is the very hopeful fact that the Government Accountability Office now is studying the “too big to fail” subsidy…

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Cheat Sheet: How GAO Big Bank Subsidy Investigation Will Reignite TBTF Debate

August 19th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The Government Accountability Office is poised this fall to unveil the first of two reports on whether big banks benefit from an implicit subsidy due to the perception that they are “too big to fail,” adding more fuel to an already contentious debate…

Expert quote:

“You’re never going to get to the exact number, but to me the good thing is the policy debate has been moved from an exclusive focus on capital — the policy needle seems to be shifting towards saying, ‘ok we do need capital requirements, but there’s also this other thing, the subsidy that most people think is very large.”

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An Alternative Plan to Fix TBTF: Lay Big Banks’ Subsidy Bare

July 24th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Ending “too big to fail” may be the single public policy goal that everyone in financial services agrees on…

Expert quote:

“It’s earnings that the company didn’t earn. These earnings were given, in the form of free insurance, subsidy, whatever you want to call it. It’s a subsidy from the taxpayers. If you clean the slates every Jan. 1 and let them use that subsidy to buy stock or dividend it out, then what’s the point? The idea of having it accumulate is that over time this gift from the taxpayers can be used to incent them to get smaller.”

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Seven Reasons the Debate Over ‘Too Big To Fail’ Is Here to Stay

April 2nd, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The debate over whether large banks are still “too big to fail” has spread like wildfire in recent months…

Expert quote:

“Maybe Dodd-Frank, for all of its good things and bad things, didn’t go to the heart of the problem – didn’t achieve structural reform. And so now we have people asking questions that they should have asked in the beginning. What does it mean to be too big to fail, what kind of subsidy do you get?”

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Fed Raises the Bar on Stress Tests

March 20th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Banks are going to have to work harder next year if they want to continue to pass the Federal Reserve Board’s annual stress test exercise…

Expert quote:

“With its stress tests, the Fed has now crossed the line from being the regulator of banks to being the manager of banks. In its effort to avoid more taxpayer bailouts, the Fed has taken upon itself the responsibility of deciding the banks’ capital levels, dividend policies and even the business lines they will engage in.”

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If CFPB Needs a Commission, Why Shouldn’t the OCC?

February 13th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Republicans continue to call for the CFPB to adopt a five-person board instead of having a single director, but similar calls are almost never heard regarding the OCC…

Expert quote:

“Look at the Fed — they have seven governors with 14-year terms. They were charged with enforcing all of the consumer laws except for FTC’s piece, and they absolutely fell asleep at the switch because of their dominance by one chairman, Alan Greenspan. This idea that turning either the CFPB or the OCC into a commission is automatically going to make them more efficient regulators just doesn’t hold a lot of water.”

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Will FSOC Be a Priority for Treasury Pick Jack Lew?

February 5th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Treasury Secretary Tim Geithner was clearly dedicated to making the Financial Stability Oversight Council work, despite doubts the group of financial regulators would prove unwieldy and ineffective…

Expert quote:

“How he handles FSOC and other things will be signaled by his confirmation hearings. That’s why I’m hopeful when asked the questions in his confirmation hearings, he doesn’t spout the party line that Dodd-Frank fixes ‘too big to fail’ and the CFPB has to have one head. That’s not helpful.”

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Court ruling may force deal on CFPB structure

January 29th, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

A ruling by a federal appeals court last week that President Obama acted improperly in recess appointing members of the National Labor Relations Board may encourage Democrats to cut a deal on the structure of the Consumer Financial Protection Bureau…

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End ‘Too Big to Fail’ by Making It Shareholders’ Problem

January 23rd, 2013 in 2013, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, OP-EDs by BU Professors, School of Law 0 comments

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By Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Despite the best efforts of a divided Congress, the world knows that the malignancy of too-big-to-fail endures to this day…

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Banking SuperPACs Aiming to Get Bigger, More Effective

January 2nd, 2013 in 2012, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

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Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Despite a lackluster track record in 2012, the two SuperPACs formed by bankers are vowing to increase their influence before the next election hits…

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