Category: American Banker

OCC’s Fine Print Contains Tough Requirements for Directors

November 19th, 2014 in 2014, American Banker, Centers & Institutes in the News, Eric Fischer, Newsmakers, School of Law 0 comments

American Banker (subscription required)
Eric Fischer, School of Law, Center for Finance, Law & Policy

Bank boards that thought they skirted having to “ensure” management was in compliance with heightened regulatory standards should think again…

Expert quote:

“The word I would object to is ‘effective’. Whether the corrective actions were the ‘effective’ changes or not is more a matter of judgment and hindsight.”

View full article

Should Bankers Fear Obama’s Pick for Attorney General?

November 11th, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

cornelius-hurleyAmerican Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Federal prosecutor Loretta Lynch may soon replace Attorney General Eric Holder, leaving bankers wondering whether she will be tougher on institutions than her predecessor…

Expert quote:

“They’ve decided to go after shareholders with massive multibillion fines rather than the individuals, and she’s been part of that decision process.”

View full article

Why Bank Boards Should Take a Harder Look in the Mirror

October 28th, 2014 in 2014, American Banker, Centers & Institutes in the News, Eric Fischer, Newsmakers, OP-EDs by BU Professors, School of Law 0 comments

American Banker (subscription required)
By Eric Fischer, School of Law, Center for Finance, Law & Policy

Board members at smaller banks often view their annual self-assessments as perfunctory, check-the-box exercises…

View full article by expert Eric Fischer

Official or Not, Community Banks Face Heightened Expectations Too

October 2nd, 2014 in 2014, American Banker, Centers & Institutes in the News, Eric Fischer, Newsmakers, OP-EDs by BU Professors, School of Law 0 comments

American Banker (subscription required)
By Eric Fischer, School of Law, Center for Finance, Law & Policy

When it comes to regulations, community banks would do well to abide by the Boy Scout motto: be prepared…

View full article by expert Eric Fischer

Complacency with Big Banks Risks a Severe Hangover

August 1st, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

cornelius-hurleyAmerican Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The Government Accountability Office’s report on market perceptions of government support for big banks had barely been released before a number of journalists — not to mention financial lobbyists — jumped on the finding that the subsidy currently enjoyed by systemically important banks is negligible compared to its size between 2007 and 2012…

Expert quote:

“It is unsurprising that in an era of  incredibly low interest rates, exceptionally high bank deposit balances and economic growth, the market would interpret banks as less risky than they were during the crisis.”

View full article

GAO Study Expected to Say Big Banks’ Subsidy Has Shrunk (For Now)

July 22nd, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

A government report detailing the funding advantage the biggest banks receive is likely to be unveiled on July 31, according to sources familiar with the matter…

Expert quote:

“This notion that the subsidy is lower now than it was during the crisis — that’s hardly news. Of course it’s lower. In the crisis, they were giving out money … but we’re still in an environment of near-zero interest rates, so a lot of banks can raise money very cheaply. Naturally the differential would be smaller today.”

View full article

Why We Need to Restructure the Big Bank Holding Companies

July 10th, 2014 in 2014, American Banker, Newsmakers, OP-EDs by BU Professors, School of Law, Tamar Frankel 0 comments

TAMAR FRANKELAmerican Banker (subscription required)
By Tamar Frankel, School of Law

Many contributors helped bring about the most recent financial crisis, bank holding companies among them. The problems with bank holding companies stem less from lax rules or weak enforcement than from the way they are structured…

View full article by expert Tamar Frankel

Why the ‘Too Big to Fail’ Fight May Get a Revival

July 7th, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The legislative battle over reining in big banks’ implicit guarantee is suddenly poised for a comeback. The issue is expected to reemerge as the Government Accountability Office is said to be finalizing a report on whether big banks get a subsidy based on their size, and vocal critics of “too big to fail” — including Sen. Sherrod Brown, D-Ohio — stand to hold key leadership slots in next year’s Congress…

Expert quote:

“Jeb Hensarling could step into the shoes of David Vitter. Hensarling is the darling of the Tea Party, and the Tea Party is supposedly against big government and out-of-control corporations. It wouldn’t be an alliance that would require Hensarling to deviate from his philosphy at all.”

View full article

Is Measuring the TBTF Subsidy a Distraction?

May 2nd, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Are the nation’s biggest banks still receiving government subsidies six years after the crisis? Two recent studies by the Federal Reserve and the International Monetary Fund suggest that globally systemically important banks benefit from implicit subsidies because the market believes they will be bailed out in the event of a crisis…

Expert quote:

“A subsidy prevents normal governance from taking place. It serves as a poison pill and as disincentive to divestitures by making all too-big-to-fail assets worth less outside the TBTF womb.”

View full article

The Brilliant Solution to TBTF No One Is Talking About

March 27th, 2014 in 2014, American Banker, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150American Banker (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The debate over “too big to fail” banks is about to reignite, courtesy of the Federal Reserve Bank of New York…

Expert quote:

“The accumulation of this reserve would incentivize TBTF banks to deleverage and to right-size themselves.”

View full article