Category: Cornelius Hurley

New York Regulator Is Wrinkle in Bank Probes

May 13th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Wall Street Journal 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

New York’s banking regulator is keeping prosecutors guessing as they prepare landmark criminal cases against BNP Paribas SA and Credit Suisse Group …

Expert quote:

“He seems to be kind of the wild card here in that he’s displayed a willingness at least to rattle the saber and threaten the nuclear option. The whole issue is will [prosecutors] indict and are regulators willing to terminate their licenses.”

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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.”

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Senators Warn GAO Not to Break the Banks

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

hurley11-150x150The Fiscal Times
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Big banks don’t have a lot of friends these days, but in a letter to the Government Accountability Office last week, Sens. Tom Carper (D-DE) and Mark Kirk (R-IL) showed that there are at least some people on Capitol Hill willing to stand up and make sure giant financial firms get a fair shake from the government…

Expert quote:

“The letter seeks to divert the GAO from its assigned specific task of measuring the benefit from being TBTF [too big to fail] into a much broader assessment of the efficacy of Dodd-Frank.”

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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.”

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FDIC Sues Banks Over Libor

March 15th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The Federal Deposit Insurance Corp. filed a lawsuit against large banks for their alleged role in manipulating a global benchmark used to determine interest rates on everything from home loans to corporate debt…

Expert quote:

“I’m not aware of that being alleged before. I don’t think you’ll find another instance.”

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Regulators Size Up Wall Street, With Worry

March 13th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, New York Times, Newsmakers, School of Law 0 comments

hurley11-150x150New York Times
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Money laundering, market rigging, tax dodging, selling faulty financial products, trampling homeowner rights and rampant risk-taking — these are some of the sins that big banks have committed in recent years…

Expert quote:

“I haven’t yet seen bankers rushing to say Bill Dudley speaks truth on this issue.”

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The New Plan To Impose An Extra Tax On Wall Street Hinges One One Big Question

February 27th, 2014 in 2014, Business Insider, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law 0 comments

hurley11-150x150Business Insider
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

Yesterday, Max Baucus (D-MT) and Dave Camp (R-MI) introduced a tax reform bill that would force a new asset tax on big Wall Street banks, and naturally Wall Street isn’t having it…

Expert quote:

“Although it is highly unlikely that this new tax will be enacted, one can easily see H.R. 2266, the Subsidy Reserve Plan being a compromise result, especially if the GAO subsidy study produces subsidy estimates in the ballpark of Chairman Camp’s.”

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An Open Letter to JPMorgan Chase Shareholders

February 13th, 2014 in 2014, Blogs, Cornelius Hurley, New York Times, Newsmakers, School of Law 0 comments

hurley11-150x150New York Times “Economix Blog’
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

It is a great honor to have been suggested as a potential board member of JPMorgan Chase – by Sheila Bair in an interview in DealBook in The New York Times last week…

Expert quote:

“This is a thumb in the eye of regulators and a thumb in the eye for the public.”

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European Banks Consider Ways to Address U.S. Financial Rules

February 10th, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Wall Street Journal 0 comments

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

European banks are considering new ways to cushion the blow of U.S. financial-safety rules set to kick in as early as next year. The moves are a reaction to planned Federal Reserve rules that will require the U.S. arms of foreign banks to be better capitalized and subject them to annual “stress tests.” European banks for years have run the operations on much thinner capital buffers than their American rivals…

Expert quote:

“I doubt the Fed will fall for this…approach, let alone the foreign banks’ home-country supervisors.”

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Rising US Interest Rates Cause Market Turmoil in Other Nations

January 31st, 2014 in 2014, Centers & Institutes in the News, Cornelius Hurley, Newsmakers, School of Law, Voice of America 0 comments

hurley11-150x150Voice of America
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

The Federal Reserve gave the improving U.S. economy a vote of confidence this past week, saying it no longer needs as much stimulus to keep growing.  The Fed’s actions will raise key U.S. interest rates, but some economists say it has caused a drop in stock and currency values in some emerging markets…

Expert quote:

“[They are] contemplating raising interest rates to protect their own currencies.  Well, that slows down their economic activity.”

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