Welcome to Capital Account. Wall Street banks, including Morgan Stanley and Goldman Sachs, are looking to help their foreign customers skirt new US regulations for over-the-counter derivatives. The banks found ways to route trades via non-US affiliates, exploiting the lack of a precise definition for what constitutes a “US person.” Wall Street’s attempts to circumvent regulations may not come as a surprise, but what is the antidote? We talk to Former FDIC chairwoman Sheila Bair about her experience as a regulator during the financial crisis.
Plus, both the US and the EU have pushed back deadlines to implement the Basel III capital requirements; the Basel III framework more than triples core capital requirements for lenders. Our guest, Sheila Bair, spent much of her career at the FDIC fighting to increase capital requirements, and was critical of the Basel II framework, which let big banks evaluate their assets with their own internal risk models.
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Nothing will change until the collapse of the dollar or euro and the resulting domino effect.
Saddly, I have to agree Mary. We are in over our heads and there is no way out. The fiat debt system must end and it won’t end without the market forcing an end. That means it will have to crash under it own dead weight.
You are right! Chris Duane said that the collapse of this system is now mathematically inevitable and that these financial “solutions” won’t be helpful. Before the US dollar or the euro collapses, hyperinflation will happen first because all fiat currencies have ended up with hyperinflation before.
They’re asking Shiela Bair to make proposals? She was a regulator? really?
What I like about Capital Account is that Lauren really is knowlegeable and asks really good questions. The kind of questions that should be asked!
One thing that I would do that Bair didn’t have in her list is audit the Fed, find out what they have really recieved from tax payers and take it back!
The Banks have more Capitol???? Yea but who supplied it? US More Regulation, give me a break, The Elite Aren’t Going To Allow It. PERIOD
In my opinion, the worst consequence that I know that will happen is that these financial actions will create more higher annual inflation rates. Then, hyperinflation will arrive in the USA due to too much bailouts being created and finally, the US dollar will collapse.