In September 2016, Wells Fargo fired 5,300 employees. These sorts of mass layoffs have become common in banking throughout the post-crisis era, especially those years of the “rising dollar.” This was different, however, as Wells was not cutting back in capacity but dealing with the aftermath of being far too aggressive. These employees were found to have opened secret and [...]
Part 1 is here. The story of the asset bubbles is one of eurodollars alone. We can tell so much of the history of the past few decades by examining its pieces. The primary component has been derivatives, these financial instruments that are largely misunderstood shrouded often by what can appear to be incomprehensible complexity. That their own purveyors more [...]
You could say that SunTrust dodged a bullet. The Georgia bank was itself an amalgam of smaller banks cobbled together during the deregulation of the 1980’s. On the one side were the Florida subsidiaries based in Orlando, what came to be known as the Sun Bank. On the other was the Trust Company of Georgia, both coming together in 1985 [...]
Despite the fact that the FDIC is largely charged with regulating small, community banks, it’s mixed-in deposit guarantee “insurance” brings the agency into contact with all manner of banks. This includes, of course, the largest firms that dominate in financial areas that have very little to do with banking in its most monetary form. The FDIC’s area of responsibility, in [...]
It is somewhat of a fair criticism that playing armchair quarterback years after events unfolded amounts to lazy or devalued analysis. Picking apart assessments with the full benefit of hindsight is seemingly unfair to the participants and targets of any reproach. It also may appear to be irrelevant to spend so much time when current events demand more attention and [...]
Despite the obvious disinterest from pretty much everyone in the media, I still find tremendous relevance and value in the 2008 FOMC. The entire year was spent in a comedy of errors that should make even the most ardent monetarist shameful. This is not to say that I would have preferred more diligent and swift action on the part of [...]
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