Big Bank Obesity Conundrum

by Chidem Kurdas Is the Federal Reserve a hotbed of trustbusters? Fed officials (as well as some academics) have been calling for forcible downsizing of big banks . “I am of the belief personally that the power of the five largest banks is too concentrated,” Dallas Federal Reserve Bank president Richard Fisher said a few days … Continue reading Big Bank Obesity Conundrum

Menace to Savings and Small Businesses

by Chidem Kurdas As the old adage goes, be careful what you ask for, you might just get it. After the 2008 crisis it became fashionable to complain that too much trading is going on. There were calls in this and other countries to restrict financial transactions. And it happened. One example is the rule … Continue reading Menace to Savings and Small Businesses

Three Aspects of the Volcker Rule

by Chidem Kurdas Former Federal Reserve chief Paul Volcker and President Obama want to force banks to get rid of their proprietary trading operations, hedge funds and private equity funds. There is more to this policy initiative that meets the eye at first glance. Mr. Volcker in effect gives two unrelated rationales. One is that … Continue reading Three Aspects of the Volcker Rule