Bank Bailouts Are Good Policy

Benjamin Cole via Historinhas | Probably bank and other financial institution bailouts, within context, are positive for the economy. Indeed, aggressive robustly financed bailouts should be conventional policy, while other regulations eschewed, as long as shareholders and convertible bondholders take the first, big and hard hit of any major financial institution failure.

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What Wall Street makes of the Libor scandal

NEW YORK | Have Libor scandal shock waves reached this side of the Atlantic yet? There is no doubt they will. It may impact American consumers and the U.S. financial system: Barclays is the only bank confessing malpractices so far, although Wall Street has almost surely been involved in the same dynamics. So far we've only seen the tip of the iceberg but it sends a warning signal to the…

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Goldmangate: too big for just an “I quit” op-ed

NEW YORK | Why has a letter in the New York Times sparked such a PR crisis for Goldman Sachs? In his ‘Why I am leaving Goldman Sachs’ article, Greg Smith, an executive director at the American investment bank, contended that the culture inside Goldman was “toxic” and that the bank routinely took advantage of its clients. This is powerful stuff, but the impact of the letter is way beyond just…