Monday , January 17 2022
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Tag Archives: Banking industry

‘If We Want to Tackle Climate Change, We Want Them to Go Bankrupt … Right?’

Yves here. I have to confess not to having paid much attention to the failed nomination of Saule Omarova for Comptroller of the Currency. And I am having trouble seeing her climate politics as having anything to do with her not winning approval. A financial regulator has absolutely no nexus to climate policy. Of all people, former Treasury Secretary Hank Paulson is a long-standing conservationist and has helped fund some well-publicized research on how close we are to serious climate change...

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Foreclosure Looms for Homeowners Who Thought They’d Won, Thanks to Top New York Court Ruling

Yves here. This bank/mortgage servicer-favoring ruling by a conflicted judge brings up bad memories of the foreclosure/chain of title crisis era. While this decision applies only to New York borrowers, it’s a reminder of how the judicial process is skewed towards big institutional interests. We’ve seen this behavior in many other contexts, for instance, how judges in California generally give undue deference to CalPERS and how Kentucky’s supposedly most progressive judge, Philip Shepherd, is...

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Finance Group Fails To Deliver at COP26

Yves here. I’m amazed that anyone would be snookered by the proposition that Big Finance would act to halt or limit climate change. Most models (one can argue incorrectly) show the big economic hits to occur 30+ years out. Once you discount cash flows that far out back to the present, the effect is effectively zero. But ESG (“environmental, social and governance”) investing is the big new scam….when if one were to try to be a fully compliant investor, there would be nothing to buy. But it’s...

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An Increase in Interest Rates Would Be An Act of Class Warfare

This is Naked Capitalism fundraising week. 1351 donors have already invested in our efforts to combat corruption and predatory conduct, particularly in the financial realm. Please join us and participate via our donation page, which shows how to give via check, credit card, debit card, or PayPal. Read about why we’re doing this fundraiser, what we’ve accomplished in the last year, and our current goal, more original reporting. Yves here. I am not sure that most Americans would agree with...

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General Electric Breaks Up, Symbolizing Decline of American Manufacturing and the High Price of Financialization

This is Naked Capitalism fundraising week. 601 donors have already invested in our efforts to combat corruption and predatory conduct, particularly in the financial realm. Please join us and participate via our donation page, which shows how to give via check, credit card, debit card, or PayPal. Read about why we’re doing this fundraiser,, what we’ve accomplished in the last year,, and our current goal, supporting expanded news coverage. Even though General Electric will continue in name...

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Halloween Is Over – Are Corporate Zombies Still Out There?

Yves here. This article warns that Covid shock increased debt levels in the corporate sector. It also says much of this debt should be reorganized. However, sometimes basically sound companies borrow too much. They can still wind up on a path of underinvestment and staff cutting that hurts competitiveness, witness Toys ‘R’ Us. Companies that go bankrupt can go bankrupt again due to the restructuring not discharging enough debt. Successive bankruptcies are also paths to hollowing out of...

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Debt Cancellation: Taxi Drivers Savor Victory as Medallion Debt Bailout Deal Ends Hunger Strike

Yves here. Michael Hudson regularly calls for debt jubilees as a way of keeping rentiers from eating the entire economy. Even rational lenders recognize that extending credit ever and always results in some losses; even the most capable borrowers and shrewd financial players still run into “shit happens” train wrecks through no fault of their own. In the stone ages of finance, it was routine for banks to restructure loans if the borrower still had some capacity to make payments. But the brave...

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Jim Chanos: China’s “Leveraged Prosperity” Model is Doomed. And That’s Not the Worst

Yves here. We’ve pointed out from time to time with respect to China that no large economy has ever made the transition from being investment-led to consumption-led without suffering a financial crisis. Here, short-seller Jim Chanos, who has been too early with respect to China longer than Nouriel Roubini was with respect to the global financial crisis, argues that the Chinese real estate bubble has gotten so out of hand despite repeated efforts by the government to let air out of it that bad...

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New Report Highlights Corporate Funding of Police Foundations, Which Encourage Police Militarization and Thwart Reform

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans. One thing I learned from studying with Tom Ferguson: follow the money. That’s the Golden Rule for understanding American politics and other money-driven political systems. Alas, political scientists and other students of politics often don’t do this, for a variety of reasons, not least that they don’t want to admit – let alone document – how our...

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Never Mind the Pandora Papers: Why Secrecy Still Rules in the UK

Yves here. Our Richard Smith provides a broader look into the question of why so little has changed on the secrecy front despite a fair bit of press and even some regulatory and legislative efforts to rein it in. The short version is: “It’s hard!” but there are specific devices the shadowy money types employ to evade what to most would seem to be pretty clear-cut rules. Our Richard Smith is back! As you can see below, he’s a co-author of a new piece at openDemocracy on a favorite topic: how...

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