There are few better ways to uncover fraud in an industry than to incentivize insiders to blow the whistle on wrongdoing. And a little known part of Dodd-Frank did just that for the securities industry, creating a new whistleblower program run by the SEC that can bestow huge rewards on anyone who brings to light evidence of fraud that results in a settlement.
One of the most simplistic fictions is that corporate elites are spearheading a "class war" all on their own, driving down wages to squeeze out higher profits in the name of greed.
Of course, that's not actually the way modern shareholder capitalism works. Instead, most CEOs and executives -- and the boards who hire and fire them -- wake up every day worrying about how they are going to please you and me. (Assuming you, like me, have money invested in stocks through your 401k or whatnot.)
The much-anticipated final regulations implementing the Volcker Rule will be released today and, almost miraculously, it seems to be significantly stronger than the proposed text publicized more than a year ago. We will all have to await the actual wording since this is an area in which the devil is truly in the details.
But the all-important limitation on insured banks betting on the trading markets with depositors’ money is rumored to do a few key things:
As more states across the U.S. (and more countries across the world) begin adopting alternative measures they find that while GDP has been increasing, other measures of well-being have remained flat.
The Genuine Progress Indicator (GPI) includes 26 indicators to give a broader picture of the sustainability of growth. It is a better measure than GDP.
Through the Procurement Act, Congress centralized management of government contracts and gave the president license to use his judgment in setting federal contracting practices.
High-frequency trading (or “HFT”) is suddenly the financial market scandal of the day. Michael Lewis has published a book that was featured on Sunday in a 60 Minutes report and in a story in the New York Times Magazine. HFT is the use of high-powered computers, blazing fast connections with exchanges, and sophisticated trading algorithms to transact in time frames measured in milliseconds or shorter.
Michael Lewis’ new book, “Flash Boys,” relates a real-life techno thriller in which a trader who identifies and ultimately thwarts a scheme deployed by piratical “High Frequency Traders” to squeeze a relatively small amount out of many stock transactions being executed electronically. As our hero’s trade bounced around hyperspace looking for the best price, the HFTs would detect its path, use their speed to get in front of the trade, and buy up the inventory so that the price of our hero’s trade could be dictated.
The state-appointed Detroit Emergency Manager has commenced a program of shutting off the water of a large portion of the 138,000 delinquent accounts, up to 90,000 of which are poor households and largely African-American.
President Obama should sign a Good Jobs executive order to encourage contractors to improve workplace benefits and respect their employees’ rights to bargain collectively.
On Sept. 21, an estimated crowd of 100,000 people will flood the streets of Midtown Manhattan to march together on a single issue: climate change. The People’s Climate March, taking place two days before the UN’s global summit on climate, is the culmination of 6 months of planning and outreach by a growing coalition, ranging from labor unions to racial justice and indigenous organizations to tried-and-true environmental groups.
Inequality is growing because the increased wealth of the wealthiest no longer spawns income opportunities for the less well-off households and may actually diminish them.
Executive action on paid sick days for employees of federal contractors would be in keeping with Obama’s steps to raise workplace standards for contract employees.
US stock prices opened trading much higher today after yesterday’s rout and the rout the day before that and the rout the day before that. European markets were up also. The Chinese markets, which closed at 3 a.m. New York time, were off by another 7%, but the government cut interest rates to increase liquidity in the economy and raised the requirements to buy on margin (how much of a stock’s value one can borrow from the brokerage firm).
Great news, is it not? We can all relax and enjoy the end of the summer.
The 2008 financial crisis was no accident. It was the result of a decades-long deregulation effort, lobbied for by the financial industry and executed by our political institutions. Now, as the facts of the financial collapse fade from memory, some would rather rewrite their part in history than keep history from repeating itself.
The demonized banking industry must make the case it is morally noble. That may jar some ears, but surely enabling retirees to earn a return on their savings and funding business expansion creating jobs and wealth, improving Americans’ quality of and opportunities in life is morally noble. — Eric Glover, the Washington Times, September 24, 2015
The hyperactivity of the presidential election has raised the level of discussion of financial regulation, at least in terms of noise if not enlightenment. Mr.
The days between the Fourth of July and Bastille Day on the 14th are known for fireworks on both sides of the Atlantic. This year, more rockets and firecrackers than usual were going off, but they were inside hearing rooms in the British Parliament and the U.S. Congress. Barclays bank announced that it had been fined more than $450 million by regulators from both countries, and its CEO, Robert E. Diamond Jr., and COO, Jerry del Missier, both resigned. The fines were part of a settlement that granted Barclays immunity from potentially worse punishment for its manipulation of interest rates.
