Financial Crisis With Few Prosecutions

It is a question asked repeatedly across America: why, in the aftermath of a financial mess that generated hundreds of billions in losses, have no high-profile participants in the disaster been prosecuted?

Answering such a question — the equivalent of determining why a dog did not bark — is anything but simple. But a private meeting in mid-October 2008 between Timothy F. Geithner, then-president of the Federal Reserve Bank of New York, and Andrew M. Cuomo, New York’s attorney general at the time, illustrates the complexities of pursuing legal cases in a time of panic.

At the Fed, which oversees the nation’s largest banks, Mr. Geithner worked with the Treasury Department on a large bailout fund for the banks and led efforts to shore up the American International Group, the giant insurer. His focus: stabilizing world financial markets.

Mr. Cuomo, as a Wall Street enforcer, had been questioning banks and rating agencies aggressively for more than a year about their roles in the growing debacle, and also looking into bonuses at A.I.G.

From NYTimes.com

Presented without comment.

The FED has a blog

The New York Fed’s Liberty Street Economics blog provides commentary on current economic topics relating to monetary policy, macroeconomic developments, financial stability issues, and regional trends in the Second Federal Reserve District.

From Liberty Street Economics

The FED has a blog. I’m giving it a week before the place is overrun by angry gold-bugs and the tinfoil hat club. 

Alan Greenspan’s housing bubble coffee break

There is a lack of consensus as to how the relaxation of credit standards will impact safety and soundness. To date, loan delinquencies have remained modest, both within and outside of the banking industry. However, the undiminished appetite, particularly for the nonconforming mortgage product, has allowed for the flexibility to continue. And there is no slowing in sight, despite all the warnings that we have heard and indications in some markets that there has been a leveling, and even a decline, in some property values …

From Alan Greenspan’s housing bubble coffee break

The sad part about this is that it will be used to attack the Fed system, and not the Let the Market regulate itself philosophy of Mr. Greenspan.

Alan Greenspan’s housing bubble coffee break

There is a lack of consensus as to how the relaxation of credit standards will impact safety and soundness. To date, loan delinquencies have remained modest, both within and outside of the banking industry. However, the undiminished appetite, particularly for the nonconforming mortgage product, has allowed for the flexibility to continue. And there is no slowing in sight, despite all the warnings that we have heard and indications in some markets that there has been a leveling, and even a decline, in some property values …

From Alan Greenspan’s housing bubble coffee break

The sad part about this is that it will be used to attack the Fed system, and not the Let the Market regulate itself philosophy of Mr. Greenspan.

When the Fed says X, they really mean Y

The Fed typically convenes every month to discuss interest rates. It is not only the action (whether rates are raised, lowered, or held constant), but also the accompanying “statement” which is of interest to investors and analysts. In its statement, the Fed may signal both its motivation for the current policy decision as well as offering clues towards the future direction of rates. Unfortunately, the Fed often couches its commentary in vague language and specialized terminology, which may be difficult for amateur traders and investors to understand. The following is designed as a handy translation guide for people who wish to read and understand the Fed Statement but don’t want to train for a PhD in economics.

From

When the Fed says X, they really mean Y (A Handy Translation Book) | Currency Trading.net

Great post on what exactly that Federal Reserve Bank gobbeldygook means. One thing missed in the article is the phrase profit taking. When you hear anyone talking about profit taking; they are talking out of their ass.

Fed Chief Calls for New Mortgage Rules

In testimony this morning to the House Financial Services Committee, Mr. Bernanke said a full review of consumer protection regulations was under way under existing regulatory authority.

“The recent problems in subprime lending have underscored the need not only for better disclosure and new rules but also for more-uniform enforcement in the fragmented market structure of brokers and lenders,” he said.

From
Fed Chief Calls for New Mortgage Rules – New York Times

If you read only one article about mortgages, this should be that article.