Jack Lew —NOT the Proverbial Banking Insider

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Jacob (Jack) Lew, the likely nominee for the President’s Secretary of the Treasury, is well-positioned to deal with the three most immediate fiscal crises facing the nation: the debt ceiling, the deficit, and the fiscal cliff. Is he the proverbial banking  insider? Unlike his immediate predecessor, Lew doesn't come from a big bank or investment firm, but rather from positions as Chief of Staff to the President and past director of the … [Read more...]

Money Goes Where It’s Treated Best

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As the old saying goes “money goes where it's treated best.” And it is certainly true when it comes to regulating an industry. In regulating an industry, the government must treat money well in order to maintain the health of the companies under its jurisdiction. The regulation of the financial sector imposed by The Obama Administration will have tremendous negative consequences if the old proverb is not quickly learned. The negative effect … [Read more...]

The “Other” Cliff Comes With Heavy Price Tag For Economy

The Other Cliff

As the Fiscal Cliff has garnered a great deal of attention, another cliff is waiting on the horizon in the shape of vast regulations that President Obama will try to push through in his second term.    This wave of far reaching regulations could pose a bigger threat to the US economy that appears to finally be turning the corner from the financial crisis of 2008. In fact, some observers contend that cost of newly proposed regulations could … [Read more...]

Weaknesses in the US Regulation of Derivatives

Derivative

President Obama's new proposal aimed to regulate derivatives has some major flaws.  The proposal stops short of creating a fully transparent market. Derivatives are financial products that supposed to help investors manage risks, like the possibility of default or of interest-rate swings.    They are virtually hidden from investors, analysts and regulators. They do not trade openly on public exchanges and have very few other … [Read more...]