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Showing posts from July, 2012

Wells Fargo's Dick Kovacevich: Dodd-Frank Would Not Have Prevented the Financial Crisis of 2008

Rough Transcript:

Andrew Ross Sorkin: Ikay, let's talk about dick kovacevich. comments made on this show is still rocking the financial industry, sandy weill's change of heart on financial super markets like the ones he created. take a listen to this for a second.

Clip of Sandy Weill: what we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans and have banks do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail. the banking system is really very, very important. i think that the problem that was created was created by too much concentration in investments in the banking system, way too much leverage, very little transparentally with lots of off-balance sheath things that didn't really count and i think a lot of those things have to change. i think that there should be transparency and nothing off the balance sheet. if…

Sandy Weill Calls for Separation of Commercial Banking and Investment Banking

Sandy Weill, in an interview on Squawk Box on CNBC July 25, said that Glass-Steagall should be re-instated and that commercial banking and investment banking should be separated. Investment banks should not be allowed to have deposits, they would not be insured, and would be allowed to fail.

As the man who put together the mega-merger of Citigroup and Travelers that paved the way for the repeal of Glass-Steagall, this is a stunning turn-around in his views. His concern derives partly from the negative view of banking held by the public. But, he also feels that Dodd-Frank is crippling the ability of investment banks to be the innovators and leaders they have traditionally been and wants the United States to remain the leader in world finance.

Holtz-Eakin: Fiscal Clilff 'an Enormous Hit'

Daily Ticker Interview July 20, 2012

America is headed for a fiscal cliff if members of Congress fail to act before the end of the year.

Many economists agree that if no action is taken, 2013 will begin with a $600 billion drag on the economy, or a 4 to 5 percent hit to GDP, due to a combination of tax hikes and budget cuts set to take effect.

To put that in perspective, the knock to economic growth could be twice as much as current GDP growth forecasts for all of 2012 and more than any annual GDP growth in the last decade.

Former Treasury Secretary Robert Rubin said this week at the CNBC Institutional Investor Delivering Alpha conference that the impact of the fiscal cliff could be worse than the fallout from the 2008 financial crisis, which resulted in the worst recession since the Great Depression.

A new report by the American Action Forum forecasts between 2.8 million and 10 million jobs could be lost as a result of falling off the cliff based on a set of GDP economic multipliers…

Bowles on CNBC: "We're Going Over the Fiscal Cliff"

Becky Quick at CNBC Interviews Warren Buffett, Alan Simpson and Erskine Bowles, in Sun Valley, Idaho, July 12, 8:03 am:

Rough Transcript:

Becky Quick: We are in Sun Valley as you mentioned and we are joined by our dream line-up this morning, Warren Buffett, who has been with us for the last half hour and joining us and sitting down with us right now are former Senator Alan Simpson and Erskine Bowles, former chief of staff for President Clinton, two gentlemen we have been hoping to get on the program for an incredibly long time, because of Simpson-Bowles, Bowles-Simpson and everything that's happening with the fiscal cliff.

Gentlemen we thank you for agreeing to sit down with us this morning. thank you. warren buffett can attest to this, but when we go around and talk to ceos, it is almost universal among them when they say if they had a chance and could vote for bowles-simpson or simpson-bowles, they would put this in immediately and they can't understand why this hasn't h…

Nigel Farge: Europe's "19th Nervous Breakdown"

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• European Parliament, Strasbourg, 3 July 2012

• Speaker: Nigel Farage MEP, Leader of the UK Independence Party (UKIP), Co-President of the 'Europe of Freedom and Democracy' (EFD) Group in the European Parliament - http://nigelfaragemep.co.uk

• Debate: Conclusions of the European Council meeting (28-29 June 2012)
European Council and Commission statements [2011/2923(RSP)]

Link

Transcript:

"Well that is the 19th crisis summit that Mr Cameron has been to, as The Rolling Stones might say "The 19th Nervous Breakdown."

And that's reflected I think by the funereal mood in the chamber this morning.

Yes on that Friday morning, "breakthrough" was cried, and indeed Mr Van Rompuy parroted the word this morning, "breakthrough". Nobody believes you, the wheels are coming off. This new European Stability Mechanism, your new bailout vehicle is do…