Elizabeth Warren Schools CNBC Talking Heads | Page 2 | TigerDroppings.com

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ShortyRob
LSU Fan
Huntsville, AL
Member since Oct 2008
27510 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

Is banking regulation good or bad?


It is VERY good. For the people being regulated. That's cause dumb fricks like you fail to realize that the people with the best access to the regulators are NOT the little guys.

Nope. It's the big dogs. Ever seen a list of where key admin officials across the last several administrations came from? If you guessed from the major banking sectors, you get a cookie.






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gatorrocks
Florida Fan
Lake Mary, FL
Member since Oct 2007
9395 posts

re: Elizabeth Warren Schools CNBC Talking Heads


The only thing Warren can school people on is how to claim you're part Indian without actually being part Indian.





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Rickety Cricket
Navy Fan
Premium Member
Member since Aug 2007
36904 posts

re: Elizabeth Warren Schools CNBC Talking Heads


Didn't watch the interview, but does she mention any of her delicious native American heritage recipes





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La Place Mike
LSU Fan
West Florida Republic
Member since Jan 2004
16808 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

Who cares what some Indian squaw thinks about banking?


This one does.







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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
25768 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

saintforlife1


Sorry this thread turn out the way it did. It really had the potential of being a very interesting thread however the way you framed you question, "is banking regulation good or bad" really invited the comments that followed. To maybe get this thread back on track let's take a look at the banking regulations Elizabeth Warren is proposing then we can deconstruct, critique and maybe learn something. I'm not a banking expert by any stretch, but I am nominally interested in this subject. From Warren's website on the "The 21st Century Glass Steagall Act":

quote:

When I learned last winter that I would have a seat on the Senate Banking Committee, I was very happy because I knew it would give me the opportunity to ask tough questions and push for some accountability from Wall Street and its regulators. In the last six months, that’s exactly what I’ve tried to do.

Again and again, I’ve been making a simple point to anyone who will listen: we need to learn from the financial crisis of 2008 and, moving forward, to prevent the kinds of high-risk activities that made a few people rich but nearly destroyed our economy.

Now it’s time to launch the next push. I joined forces with Senators John McCain, Angus King, and Maria Cantwell to introduce the 21st Century Glass-Steagall Act of 2013 to reinstate and modernize core banking protections.

Banking should be boring. Savings accounts, checking accounts -- the things that you and I rely on every day -- should be safe from the sort of high-risk activities that broke our economy.

The way our system works, the FDIC insures our traditional banks to keep your money safe. That way when you want to withdraw money from your checking account, you know the money will be there. That’s what keeps our banking system safe and dependable.

But the government should NOT be insuring hedge funds, swaps dealing, and other risky investment banking services. When the same institutions that take huge risks are also the ones that control your savings account, the entire banking system is riskier.


IDK, but this all seems reasonable so far.

quote:

Coming out of the Great Depression, Congress passed the Glass Steagall Act to separate risky investment banking from ordinary commercial banking. And for half a century, the banking system was stable and our middle class grew stronger. As our economy grew, the memory of the regular financial crises we experienced before Glass-Steagall faded away.


The stability of the banking system from the Great Depression during the time period that she is referring to probably has more to do with the Federal Reserve (providing liquidity) than the Glass Steagall Act.

quote:

But in the 1980s, the federal regulators started reinterpreting the laws to break down the divide between regular banking and Wall Street risk-taking, and in 1999, Congress repealed Glass Steagall altogether. Wall Street had spent 66 years and millions of dollars lobbying for repeal, and, eventually, the big banks won.

Our new 21st Century Glass Steagall Act once again separates traditional banks from riskier financial services. And since banking has become much more complicated since the first bill was written in 1933, we’ve updated the law to include new activities and leave no room for regulatory interpretations that water down the rules.

The bill will give a five year transition period for financial institutions to split their business practices into distinct entities -- shrinking their size, taking an important step toward ending “Too Big to Fail” once and for all, and minimizing the risk of future bailouts.


IMO, you minimize the bailouts by not handing out bailouts. The bailouts are a function of moral hazard created by the federal government. when the federal government removes risk to particular financial instruments the financial intuitions that create said financial instruments in greater numbers not because the risk has been vacated, but because the risk has been transferred to the federal government/tax payer.


quote:

This is an important bill that will learn from the 2008 crisis and make sure we hold Wall accountable. Show your support for the new 21st Century Glass Steagall Act now.


Apparently she hasn't learned much from the 2008 financial crisis. Stop removing the risk from banks and the banks will naturally correct themselves. But removing risk also means less loans to her constituency.

quote:

When people like you and me work together, we can stand up to even the most powerful interests. That’s how we got the Consumer Financial Protection Bureau in 2010. That’s how we won our election in 2012. And that’s how we’ll pass the 21st Century Glass Steagall Act.




LINK






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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
23359 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

Elizabeth Warren Schools CNBC Talking Heads
Did she scalp them? Did she show them how to plant maize?






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TerryDawg03
Georgia Fan
The Deep South
Member since Dec 2012
2013 posts

re: Elizabeth Warren Schools CNBC Talking Heads


Warren has been a consumer advocate more than anything else. She was originally intended to serve as director of the CFPB. She has had such a clear agenda, dating back to her advocacy days at Harvard, that I question the legitimacy of any regulatory legislation she proposes.

FWIW, I've worked in banking for about 15 years and my current role involves developing a response to changes required by the CFPB which were included in Dodd-Frank. It's a cluster.






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ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
10289 posts

re: Elizabeth Warren Schools CNBC Talking Heads


Liz don't know much about finance. But, that aside it's not regulation or lack of regulation that is at the heart of the matter. It's that the players have no skin in the game. Now that large investment banks are publicly traded those running them are immune to the consequences of their failures. The period Liz talks about people like J.P. Morgan had their personal wealth at stake. Their banks fail and they lose everything. Tends to make one a bit more prudent.





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jcole4lsu
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Member since Nov 2007
27325 posts
 Online 

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

Elizabeth Warren Schools CNBC Talking Heads

quote:

I am not knowledgeable enough in these matters to debate this,


so how do you know she "schooled" them then?






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LSUnowhas2
LSU Fan
Baton Rouge
Member since Sep 2004
21823 posts

re: Elizabeth Warren Schools CNBC Talking Heads


Was she wearing her Cherokee headdress?





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oklahogjr
Arizona State Fan
Gold Membership
Member since Jan 2010
22156 posts

re: Elizabeth Warren Schools CNBC Talking Heads


FWIW the head of a wall street CEO search firm gave a lecture on ethics a few years ago to my business ethics class. He said to bring back glass-stegall, the repeal of it has incentivized the risky trading to much. I however don't know enough to make an opinion other than at this point we've regulated new markets into existance for these banks. We can either patch up our regulation to prevent crashes very similar to what canada does or we should deregulate and get rid of the to big to fail safety nets and let them fail next time. This middle of the road bull shite on regulation is what caused the 2008 crash that and a lot of unethical trading of garbage





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16836 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

so how do you know she "schooled" them then?



I'm still awaiting this answer also.







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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts

re: Elizabeth Warren Schools CNBC Talking Heads


quote:

The way our system works, the FDIC insures our traditional banks to keep your money safe. That way when you want to withdraw money from your checking account, you know the money will be there.


That has absolutely nothing to do with bad credit default swaps issued by insurance companies (not banks and therefore not subject to Glass-Steagall) and traded by major financial institutions. Checking accounts were never in danger. Either she doesn't know what she is talking about, is counting on others not to know any better, or more likely both.

Question to Warren: What would Glass-Steagall have done to prevent the issuance of too many credit default swaps?

The correct answer is - nothing. And if she can't adequately understand why she really should be on some other committee.






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