This is a good overview about the plans for regulating derivatives. It also has some interesting numbers. For example, "...the $615 trillion over-the-counter derivatives market..."

This is a good review of Simon Johnson's book 13 Bankers. The policy recommendation of the book, as summarized by the review, is:

"In a nutshell: They propose that no financial institution should be allowed to control or have an ownership interest in assets worth more than 4% of U.S. gross domestic product, or roughly $570 billion in assets today ( Read more... )

Elizabeth Warren discusses why the financial-consumer protection agency needs to be independent. I agree with her, but think that it should even be independent of the government. This I believe would minimize the influence of financial industrial lobbyist and save taxpayer dollars ( Read more... )

Today the FTC issued guidelines requiring bloggers to disclose when they are being paid (either in wages or free products) by a company that they are writing about ( Read more... )

Yum Brands (parent company of KFC, Taco Bell, Pizza Hut…) is lobbying congress to require all restaurants (not just chains) to put calorie counts on the menu. More details are here. I basically agree because it would mean systematic information sharing.

Paul Craig Roberts notes that "It was greed, not the market, that was unleashed by deregulation during the Clinton and George W. Bush regimes." He points to three key deregulations. First the repeal of Glass-Steagall, and then:
It was in 2000 that derivatives and credit default swaps were excluded from regulation ( Read more... )

I remember the repeal of Glass-Steagall in 1999 along with William Kaufman. (The legislation was passed in 1933 in the wake of the great depression. It prohibited banks from owning other financial institutions and underwriting securities and insurance.) Its repeal enabled the current financial crisis.

Last month Senators Grassley and Kolhl introduced legislation that would require pharmaceutical companies to disclose all gifts or payments made to doctors (that are over $25.00). This makes sense to me. If my dentist recommends that I use some new anti-plaque treatment, then I’d like to know if he/she is getting gifts/money from the drugmaker. I ( Read more... )

This BusinessWeek article provides a good round-up of all the parties involved in the subprime mortgage situation. It importantly points out that credit kept flowing in part because of the bond-rating agencies’ good ratings. The important wrinkle here is noted in the article:
"A key issue is one that applies to many of the agencies' dealings: They ( Read more... )

When listening to this story on subprime lending, I felt great sympathy for the woman but could not agree with the lawyer’s statement at the end.

Interviewer: Did you realize the loan [payment] was going to go up after two years?
Lady: No, I did not.
Interviewer: Did they [the lenders] tell you though?
Lady: No, they did not.
Interviewer: Was ( Read more... )