Comments on: Plan to Repair U.S. Banking System Unveiled by Former Hedge Fund Manager

By: Secretive Bank Stress Tests Heighten Investor Stress

Secretive Bank Stress Tests Heighten Investor Stress — Tue, 26 Jan 2010 16:24:28 +0000

[...] fact, the key problem with the whole stress-test exercise is that it does nothing to improve financial-system transparency – something I've said would be key to a true reformulation of the U.S. banking system. [...]

By: Wall Street vs. Main Street: The Regulatory Battle Begins Tomorrow

Wall Street vs. Main Street: The Regulatory Battle Begins Tomorrow — Tue, 16 Jun 2009 10:01:28 +0000

[...] overhaul proposals Money Morning previously outlined for both the regulatory system and the U.S. banking system, the reality here is that the current set of regulators will [...]

By: Secretive Bank Stress Tests Heighten Investor Stress

Secretive Bank Stress Tests Heighten Investor Stress — Wed, 29 Apr 2009 10:06:08 +0000

By: Stock Markets Move Past Gloom and Doom in Anticipation of the U.S. Economy's Recovery

Fri, 27 Mar 2009 09:57:56 +0000

[...] addition to reigning in freewheeling leveraged wrecking machines, I see unequivocal echoes of my calls for a systemic regulator to monitor all players with the potential to single-handedly co…, tightened and more universal accounting standards and a systemic watchdog to monitor threats to [...]

By: “Shadow Fed” Casts a Shadow Over the Solvency of the U.S. Banking System

“Shadow Fed” Casts a Shadow Over the Solvency of the U.S. Banking System — Wed, 18 Mar 2009 16:08:00 +0000

[...] and the bailout and stimulus plans put forth by the Bush and Obama administrations. Indeed, Gilani recently unveiled a banking-system repair plan that he says would fix the U.S. financial system – and at a much lower cost than the government [...]

By: How the U.S. Credit Crisis Will Lead to an Overhaul of the U.S. Student Loan System

Thu, 05 Mar 2009 10:31:02 +0000

[...] and the bailout and stimulus plans put forth by the Bush and Obama administrations. Indeed, Gilani just unveiled a banking-system repair plan that he says would fix the U.S. financial system – and at a much lower cost than the government [...]

By: Rod Williams

Rod Williams — Mon, 02 Mar 2009 01:22:24 +0000

Efficient regulation is to be applauded. However it does not address the primary problem of an industry of paper shufflers who, in the main, have a negative contribution to the world economy. What % of activity is directed at primary versus secondary investments? The investing of funds "in funds" sets up the market for a misallocation of capital and develops a casino mentality especially when short term returns are the mantra. Direct investment at real R&D, production and services and maybe the economy can revive. "Gamblers ruin" maybe a concept worth understanding.

By: Ken Davies

Ken Davies — Thu, 26 Feb 2009 10:12:45 +0000

Why should the government adopt regulatory measures to "firm up" house prices? If house prices fall to affordable levels in line with the long-term ratio of price to income, people will be able to buy houses. They will be able to put aside a regular sum from their income in what is called a "savings account" (they still have this in many other countries). This builds into a sizeable deposit, then the buyer makes his/her purchase and the regular sum becomes the monthly mortgage payment. No need for foreclosure.

By: conor lawson

conor lawson — Thu, 26 Feb 2009 05:35:27 +0000

Hi Shah, Could the U.S Gov. issue say 10 year Zero Coupon Bonds for the Toxic assets in the banks which would be put into a "Bad Bank". The banks would not be able to trade the bonds, so the would not have to "mark to market" but would accrue the income in the normal way. The government would not actually have to part with any tax payers cash and would have a 10 year period to work out the toxic assets in the Bad Banks. Hopefully during the ensuing 10 years the economy will recover and lead to some of the toxic assets coming good. The funds in the "Bad Bank" when recovered could be used to part pay down the 10 year Zero Coupon Bonds at maturity. Given that the banks would be rid of their "Toxic Assets" they would be in a better position to start building their balance sheets and be in a position to attract deposits and business once again.

By: chris erickson

chris erickson — Thu, 26 Feb 2009 05:33:10 +0000

I agree as to the basics ; but what should have been done from the outset & still should be is to take all the existing loans I don't care if it is for a $100 K or $1 mil convert them to a fixed rate of 4% , keep the rate this low for about 2 years till the market sorts it self out the let it float; this would most likely stop all if not most of the foreclosures , 2nd
any company that out sources , ships their jobs/ production over seas should be taxed at a higher rate & give those that do provide jods here & tax break … raise the Federal gas tax
to a dollar a gal , also raise the achaol tax which hasn't been done in how many years …