Note that MF Global apparently used repo financing to move those high-risk bonds off its balance sheet, making its capital position look better than it was. Hmm. Didn’t Lehman also use the artifice of repo financing to dress up its balance sheet? Why don’t accountants fix this stuff?
— Sheila Bair (former FDIC Chairwoman)
A lot of readers want to know what I think about the financial regulation bill that Congress passed. Unfortunately, I’ve been too busy traveling to read it or keep up with this week’s commentary. I’ll address it in more detail in the coming weeks and months. For now, the best I can do is repost the two most important columns I’ve written during the regulation debate with a brief follow-up on whether this bill addresses those issues. Continue reading “We’ve Only Just Begun”
You know you missed us.
Once again, my fault. I’ve been traveling and working on new essays and articles. The book is progressing (third draft) and evolving, and in the research process I’ve discovered some fantastic material for future writing. More on that in coming weeks and months.
For now, let’s kick off May with my latest column in the South Florida Sun-Sentinel. I know you want me to write more about financial regulation, but I’m trying to save my most important points for the book. (And I doubt we’re going to get a great bill no matter what any of us write. It’s going to take many years to right this ship).
With that said, here is something important that Congress isn’t addressing in financial regulation: “We also need to regulate the regulators.” Read the column to see what I mean.
I know you’re also eager to hear my take on Greece’s troubles. In good time, dear reader. I will now be writing more frequently: Get ready for a busy summer!