Lately, I've gotten a lot of time on CNBC's Kudlow Report. Here's my latest from April 28 on whether bank stress tests will reveal Bank of America needs more capital.
Good question. Many have received injections of capital (purchases of preferred stock) through the Troubled Asset Relief Program (TARP), yet many large banks announced large profits this week. If this week's announcements were all I knew about it, I'd be very confused. But, my answer is…
(Running Out the Clock) When a subcommittee of the House Banking Committee held hearings on mark to mark accounting, Congressional intent was very clear. Either the Financial Accounting Standards Board (FASB) make some common- sense changes or Congress would do it through legislation. Those hearings were held on Thursday, March, 12. FASB met the following […]
(Mostly Window Dressing) The much ballyhooed stress tests to be given to systemically important banks are mostly window dressing, but could still have serious consequences by giving the regulators an occasion to do whatever they want to do. I call them window dressing because stress tests using various assumptions, including dire assumptions, have long been […]
My quick reaction to the Fed’s shock and awe policy actions on Tuesday may be found at Forbes.com. Prior to the FOMC’s announcement, when the entire focus of expectations was on the target Fed Funds rate, I anticipated a reduction of 50 basis points, but I didn’t think it mattered much since the Fed Funds […]