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Tag Archives: Paul Volcker

Bankers and Politicians Disapprove of Dodd-Frank, but Is There Really an Alternative?

Posted in Banks and Financial Services

Following recent lawsuits, court decisions, and presidential debates, more Americans than ever are becoming familiar with the Dodd-Frank Act, which was passed in 2010 to increase the government’s ability to regulate big banks.  Many politicians and lobbyists have argued for repealing the Dodd-Frank Act, but a recent New York Times editorial poses an interesting question:… Continue Reading

Paul Volcker Says the Hardest Part is Getting Banks to Listen

Posted in Banks and Financial Services

A couple days ago, Paul Volcker (of “Volcker Rule” fame) testified before the British Parliament’s Commission on Banking Standards Joint Committee on Wednesday.  Volcker answered questions about the Volcker Rule and bank regulation, but the most interesting part was his answer to a question we’ve all wondered about: “What is it that makes it so… Continue Reading

Déjà Vu, Over and Over Again

Posted in Banks and Financial Services

Has anything really changed since the financial crisis of 2008?  It seems that the too-big-to-fail banks are still too-big-to-fail.  If you are reading this now, you are obviously aware of JPMorgan Chase’s disclosure of more than $2 billion in losses last week as a result of what time and time again are referred to as… Continue Reading

JPMorgan’s $2 Billion Trading Loss: Starting a Game of Pink Slip Duck-Duck-Goose

Posted in Banks and Financial Services

JPMorgan’s troubles related to its $2 billion-plus trading loss are just getting started.  Now, executives find themselves unwittingly playing “pink slip duck-duck-goose.” First, losses are expected to ultimately exceed $3 BBBBillion. Second, the feds are involved, as in the FBI (guns, badges, sunglasses, and yes handcuffs).  Ouccchhh.  I hate when that happens.  Add the SEC… Continue Reading

JPMorgan Chase Loses Two Billion Dollars: Exhibit A in Favor of the Volcker Rule

Posted in Banks and Financial Services

The Volcker Rule got some free advertising yesterday, courtesy of JPMorgan Chase.  Quicker than you can say “here we go again,” the too-big-to-fail bank announced a two billion dollar trading loss.  Just as the American economy has begun to turn around and gain confidence, its second-largest bank puts us through “déjà vu all over again.” … Continue Reading

The Volcker Rule Train Refuses to be Derailed

Posted in Banks and Financial Services, Consumer Protection

­­­­All aboard and full steam ahead on the Volcker Rule Train.  Next stop: Final Draft.  ETA: September, 2012? At least that’s what an article by Ben Protess and Peter Eavis predicts, citing anonymous sources with knowledge of the issue (a journalist’s best friend).  The Dodd-Frank Bill initially set a deadline of July 2012, but there… Continue Reading

Watering Down the Volcker Rule: The Disingenuousness of the Banking Industry While We Discussed the Rule’s Merits

Posted in Banks and Financial Services

Every time banks asked, “Well what do we do if X, Y, or Z happens,” a contingency was written into the rule. And when asked: “Hey, how is this going to be interpreted,” definitions and interpretations were spelled out. (Okay, maybe not every time. But how on earth did a plan as simple as “No risking taxpayer money on proprietary trading” reach 500 words, not to mention 500 pages?)

“The lady doth protest too much, methinks…” – Volcker Must Be On To Something

Posted in Banks and Financial Services

It will be okay, big guys. Investment banks will allow for the liquidity you supposedly so dearly fear losing. The market will adapt and the reduced risk in the U.S. financial system will restore confidence and integrity to the markets. The economy grew for decades under the Glass-Steagall Act. Would we really be upset to see that growth again–growth all can benefit from, not just traders?

Bailouts and Bonuses: How Wall Street Wins Whether They’re Right or They’re Wrong

Posted in Banks and Financial Services

Heads: the risks pan out, the executives look like geniuses, and they have “earned” their multimillion dollar bonuses and Cuban cigars.  Tails: the uberderivative financial instruments that these “geniuses” have concocted crash, as in the subprime mortgage crisis… There are simply no negative consequences.  Financial institutions, three years since the beginning of the global financial… Continue Reading

The Banks’ Greatest Fear: An 84 Year Old man Named Paul Volcker

Posted in Banks and Financial Services

You’d think banks would have a lot more to worry about than an unemployed octogenarian.  Perhaps a portfolio of worthless subprime mortgage securities?  Nope.  The government will bail us out.  How ’bout dwindling revenues in the face of a continued economic downtown?  No worries, we’ll just start charging fees for everything our customers do, from… Continue Reading

Quick Links: A UBS Employee Proves What We Should Have Known for Years, Europe’s Top Banking Nations Lead the Charge on Financial Regulation, and Elizabeth Warren Runs for Senate

Posted in Consumer Protection

Today, TCO brings back Quick Links, which keeps our readers updated in the world of consumers. UBS, one of the largest banks in the world, had one of its employees arrested for allegedly losing over $2 billion, which would essentially eliminate the company’s quarterly profits.  The New York TImes’ DealBook asks the question we all should:… Continue Reading

Paul Volcker To Head The New Consumer Finance Protection Board?

Posted in Consumer Protection

Finally, at the heart of his wisdom is a moral compass that cannot be bought or compromised. Eighty three years young, he is not looking for a job in “industry” or to be feted by Wall Street chiefs at black tie dinners. He will not suffer fools lightly or be bamboozled by high-priced consultants and convoluted explanations about how failures to disclose financial risks to consumers is somehow a good thing.