Comments on: Richard Fisher of the Dallas Fed on Financial Reform http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/ towards a more resilient macroeconomy Sun, 05 Feb 2012 10:17:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jim Golden http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-27498 Jim Golden Sat, 05 Mar 2011 18:39:53 +0000 http://www.macroresilience.com/?p=466#comment-27498 It's amazing - you wrote this over 9 months ago, but nothing has changed & I'm not holding my breath for anything to turn around anytime in the near future either... The economy is in the toilet It’s amazing – you wrote this over 9 months ago, but nothing has changed & I’m not holding my breath for anything to turn around anytime in the near future either…

The economy is in the toilet

]]> By: Guest Post: On Broken Trades and Bailouts « naked capitalism http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-3511 Guest Post: On Broken Trades and Bailouts « naked capitalism Fri, 20 Aug 2010 00:32:52 +0000 http://www.macroresilience.com/?p=466#comment-3511 [...] months ago in a speech by Richard Fisher of the Dallas Fed (and expanded upon by Tyler Durden and Ashwin Parameswaran shortly thereafter): Big banks that took on high risks and generated unsustainable losses received [...] [...] months ago in a speech by Richard Fisher of the Dallas Fed (and expanded upon by Tyler Durden and Ashwin Parameswaran shortly thereafter): Big banks that took on high risks and generated unsustainable losses received [...]

]]> By: Guest Post: On Broken Trades and Bailouts « naked capitalism http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-3510 Guest Post: On Broken Trades and Bailouts « naked capitalism Fri, 20 Aug 2010 00:32:52 +0000 http://www.macroresilience.com/?p=466#comment-3510 [...] months ago in a speech by Richard Fisher of the Dallas Fed (and expanded upon by Tyler Durden and Ashwin Parameswaran shortly thereafter): Big banks that took on high risks and generated unsustainable losses received [...] [...] months ago in a speech by Richard Fisher of the Dallas Fed (and expanded upon by Tyler Durden and Ashwin Parameswaran shortly thereafter): Big banks that took on high risks and generated unsustainable losses received [...]

]]> By: admin http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-1595 admin Mon, 07 Jun 2010 20:07:21 +0000 http://www.macroresilience.com/?p=466#comment-1595 Ohm - On the Resolution Authority, I share Richard Fisher's skepticism that the exemption allowing the paying off of system-threatening liabilities is too big a loophole. Even if this loophole is fixed, regulators will only be encouraged to use alternative bailout mechanisms even more ardently than they do currently in an attempt to avoid the systemic consequences of resolution. Ohm – On the Resolution Authority, I share Richard Fisher’s skepticism that the exemption allowing the paying off of system-threatening liabilities is too big a loophole. Even if this loophole is fixed, regulators will only be encouraged to use alternative bailout mechanisms even more ardently than they do currently in an attempt to avoid the systemic consequences of resolution.

]]> By: Ohm http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-1581 Ohm Mon, 07 Jun 2010 06:57:50 +0000 http://www.macroresilience.com/?p=466#comment-1581 Please read: "Such FIs, in future, will be seized, and ordely liquidated (or resold) after paying the necessary liabilities that are system threatening." Please read: “Such FIs, in future, will be seized, and ordely liquidated (or resold) after paying the necessary liabilities that are system threatening.”

]]> By: Ohm http://www.macroresilience.com/2010/06/06/richard-fisher-of-the-dallas-fed-on-financial-reform/comment-page-1/#comment-1580 Ohm Mon, 07 Jun 2010 06:57:39 +0000 http://www.macroresilience.com/?p=466#comment-1580 "..As a result, more conservative banks were denied the market share that would have been theirs if mismanaged big banks had been allowed to go out of business. In essence, conservative banks faced publicly backed competition…..It is my view that, by propping up deeply troubled big banks, authorities have eroded market discipline in the financial system. The system has become slanted not only toward bigness but also high risk.." Very True. Going fwd, the Financial Resolution Authority mechanism will correct this huge issue. Such FIs, in future, will be seized, and ordely liquidated, or resold after paying the necessary liabilities that are system threatening. the previous managements will be fired and the previous shareholders, and possibly bondholders, will be wiped out. “..As a result, more conservative banks were denied the market share that would have been theirs if mismanaged big banks had been allowed to go out of business. In essence, conservative banks faced publicly backed competition…..It is my view that, by propping up deeply troubled big banks, authorities have eroded market discipline in the financial system.

The system has become slanted not only toward bigness but also high risk..”

Very True. Going fwd, the Financial Resolution Authority mechanism will correct this huge issue. Such FIs, in future, will be seized, and ordely liquidated, or resold after paying the necessary liabilities that are system threatening. the previous managements will be fired and the previous shareholders, and possibly
bondholders, will be wiped out.

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