Crisis events of the last two years in the global economy “bared” one notable feature of the modern market model, namely, despite the theoretical equality of all businesses, some of them “more equal than others”. This is the so-called organizations that are “too big, so they could afford to fail” (too-big-to-fail). Using the term “mind” in the first place, come to companies in the financial sector. Uncontrolled and irrespo1000nsible (in the context of risk management) activities hypertrophic banks (primarily American) was one of the main causes of the current global recession. The worst thing is that these same financial giants, who later became the main beneficiaries of the global crisis. To support the national financial institution s governments of different countries contributed approximately $ 9 trillion. Thus, in fact, taxpayer funds were spent on replenishing the capital base of zombie banks, buy their troubled assets and provide guarantees for their debt obligations. But as it turned out, the memory of bankers very “short”. And then the experienced “clinical death” and the infusion of billions of dollars, the representatives of Wall Street in 2009, began to familiar in recent decades of practice: be high speculation in financial markets and the huge bonus payments to its employees. So, last year the top managers, investment bankers, portfolio managers, traders and other employees of leading financial companies in the U.S. to receive financial compensation in excess of $ 140 billion, significantly higher than in 2008 and even 2007
Perhaps it was the last straw for the U.S. administration, which has seriously decided to fight the ban oligopolists banking system is. Obama”s advisers have repeatedly expressed the need for separation of the largest financial institutions. In particular, if the bank takes deposits from the public, who are also insured by the state, then this organization should not have any legal or moral right to engage in high-risk investment operations on its own behalf (via hedge funds and other entities), at the risk, including liabilities of the bank, formed from the savings of citizens. Moreover, if the bank still wants to carry out operations with securities and trading at its own expense, he should lose the ability to attract resources from the population. Similar restrictions apply to institutions that attract low-cost loans from the U.S. Federal Reserve.
It is this idea of the President of the United States expressed yesterday during his speech. In fact, based on ideas proposed by Barack Obama”s reform of the banking system is the law of Glass-Stigola, which operated from 1933 to 1999. and p azdelyavshy banks on commercial and investment. The White House administration no longer wants the same financial institutions to take deposits from the public and engage in investment activity (including through its own hedge funds, private equity funds). Dividing these areas, U.S. officials hope to reduce the overall systemic risk to the financial system. For comparison: the five largest credit organizations in the USA (JP Morgan, Bank of America, Wells Fargo Wachovia, Citi) account for nearly half of all assets of the national banking system. In such circumstances, the U.S. Treasury and the Fed must take into account the ongoing activities of these structures, and in extreme cases, to adjust their policies under them.
With the adoption of new initiatives, coupled with compliance regulations developed by the influence of “giants” would be more limited and is controlled by the leadership of the country. The most severely affected organizations from developed investment banking page ukturami and, above all, Goldman Sachs and Morgan Stanley. Some experts at the same time fear that a strong pressure on large institutions can accelerate the credit squeeze and make the borrowed resources unavailable to small and medium businesses. In this connection it is worth noting that before the crisis, the main creditors SMEs (Small and Medium-Sized Enterprises) were not the giants of Wall Street, but small regional banks suffered during the crisis stronger than the others (more than 140 bankruptcies).
In summary, it can be said if Obama will reform (which is very difficult, given the pd41owerful banking lobby in Congress), then the next logical step “a fighter with bankers” will split huge transnational finistitutov. It has long been proven that the monopoly (oligopoly) reduce the efficiency of the economy, leading to huge losses of social welfare and the vulnerability of the economic system. Therefore, knowing the determination of the American President, in the near future “fat cats on Wall Street” could easily sit on the “diet”. And this diet is obviously going to benefit, as American society and the world economic system as a whole.
The U.S. administration is ready to “fight with Wall Street”
Crisis events of the last two years in the global economy “bared” one notable feature of the modern market model, namely, despite the theoretical equality of all businesses, some of them “more equal than others”. This is the so-called organizations that are “too big, so they could afford to fail” (too-big-to-fail). Using the term “mind” in the first place, come to companies in the financial sector. Uncontrolled and irrespo1000nsible (in the context of risk management) activities hypertrophic banks (primarily American) was one of the main causes of the current global recession. The worst thing is that these same financial giants, who later became the main beneficiaries of the global crisis. To support the national financial institution s governments of different countries contributed approximately $ 9 trillion. Thus, in fact, taxpayer funds were spent on replenishing the capital base of zombie banks, buy their troubled assets and provide guarantees for their debt obligations.
But as it turned out, the memory of bankers very “short”. And then the experienced “clinical death” and the infusion of billions of dollars, the representatives of Wall Street in 2009, began to familiar in recent decades of practice: be high speculation in financial markets and the huge bonus payments to its employees. So, last year the top managers, investment bankers, portfolio managers, traders and other employees of leading financial companies in the U.S. to receive financial compensation in excess of $ 140 billion, significantly higher than in 2008 and even 2007
Perhaps it was the last straw for the U.S. administration, which has seriously decided to fight the ban oligopolists banking system is. Obama”s advisers have repeatedly expressed the need for separation of the largest financial institutions. In particular, if the bank takes deposits from the public, who are also insured by the state, then this organization should not have any legal or moral right to engage in high-risk investment operations on its own behalf (via hedge funds and other entities), at the risk, including liabilities of the bank, formed from the savings of citizens. Moreover, if the bank still wants to carry out operations with securities and trading at its own expense, he should lose the ability to attract resources from the population. Similar restrictions apply to institutions that attract low-cost loans from the U.S. Federal Reserve.
It is this idea of the President of the United States expressed yesterday during his speech. In fact, based on ideas proposed by Barack Obama”s reform of the banking system is the law of Glass-Stigola, which operated from 1933 to 1999. and p azdelyavshy banks on commercial and investment. The White House administration no longer wants the same financial institutions to take deposits from the public and engage in investment activity (including through its own hedge funds, private equity funds). Dividing these areas, U.S. officials hope to reduce the overall systemic risk to the financial system. For comparison: the five largest credit organizations in the USA (JP Morgan, Bank of America, Wells Fargo Wachovia, Citi) account for nearly half of all assets of the national banking system. In such circumstances, the U.S. Treasury and the Fed must take into account the ongoing activities of these structures, and in extreme cases, to adjust their policies under them.
With the adoption of new initiatives, coupled with compliance regulations developed by the influence of “giants” would be more limited and is controlled by the leadership of the country. The most severely affected organizations from developed investment banking page ukturami and, above all, Goldman Sachs and Morgan Stanley. Some experts at the same time fear that a strong pressure on large institutions can accelerate the credit squeeze and make the borrowed resources unavailable to small and medium businesses. In this connection it is worth noting that before the crisis, the main creditors SMEs (Small and Medium-Sized Enterprises) were not the giants of Wall Street, but small regional banks suffered during the crisis stronger than the others (more than 140 bankruptcies).
In summary, it can be said if Obama will reform (which is very difficult, given the pd41owerful banking lobby in Congress), then the next logical step “a fighter with bankers” will split huge transnational finistitutov. It has long been proven that the monopoly (oligopoly) reduce the efficiency of the economy, leading to huge losses of social welfare and the vulnerability of the economic system. Therefore, knowing the determination of the American President, in the near future “fat cats on Wall Street” could easily sit on the “diet”. And this diet is obviously going to benefit, as American society and the world economic system as a whole.
Forex - in the European session
Russia”s indexes into confidence minus, the dynamics of “anti-market” can not show the telecom and Severstal
Market participants are waiting with some apprehension the U.S. Federal Reserve meeting, which will be held next week
The worst of the market traded shares of financial companies, responding to trends in European stock exchanges
Closer to the closure of Russia”s market can rebound attempt, but it would depend on how the American players behave themselves
Alexei Ulyukayev: Russia”s GDP in 2010 may exceed 5%
Review of the precious metals market for 21.01.10
Obama asked the heat
Technical analysis of the currency pair EUR /USD