Join 3,512 readers in helping fund MetaFilter (Hide)

77 posts tagged with finance and banking. (View popular tags)
Displaying 1 through 50 of 77. Subscribe:

Aggregate Demand Management: "pass a law allowing the Fed to cut checks"

Free Money for Everyone - "A wacky-sounding idea with surprisingly conservative roots may be our best hope for escaping endless, grinding economic stagnation." (via) [more inside]
posted by kliuless on Mar 16, 2014 - 19 comments

If Stable and Efficient Banks Are Such a Good Idea Why Are They So Rare?

Why do some banking systems never have crises and some have them all the time? Our system is Fragile by Design, the title of a new book by Calomiris and Haber. (The first chapter can be read here.) This essay lays out the argument, as does this PowerPoint. [more inside]
posted by anotherpanacea on Mar 1, 2014 - 32 comments

Coin Rules Everything Around Me

In 2014, Bitcoin (BTC) has become established as increasingly "real" money with government regulatory interest, law enforcement, and growing acceptance in commerce, but also as the reserve cryptocurrency for hundreds of "altcoins," making them also convertible to legacy money. Foremost among these is Litecoin (LTC), which introduced the scrypt hashing algorithm to cryptocurrency, democratizing coin mining by being best suited to common GPUs rather than Bitcoin's dedicated mining equipment. Recently donated LTC paid for a forest in Madagascar. Peercoin (PPC), next in prominence, introduces "proof of stake" where less energy is spent mining and existing coins pay interest. Dogecoin (DOGE), a fork of Litecoin (previously covered on Metafilter), continues heading to the moon, with more transactions than all other coins combined, thriving markets in digital goods, tipbots, an upcoming party in NYC's Bitcoin Center on Wall Street, much charity, and the recent announcement that new Dogecoins will be generated indefinitely. A selection of other foremost and interesting cryptocurrencies is within. [more inside]
posted by save alive nothing that breatheth on Feb 5, 2014 - 319 comments

Giant Bomb

PayPal locked down the developer’s account, and said it could only have 50% of the funds. The rest would be released as development continued, based on PayPal’s assessment of the situation. PayPal was, essentially, going to become a producer going forward. Crowdfunding's Secret Enemy is PayPal
posted by East Manitoba Regional Junior Kabaddi Champion '94 on Sep 20, 2013 - 73 comments

"It's not clear we have that much time."

As Andrew Haldane, director of stability at the Bank of England, put it in a historical overview a few years ago, ‘there is one key difference between the situation today and that in the Middle Ages. Then, the biggest risk to the banks was from the sovereign. Today, perhaps the biggest risk to the sovereign comes from the banks. Causality has reversed.’ Yes, it has: and the sovereign at risk is us. The reason for that is that in the UK bank assets are 492 per cent of GDP. In plain English, our banks are five times bigger than our entire economy. (When the Icelandic and Cypriot banking systems collapsed the respective figures were 880 and 700 per cent.) We know from the events of 2008 and subsequently that the financial sector, indeed the whole world economy, is in an inherently unstable condition. Put the size together with the instability, and we are facing a danger that is no less real for not being on the front page this exact second. This has to be fixed, and it has to be fixed soon, and nothing about fixing it is easy.
- "Let's Consider Kate," John Lanchester, London Review of Books (via)
posted by Rustic Etruscan on Jul 10, 2013 - 29 comments

The shocking news that Goldman Sachs is greedy

"Twenty five years ago I quit a job on Wall Street to write a book about Wall Street. Since then, every year or so, UPS has delivered to me a book more or less like my own, written by some Wall Street insider and promising to blow the lid off the place, and reveal its inner workings, and so on. By now, you might think, this game should be over. The reading public would know all it needed to know about Wall Street, and the publishing industry would be forced to look to some other industry for shocking confessions from insiders. Somehow this isn't the case."
posted by vidur on Feb 5, 2013 - 47 comments

There's a lot of bullshit coming from America

"Of the top 100 Swiss companies, 49 give shareholders a consulting vote on the pay of executives. A few other countries, including the United States and Germany, have introduced advisory "say on pay" votes in response to the anger over inequality and corporate excess that drove the Occupy Wall Street movement. Britain is also planning to implement rules in late 2013 that will give shareholders a binding vote on pay and "exit payments" at least every three years. Minder's initiative goes further, forcing all listed companies to have binding votes on compensation for company managers and directors, and ban golden handshakes and parachutes. It would also ban bonus payments to managers if their companies are taken over, and impose severe penalties — including possible jail sentences and fines — for breaches of these new rules."
posted by vidur on Jan 21, 2013 - 32 comments

Level 2 is more worrisome. Level 3 is hair-raising.

"We decided to go on an adventure through the financial statements of one bank [Wells Fargo], to explore exactly what they do and do not show, and to gauge whether it is possible to make informed judgments about the risks the bank may be carrying. We chose a bank that is thought to be a conservative financial institution, and an exemplar of what a large modern bank should be."
posted by vidur on Jan 14, 2013 - 14 comments

Japan

What's Going On In Japan? "Really Japan is quite a remarkable case, since neither fiscal nor monetary policy seems to be working to achieve the anticipated results. This year Japan will have a fiscal deficit of around 10% of GDP and gross government debt will hit 235% of GDP, yet the country is still struggling to find growth. Instead of reiterating old dogmas (whether they come from Keynes or from Hayek) more people should be asking themselves what is happening here. This is not a simple repetition of something which was first time tragedy and is now second time tragedy, it is something new, and could well be a harbinger for more that is to come, elsewhere. Oh, why oh why are economists not more curious?" [more inside]
posted by kliuless on Dec 27, 2012 - 82 comments

"how we learned to stop worrying and embrace the abstraction"

A Brief History Of Money [more inside]
posted by the man of twists and turns on Dec 16, 2012 - 53 comments

The Failure of Judges and the Rise of Regulators

The Control Revolution And Its Discontents - "the long process of algorithmisation over the last 150 years has also, wherever possible, replaced implicit rules/contracts and principal-agent relationships with explicit processes and rules."
posted by kliuless on Feb 23, 2012 - 25 comments

My Big Fat Greek Bailout

Greece gains another €130bn in bailout funds. It's a nice headline, but the reports suggest it still isn't enough and Newsnight paint a picture of a fracturing Greek society.
posted by jaduncan on Feb 20, 2012 - 92 comments

A serial intern in the finance sector speaks.

A serial intern in the finance sector speaks: "Applying for internships is so tiresome and bruising. It's like dating, you sit by the phone waiting for a call. Back in my days at university I would get up at 5.30am or 6am. First I'd go jogging, then send out an application for an internship. Every morning. It's so painful to hear 'no' all the time."
posted by feelinglistless on Jan 27, 2012 - 86 comments

What're the profit margins on a Trojan Horse?

A Swarthmore College student-reporter's questioning of whether it is moral to go into banking sparks NYT columnist Nick Kristof to not only assert the affirmative, but to argue (in part) that in fact more well-educated, liberally-mined people should go into "conservative" industries like banking in order to reform it from the inside. In effect, Kristof suggests, socialist-leaning, educationally-empowered students should hunker down, swallow their disdain, and apply their ideals to change finance. Said student responds (in Slate): elite, ostensibly liberal-leaning students don't seem to be particularly discouraged from capitalism or going into banking in this climate, and probably never have been.
posted by Keter on Jan 24, 2012 - 49 comments

Nerd Wallet: credit card comparison made easier

Nerd Wallet is a credit card comparison site that helps you filter cards based on select criteria. You can also limit your search to credit cards from credit unions. See also: the Nerd Wallet blog, with credit card industry and rewards news, and an interview with Tim Chen, founder of Nerd Wallet.
posted by filthy light thief on Dec 13, 2011 - 9 comments

Why do we need a financial sector?

Economics blog VoxEU debates Why do we need a financial sector? Serious, important and very dull articles discuss the trade-offs and myths of innovation, and whether the sector is overrated, critical or a contributor to the wider economy.
posted by TheophileEscargot on Nov 22, 2011 - 35 comments

Chext

Chext is a site that enables the user to enter transactions and track their bank balance via SMS. People sharing a bank account can also get updates when money is spent from the account by the other person. [more inside]
posted by reenum on Sep 19, 2011 - 30 comments

Too big to fail...too big to sue?

TARP is winding down...bring on the lawsuits. Within the next week, the US government is set to sue a dozen banks for billions in losses caused by those banks' misrepresenting the risks of mortgage-backed securities. This is in addition to numerous State Attorneys General suing the banks for failing to reach an agreement in foreclosure abuses. Insurance giant AIG will also be suing BofA to recoup losses over the mortgage bonds. BofA had also agreed to a settlement of $8.5 billion to cover losses from soured mortgage debt issued through Countrywide. Deutsche Bank is suing WaMu. Goldman Sachs already settled with the SEC for $500 million for their fraud and have been sued by othersseeking to recover losses. [more inside]
posted by darkstar on Sep 1, 2011 - 56 comments

The Free-Banking vs. Central-Banking Debate

Out of thin air? "Have you ever said something like 'Let me buy you a beer next week'? I'm sure you have. We all issue promises of this sort. And we frequently use such promises as a form of currency... I have just described a simple credit exchange. Societies rely heavily on promising-making and promise-keeping. It is the foundation of all financial markets. I'd like to point out something about the promises you make. They are made 'out of thin air.' " [more inside]
posted by kliuless on Apr 14, 2011 - 47 comments

What's the problem?

Interview with Gary Gorton (pdf) - Fascinating look at private institutional bank money creation (really) and subsequent run on the shadow banking system that hearkens back to the late-19th century banking crises with securitization playing the role of checking before the advent of deposit insurance. "Gorton is a lucid narrator of a complex tale." (via via)
posted by kliuless on Jan 14, 2011 - 10 comments

Unlocking money in pre-IPO companies

Employed by a startup? Working long hours for little pay but lots of stock options? When your company goes public you can finally realise the value of your options but what if the IPO is delayed or never happens? [more inside]
posted by Mutant on Jan 3, 2011 - 32 comments

Checks Without Banks: The Irish Banking Strike

The Irish Banking Crisis: A Parable - What happened when the Irish stood up to the bankers in the 1970s? cf. Why Wall Street won't get shrunk & The Inequality That Matters [more inside]
posted by kliuless on Dec 17, 2010 - 38 comments

Board diversity by the basics: the bottom line about getting women into CXO roles

We know companies with a larger percentage of women directors show a higher incidence of "positive events"[ .pdf ], while "Women Matter" [ .pdf ], a 2007 McKinsey study found that adding Women to a company's board of directors improved ROE, EBIT and share price growth. A business case for including women on the board. [more inside]
posted by Mutant on Dec 10, 2010 - 16 comments

Researchers claim Tweets predict The Dow

Invented by Charles Dow in 1896, The Dow Jones Average ("The Dow") is perhaps the most widely known metric of equity market behaviour. Calculated as a price weighted average of thirty stocks, The Dow is generally eschewed by professional investors who prefer the broader S&P 500, a so-called market capitalisation weighted index consisting of 500 stocks. Regardless, proponents of the Dow claim its simplicity, long history and careful design as a reliable proxy of US economic activity as points in its favour. But can they now claim predicability as well? [more inside]
posted by Mutant on Oct 23, 2010 - 19 comments

Simon Johnson on the Economy

Last week, economist Simon Johnson (his blog; previously on MeFi) spoke at the Roosevelt Institute about the failure to regulate the financial industry, and the doomsday cycle of our economy (via).
posted by HP LaserJet P10006 on Mar 10, 2010 - 4 comments

Be it resolved that financial 'innovation' does not boost economic growth

Basicland vs. Sorrowland
A parable about how one nation came to financial ruin by Charles Munger. For extra colour there's... [more inside]
posted by kliuless on Mar 2, 2010 - 34 comments

The other exit strategy

With quantitative easing on everyone's minds, pundits of all sorts talk about Central Bank exit strategies. But in The Treaty of Lisbon, which came into force across the EU on December 1st, 2009, it turns out European member states have put forward an exit strategy of a completely different kind [.pdf] . [more inside]
posted by Mutant on Jan 20, 2010 - 31 comments

Obama's Big Sellout

Taibbi-filter: Obama's Big Sellout [more inside]
posted by moorooka on Dec 10, 2009 - 156 comments

“He who controls the money supply of a nation controls the nation”: James Garfield

The First Bank of the United States was Americas first attempt at forming a Central Bank. Inaugurated by Congress in 1791, it was followed by The Second Bank of the United States, which was dissolved in 1836.

And then The United States of America was without a Central Bank for 77 years. [more inside]
posted by Mutant on Oct 3, 2009 - 54 comments

As bad as inflation is deflation is much, much worse

Why is deflation far worse than inflation? After all, prices are falling, goods and services get cheaper, what's not to like? [more inside]
posted by Mutant on Sep 27, 2009 - 33 comments

Neil Barofsky reviews TARP

Neil Barofsky, special inspector general for the Troubled Asset Relief Program, says: If the goal was to increase lending, well we haven't increased lending. ... Banks that were too big to fail are bigger than ever. ... When TARP was announced, the whole purpose was a statement that we're not going to let our large financial instiutions fail. And with that I think we may be in a far more dangerous place today than we were a year ago. (via)
posted by Joe Beese on Sep 26, 2009 - 15 comments

Hopefully they won't screw it up.

Discussed several times in the green, Mint.com announced today that the company will be acquired by Intuit.
posted by ericales on Sep 14, 2009 - 44 comments

Why the US won't see hyperinflation

The Bulls vs. Bears? The incessant back and forth between equity market longs and shorts is well known to most retail investors via a variety of distribution channels; financial television, the print media, online news. But the really big market battle, one with the potential to impact the entire US economy, happens, as is usual in finance, just out of sight of retail eyes ... [more inside]
posted by Mutant on May 13, 2009 - 24 comments

A Banking System We Can Trust

Limited Purpose Banking -- for lending, investing, etc. -- Turn all financial firms into mutual funds: "All mutual funds would break the buck with one exception: cash mutual funds. These funds would strictly hold cash and be valued at $1 per share. Owners of these funds would write checks against their balances and never have to worry about a bank run. Fractional reserve banking and the FDIC would be history." [previously] [more inside]
posted by kliuless on May 3, 2009 - 15 comments

These bankers are Hoares

The separation of the ownership of a business from its management is one of the defining characteristics of the modern capitalist system. But ongoing failures of corporate governance, particularly in banking, have called into question these structures. Is there a better way? Secretive UK private bank C. Hoare & Co. has a solution that works for those customers it chooses to accept. [more inside]
posted by Mutant on Apr 13, 2009 - 51 comments

If FAS 157 started it will FAS 140 will keep the party going?

The Fed's Public Private Partnership Program, promises to clear down as much as $1T worth of "legacy assets" from banks balance sheets. Globally, equity markets responded positively. But what about assets held off balance sheet? [more inside]
posted by Mutant on Mar 27, 2009 - 27 comments

Should creation of money stay in private hands?

Professor and economist Richard Werner proposes a solution for the current banking crisis, under which "... national debt and interest liabilities will not increase, but credit creation will." [more inside]
posted by woodblock100 on Mar 9, 2009 - 49 comments

To everything there is a season and this is true of Economics

Everybody knows the economy and thus the markets move in cycles. Economic expansion naturally leads to contraction, driven by credit and business cycles. But are economic booms followed by busts inevitable? [more inside]
posted by Mutant on Mar 6, 2009 - 32 comments

He's no Bernie Madoff

Another massive Ponzi scheme uncovered. Meet Sir Allen Stanford and his bank. Sir Allen stands accused of running an $8 billion fraud. Read the SEC filings here.
posted by up in the old hotel on Feb 17, 2009 - 74 comments

Fixing the Financial System

“There has been a failure of risk management to a point that is mind boggling." Obama advisor Paul Volker and the Group of 30 have issued a deceptively simple framework for fixing our financial problems.
posted by up in the old hotel on Jan 15, 2009 - 29 comments

All predictions are wrong. Or are they?

Every year the Strategy Team at Saxo Bank, a Danish virtual bank, publishes a list of ten black swan class market events. Some of the more dramatic possibilities Saxo advance for 2009: crude trading down to $25 a barrel causing severe social unrest in Iran, the S&P 500 falling to 500, Chinese GDP approaching zero and several member states dropping the Euro. The complete 2009 list is here and for completeness their 2008 [ .pdf ] , 2007 [ .pdf ] and 2006 lists [ .pdf ] are also available. [more inside]
posted by Mutant on Jan 7, 2009 - 32 comments

"... first by inflation and then by deflation, ..."

Tangible evidence of deflation? The prices of commodities, houses and a wide range of consumer goods have collapsed, with observers predicting continued declines. While many point back to The Great Depression as an example of damaging deflation, the recession of 1920-1921, a frequently overlooked period in economic history, is perhaps the best example we've got of a deflationary wave similar to what might now taking place. [more inside]
posted by Mutant on Nov 20, 2008 - 92 comments

Money for nothing: a new era of zero interest rates?

The Fed cut 100 bps. BOE cut 150 bps. ECB cut 50 bps. India, Vietnam, The Czech Republic, Switzerland, Denmark, South Korea and other nations have all cut interest rates in recent weeks, with many Central Banks cutting more than once. The G20 is now discussing the possibility of further, coordinated interest rate cuts. As interest rates globally plummet, we are observing what some analysts are calling "The Race to Zero". [more inside]
posted by Mutant on Nov 12, 2008 - 86 comments

Soros on the Banking Crisis

Soros on the banking crisis:
"A deep recession is now inevitable and the possibility of a depression cannot be ruled out. When I predicted earlier this year that we were facing the worst financial crisis since the 1930s, I did not anticipate that conditions would deteriorate so badly." - Soros lays out some ideas about what can be done to fix the markets ... Planet money had another nicely done piece on the debacle last Friday.
posted by specialk420 on Nov 10, 2008 - 79 comments

The most obscure but perhaps the most important economic indicator we've got

How best to take the pulse of the global economy? While market driven rates such as LIBOR or US Government T-Bills reveal the state of fixed income and Credit Default Swaps tell the observer much about possible default rates, many analysts prefer a more basal view. The Baltic Dry Index is one such indicator. [more inside]
posted by Mutant on Oct 31, 2008 - 27 comments

In praise of small banks

The nine biggest US banks aren't using $125 billion in federal bailout money to make loans. They're going to use taxpayer dollars to buy other banks. [more inside]
posted by up in the old hotel on Oct 30, 2008 - 80 comments

You don't really own the shares you think you own

All the stocks and bonds you think you own are actually owned by a company you've probably never heard of, a company owned by the same people who own the US Federal Reserve. [more inside]
posted by Mutant on Oct 24, 2008 - 58 comments

Essential Credit Crunch Reading

Afraid to read the daily news? Need some broader perspective on The Credit Crunch? There are lots of different ideas by lots of different authors floating about ... [more inside]
posted by Mutant on Oct 13, 2008 - 34 comments

Another potentially huge settlement day for CDS contracts ...

Credit Default Swaps (CDS) are derivative instruments providing the purchaser with protection against default on an underlying financial asset. When Fannie Mae and Freddie Mac technically defaulted on September 7th there was much speculation that the CDS market would collapse as a result of protection being invoked on $1.4 trillion dollars worth of debt. On October 6th these derivative contracts settled, and the CDS market didn't collapse with recovery rates of 92% being observed. Today CDS contracts protecting against the default of Lehman Brothers settle. The problem? Because industry lacks a central clearinghouse for these derivatives, nobody is really sure how many CDS contracts were written either by Lehman or by other banks providing protection against a Lehman default. Next on the list are CDS' covering Washington Mutual, which are due to settle October 23rd.

Meanwhile efforts to create a clearing house continue, as some folks speculate that the settlement of Credit Default Swaps is a major reason why banks are hoarding cash.
posted by Mutant on Oct 10, 2008 - 155 comments

Suckers going down in Iceland

While the Wall Street financial crisis gripped the world Icelanders woke up one day to find that the Icelandic state had forcibly taken over the country's 3rd biggest bank, Glitnir. The worry is now that one of the two larger banks could also fail and the state wouldn't have the resources to do anything as the two remaining of the big 3 have assets totaling 10 times the GDP of Iceland. While the Central Bank claims it was the only option in a bad situation, prior bad blood between one of the Central Bank's directors, a former Prime Minister, and the main owner of Glitnir have some wondering if Icelanders have just been witness to "the biggest bank robbery in Icelandic history." [Warning: The story you are about to read may make you reconsider the verisimilitude of soap operas]
posted by Kattullus on Oct 3, 2008 - 25 comments

Page: 1 2