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Banks

The Takeaway

Dodd Wants to Merge Regulators

Monday, September 21, 2009

Sen. Christopher Dodd (D-Conn.) plans to push for a "super-regulator" that would merge the four agencies currently regulating the banking industry. Dodd wants a smaller role for the Federal Reserve; this plan conflicts with President Obama's plans for regulation. Louise Story, reporter for The New York Times, tells us why.

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The Takeaway

The Financial Crisis Inquiry Commission (Say it Five Times Fast)

Thursday, September 17, 2009

Today the Financial Crisis Inquiry Commission conducts its first public meeting. The commission is a bipartisan commission tasked with finding the root cause of the nation's financial meltdown. Louise Story, finance reporter for The New York Times, explains why we need yet another commission and what this group is hoping to uncover that we don't already know.

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The Takeaway

EU Attempts Bank Bonus Reform

Thursday, September 17, 2009

Bonuses for bankers aren't just a Wall Street problem. Nations from the European Union — mostly led by France — are hammering out an agreement on reforming structures for giving out bank bonuses. The G20 meetings will take place in Pittsburgh in just a few weeks; the E.U.'s goal is to reach an agreement before then... and they hope to get the United States on board, too. Louise Story, finance reporter for The New York Times, has the details.

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The Takeaway

One Year On: Banks After the Bailout

Thursday, September 10, 2009

All week we are reviewing the year that was — the year that marked the beginning of the financial meltdown and the recession that we continue to live through. Today we’re taking stock of how the nation’s banks are managing, one year after the government spent billions of taxpayers' dollars to bail them out. For a look at what regulations need to be in place to avoid future financial disasters, we talk with Eliot Spitzer. He was New York's attorney general before being elected governor; he first made a name for himself for keeping an eagle eye on the banking industry. We are also joined by Tyler Cowen, professor of economics at George Mason University and author of the new book, Create Your Own Economy: The Path to Prosperity in a Disordered World. (click through for the interview transcript.)

"Look, let’s be very clear. The Fed failed. Everyone says the Fed has saved us by printing trillions of dollars. The Fed is the very institution that was supposed to be monitoring this along with the Treasury Department. They utterly failed to do it."
—Former Attorney General of New York Eliot Spitzer

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The Takeaway

The Sounds of the Financial Crisis

Monday, September 07, 2009

The first of the major bank bailouts happened one year ago today. We listen to what the financial crisis sounded like as it happened — immediately before and immediately after.

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The Takeaway

What to Do About Bank Fee Hikes

Tuesday, August 11, 2009

U.S. banks stand to collect $38.5 billion from increasingly strict overdraft fees this year, and credit card users are seeing their cards' interest rates rocket higher for no apparent reason. As financial institutions try to increase their revenues using fine print and fees, financial guru Gary Belsky talks us through what you can and can't do in response.

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The Takeaway

Bank of America and the SEC Face Off in Federal Court

Monday, August 10, 2009

Two strange bedfellows will face a judge in federal court today: Bank of America and the Securities and Exchange Commission. The Takeaway talks to Louise Story, finance reporter for The New York Times.

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The Takeaway

Swiss Bank Secrets: UBS and U.S. Taxpayers

Tuesday, August 04, 2009

The Swiss bank UBS has struck a deal with the U.S. government. Washington has been fighting for the release of some 52,000 names of wealthy Americans suspected of evading taxes by hiding billions of dollars in secret bank accounts with UBS and other Swiss banks. To help us understand the details of the deal and the impact on clients of the bank, The Takeaway turns to Bill Sharp, a lawyer who represents a number of clients with Swiss bank accounts.

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The Takeaway

Barney Frank on Bonuses

Friday, July 31, 2009

A report from the New York Attorney General’s Office says top-dog bankers are rolling in huge bonuses, and the House of Representatives is set to vote on a pay-reform bill today that aims to put a cap on some of those compensation packages. Chairman of the House Financial Services Committee, Barney Frank is leading the fight in the House and joins The Takeaway to talk about the bonuses.

Click through for a transcript of the conversation with Rep. Frank.

Watch Rep. Barney Frank discuss single payer health care in the video below.

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The Takeaway

Taking the Pulse of America's Community Banks

Tuesday, July 21, 2009

Large banks like Goldman Sachs posted record gains recently. Many smaller regional banks will release their earnings with much less fanfare this week. The Takeaway looks at the state of American banking with Mike Menzies, the president and CEO of Easton Bank and Trust in Easton, Maryland.

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The Takeaway

This Week's Agenda with Marcus Mabry and Jill McGivering

Monday, July 20, 2009

For this Monday's agenda segment, we talk about the Senate Finance Committee's bipartisan plan and President Obama's health care reform. The Takeaway also talks about Hillary Clinton's trip to India, the Taliban video of the captured U.S. soldier and how some banks are making big money again. The Takeway is joined by Marcus Mabry, International Business Editor for The New York Times and Jill McGivering, Asia Editor for the BBC.

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The Takeaway

This Week's Agenda with Marcus Mabry and Jonathan Marcus

Monday, July 13, 2009

This week in The Takeaway's Monday agenda: the Senate confirmation hearings of Sonia Sotomayor, the health care debate continues, bank earnings out this week may cause some controversy and Treasury Secretary Tim Geithner is in Europe and the Middle East. The Takeaway is joined by Marcus Mabry, the International Business Editor for The New York Times. Also joining the show is the BBC's Diplomatic Correspondent Jonathan Marcus.

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The Takeaway

Eliot Spitzer on Regulatory Reform (And His Own Future)

Thursday, June 18, 2009

President Obama has proposed sweeping changes to the regulation of the country's financial system. But do these changes actually address the root causes of our financial crisis? For one view, we turn to Eliot Spitzer, former Attorney General and Governor of New York. When he was Attorney General he made a name for himself suing companies like AIG for deception, fraud and boosting the company’s stock price. He also discusses his personal feelings at having to watch the unfolding crisis as a bystander and not as political leader.

"Rearranging the deck chairs does not fundamentally alter the fact that the regulators had the power over the past few years."
— Eliot Spitzer on financial reform

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The Takeaway

President Obama Reshapes the Financial System

Wednesday, June 17, 2009

The financial industry is getting a makeover. Today President Obama will lay out some of the most significant changes to the U.S. financial system since the Great Depression. For a look at some of the reforms we might see, The Takeaway talks to Peter Morici. He's an economist and professor at the University of Maryland's School of Business.

"If they're too big to fail, they're often too big to sell, even in their pieces."
— Economist Peter Morici on U.S. banks

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The Takeaway

Watch Out! The Second Wave of the Foreclosure Crisis

Tuesday, June 16, 2009

The foreclosure crisis is not just about subprime mortgages anymore. Because of job losses and rising health care costs, homeowners who were once able to keep up with their payments are beginning to fall behind. Shannon Riggs, a homeowner from Norfolk, Virginia, who almost lost her home after her husband lost his job, tells The Takeaway her story. And Anya Kamenetz, Staff Writer for Fast Company magazine and author of “Generation Debt,” will look at what options homeowners have, and how the Obama administration can better address the problem.

"Let's not forget, foreclosures don't just affect the homeowner, they affect your neighbors they affect property values for entire cities."
— Anya Kamenetz of Fast Company magazine on foreclosures

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The Takeaway

The Pay Czar: Setting the Pay Scale for Executives

Thursday, June 11, 2009

In response to criticism of outlandish executive pay, the government is now tightening the reins. Yesterday, Treasury Secretary Timothy Geithner announced the brand new position of "pay czar" and appointed Ken Feinberg, the Washington lawyer known for setting the compensation amount for families of the 9/11 victims. Now he turns his attention to setting a very different kind of monetary figure. To talk about this is Nell Minow, editor and co-founder of the Corporate Library, a think-tank that studies executive pay.

"Banking is different than many other industries in that the government is really compelled. It doesn't have an option. It's compelled to bail out the banks when they get in trouble or the whole economy and society collapse."
— Business professor Peter Morici

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The Takeaway

Here's Looking at You, AIG! Obama Picks a Pay Czar

Monday, June 08, 2009

Do you remember the headlines of a few months back, when AIG handed out $165 million in bonuses after taking a federal handout? Well, so does the Obama administration. This week they are poised to announce a new set of regulations on executive compensation. They are also nominating a so-called Pay Czar to monitor executive compensation. Louise Story, reporter for The New York Times, joins The Takeaway with more.

For more, read Louise Story's and Eric Dash's article, U.S. to Propose Wider Oversight of Compensation, in the New York Times.

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The Takeaway

Building Confidence Via Stress Tests

Friday, May 08, 2009

The Federal Reserve yesterday released the long-awaited results of the “stress tests”. The tests found that ten of the nation's 19 largest banks need a total of about $75 billion in new capital to withstand losses if the recession worsened. The banks in trouble will have until June 8 to come up with a plan and have it approved. While the verdict was far more upbeat than many in the industry had feared when the tests were first announced in February, will the results help build the confidence they're meant to? Edmund Andrews, New York Times economics reporter, joins The Takeaway to discuss.

For more, read Edmund L. Andrews' article, Ailing Banks Need $75 Billion, U.S. Says, in today's New York Times.

Stress-test results: click here to see which banks still need more cash.

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The Takeaway

Is the Stress-Test Good Economics or Just Good PR?

Friday, May 08, 2009

The Federal Reserve yesterday released the long-awaited results of the “stress tests”. The report gave nine of the nation's largest banks a clean bill of health, and told ten others to raise $75 billion in new capital. The banks in trouble, including Bank of America, Wells Fargo, and Citigroup, will have until June 8 to come up with a plan to raise the money and have it approved. Joining The Takeaway is Simon Johnson, Professor at MIT, former chief economist at the IMF, and co-founder of the economics blog Baseline Scenario. He's been a critic of Treasury Secretary Timonthy Geithner's approach to solving the nation's financial woes, he joins us to discuss the results, the after-hours upsurge in trading, and what this means for the economy.
"The stress testing is only as good as the technical models and as good as the political will you have to oversee powerful banks."
—MIT Sloan Professor Simon Johnson on the results of the banks' stress tests

Stress-test results: click here to see which banks still need more cash.

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The Takeaway

Stressed out banks and the economy

Monday, May 04, 2009

A while ago, the federal government ordered the nation's banks to under go stress tests to see how they would fare in a severe financial crisis. The results are in. So how stressed are our banks? Well the results of those tests have been delayed several times. Now they are said to be coming out on Thursday. Some financial watchers are wondering if getting the answer to that question will help relieve the stress on the economy? Treasury Secretary Timothy Geithner says so, but Peter Morici, economist and professor at the School of Business at the University of Maryland, joins The Takeaway with his thoughts on how these tests will affect the markets.

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