Archives for banking

“At That Moment, Operation Happy Looked Pretty Grim”

At the end of their latest radio piece on the financial crisis, Alex Blumberg and Adam Davidson make a great point about uncertainty in the nationalization debate: Of course, if [Tim Geithner and the Obama administration] were planning to take over the banking system, they wouldn’t announce it beforehand. They’d probably say exactly what they’re […] Read More »

Time for the Government to Stop Subsidizing Shareholders of Insolvent Banks

That is what Andrew Rosenfield argues for in this extremely cogently argued piece, and I agree with him. He makes a number of points about the bailout that I hadn’t heard before. Rosenfield ends the article with the following sage words: The present practice of subsidizing shareholders and debt holders of large insolvent bank holding […] Read More »

A Happy Banking Tale, and Faint Praise We Can Live With

Interesting piece here by Washington Post columnist Steven Pearlstein about a relatively small North Carolina bank called Citizens South, which avoided bad loans, has remained profitable, and then applied for and won $20.5 million in TARP bailout funds. Writing on the eve of the testimony by eight gigantic bankers before the House Financial Services Committee, […] Read More »

Diamond, Kashyap, and Rajan on the Geithner Plan

University of Chicago Professors Douglas Diamond and Anil Kashyap, whose description of the causes of the financial crisis is the most widely circulated post ever to appear on this blog, are back to explain the Geithner Plan in simple-to-understand terms, along with what they do and don’t like about it. For this post, they’ve also […] Read More »

More Satisfying: Spending Money, or Donating It?

Would you rather donate $100 to a charity you believe in, or spend $50 in your favorite shop? That’s the crux of an offer SunTrust bank is making to people who open new checking accounts with the bank between now and the end of the year: receive a $50 gift card, or have SunTrust donate […] Read More »