For decades, William Isaac’s insights on the U.S. financial system have been featured in leading news publications. Now, you can browse them all in one location.

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in leading business publications

The Case for Repealing Dodd-Frank, by Peter J. Wallison, American Enterprise Institute

The Case for Repealing Dodd-Frank, by Peter J. Wallison, American Enterprise Institute

December 9, 2013

[Peter Wallison of the American Enterprise Institute and formerly White House counsel to President Reagan wrote the following article on the causes of the financial crisis of 2008-2009 and the Dodd-Frank Financial Reform Act. In my view the article is must reading for those concerned about future economic and employment growth in the U.S.]

 

Peter J. Wallison holds the Arthur F. Burns Chair in Financial Policy Studies at the American Enterprise Institute. Previously he practiced banking, corporate, and financial law at Gibson, Dunn & Crutcher in Washington, D.C., and in New York. He also served as White House Counsel in the Reagan Administration. A graduate of Harvard College, Mr. Wallison received his law degree from Harvard Law School and is a regular contributor to the Wall Street Journal, among many other publications. He is the editor, co-editor, author, or co-author of numerous books, including Ronald Reagan: The Power of Conviction and the Success of His Presidency and Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act.

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DAVID STOCKMAN SAYS CENTRAL BANKS CREATING WORLDWIDE BUBBLES

DAVID STOCKMAN SAYS CENTRAL BANKS CREATING WORLDWIDE BUBBLES

December 2, 2013

[David Stockman, former member of Congress and former director of the Office of Management and Budget under President Reagan, declared in a recent interview on CNBC that the Federal Reserve and other central banks are creating major asset bubbles that will end very badly and cause serious economic turmoil throughout the world. I recommend the interview to you.]

A link to the interview follows:

http://www.cnbc.com/id/101230045

THE FED’S LAST TROUBLEMAKER By Nancy Cook

THE FED’S LAST TROUBLEMAKER By Nancy Cook

November 2, 2013

[Below is a link to an insightful article in the National Journal about Federal Reserve Board Governor Dan Tarullo’s drive to fundamentally alter the face of bank regulation in the U.S. and abroad. It is well worth reading as it provides a good profile of Dan Tarullo and his policy objectives. The article provides good insights into the regulatory environment banks have been and will be facing.]

When Daniel Tarullo arrived at the Federal Reserve Board in January 2009, the economy was still in a free fall. The country had shed 3.6 million jobs in the past year, with cuts at major companies like Home Depot, Microsoft, and Boeing. Across the U.S., home prices had dropped precipitously. And, two days after Tarullo assumed his post as one of seven Federal Reserve governors—some of the most powerful economic officials in the world—the stock market plunged and recorded one of its worst drops on record for the month of January.

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Can the ‘disastrous nexus’ of banks and governments be controlled? No. by Alex J. Pollock

Can the ‘disastrous nexus’ of banks and governments be controlled? No. by Alex J. Pollock

November 1, 2013

[Alex Pollock, Resident Fellow at the American Enterprise Institute, recently published an important article on the inherent conflicts of interest sovereign nations face in regulating banks. Alex is pessimistic that things will every change, and I hope he is wrong about that. I agree with Alex that it will likely not be possible to eliminate the conflicts but we can and must curtail them.]

The president of the Deutsche Bundesbank, Jens Weidmann, discussed in a recent essay, “Stop Encouraging Banks to Load Up on State Debt,” what he calls the “disastrous sovereign-banking nexus” — in other words, the disastrous interaction of governments and banks. Governments can reduce their own solvency by bailing out insolvent banks — and can even become themselves insolvent and in need of bailouts by doing so, as in the cases of Ireland, Iceland, and Cyprus. On the other hand, banks can become insolvent by making excessive loans to, or investments in, their own or other governments, which turn out to be financial mistakes, as is exemplified in the European sovereign debt crisis and its ongoing travails.

Loans to sovereign governments are granted favored status by bank regulations and indeed are promoted by them, as having no risk-to-one-borrower limits for example, as well as very low or zero capital requirements, and being often referred to as “risk-free.” But in fact nothing is more common in financial history right up to now than defaults by governments on their debt. There have been about 250 defaults on sovereign debt since 1800, including widespread government defaults in the 1980s and the 21st century defaults by Greece and Argentina. Of course, a possible default by the United States government has been talked about of late ad nauseam.

Here is the link to the full article

The Bigger Battle Behind the Shutdown By David Malpass

The Bigger Battle Behind the Shutdown By David Malpass

October 11, 2013

David Malpass, President of Encima Global LLC and former Deputy Assistant Treasury Secretary in the Reagan administration, wrote a constructive and powerful piece about the need to get government spending under control. It was published in the Wall Street Journal on October 10, 2013. David has given me permission to post it to my website and I encourage you to read it.

 

The Bigger Battle Behind the Shutdown
A staggering $250 billion per month, 80% of spending, runs on autopilot without congressional control.

By DAVID MALPASS
At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead.

Meanwhile, the government has piled up $17 trillion in debt and $60 trillion more in unfunded spending promises. The Federal Reserve will borrow $1.1 trillion in 2013 alone to buy bonds—and it reserves the right to borrow unlimited amounts for future bond purchases without congressional or presidential permission.

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The Fed & Big Banking at the Crossroads By Paul Volcker

The Fed & Big Banking at the Crossroads By Paul Volcker

September 19, 2013

Legendary former Federal Reserve Chairman Paul Volcker recently authored a article on the dangers facing our nation and the world as a result of current fiscal, monetary, and regulatory policies. He not only identifies pervasive threats to financial stability, he issues a passionate call for action.

It was a great honor and pleasure to serve alongside Paul during my tenure as Chairman of the FDIC. We battled from time to time on specific issues, but I respected enormously his intellect, integrity, and dedication to public service. In fact, I have never met anyone more dedicated to serving the public good.

I encourage you to read, study and think about Paul Volcker’s treatise. It is past time for our nation’s public and private sector leadership to step up to the enormous challenges we face. The link to Paul’s article follows:

Here is the link to the full article

THE FED’S RECORD IN PREDICTING THE FUTURE IS POOR By Alex Pollock

THE FED’S RECORD IN PREDICTING THE FUTURE IS POOR By Alex Pollock

September 15, 2013

Alex Pollock, Resident Fellow at the American Enterprise Institute, testified before the Financial Services Subcommittee on Monetary Policy and Trade on September 11, 2013. His testimony concludes that a lesson of history is that the Fed is no better at predicting the future than anyone else. I encourage you to take a few minutes to read Alex’s testimony which can be found through the link below.

Here is the link to the full article

THE GLOBAL QE EXIT CRISIS By Stephen S. Roach

THE GLOBAL QE EXIT CRISIS By Stephen S. Roach

August 28, 2013

Stephen Roach — senior fellow at Yale University’s Jackson Institute for Global Affairs, former economist at Morgan Stanley, and former official at the Federal Reserve Board — wrote an important and provocative article about monetary policy mistakes that could well be leading to yet another global crisis. I urge you to read the article which can be accessed through the following link:

Here is the link to the full article

THE AMERICAN INCOME CRISIS: THE FED COULD STOP IT

THE AMERICAN INCOME CRISIS: THE FED COULD STOP IT

August 20, 2013

David Malpass has authored a thoughtful article for Forbes on the continuing decline of middle class incomes from 1999 through 2013, a decline that has been accelerating during the past five years. Malpass attributes much of the accelerated decline to current Fed policies, which he believes disproportionately benefit large companies and wealthy individuals. The article is well worth your time and can be found at:

Here is the link to the full article