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Tags: Bair | Bove | regulation | banks

Ex-FDIC Chair Bair Calls for Tighter Regulation of Banks

By    |   Thursday, 18 April 2013 12:09 PM

While banks are busy releasing impressive earnings reports, some say the industry needs more regulation.

Sheila Bair, former chairwoman of the FDIC, is one of them. “I hope the regulators move forward with tougher regulations,” Bair, now a senior adviser at the Pew Charitable Trusts, told The New York Times. “This wouldn’t endanger the economic recovery.”

Renowned bank analyst Dick Bove of Rafferty Capital Markets expects record profits of $39 billion for FDIC-insured banks in the first quarter. Citigroup, the nation’s third largest bank, posted a 30 percent profit gain in the period.

Editor's Note:
Use This Single Loophole to Pay Zero Taxes in 2013

“No one can argue that banks were hurt from a profit standpoint by regulation,” Bove told The Times.

However, the banking regulations imposed since the 2008-09 financial crisis have hurt bank customers, he said. Banks have merely used increased fees to push their new costs onto customers.

“The government aimed a Stinger missile at the banking industry and missed and hit the consumer instead,” Bove explained.

Still, banks simply reject increased regulation and capital requirements out of hand, Bair noted. “When times are bad, they say it could hurt things, and when times are good, they say they don’t need it.”

You can count Tom Hoenig, FDIC vice chairman, as an advocate for more regulation. He argued in a speech Wednesday that more must be done to protect taxpayers from bank bailouts, Reuters reported.

The Volcker rule, which would ban banks from proprietary trading but hasn’t yet been completed, is inadequate, Hoenig said. Banks should dump trading and derivative creation activities, he maintained.

Editor's Note: Use This Single Loophole to Pay Zero Taxes in 2013

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FinanceNews
While banks are busy releasing impressive earnings reports, some say the industry needs more regulation. Sheila Bair, former chairwoman of the FDIC, is one of them.
Bair,Bove,regulation,banks
280
2013-09-18
Thursday, 18 April 2013 12:09 PM
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