Tag: Wall Street

‘A win for the establishment and a loss for progressives’ — analysts react to Yellen as Biden’s Treasury secretary

Tina Marie (Ms. Cat)

‘A win for the establishment and a loss for progressives’ — analysts react to Yellen as Biden’s Treasury secretary

— “Janet Yellen’s nomination to be Treasury Secretary is a win for the establishment and a loss for progressives and modern monetary theory proponents. So far, the Biden team is mostly establishment types, which should ease the concerns of investors who feared a more leftward tilt. Although we were skeptical that Mr. Biden was going to pick Sen. Elizabeth Warren for the Treasury job, that risk has been completely removed for now.” — Brian Gardner, chief Washington policy strategist at Stifel.

…

— “She is well within the orthodoxy of the economics community, and I suspect that fact along with her familiarity will lead to a largely positive response from financial markets. More broadly, from what we have seen so far, Biden appears to be mainly choosing old Democratic hands to fill his most vital Cabinet and White House posts, people from the Obama (and in some cases, even the Clinton) years. Progressives had hoped to wield major influence in the next administration, but if Biden’s personnel choices so far are any indication, he intends to govern more from what constitutes the middle of the Democratic Party today than to push the envelope far to the left.” — Stephen Stanley, chief economist at Amherst Pierpont.

Related:

The Wall Street Journal Nominates Janet Yellen as Treasury Secretary

Foreign investors pile back into booming China

Tina Marie (Ms. Cat)

Foreign investors pile back into booming China

That shift could support China’s longer-term plans to expand domestic consumption and gradually liberalise foreign involvement in its industries even after it has cracked down on some of its biggest conglomerates and the outward capital flows they fuelled over the past decade.

Official data shows that foreign direct investment in China rose in October for the seventh straight month, jumping 18 per cent year on year to Rmb81.9bn ($11.8bn).

Biden’s “normalcy” means return of “ancien régime”

Tina Marie (Ms. Cat)

There has been a spate of reports in the American media that the US president-elect Joe Biden is assembling his cabinet of ministers. Most reports mention that Biden’s secretary of state will be Susan Rice, former US ambassador to the United Nations and National Security Advisor in the Barack Obama administration. Reportedly, Biden’s choice for US defence secretary is likely to be Michele Flournoy, who had previously served as a senior defence adviser in Bill Clinton and Barack Obama’s administrations.

Biden’s “normalcy” means return of “ancien régime”

Federal Regulators Have Gutted Safety and Soundness Rules for the Biggest Wall Street Banks

Tina Marie (Ms. Cat)

Federal Regulators Have Gutted Safety and Soundness Rules for the Biggest Wall Street Banks

Bottom line: federal regulators are as clueless today as they were in 2008 when it comes to the level of systemic risk these banks pose to the financial system of the United States. The only way to rein in that risk is to break up these banks and restore the Glass-Steagall Act. That would separate these casinos from the federally-insured, deposit-taking banks.

Related:

How the White House Rolled Back Financial Regulations

Senator Sherrod Brown Calls for Breaking Up the Wall Street Banks; Elizabeth Warren Tells Fed: “I Don’t Believe You’re Doing Your Job”

Tina Marie (Ms. Cat)

Senator Sherrod Brown Calls for Breaking Up the Wall Street Banks; Elizabeth Warren Tells Fed: “I Don’t Believe You’re Doing Your Job”

Senator Jon Tester of Montana got into a heated debate with Randal Quarles, the Vice Chairman for Supervision at the Federal Reserve. Although both the Chairman of the Federal Reserve, Jerome Powell, as well as Quarles, have previously stated that another round of fiscal stimulus is needed from Congress, Quarles now seems to have been intimidated by some Republicans in Congress who don’t want another stimulus package. Quarles, during the hearing, refused to endorse another stimulus package.

JPMorgan Chase Is Under a New Federal Investigation, One Month After Getting Slapped with Its 4th and 5th Criminal Felony Count

Tina Marie (Ms. Cat)

JPMorgan Chase Is Under a New Federal Investigation, One Month After Getting Slapped with Its 4th and 5th Criminal Felony Count

“JPMorgan Chase Bank, N.A. has been advised by one of its U.S. regulators of a potential civil money penalty action against the Bank related to historical deficiencies in internal controls and internal audit over certain advisory and other activities. The Bank already has controls in place to address the deficiencies related to the proposed penalty. The Firm is currently engaged in resolution discussions with the U.S. regulator. There is no assurance that such discussions will result in resolution.”

Why The Left Shouldn’t Support Joe Biden

Tina Marie (Ms. Cat)

Why The Left Shouldn’t Support Joe Biden

A Biden administration may be prepared to spend a significant amount of money given the scale of the ongoing economic crisis, but we should be under no illusion he will represent any semblance of a progressive agenda. His administration, as well as most Democrats in Congress, will relentlessly attack working people with big business bailouts, handouts to big insurance companies, and opposition to popular policies like Medicare for All. The space for the far right will very likely grow under a Biden administration and Trump may well continue building support for his ideas even if he loses. In fact, a “Trump-unleashed” situation where he is free to rally his base outside the confines of elected office could lead to the creation of a far-right party.