NEWS LIFTS
Regulate Them, Certainly; Breaking Them Up, Possibly. Borrow from Them? Unlikely
Will Reform Finally Send Banks Back to Their Rightful Role?
* What fraud? Goldman’s $4.36 billion earnings report follows JPMorgan’s, which reported a $3.3 billion profit, Bank of America, $3.2 billion, and Citigroup, $4.4 billion. “We appreciate the support of our clients and shareholders.” Lloyd Blankfein
* JPMorgan Chase, Merrill Lynch (now part of Bank of America), Citigroup, Deutsche Bank and UBS “marketed and sold the CDOs to investors without disclosing Magnetar’s role or the hedge fund’s interests.” ProPublica’s Marian Wang
* “Reform better include language that would (…) block the creation of ‘synthetic C.D.O.s,’ cocktails of credit default swaps that let investores take big bets on assets without actually owning them.” Paul Krugman
* “After even a cursory examination of the treatment of the American middle class by the Wall Street/Washington class over the past few decades, one should also wonder why anyone would ever do business with that crowd again. And yet, there they are, still running things at the Treasury, the Fed, and the National Economic Council.” Arianna Huffington
* “Lefty campaigners can be cranky about business elites. And the suspicion is mutual. Worldwide. Civil society as a rule sees business as, well, a little uncivil. Business tends to see activists as, well, a little too active. But in Africa, at least from what I’ve just seen, this is starting to change.” Bono
* “The American tradition of expanding opportunity from one generation to the next is at risk because we are failing to make the necessary investments in human, physical, and environmental capital.” Irony-free Hamilton Project research paper by Robert Rubin and others
* Presidential scandal: the New York Society Library is accusing George Washington of failing to return two books borrowed in 1789. If the allegations are true, Washington owes about $100,000 in late fees. The library’s ledger also shows that John Adams checked out one book that hasn’t been returned. Neither President or Vice President could be reached for comment. Lowering the Bar
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