The explanation must be that bank capital regulation is based on book values of capital, not market values.
Business owners in Fernley provided me and senior USDA representatives with valuable feedback in a number of areas, including the need for more access to capital and regulation reform.
From the ruins of Estonia's old banks emerged thriving new ones, forced to live with ample capital and strict regulation.
Instead, they guarantee companies a fair return on capital through price regulation.
The long term after effects of the financial crisis (scarce and expensive capital, increased regulation and constrained economic growth) continue to impact the financial services business model.
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But the pendulum of capital-markets regulation in America has swung in one direction for so long that when it started to reverse course, it was bound to do so with a vengeance.
Only a handful bothered to take in the session on regulation and capital markets.
The threat of higher taxes and the foreboding implications of heavy handed regulation repel capital and impede its power.
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However, the two remedies you put forward more regulation and capital ignore a simpler, bolder option: split up the banking behemoths.
Instead, it is better to focus on two more fiddly things that could produce fairly radical results: regulation and capital.
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"Politicians want to look like they are doing something while not doing something, " says Joseph Mason, a professor at Drexel University who studies banking regulation and capital markets.
There is a desire to turn Wall Street firms into commercial banks, with the heavy regulation and capital requirements that come with the privilege of borrowing directly from the Fed in times of need.
All the measures that regulators are putting in place to try to make banks safer, such as higher capital requirements, stricter regulation and limits on risk-taking, need to be tested against a simple question.
In an industry unusually buffeted by innovation, capital-spending shifts and regulation, nothing is for certain.
Indeed the distinction between capital controls and sensible bank regulation can become blurred.
Now for the real task: creating long-lasting stability in the financial system by tightening regulation and increasing capital for all banks.
In the wake of this crisis, Hoeing said we did the same things we did after previous crises: added supervision and regulation and raised capital requirements.
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Until they accept the case for the sort of pre-emptive insurance outlined in this report tighter regulation, bigger capital cushions, perhaps more separation between different kinds of banking the clock will continue to tick towards the next financial crisis.
You destroy growth when you destroy investment capital by way of taxation and regulation.
In the startup world, the tech economy certainly feels as if it has potential to see long-term growth, and if history is an accurate predictor, human capital will far outweigh rules and regulation.
We need to just calm down, let this play out with the new regulation, the new capital rules, and at that point then figure out which businesses to accelerate, and which businesses to slow down.
With this type of overreaching regulation, I expect the capital strike and lackluster job market to continue.
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It would be very silly indeed bank regulation that required the same capital provisioning for both of them.
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However, that goal should be achieved outside of housing finance, through appropriate stabilizing measures by the Federal Reserve and through better prudential regulation, and especially higher capital requirements for large systemic financial institutions.
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As Mr Borio at the Bank for International Settlements points out, many of the ideas around countercyclicality (setting aside more capital in good times) and macroprudential regulation (safeguarding the stability of the whole banking system as well as of individual banks) were oven-ready, having been worked on by a coterie of central bankers, academics and regulators for a number of years.
Jason Goldberg of Barclays Capital writes that the legislation's negative impact would come through fee reductions, higher costs of regulation and implementation and new restrictions, as well as tying up capital.
Lastly, banks are uncertain about future regulation and might therefore adopt strict capital standards as a precaution, at the expense of efficiency.
The basic lesson of all of this: stop pretending that you can control the financial health of banks with regulation based on book values of capital.
He fears that in the state of Mexico, which borders the capital and contains most of its suburbs, regulation of industry and checks on motorists are weaker.
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For example, the Securities Exchange Act (1934) and the Investment Company Act (1940) require that regulators consider the likely impact of a proposed regulation on efficiency, competition and capital formation.
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