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The Post Office as Bank for the Unserved
Doc of the day: Providing Non-Bank Financial Services for the Underserved, U.S. Postal Service Office of Inspector General, Report Number:RARC-WP-14-007 (January 27, 2014) [pdf. 33 pages]. Millions of Americans do not have a bank account, or use costly services like payday loans and check cashing exchanges just to make ends meet. The entire underserved population […]
CRS report on bank borrowing from the Federal Reserve and purchases of securities
I guess this is a big CRS news day! Huffington Post reported on 4/26 that a newly released Congressional Research Service (CRS) Report requested by Senator Bernie Sanders (I-VT) found that the nation’s largest banks profited off the federal government’s bailout programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates. The report has been posted at Sanders' Web site (PDF).
A newly-released study from the Congressional Research Service bolsters claims that the nation's largest banks profited off the Federal Reserve's financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates. The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended. The Fed released records under pressure in December and March that showed the extent of its largesse. The CRS study shows for the first time how some of the most sophisticated financial firms could have taken the Fed's money and flipped easy profits simply by lending it back to another arm of the government.Continue reading
WSJ Tracks the Nation’s Bank Failures
The Wall Street Journal has a very nice visualization tool Tracking the Nation's Bank Failures. I wish they cited their sources and said something about their methodology and made the data they used available. For some odd reason, that is just not part of what newspapers regularly do yet. Continue reading
Nationalizing the American Banking System?
Here is an interesting news analysis from The New York Times on whether nationalization or partial-nationalization of the American banking system is a good idea. The pros and cons are discussed in detail. The transcript of George Stephanopoulos' interview with Nancy Pelosi is available from ABC News. She discusses the GOP stimulus proposals and also talks about recovery plans for banks. Continue reading
Re-Imagining Government: Affordable Banking
February 25, 2014 / Leave a comment
The Center for Effective Government weighs in on the recent report by the U.S. Postal Service Office of Inspector General that recommends that the US Post Office should “provide non-bank financial services to those whose needs are not being met by the traditional financial sector.” Re-Imagining Government: Affordable Banking, by Scott Klinger, Center for Effective […]
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