Dodd-Frank and Another Bank Meltdown

In 1933, Congress passed the Glass-Steagall Act. It established the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits. It also required banks to get rid of their trading activities: buying and selling stocks was considered too dangerous for depository institutions.

Fed Blows Dangerous Deposit Bubble

Bloomberg Reports Biggest Story of All Backwards As Fed Blows Dangerous Deposit Bubble by Lee Adler, Wall Street Examiner This is how Bloomberg reported one of the biggest stories of the year, maybe the biggest, backwards. The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their …

Bloomberg: Misleading on Banks Buying Treasuries

by Lee Adler, The Wall Street Examiner Bloomberg had this headline yesterday: Banks Use $1.77 Trillion To Double Treasury Purchases They led with this: The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in …