April 17, 2014
Every quarter, pundits breathlessly try to analyze how shareholders will react to bank earnings. However, it would be far more useful for the media to analyze whether the information we are getting from banks indicates they are strong enough to survive a market shock without a government bailout.
Just recently at the Office of the Comptroller of the Currency’s 150th Anniversary symposium, former Federal Deposit Insurance Corp. chair Sheila Bair stated “not enough attention is placed on bank transparency.” Unfortunately, almost seven years since the global financial crisis started, she is right. There are three different types of disclosures that need to be improved significantly: financial, regulatory capital and bank resolution process…Read More