Thursday, August 30, 2012

Romney not likely to repeal Dodd-Frank, but banks like that

Welcome to the morning roundup. Here's a look at what's news in banking and finance this morning.

Banks like Romney on Dodd-Frank. Republican presidential candidate Mitt Romney has vowed to repeal Dodd-Frank. He won't, Bloomberg says, but Wall Street likes that better. Romney is more likely to rework some pieces of the financial reform legislation, keeping the parts banks like but also allowing them to avoid restrictions on risky behavior.

Should big banks be afraid? Big banks and their executives should be afraid of the growing chorus of voices on the right and the left that the financial behemoths should be broken up, New York Times Economix blogger Simon Johnson says today. Execs have increasingly been called on to defend the universal bank model, but Johnson posits that their arguments are weak. And now even Republicans are moving against the big-bank model.

New Barclays CEO. Barclays has named its retail banking head, Antony Jenkins, to take over the CEO role following the resignation of Bob Diamond after the Libor-rigging settlement, the Wall Street Journal reports. He says his first role will be to restore the bank's reputation and relationships with regulators.

Unusual BofA suit. Bank of America has asked a judge to throw out a shareholder suit alleging that the bank concealed a $10 billion suit from AIG, Reuters reports. The AIG case is still pending. Bank of America argues it disclosed enough.

Citigroup settles with shareholders. Citigroup has agreed to pay $590 million to shareholders to settle a lawsuit that claimed the bank hid its exposure to subprime loans, BBC News reports. Bank of America and Wells Fargo have already settled similar claims.


Anonymous said...

Politicians doing something banks will like? Well knock me over with a feather.

BDogsDad said...

Romney has stated publicly during the early debates that he will repeal Dodd Frank and obmacare and he damn well better. We have had 4 years of a lying politician in the White House and have no patience for another one. Either do as you say you will do or stay the hell at home!