BU Now » House of Represenatives http://blogs.bu.edu/bunow News, information and research from Boston University Wed, 21 Sep 2011 18:14:24 +0000 en hourly 1 http://wordpress.org/?v=3.1.4 Financial regulatory reform showdown http://blogs.bu.edu/bunow/2010/06/21/financial-regulatory-reform-showdown/ http://blogs.bu.edu/bunow/2010/06/21/financial-regulatory-reform-showdown/#comments Mon, 21 Jun 2010 17:37:05 +0000 Dick Taffe http://blogs.bu.edu/bunow/?p=6023 stock market boardHouse and Senate conferees hope to wrap up this week the final version of financial regulatory reform legislation to send to President Obama, with chairmen Barney Frank and Chris Dodd delicately trying to compromises without losing votes for the overall package.  What do about the trading of derivatives – the complex financial packages which helped sink the economy – remains up in the air.  Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says the proposal currently in the Senate version but objected to by both the House negotiators and the White House, wouldn’t be the best for taxpayers fearing another bailout but would be better than nothing.

“If derivatives trading is such a socially useful and profitable activity ($23 billion in revenue among the five banks that dominate the market) why can’t it exist outside of bank holding companies? The answer to the question is that it could exist in a different, nonbank setting, but, without the backing of the taxpayers, the activity would have to shed its casino-like features.”

Contact  Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

]]> http://blogs.bu.edu/bunow/2010/06/21/financial-regulatory-reform-showdown/feed/ 0 The FDIC’s deposit-insurance limit http://blogs.bu.edu/bunow/2010/06/16/the-fdics-deposit-insurance-limit/ http://blogs.bu.edu/bunow/2010/06/16/the-fdics-deposit-insurance-limit/#comments Wed, 16 Jun 2010 20:24:08 +0000 Dick Taffe http://blogs.bu.edu/bunow/?p=5974 FDIC sealCongressional negotiators working out difference between the House and Senate financial reform bills are hammering out compromises right and left.  One would permanently (and retroactively to January 2008) move from $100,000 to $250,000 the deposit insurance on individual bank accounts.  Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, doesn’t think the raised limit is a good idea.

“Permanently raising the federal deposit insurance ceiling from $100,000 to $250,000 when the Federal Deposit Insurance Fund is over $20 billion in the red is irresponsible. By raising taxpayer-funded deposit insurance coverage … it seems the [banking] lobbyists’ messages are getting through loud and clear.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

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