Dec 21

Pandemonimium Breaks Out As Treasury Releases New TILA Guidebook

The U.S. Treasury’s Office of the Comptroller of the Currency finally issued it’s updated guidebook for the Truth-In-Lending Act. The Guidebook covers everything from compliance issues during the origination of mortgage loans to defenses against civil actions from homeowners. It also covers the proper way to calculate loan payments on mortgage loans and how to notify debtors when their loans are sold to third parties.

Dec 20

Doug Noland: A week of "Bo, Bo" – Bubble Off, Bubble On

“I believe options and swaptions on corporate Credit are exceptionally dangerous. I also believe they likely help to explain some of this year’s (and this week’s!) unusual market trading dynamics. Again, think “Bubble On, Bubble Off.” Who is on the other side of the explosion of Credit and market insurance? Computers and models. ”

Dec 20

China Offers Enhanced Cooperation as Russia Struggles

“Any rescue package for Russia would give China the opportunity of exercising the kind of great-power leadership the U.S. has demonstrated for a century — sustaining other economies with its superior financial resources. President Xi Jinping last month called for China to adopt “big-country diplomacy” as he laid out goals for elevating his nation’s status.”

Dec 20

Why the Secrecy on the Mh17 Investigation?

“Under IATA Rules, the parties responsible for the investigation would be the Malaysians, as owners of the plane and home country of the airline, and the Ukrainians over whose territory the atrocity occurred.  It was the Dutch however, who took the lead role, citing two facts:  the plane had departed from Amsterdam; and they had suffered the largest number of their nationals as victims.  The Malaysians were initially excluded from the inquiry for reasons that have never been satisfactorily explained.  They were finally invited to join the Joint Inquiry on 2 December 2014.”

Dec 20

JP Morgan Chase, Bernie Madoff’s $64.8 Billion Ponzi Scheme and Crime on Wall Street

“After all, how could this one guy possibly pull off such a crime and at that scale and for so long? He couldn’t have and didn’t. Like most substantial illegal and criminal financial activities, Madoff had a very close relationship with a big Wall Street bank: JP Morgan Chase, the country’s largest bank”

Dec 20

Derivatives and mass financial destruction: New Emergency Bail-Out Clause Rushed In

“If, on the other hand, there is a wider systemic problem, such as instability in a major commodity market like energy, and if this instability is transmitted to other sectors via currency, credit and stock markets, a number of G-SIBs could be threatened with insolvency… The US Government has suddenly become aware of this risk. In the recent omnibus finance bill a clause was hurriedly inserted transferring derivative liabilities to the Government in the event of a bank failure. What is alarming is not that this reality has been accepted by the politicians, but the hurry with which it was enacted.”

Dec 20

Study: Russian Economy Now Diversified Enough to Survive Sanctions

“A study released today by Awara Group, a Russia-based consulting firm, shows that Russia’s economy is not as dependent on oil and gas as is commonly claimed. It researches the development of key indicators of the economy from 2000 to 2013. The crisis-torn economy battered by years of robber capitalism and anarchy of the 1990’s, which Putin inherited in 2000, has now reached sufficient maturity to justify a belief that Russia can make the industrial breakthrough that the President has announced.”