Home » Posts tagged 'Mike Maharrey'

Tag Archives: Mike Maharrey

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Proposal to Move Bank Regulation Goalposts Signals Underlying Problems in Financial System

April 5, 2024

Proposal to Move Bank Regulation Goalposts Signals Underlying Problems in Financial System

If a formula spits out a number you don’t like, just change the formula so you get a better number!

That’s exactly what the Bureau of Labor Statistics did to the Consumer Price Index formula in the 1990s. Because the CPI kept indicating price inflation was too high, the BLS tweaked the formula to spit out a lower inflation number.

Now the International Swaps and Derivatives Association (ISDA) is trying to talk the Federal Reserve into changing the formula for the supplementary leverage ratio (SLR) to make bank balance sheets look better.

This proposal sends some alarming messages about the stability of the banking system and confidence in U.S. government debt.

What Is the SLR and Why Do They Want to Change It?

The SLR is calculated by dividing the bank’s tier 1 capital (capital held in a bank’s reserves and used to fund business activities for the bank’s clients) by all assets on the bank’s balance sheet, including U.S. Treasuries and deposits at Federal Reserve Banks.

Banks use the SLR to calculate the amount of equity capital they must hold relative to their total leverage exposure. Regulations imposed after the 2008 financial crisis require category I, II, and III banks to maintain an SLR of 3 percent. “Globally Systemically Important Banks” are required to keep an extra 2 percent SLR buffer.

During the pandemic, the Fed temporarily altered SLR requirements, allowing banks to exclude Treasuries and reserves from the formula’s denominator. This made it easier to maintain the required SLR ratio.

As a Federal Reserve note explained, the banking system “exhibited considerable strains” during the reign of COVID-19. As the pandemic unfolded and governments began shutting down economies, banks quickly liquidated risky assets and increased their cash holdings. This resulted in a “sharp increase in bank deposits.”

…click on the above link to read the rest of the article…

How the Feds Use Transportation Funds to Spy on You

May 23, 2018

How the Feds Use Transportation Funds to Spy on You

red light camera.jpg

A recent announcement by a local transit authority in Virginia sheds light on how the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) are building a massive, intrusive surveillance network built on America’s transportation system.

The Greater Richmond Transit Company (GRTC) recently announced plans to install more than 100 live surveillance cameras at stops along a rapid transit line. According to a WTVR report, GRTC plans to install approximately four cameras at 26 Pulse stops along Broad Street. The system will be live 24 hours a day and directly connected to the city’s 911 facility.

The ACLU of Virginia opposes the system. The organization’s director of strategic communications said constant monitoring changes the nature of a community.

“There’s very little evidence that this type of surveillance enhances public safety, and there is every reason to think that it inhibits people. That it causes us to behave differently than we would if we weren’t being watched,” Bill Farrar said, adding that the system will “keep tabs” on people who rely on public transit.

“GRTC has said in promoting this, in promoting the need for this particular line, we want to help people get out of the East End food desert. So we’re saying use this to get the food that you need, but we’re going to watch you while you do it.

GRTC Pulse is “a modern, high quality, high capacity rapid transit system serving a 7.6-mile route.” It was developed through a partnership between the U.S. Department of Transportation, the Virginia Department of Transportation, the City of Richmond and Henrico County.

According to Style Weekly, “this new system will bring the total number of easily accessible, city or government-owned cameras available to police and other authorities to more than 300, including roughly 200 stationary cameras Richmond police already have easy access to, and 32 cameras owned by city police.”

…click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress