Did the Banks Dump Treasuries to Boost Their Lending Profits?

Did the Banks Dump Treasuries to Boost Their Lending Profits? | The Exchange - Yahoo! Finance

My comment on Yahoo to this article:

 Of course banks dumped treasuries to force more risky bonds up in yield. Then Bernanke comes and fixes it so treasuries don't bounce much in yield which would hurt the interest rate swaps business.
The banking system is just one massive scam.

But there is one passage I disagree with from the author. He said:

 Most of them (witness JP Morgan and its London Whale trader) have more capital than they know what to do with anyway.
In terms of Basel 3, our banks do not have more capital than they know what to do with just because one banker got greedy with capital he could ill afford to lose. Remember, Basel 3 is coming with much higher capital requirements.

JPM is the strongest US bank but will also have systemic risk capital requirements additionally to worry about.

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