News, Updates & Insights
“How Can the Federal Reserve Pay Dividends to Its Shareholders When It Has No Profits?” by Alex Pollock
My good friend Alex Pollock’s latest article in the NY Sun questions the inappropriate structure of the Federal Reserve’s dividends.
Dismantling the FDIC Would Undermine a Fragile Banking System
My latest article, co-authored with Cornelius Hurley, was published today in Bloomberg Law. While we agree that U.S. banking regulation is in dire need of serious reform, we caution against speculation that the administration might cut the FDIC. As a former Chairman of the FDIC and, in Con’s case, a former Director of an FHLB, our long careers have helped us understand what works and what doesn’t in regulation. While the FDIC provides a vital service to American banking, we would advise the new administration to look at cutting a different entity: the FHLB system. Our article compares the historical context and present-day usefulness of these two bodies, and recommends a path forward.
Continue Reading Dismantling the FDIC Would Undermine a Fragile Banking System
Trimming outdated bank regulation is a good idea that won’t be easy
My latest article in The Hill, coauthored with my good friend Tom Vartanian, offers guidance as the incoming Trump administration promises to modernize banking regulation. Regulation must become smarter, the number of federal financial regulators should be consolidated, and the roles of the FDIC and Federal Reserve should be refocused.
Continue Reading Trimming outdated bank regulation is a good idea that won’t be easy
Trump Mulls Big Changes to Banking Regulation, Unsettling the Industry
I spoke with James Palmer at ALM’s Corporate Counsel on reports that the incoming Trump administration will look into cutting the FDIC, among other changes to banking regulation.
Continue Reading Trump Mulls Big Changes to Banking Regulation, Unsettling the Industry
The oversight of US banks could be in for some big changes under Trump
I spoke with David Hollerith at Yahoo! Finance on how the incoming presidential administration could reform banking regulation.
Continue Reading The oversight of US banks could be in for some big changes under Trump
Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts
I spoke with the Financial Times about financial regulation and the new Trump administration.
Continue Reading Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts
“An unseen financial threat looms before Trump and his Treasury” by Tom Vartanian
The next presidential administration will need to appoint competent leaders with innovative ideas for how to regulate the financial services industry, including banks and non-banks. Recent turbulence has demonstrated that our current regulatory system is no match for social media, cryptocurrency, and AI.
Continue Reading “An unseen financial threat looms before Trump and his Treasury” by Tom Vartanian
“Time To Bury The Basel Banking Accords” by Steve Forbes
Steve Forbes’ latest commentary calls for an end to the Basel Capital Accords. His piece quotes my recent article in American Banker.
Continue Reading “Time To Bury The Basel Banking Accords” by Steve Forbes
Rep. French Hill’s Plans for the American Banking System
I have known and respected French Hill for many years. He knows well that our nation’s continued success depends on healthy financial markets and a vibrant and strong banking sector.
Continue Reading Rep. French Hill’s Plans for the American Banking System
AFDICA Keynote Remarks
I enjoyed addressing the Association of FDIC Alumni in D.C. last month. My keynote remarks touched on many of the topics in my paper “It’s Broken, So Let’s Fix It.”
A blast from the past!
Here is a blast from the past, sent to me by Ralph Elosser, formerly of the FDIC when it won a coveted award for cash management from the U.S. Treasury. You might recognize the guy on the far right who was a very young Chairman of the FDIC.
“The internet’s worst ‘zero day’ could drain all of our bank accounts” by Tom Vartanian
My good friend Tom Vartanian’s latest article in The Hill reminds us of the damage a cyber event could cause to the banking industry, especially after last week’s Bank of America glitch that showed twenty thousand customers’ account balance as $0.
“50BPS Rate Cut, Powell and Inflation” on Schwab Network
I joined Oliver Renick on Schwab Network to discuss the Fed’s decision to cut rates by 50BPS.
Continue Reading “50BPS Rate Cut, Powell and Inflation” on Schwab Network
“The CFPB is funded by the Fed’s profits. Trouble is, there are none” by Alex Pollock
My good friend, Alex Pollock, Senior Fellow at the Mises Institute, has published a very important article in the American Banker on what he considers the illegal funding of the Consumer Financial Protection Bureau by the Federal Reserve System.
It’s time for the US to withdraw from the Basel capital accords
The Federal Reserve continues to struggle with adoption of Basel III. I firmly believe it is a futile and useless exercise, which should be abandoned, as I state in my most recent article in the American Banker, summarized here. I declined to adopt Basel I when I was Chairman of the FDIC and believe it…
Continue Reading It’s time for the US to withdraw from the Basel capital accords
“How Can One Understand the Federal Reserve’s Nearly $200 Billion in Losses?” by Alex Pollock
Alex Pollock’s important article in the New York Sun on the Federal Reserve’s staggering losses.
5 ways to improve the stability of the financial system
In our latest article in The Hill, my good friend Thomas Vartanian and I outline five key challenges standing in the way of financial stability in the US banking system.
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Uninsured deposits, not brokered deposits, led to 2023 bank failures
My latest article in American Banker explains how it was uninsured deposits, not brokered deposits, that led to 2023’s bank failures.
Continue Reading Uninsured deposits, not brokered deposits, led to 2023 bank failures
“The next president must restore our faith in America” by Jamie Dinon
I couldn’t agree more with Jamie Dinon’s Washington Post opinion, titled “The next president must restore our faith in America,” calling for much needed leadership in the US that will unite us in these very difficult, divisive, and perilous times.
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“The Federal Reserve Lacks the ‘Earnings’ With Which Legally To Fund the Consumer Financial Protection Bureau” by Alex Pollock
Alex Pollock published an important column in the NY Sun: “The central bank is in circumstances that the authors of Dodd-Frank failed to anticipate — it’s been operating at a loss.”
Isaac Proposes Overhaul of U.S. Bank Regulation & Deposit Insurance
William Isaac has released a new white paper on much-needed reforms for U.S. bank regulation and deposit insurance. The paper, “It’s Broken, So Let’s Fix It” uses Mr. Isaac’s decades of experience in banking and regulation to make recommendations on accounting rules, regulatory oversight, deposit insurance reform, and better and more effective US-centric capital rules.
Continue Reading Isaac Proposes Overhaul of U.S. Bank Regulation & Deposit Insurance
AEI: “The Forgotten Solution to the Housing Crunch”
Ed Pinto at the American Enterprise Institute discussed the American housing market in a new podcast interview, and the AEI released a compelling 9-minute video on the topic.
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It’s Broken So Let’s Fix It: Former FDIC Chair Isaac’s Recipes For Success – IBKR Podcast
I sat down with Interactive Brokers Podcast Host and Senior Economist Jose Torres to discuss how today’s regulatory failures mirror past crises and what we need to fix our financial system.
“A value-added tax is one solution to the crippling debt problem” by Peter Tanous
My good friend, Peter Tanous, has written a thoughtful article for CNBC on the necessity of the U.S. joining most of the rest of the world in adopting a Value Added Tax as a critically important step toward significantly reducing our dangerously out of control debt problems. I believe firmly that we must also reduce senseless Federal spending but, realistically, that alone will not do the job. We will also need a reasonable and fair way to increase Federal revenues. It’s time for the VAT tax coupled with a substantial reduction in wasteful Federal spending.
Continue Reading “A value-added tax is one solution to the crippling debt problem” by Peter Tanous
Former FDIC chair: Workplace culture at the FDIC can and must be fixed.
My latest article in The Hill emphasizes the importance of identifying leaders at the FDIC who can attract and retain talent by treating employees with respect and dignity. The FDIC is an important institution with a noble goal, and misbehavior must not be tolerated.
Continue Reading Former FDIC chair: Workplace culture at the FDIC can and must be fixed.
Back to the Future?
The Federal Reserve and Congress have created and dumped into the economy massive amounts of debt at close to zero interest rates, allowing us to ignore the problems while they have mushroomed beyond control.
Why does one unelected bureaucrat get to decide credit card fees?
My latest article in The Hill, co-written with my friend Tom Vartanian, challenges the amount of power that the Director of the CFPB, an unelected official, can wield. Having a politicized official at the helm of this agency will do the American consumer more harm than good.
Continue Reading Why does one unelected bureaucrat get to decide credit card fees?
National Debt, Inflation and the Federal Reserve
This article was written in response to a thoughtful and important opinion piece authored by my good friend, Alex Pollock, about the need for Congressional oversight of the Federal Reserve, something recently advocated by Rep. French Hill in the House and Sen. Rand Paul in the Senate.
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“About That 3 Percent GDP Growth” by Larry Kudlow
Larry Kudlow’s opinion in the NY Sun regarding the 3+% GDP growth announced by the U.S. government this past week. Unfortunately for those celebrating this event – particularly those in the White House – the bad news, as Kudlow notes, is that all of the growth is attributable to massive deficit spending by the government, which will not have a happy ending for consumers, businesses, and taxpayers.
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Why regulators’ confidential bank ratings should not be public information
My latest article in The Hill explains why CAMELS ratings, an important tool in bank regulation, must not be made public.
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Why is the SEC still allowing crypto to run wild?
My latest article, co-authored with my friend Thomas Vartanian, argues that the SEC learn from history and regulate the crypto industry in order to protect the public interest.
Continue Reading Why is the SEC still allowing crypto to run wild?
“How Will We Survive the ‘Deluge of Debt’?” by the New York Sun
I urge you to read the New York Sun editorial titled “How Will We Survive the ‘Deluge of Debt’?”. We all know and talk about the mountain of debt that exists not only in the in the United State but throughout the world. It was my incredible honor, as Chairman of the FDIC, to work side by side with the legendary central banker now deceased, Paul A. Volcker, from 1978 when he was appointed by President Carter as Chairman of the Federal Reserve.
Continue Reading “How Will We Survive the ‘Deluge of Debt’?” by the New York Sun
“How many more times will we be conned by crypto?” by Thomas Vartanian
My longtime friend and colleague, Tom Vartanian, has published a new article in The Hill on the urgent need to impose meaningful federal regulation on the Crypto industry. He makes a compelling case for protecting the public from potentially significant losses in these volatile and risky instruments.
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Schwab Network’s “Market on Close” on Federal Reserve
I joined Schwab Network’s “Market on Close” to give my perspective on the Federal Reserve’s announcement yesterday that it would keep its key interest rate unchanged heading into 2024.
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The FDIC Under a Microscope
The Federal Deposit Insurance Corporation is in the hotseat following the Wall Street Journal’s report of sexual harassment issues at the agency. Incidents of this nature tarnish the reputation of an agency that has brought so much comfort and financial security to the citizens of our great nation. The FDIC is a proud and extraordinary organization working…
“Reforming the Federal Reserve” by Alex Pollock
My long-time friend, Alex Pollock, has written what might be the most timely and important of the many thoughtful pieces he has authored over a lifetime of great scholarship. The article addresses the issue of whether the Federal Reserve should be subject to Congressional oversight when setting interest rates and determining the supply of money.
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How Risky Are the Banks Now? What Regulatory Reforms Make Sense? Federalist Society Panel Discussion
I joined the Federalist Society’s Regulatory Transparency Project for a panel discussion moderated by my good friend Alex Pollock.
What led to the TD-First Horizon deal termination
I spoke with Zoe Sagalow at S&P Global Market Intelligence on the suspension of Toronto-Dominion Bank’s acquisiton of First Horizon Corp., explaining how these processes work from a regulatory perspective.
Continue Reading What led to the TD-First Horizon deal termination
Remembering Charles Arthur (Butch) Isaac
Last Saturday Butch and his wonderful partner, Pam Clark, watched the Ohio State game together and had dinner. Some 12 hours later, Butch died in Pam’s arms. I don’t believe he could have ever scripted a better ending for his great life. I didn’t get to say goodbye, but I spoke with him by phone last Friday and texted him “Go Bucks” during Saturday’s game.
“Lots of Red Ink at the Fed” by Alex Pollock
Alex Pollock, who has devoted much of his lifetime to studying the financial world, has written two new articles about highly questionable monetary policy actions taken by the Federal Reserve in coordination with the US Treasury’s TARP bailout programs
Continue Reading “Lots of Red Ink at the Fed” by Alex Pollock
Bill Isaac – Financial Institutions in the Current Environment
Larry Gordon and I sat down for a wide-ranging interview covering the banking and thrift crises from 1978 through 1992 when the FDIC dealt with thousands of deeply troubled banks and thrifts, some 3,000 of which failed, including many of the largest regional banks in the nation.
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Government Debt Crisis Has Hit U.S. Banks | Bill Isaac, Former FDIC Chair
I joined host Jack Farley for an episode of the Forward Guidance podcast, during which we discussed my background in banking and the lessons I learned that should be applied today.
Continue Reading Government Debt Crisis Has Hit U.S. Banks | Bill Isaac, Former FDIC Chair