The Daily Dig for Friday, May 30

Today’s Daily Dig takes a closer look at banks, including lawsuits, oversights and new entrants in lending.

 

Lacker feels rates can be raised before inflation picks up

Jeffrey Lacker, the President of the Federal Reserve Bank of Richmond, told Bloomberg Radio today inflation does not need to rise much before the Fed hikes the main rate.  A transcription of the conversation is available here.

Square enters small business lending field

Square Capital has started providing loans to small businesses.  Receiving businesses can pay them back through a portion of sales completed through the Square service, John Adams reports.

Community banks pressured to drop some clients: Gingrich

Newt Gingrich disagrees with the Department of Justice’s approach of pressuring community banks to sever ties with businesses that are allowed to operate legally in the United States such as payday lenders and firearms retailers.  Read his column here.

Commercial property transaction volumes to see healthy growth: survey

A survey of 39 economists discovers fairly bullish attitudes on the immediate future for commercial property transaction volume.  They collectively look for it to grow 21% by 2016, Sarah Borcherson-Keto finds.

Contingent capital touted as TBTF prevention tactic

Contingent capital is defined as debt which is convertible into equity on the basis of a market value trigger.  Economist Charles Calomiris suggests it, along with higher book equity-to-assets, as a way to keep the banking system healthier.

Warren to Obama: Tell Fed to crack down more often on big banks

Elizabeth Warren wants future Fed appointees to be harder on the big banks, instead of passing the buck to staffers.   Erika Eichelberger explains why.

Shareholder displeasure with bank pay on the rise

Shareholders level of frustration with executive pay at the big banks makes it feel like it’s 2012 all over again, says Clayton Browne.

LIBOR-related fines summarized

Can’t tell the miscreants without a scorecard.  Here is a list of who has been fined how much for their roles in LIBOR-rigging.

Los Angeles sues JP Morgan for predatory lending

Higher foreclosures rates experienced by many minority populations and the resulting decline in property tax revenues are behind the lawsuit the City of Los Angeles filed against JP Morgan today.  Jonathan Stempel looks at the case.

 

 

 

 

 

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