Sanford Weill says ‘so sorry, let’s go back to the Glass-Steagall Act’

July 28, 2012

Posted by AzBlueMeanie:

In case you missed this earlier this week, Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented the financial supermarket, called for the breakup of big banks in an interview on CNBC Wednesday. Wall Street Legend Sandy Weill: Break Up the Big Banks:

“What we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail,” Weill told CNBC’s “Squawk Box.”

He added: “If they want to hedge what they’re doing with their investments, let them do it in a way that’s going to be mark-to-market so they’re never going to be hit.”

He essentially called for the return of the Glass–Steagall Act, which imposed banking reforms that split banks from other financial institutions such as insurance companies.

“I’m suggesting that they be broken up so that the taxpayer will never be at risk, the depositors won’t be at risk, the leverage of the banks will be something reasonable, and the investment banks can do trading, they’re not subject to a Volker rule (the Volcker rule explained), they can make some mistakes, but they’ll have everything that clears with each other every single night so they can be mark-to-market,” Weill said.

He said banks should be split off entirely from investment banks, and they should operate with a leverage ratio of 12 times to 15 times of what they have on their balance sheets. Banks should also be completely transparent, Weill said, with everything on balance sheet. “There should be no such thing as off balance sheet,” he said.

If banks hedge in any way, Weill added, positions should be mark-to-market (mark-to-market explained) and cleared through an exchange.

Weill said that by breaking up banks, they would be “much” more profitable.

Weill said the model he built at Citi was “right for that time.” But “the world changed with the collapse of the housing market and the real-estate bubble … so I don’t think it’s right anymore.”

Time for a new MCSO Sheriff in town

July 28, 2012

Posted by AzBlueMeanie:

The Arizona Republic published candidate profiles last week for the Democratic candidates for Maricopa County Sheriff, Paul Penzone MCSO sheriff race: Former face of Silent Witness Paul Penzone knows recognition not enough, and John Rowan. MCSO sheriff race: Rowan talks NYPD career, Goodyear firing. 

This Thursday, The Arizona Republic endorsed Paul Penzone in its Primary picks:

Democrats need to pick the candidate with the best shot at defeating Joe Arpaio. In this race, that's Paul Penzone, a retired Phoenix police sergeant.

He has a strong record within the Phoenix department. He puts law enforcement first, not public relations. He's raised enough money to be credible.

The other candidate, John Rowan, was fired from his last law-enforcement job and wants the Sheriff's Office to crack down on corruption in municipal police departments. That's no improvement over the incumbent.

Penzone speaks softly but with authority. He says Arpaio's excessive approach to immigration has destroyed relationships in minority communities, which allows crime to take root. Penzone would rather target crime, including serving warrants.

He's the best candidate the Democrats have had in their quest to unseat Arpaio. He deserves their support.

John Rowan apparently decided to go for the Hail Mary pass with a PR stunt that looks like it may blow up in his face. The Arizona Republic reports today, MCSO sheriff hopeful John Rowan bails out inmate:

The tip came in like so many others, with a distraught family member claiming a relative had been beaten by detention officers in Maricopa County's Fourth Avenue Jail.

That information was enough to persuade John Rowan, a Democratic candidate for sheriff, to bail 18-year-old Kolton Brian Clark out of jail last week.

But the Sheriff's Office denies Clark's claim. And video that captures Clark's entire time in custody raises questions about whether the assault took place. A Phoenix police report shows that the injuries Clark attributes to sheriff's detention officers may have been suffered in the fight that landed him in jail.

Rep. Peggy Judd about ALEC: “I wouldn’t say they brainwashed me . . .”

July 27, 2012

by David Safier

Fox 13 Salt Lake City has an excellent news piece about the ALEC convention going on in the city. The featured interview is with Southern Arizona's own Rep. Peggy Judd, LD-25 Republican. Someone must have forgotten to tell her about the code of silence about the goings on inside — or it slipped her mind when a reporter put a microphone in front of her. Here's the transcript from the interview:

Reporter: Arizona Representative Peggy Judd said ALEC mentored her from the beginning.

Judd: "Right after I got elected in November of 2010, we were able to participate in a leadership training conference in Washington, D.C., December 3, right after I was elected, and, um, I wouldn't say they brainwashed me, because when I got there, I felt so at home. I guess I could say my dad brainwashed me to be a very strong conservative person."

Later in the news piece, the reporter noted that ALEC, being a nonprofit, isn't allowed to lobby, but apparently Judd didn't get the ALEC script:

"Representative Judd from Arizona told me she does get lobbied at ALEC meetings. She said in fact, the meetings were officially supposed to be casual dress, but the lobbyists wear such nice clothes, it's hard to dress down."

You can see the video below the fold.

ALEC meeting in Salt Lake City. AZ Republicans will be well represented.

July 27, 2012

by David Safier ALEC's 39th Annual meeting is in session in Salt Lake City. The theme: COMPETE. INNOVATE. PUT AMERICANS BACK TO WORK. An estimated 50 Arizona Republican legislators should be there. I don't have the list. Here, however, is a list of Arizona's ALEC task force members in 2011 which numbers more than 50, … Read more