The investor wants to help U.S. companies bring back $2 trln of overseas cash in return for a reduced tax that will fund infrastructure. A massive so-called super PAC will back like-minded candidates in 2016 elections. The idea makes sense, but a longer-term fix would be better.
The socialist U.S. candidate would shake up the economy with dramatically more government spending. But promises from free college tuition to a government health system would cost more than $12 trln over a decade – far short of additional revenue, like a Wall Street trading tax.
The White House hopeful has unveiled a slew of ideas for reining in financial excess. Initiatives like imposing risk fees on big banks and improving hedge fund reporting won’t win many friends in the industry. But they’re manageable blows that Wall Street could roll with.
Regional U.S. lender BB&T’s $1.8 bln swoop for National Penn is its fourth deal in a year. The acquisition makes financial sense and is more proof the Fed supports industry tie-ups. The longer other banks stay on the sidelines, the more it’ll look like they fear rejection.
Barney Frank, whose name adorns the law that reshaped Wall Street, has followed former FDIC Chair Sheila Bair through the revolving door to a bank board. Only the crusading U.S. senator joining them would be more surprising. Breakingviews imagines how it might play out.
Borrowing for education has soared over the past decade, ballooning to $1.2 trln and growing far faster than GDP. With serious delinquencies at 11 pct and Washington on the hook, there’s a mess in the making. A Breakingviews calculator shows how big Uncle Sam’s exposure could get.
The Canadian bank is paying $5.4 bln for U.S. lender City National, a 26 pct premium that planned cost cuts don’t justify. The so-called banker to Hollywood stars is growing well. But RBC’s last venture into American retail banking was a mess. It needs to prove it can do better.
(Reuters Breakingviews) - Barack Obama has turned the tables
on Elizabeth Warren. The president bypassed the U.S. senator's
opposition to Treasury nominee Antonio Weiss with a familiar
trick: naming the Lazard banker to a similar post not
requiring congressional approval. That's the same ploy that
allowed Warren - Weiss' harshest critic - to help steer the
Consumer Financial Protection Bureau in 2010. Even with a broken
confirmation process, the White House gets the expertise it
CHICAGO/WASHINGTON (Reuters Breakingviews) - Peter Thiel may
reckon regulators are just blowing smoke on weed. The PayPal
billionaire's Founders Fund is backing the marijuana business,
investing in Seattle-based farming firm Privateer Holdings.
Though the stake could run up against U.S. anti-drug laws, Thiel
- like sharing-economy upstarts Airbnb and Uber - is wagering
that the legal haze will clear. His reward could be sky-high
The post-crisis rebound boosted home prices 25 pct even as sales and construction lagged. Increasing household formation, job creation and easing credit look set to give the market another leg up, despite rising interest rates and the headwind of sliding affordability.