Regulators are concerned about heavy commercial real estate exposures and risky mortgage lending practices at U.S. banks, Federal Reserve Board Governor Susan Bies said on Thursday.
“There are certain rapidly growing business lines in banking operations that are placing pressures on risk-management systems,” Bies told a financial services industry conference as she outlined guidance regulators have issued on commercial real estate and so-called nontraditional mortgage lending.
In discussing the guidance on exotic mortgage products, such as interest-only loans, Bies repeated that government regulators were concerned risk-management practices had not kept pace with the risks that these widely available loan products could present.
Interview with Southwest Airlines CEO Gary Kelly
In the first installment of our new segment “Conversations from the Corner Office,” Kai talks with Southwest Airlines CEO Gary Kelly about building a corporate culture, and why the customer isn’t necessarily always right.
Southwest continues to have a market cap greater than all of the other airlines, combined. Perhaps, one day, they will serve Madison.
The $200B Broadband Scandal
My friend Bruce Kushnick is a man on a mission. In The $200 Billion Broadband Scandal, he writes:
. . . in the early 1990’s . . . every Bell company . . . made commitments to rewire America, state by state. Fiber optic wires would replace the 100-year old copper wiring. The push caused techno-frenzy of major proportions. By 2006, 86 million households should have had a service capable of 45 Mbps in both directions . . . In order to pay for these upgrades, in state after state, the public service commissions and state legislatures acquiesced to the Bells’ promises by removing the constraints on the Bells’ profits as well as gave other financial perks . . . The phone companies collected over $200 billion in higher phone rates and tax perks, about $2000 per household.
The manipulations, deceptions and broken promises are documented in detail in New Jersey, Texas, Pennsylvania, California and Massachusetts. Book synopsis here.
More here.
Podcasts, blogs and Dave Barry
“Newspapers,” he said right off the bat, “are dead.”
Uh, to be honest, I was hoping for something a little funnier. But, the more he talked about it, the clearer it became that it is a worthwhile topic for discussion. And Barry may even be right.
Everyone has heard about cutbacks in the newspaper business, from the big names on the East Coast to the papers in your driveway. And if there is anyone who typifies the rapid pace of change in the business and its effect on how you get your news, it is Barry.
Shopping in 1975
Alex Tabarrok via a Sears Catalog:
Sears’ lowest-priced 10-inch table saw: 52.35 hours of work required in 1975; 7.34 hours of work required in 2006.
Sears’ lowest-priced gasoline-powered lawn mower: 13.14 hours of work required in 1975 (to buy a lawn-mower that cuts a 20-inch swathe); 8.56 hours of work required in 2006 (to buy a lawn-mower that cuts a 22-inch swathe. Sears no longer sells a power mower that cuts a swathe smaller than 22 inches.)
Could Blogs Get Tangled in Web of Ethics Rules?
That’s because state elections law says that anyone who spends more than $25 a year to advocate for the election or defeat of a candidate – without that candidate’s knowledge or control – must register with the state as an independent committee and disclose the sources of the money spent and how it was expended.
Should bloggers be regarded as a part of the news media, exempt from such rules, or should they be seen as partisan actors in a campaign who must register? Few bloggers draw the line where Berg did.
The Chocolate Bomber
Every three weeks, a FedEx flight departs Zaventem Airport on the edge of Brussels carrying Michel Boey’s products to the United States. Call it the chocolate bomber.
“It is exactly as in wine,” he said, receiving a visitor amid heavy aromas of dark chocolate. “Once, wine was wine. Now we appreciate smaller quantities, but the quality is better.”
Did an iPod Scuttle the (Broadcast) Flag?
Wes Phillips takes an interesting look at the Senate Commerce Committee’s recent sausage making discussion regarding the “Broadcast Flags” – or “Audio Flag’s. These are essentially “takings” of our fair use rights via Hollywood special interests:
John Sununu (R-NH), an MIT graduate, questioned the necessity of the restriction. He said that advocates of the restriction maintained that its absence would “stifle creativity.” He demurred. “We have now an unprecedented wave of creativity and product and content development…new business models, and new methodologies for distributing this content. The history of government mandates is that it always restricts innovation…why would we think that this one special time, we’re going to impose a statutory government mandate on technology, and it will actually encourage innovation?”
Best and Worst Selling Cars By Company
The winners, the laggards, and the just-plain-so-expensive-that-almost-no-one-buys-them cars.
Rosanne Cash Black Cadillac Gives Grief a Lift
his past week, Cash released what is perhaps her most personal album to date — and what might just be her finest: “Black Cadillac.” It’s a musical memoir of mortality, loss and redemption.
Cash explains that the album served as a catharsis.
“The writing of it was a release in a way,” she says. “And so to bring my reason and discipline and my sense of poetry to this — these feelings that something manageable, this tremendous sense of grief and loss, to bring all of those things to this, to this kind of tidal wave of feelings was useful to me.”