Free Republic

Jim Rogers and Marc Faber See Disaster Looming, Blame The Fed Posted on 12/21/09 at 11:47am by Bud Fox Legendary investors Jim Rogers and Marc Faber have similar outlooks on the financial crisis and the efforts of the Federal Reserve to revive the U.S. economy. What do they think of the Fed's quantitative easing policy? In a word, it is a recipe for disaster. According to Rogers, governments have not addressed the underlying problems which triggered the crisis, but instead have "flooded the world with money." He argues that trying to solve the problem of too much consumption and too...

Obama's Planned 400% Excise Rip Off Tax Politics / US Politics Dec 21, 2009 - 05:09 AM By: Michael_S_Rozeff The Wall Street Journal brings more bad news. A headline reads "Lawmakers Weigh a Wall Street Tax." The first mention of this was in October. The proposal has not died as Congress seeks new ways to finance its profligate spending. Both houses are considering legislation. The tax would fall on financial exchanges of all kinds. It is not a tax on Wall Street. It is a tax on anyone who buys and sells securities. James Tobin originated the notion in the...

Deflationary Myth Is Poor Excuse For Irresponsible Policy Excesses New figures show that UK inflation was 1.9pc during the 12 months to the end of November, up from 1.5pc the month before. That was "above consensus estimates". By Liam Halligan Published: 7:19PM GMT 19 Dec 2009 Having said that, British inflation, to use investment bank parlance, has "surprised on the upside" pretty much every month for the past two years.> Ever since this crisis began, economists in the City of London have underestimated UK inflation and warned, instead, that "deflation" looms. As a result of this threat, policymakers have had...

China Facing Economic, Financial And Stock Market Crash Scenario Economics / Financial Crash Dec 18, 2009 - 03:38 AM By: Mike Shedlock Problems in China continue to mount. Money supply is growing rampantly out of control, property prices are in a bubble, exports are weak, commodity speculation is pervasive, and GDP growth is more of a mirage than real. Money Supply Growing Record 29.74% Please consider China Monthly New Loans Are 294.8 Billion Yuan, Above Forecast New local-currency loans totaled 294.8 billion yuan ($43.2 billion), compared with 253 billion yuan in October, according to data released by the People’s Bank...

Is That A Door Slamming?Posted by Karl Denninger in Banking System at 14:48 Tuesday, December 15. 2009 Gee, you think this might have something to do with the equity and tarp exit right now nonsense? Citibank card chargeoffs 10.29% .vs. 8.79% (all month-over-month) and $617 billion in "Citi Holdings" (worth god only knows what), a cutesy game of asset-shifting and sausage-hiding the bank set up after Pandit came to power. Capital One 9.6% .vs. 9.04% AXP falls to 7.6% (that's actual improvement; was 7.8% last month) JP Morgan/Chase, 8.81% .vs. 8.02%. Bank America, 13% .vs. 13.22% (is that percentage even...

Moody's: The Coming Sovereign Debt Crisis Of 2010 Joe WeisenthalDec. 15, 2009, 5:17 AM The subject of sovereign defaults is definitely the theme of du jour. It's the question everyone will be obsessed with in 2010 -- that, and the related theme, the breakup of the Euro. Moody's, via FT Alphaville, has created a new kind of "misery index" that merely adds a country's fiscal deficit with its unemployment rate. The top of the list reads like a who's who of the names in the news these days: Spain, Latvia, Lithuania, Ireland, Greece, the UK, Iceland and the US. Moody's...

Global Financial Crisis, No Bailout Will Stop It Stock-Markets / Credit Crisis 2009 Dec 15, 2009 - 04:21 AM By: Mac Slavo Sometimes, a bailout is not enough. When Dubai World black swanned global investors last month with what amounts to be a reported $80 Billion in debt liabilities, it sent shivers down the spine of many a financial manager and stock trader. For those who were paying attention, Dubai’s troubled assets were no surprise, it was simply a matter of time. Oft repeated by contrarian analysts and investors like Dr. Doom Marc Faber, Gerald Celente, Jim Rogers, and Karl...

U.S. taxpayers could ultimately see a profit of $13 billion to $14 billion from Citigroup's payback of bailout investments, including dividends paid, a U.S. Treasury official said on Monday. That amount includes the gain on the government's 34 percent stake in Citi common shares , which was close to $5.8 billion as of Friday's close, as well as trust preferred securities with a $5.2 billion face value, received in a loss-sharing agreement backing a pool of Citigroup assets. The official also said the total also includes estimates of nearly $3 billion in dividends paid on the government's investments in the...

Obama Administration Can't Decide Whether The Recession Is Over, But It Wants Banks To Lever Up Joe WeisenthalDec. 13, 2009, 2:39 PM Politico recognizes inconsistency emanating out of the Obama administration based on comments from today's Sunday morning yak-fests. Two of President Obama’s top economic advisers disagreed Sunday about whether the recession had ended. Lawrence Summers, director of the National Economic Council, flatly said that it had. "Today, everybody agrees that the recession is over, and the question is what the pace of the expansion is going to be," Summers said on ABC's "This Week." But Christina Romer, who heads...

Overrating Agencies (Economy) By Joel Bowman 12/13/09 Taipei, Taiwan – As nervous investors await news of the next sovereign debt debacle, Moody’s Senior Vice President Tom Byrne gave them another reason to remain on guard this week. During an interview in Singapore on Friday, Byrne made the following comment concerning the health of the US and UK economies. “The outlook is stable.” Byrne’s placating remarks came in quickstep after a report from his firm earlier in the week let slip that the two massively indebted sovereigns may “test the AAA boundaries.” That report, in turn, emerged after the kafuffle in...

Malcom Forbes must be spinning in his grave. His namesake publication’s web site has published an article which basically promotes a financial and economic system which by its very nature seeks to replace capitalism and our free enterprise system. In fact, the article reads less like journalism and more like a press release from a public relations firm. And like such press releases and “advertorials,” it completely ignores much of the reality surrounding Shariah Finance.

Grim Words From Capital One’s CEO By Eric Fry 12/10/09 Laguna Beach, California – If the credit crisis is genuinely over and the economy is genuinely on the mend, someone forgot to notify Capital One Financial, one of America’s largest issuers of consumer credit. Yesterday afternoon, at the Goldman Sachs US Financial Services Conference in New York City, Capital One’s Chairman and CEO, Richard D. Fairbank, wowed the crowd with a dizzying collection of grim assessments and forecasts. In no particular order, Fairbank observed: 1) “The storm is not over and we continue to face several significant risks.” 2) “With...

The embattled community group ACORN could help regulate the financial services industry under new financial regulatory reforms, said Rep. Michele Bachmann (R-Minn.) on Wednesday. Bachmann, a consistent opponent of ACORN (Association of Community Organizations for Reform Now), said that an amendment given in the House Financial Services Committee could allow the group to sit on an advisory panel that monitors the regulations. “ACORN may have a seat at the table being on the oversight committee regulating the financial services industry of the United States,” Bachmann said at a press conference. “And that would be a cruel joke." Bachmann’s remarks come...

No Credit. No Economy. By Eric Fry 12/09/09 Laguna Beach, California – “The great American consumer deleveraging continues,” our colleagues at The 5-Minute Forecast observed yesterday. “The Fed announced that consumer credit shrank for a record ninth month in a row in October.” Consumer credit, as we all know, drives a big chunk of consumer spending, which drives a big chunk of the American economy. Ergo, no credit; no economy. But consumers are not the only borrowers between the Atlantic and the Pacific who contribute to economic activity. Commercial and industrial (C&I) borrowers also play a large role. The dots...

Baroness Vadera: 'I Still Have Nightmares About The Financial Crisis'Baroness Vadera, the adviser to the G20 Presidency, has warned that some of Europe's biggest banks have yet to "come clean" on the extent of their losses and could still provide shocks to the financial system. By Louise Armitstead Published: 9:14PM GMT 08 Dec 2009 The former Government minister and one of the architects of the British efforts to rescue the financial system, told a high-level business conference in Sussex: "I don't think we are through it yet… an IMF study showed at the middle of this year that banks had...

U.S. Social Security Will Go Bankrupt In 2010 Economics / US Debt Dec 08, 2009 - 03:16 AM By: Gary North For the third time in my life, the Social Security System will go belly-up. The first time was in 1977 – well, almost. To head off the bust, Jimmy Carter got Congress to pass a major FICA tax increase – sorry, "contribution" increase – in order to save Social Security. The rate would be hiked in phases from 2% to 6.15% (times two: employee and employer). He promised: "Now this legislation will guarantee that from 1980 to the year...

Gerald Celente Says Bernanke Has Devalued The Dollar And Destroyed The Economy Politics / Central Banks Dec 08, 2009 - 03:22 AM By: Submissions Gerald Celente of the Trends Research Institute is strongly opposed to the idea of Ben Bernanke seeking and getting a second term as head of the Federal Reserve. Celente strongly argues that Bernanke is creating the “bailout bubble” and destroying the U.S. economy. But he says the Fed Chief will get to keep his job because he’s an “insiders.” According to Celente, the fact? that Bernanke is being put back in charge after royally screwing things...

Stock Market And Gold Crash, Are We About To Repeat 2008? Stock-Markets / Financial Crash Dec 07, 2009 - 09:34 PM By: Graham_Summers A few weeks ago on November 10, I wrote an article Three Reasons Gold Might be Making a Head Fake. In it, I noted that Gold’s recent rally was largely due to Dollar devaluation (Gold had failed to hit new highs in other world currencies) as well as several other factors that disconfirmed the precious metal’s explosive rise. I wrote: Unless we start seeing confirmations of Gold’s breakout coming from other precious metals or gold mining stocks,...

Fund executive: Don’t Expect V-Shaped Recovery Published: Monday, December 7, 2009 By Trevor Delaney, AP Personal Finance Editor NEW YORK — There’s something different about the Masters’ Select Funds. Though it’s not unusual for mutual funds to be managed by a team of professionals, these funds put a different spin on it. Rather than bulk up with a sizable in-house team of analysts and portfolio managers, to establish their Masters’ Select Funds, Litman/Gregory Fund Advisors chose to play the role of overseer. It hired highly-regarded money managers as sub-advisors — each responsible for a portion of one of its funds....

View to 2010: Downside Risks At Least As Great As Upside Potential J.D. Steinhilber December 07, 2009 Our stock market outlook is neutral as we move towards the end of 2009. The weight of the evidence seems to favor a continuation of the bull market into the first half of 2010, with the potential for additional gains in the broad averages of 10% to perhaps 20%. However, we expect bear market conditions will return at some point next year. The performance of the economy and corporate earnings will disappoint, as the private sector continues its deleveraging process, and government stimulus...

World Debt Crisis, Dubai Is Not Alone Interest-Rates / Global Debt Crisis Dec 04, 2009 - 06:46 AM By: Michael Pento The Persian Gulf emirate Dubai is seeking to defer debt payment on nearly $90 billion in liabilities from their state-run companies. Like many other over-leveraged enterprises and some countries across the globe, the government of Dubai made massive bets on real estate that have since gone sour. But no matter where in the world such a case occurs, the ramifications of taking on too much debt are always the same. Unless the party in question can be bailed out,...

Our Annual Predictions For 2010. Good News And Bad News (Kitco)Roger WiegardDec 1 2009 1:54PM Will 2010 be a 1930 or, comparable to 1937? Is it different this time? When one nation state of a formerly high productive stature destroys itself with inflation, the untouched others can soften the blow and in time bail out the fallen one. This was Germany’s fate in the 1920’s. In our current instance, most all of the world’s economies are on their knees with some hurting worse than others. Who can help with recovery this time? There is no one. It will not be...

S&P Says European Companies Face $1.5 Trillion Funding Shortfall Next YearCompanies in Western Europe face a likely funding shortfall of $1.5 trillion (£900bn) next year as central banks withdraw emergency stimulus, and spendthrift governments across the world soak up much of the available capital, according to calculations by Standard & Poor's. By Ambrose Evans-Pritchard Published: 5:30PM GMT 02 Dec 2009 "This is definitely a threat on the horizon," said Blaise Ganguin, the agency's European credit chief. Some 75 companies large enough to be rated face likely default in 2010 as the slow-burn effects of the crisis hit home. The default...

The Reverse Repo By Bill Bonner 12/02/09 London, England – The crisis is over, say the feds. Now, they can begin turning off the taps. “Fed takes first step in exit strategy,” is the headline in The Financial Times. A more accurate headline would have been… “Fed dodges and weaves…fakes exit.” The only way to exit is by the door the Fed came in. It barged into the market buying up toxic assets and Treasury notes and bonds. In order to get back out the door, it has to get rid of all the debt it gobbled up. How? It...

They froze my account! I opened a Scottrade account a couple weeks ago I had to do it in person because the credit bureau folks don't know me well, as I I am not in debt. I gave them my address, both physical and the required PO Box, as I live in a rural area without delivery. They mailed my first statement to the physical address. I got it anyway, as the postmistress knows my wife and I. I went online and changed the mailing address to the PO Box. Seems easy enough eh? Well, they froze my account because...

Debt Fuelled Zombie Capitalism, Bernanke "Marching Ignorantly Forward" Economics / US Debt Dec 01, 2009 - 08:20 AM By: Mike_Shedlock Australian economist has another blockbuster post on the dynamics of debt deflation and the Great Financial Collapse. Please consider Debtwatch No 41, December 2009: 4 Years of Calling the GFC. During a debt-driven financial bubble, which is the obvious precursor to a debt-deflation, rising levels of debt propel aggregate demand well above what it would otherwise be, leading to a boom in both the real economy and asset markets. But this process also adds to the debt burden on the...

Playing Tug Of War With Tthe Dollar Carry Trade And Risk Aversion Minyanville Staff Dec 01, 2009 8:40 am Today the “dollar carry trade” is back on as market strategists claim no contagion from Dubai. This perception is wrong, just as most strategists were wrong about saying that Subprime was contained. Problems at Dubai World aren't a lingering effect of “The Great Credit Crunch” but a clear warning that “The Great Credit Crunch” is far from over. (See also The Great Credit Crunch Is Deepening) It’s naïve to think that there aren't many more time bombs in the $206 trillion...

It's 2012 and it's payday. You're tired, but after work you drag yourself straight to the grocery store to load up on a couple weeks worth of provisions for your family. You're shocked at tonight's high prices, but you know they'll be even higher by morning. You used to keep some money in the bank for a rainy day, but now you've learned to spend it all as soon as you get it, before it loses buying power. On the other hand, the huge salary raises you keep getting have made it pretty easy to pay off the old credit...

U.S. Dollar Set To Surprise By Falling To Test All Time Low Currencies / US Dollar Nov 30, 2009 - 01:48 PM By: Captain Hook The dollar ($) is set to surprise the few remaining speculators that think it can't happen by falling further straight away, possibly taking it down to test all time lows at 71. Here, we are talking about the possibility of a more disorderly decline in the $ developing as a result of gold progressing into a parabolic rise, primarily predicated on year-end hedge fund buying into December. First it will be this that takes precious...

Intuit Inc. has completed its acquisition of Mint.com, a provider of online personal finance services based in Mountain View, Calif. The transaction, announced Sept. 14, is valued at approximately $170 million and enhances Intuit's position as a leading provider of consumer, software-as-a-service offerings that connect customers across desktop, online and mobile. Intuit and Mint.com together, the groups noted, will help redefine personal finance, delivering online services that help consumers save and do more with their money. By integrating with Intuit, Mint.com quickly gains access to resources to accelerate both product development and growth. According to a release, it is expected...

Why I'm (Cautiously) Optimistic About The Future by: John Mauldin November 29, 2009 I admit that of late my writings have had a rather dark tone. There are certainly a number of severe long-term problems that we must deal with, and they're going to serve up a lot of economic pain. But the Thanksgiving weekend with the kids has me in a reflective mood, and one that has only served to underscore my long-term optimism. This week we look at why 2007 will not be the good old days we will yearn for in 20 years, after we briefly visit...

If Countries Like Dubai Begin To Fail, Who Will Save Them?Dubai's plea this week for debt deferment could just be the thin end of the wedge, fears Jeremy Warner. By Jeremy Warner Published: 6:46PM GMT 27 Nov 2009 As one financial crisis recedes, another may be beginning. In Dubai this week, we've had a foretaste of what may be to come as governments around the globe seek to grapple with the explosive growth of fiscal deficits and public debt. [snip] Yet the important question for markets today is not whether Dubai and Sheikh Mohammed can survive the sandstorm; in fact,...

Global investor confidence was given a severe jolt this week as the spectre of debt default in Dubai added to a growing catalogue of financial stresses in countries around the world. Dubai World , the Middle Eastern state’s flagship holding company, stunned creditors by announcing a restructuring and asking for a debt standstill. The move sent the cost of insuring against default in Dubai rocketing and triggered a sharp increase in broader risk aversion, with investors dumping equities, commodities and emerging market currencies in favour of “safer” assets such as government bonds, the dollar and the Japanese yen. The steep...

Dubai Friday: The Black Swan Rears Its Ugly Head by: TraderMark November 27, 2009 So much for a sleepy Thanksgiving week Friday... a tiny Black Swan called Dubai reared its ugly head. There has been some hand wringing in the UK papers about the debt situation in Greece (all of which ignored by giddy US traders who only know one trade anymore: "US dollar down, buy anything"), so Dubai was a bit out of left field. You might say Dubai what? Greece who? Small peanuts... but they key is contagion risk. In the late 90s a small economy (Thailand) caused...

In my column this morning on manufacturing (Shock news – Britain still makes things) I didn’t have space to mention one other important misconception about manufacturing: that just because something is “made in China” or somewhere else in the emerging world doesn’t necessarily mean that the money from its construction goes to that place alone. This helps explain why, in broad terms, a developed economy does not need a trade surplus (or even a balance) in order to survive.

Potential Dubai Default Rocks Financial Markets, While Dollar Soars On Panic Buying Joe WeisenthalNov. 26, 2009, 9:33 AM It's been well-known for some time that Dubai had found itself in a severe and precarious financial state. In early October, for example, S&P warned that it was nearly out of cash. But yesterday the once high-flying Emirate confirmed that it's reached zero-hour. MarketWatch: Dubai late Wednesday said it would restructure Dubai World and announced a six-month "standstill" on repayments of the state-run wide-ranging conglomerate's debt. Ports operator DP World and its debt is excluded from the standstill plan. .... "I don't...

Investors Buy Gold As Central Banks On Course To Crash World Economy Commodities / Gold & Silver 2009 Nov 26, 2009 - 02:59 AM By: Bob_Chapman Investors buy gold when there is inflation and when there is a flight to quality. They buy gold when they no longer trust currencies, due to government or central bank profligacy. Due to those and other reasons gold has broken out to new highs. It could well be that gold may never see $1,000 again. Long ago the world’s central banks set the course for a planned collapse of the world economy to implement...

Dollar Falls To 14-Year Low VS Yen, Touching 86.51 By MALCOLM FOSTER, Associated Press TOKYO – The dollar tumbled to 14-year low against the Japanese yen Thursday after indications U.S. interest rates will remain low and that the Federal Reserve isn't overly concerned about the dollar's slide. The dollar sank to 86.51 yen in Tokyo trading, the lowest since July 1995. Analysts said some investors were selling the dollar to buy gold, which surged to another record Thursday. Finance Minister Hirohisa Fujii said Japan "will take appropriate steps if foreign exchange rates move abnormally." A strong yen is generally seen...

Negative Interest Rates Are No Cause For Panic Vincent FernandoNov. 22, 2009, 3:08 AM We've highlighted before why recent negative treasury bill yields aren't sustainable, aren't reason to panic, and are just due to end of the year window dressing by financial companies. The excellent fixed income blog Across the Curve takes it further, highlighting commentary from CRT Research that basically supports this view. They interestingly add that the negative yields we're seeing might be partially caused by the fact that we have less investment banks and more 'plain vanilla' financial companies with December 31st year-ends. It's a great example...

Okay, don’t listen to me… I admit that I don’t know spit about sunshine. But when it comes to universal economic implosion, I’ve ranted about David Walker, Glen Beck, and Lou Dobbs forever. I’m pretty sure I’ve put up at least eight rants on this issue. Fine… Don’t listen to me or any of us for that matter. But at least consider what France’s Société Générale bank had to say...

U.S. Economy Is A Geriatric On Viagra Economics / US Economy Nov 20, 2009 - 02:35 AM By: Brian_Bloom A retired friend, an academic in a field unrelated to the subject of economics or finance, recently asked me to tell him what I thought was happening in these (to him) surreal worlds. Why are some people so bearish that they were effectively anticipating the end of the world whilst others are insisting that a bull market is upon us? To answer him I had to provide some context, as follows. The table below shows a list of the top 14...

Goldman may be the "most profitable" Wall Street firm but I will simply observe that it is trivially simple to be "profitable" when one does wrong, since it is always easier to make money by doing wrong than by acting with honor and propriety. No Lloyd, your apology is not accepted, as it is insincere. You are simply trying to deflect attention from the well-deserved hit to your reputation - a reputation that, from my perspective, is somewhere south of Satan's. Have a nice day Jackass and may you burn in Hell.

Manic-depressive Stock Market Inviting A Black Swan Event? Stock-Markets / Financial Markets 2009 Nov 14, 2009 - 08:51 AM By: Anthony_Cherniawski Guess Where Our Economic Stimulus Money is Going The trade deficit in the U.S. widened in September by the most in a decade, reflecting rising demand for imported oil and automobiles as the economy rebounded from the worst recession since the 1930s. The gap grew a larger-than-anticipated 18 percent to $36.5 billion, the highest level since January, from a revised $30.8 billion in August, the Commerce Department said today in Washington. Imports surged by the most in 16 years,...

Financial 'Reform': Sen. Chris Dodd's proposed overhaul would replace the Federal Reserve with a "super regulator" to oversee the banking and financial industries. Will it work? Consider the source. Along with fellow Democrat Barney Frank, now chairman of the House Financial Services Committee, Dodd, who heads the Senate Banking Committee, has done as much to damage this nation's financial system as anyone — and that includes all the CEOs and subprime scoundrels as well as former Fed chief Alan Greenspan, whom many blame for lax oversight and too-loose credit in the run-up to the meltdown. What did Dodd do? In...

Marc Faber Says Bernanke Is Mugabe's Hyperinflation Apprentice Stock-Markets / Financial Markets 2009 Nov 11, 2009 - 03:58 AM By: Submissions Market Morning's Pat Bolland is joined by special guest host Marc Faber, editor and publisher, "The Gloom, Boom, & Doom Report" Marc Faber says the US Dollar is going to zero in the long-run but a bounce is overdue which will hit asset prices.[snip]

In The Long Emergency (2005, Atlantic Monthly Press), I said that we ought to expect the federal government to become increasingly impotent and ineffectual - that this would be a hallmark of the times. In fact, I said that any enterprise organized at the colossal scale would function poorly in years ahead, whether it was a government, a state university, a national chain retail company, or a giant midwestern farm. It is characteristic of the compressive contraction our society faces that giant hypercomplex systems will wobble and fail. We should expect this. It's tragic that the avatar of hopefulness himself,...

Our Frugal Future by Louis Scatigna, CFP November 10, 2009 For the last thirty years Americans have lived the most prosperous lives of any people in the history of the planet. We have been the envy of all other nations. The average family lived in nice homes, drove the newest cars, ate the best food and acquired big screen TVs, top stereo equipment, computers, Ipods and cell phones. Restaurants catered to a constant flow of Americans who would rather eat out than cook at home or pack a lunch. We did not hesitate to pay five dollars for a cup...

United States Catching The Argentinian Economic Disease Of Hyperinflation? Economics / US Debt Oct 31, 2009 - 12:54 AM By: John_Mauldin I have been in South America this week, speaking nine times in five days, interspersed with lots of meetings. The conversation kept coming back to the prospects for the dollar, but I was just as interested in talking with money managers and business people who had experienced the hyperinflation of Argentina and Brazil. How could such a thing happen? As it turned out, I was reading a rather remarkable book that addressed that question. There are those who believe...

Norway Becomes First European Country To Raise Interest RatesNorway has become the first country in Europe to raise interest rates since the start of the financial crisis as its economy recovers from a shallow downturn. Published: 5:00PM GMT 28 Oct 2009 Norway's economy has been buoyed by its vast offshore oil and gas sector. Norges Bank, the country's central bank, increased its deposit rate by a quarter point from record lows to 1.5pc on Wednesday. The rise will offset a significant fiscal stimulus package introduced by the government at the height of the financial crisis. Norway, buoyed by its vast...

US Is Seeking Tougher Powers In Too-Big-To-Fail Legislation Published: Monday, 26 Oct 2009 | 11:27 AM ET Text Size By: Albert Bozzo Senior Features Editor The Obama administration and House Democrats have made major changes to proposed legislation giving the federal government new powers to wind down the businesses of too-big-too-fail financial firms. The revised legislation, which is now being finalized, will be made public late today or early tomorrow, according to sources. The key changes in what is known as resolution authority affect compensation of creditors, shareholders and management, as well as the role of the Federal Reserve in...