Morning Must Reads: Bank of America Surprises, Geithner still hates Volcker

By Stephen Gandel | @stephengandel | April 16, 2010 | +

–It’s Springtime for financials. Bank of America continues the good news for banks. Profits bloomed to a tune of $3.2 billion in the first quarter. That handily beat analysts expectations. Goldman and the rest report next week.

–The so-called Volcker Rule has been gaining some traction recently. It’s in the Senate bill and has gained support in Washington, and seemingly with Citi’s CEO. But it appears Treasury Secretary Timmy Geithner still hates the idea of limiting the riskiest businesses at the big banks.

–Fortune snags the first post-financial crisis interview with Merrill’s former boss Stan O’Neal. And comes up with some interesting tidbits. John Thain, who took over for O’Neal, is created with selling Merrill before it totally collapsed. Turns out O’Neal would have done the same thing only a year earlier, and probably for a better price.

–Our own Barbara Kiviat! has a counter intuitive story up about when leverage makes sense. The answer: Retirement investing.

Related Topics: Economy & Policy

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deconstructiva

Thanks, Stephen. Do Volcker and Geithner personally dislike each other? If Barbara doesn’t post or reply today, give her my kudos for the investment interview. I’d wonder how margin calls are best handled – leave some cash aside up front (but wouldn’t you want to invest it all?) or be forced to add more when needed (but cash is often tight when younger workers are often paid crappy wages – and now often older ones too in an even crappier job market, but I digress). And yes, I noticed Barbara doesn’t sign her posts with a ! any more, sigh.
waltwriston

Volcker in 79 started this deregulation and his decision from then led to junk bonds which led to the liquidation of productive companies, ushered in the M&A mania, and in the long run credited the conditions for the phony exotic securities. I think their hate for on another is a media ploy. Banks will continue proprietary trading because it’ll be said that increase the liquidity of the banks that engage in it.
pneogy

Geithner still hates Volker? I think you are reading way too much into the WSJ article.