Ernesto Amador Mesa
@eamesa
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former financial regulator 🇨🇴 | recently @ChicagoBooth | always trying to re-image and build the future of finance
Chicago, IL
Joined October 2016
You can't win if you don't first step up to the ring!! Today's Google decision shows we need more people like Kanter and @linakhanFTC to enforce the law, and why Wall Street is so afraid of them.
@matthewstoller You can't lose if you don't first take the issues to court. The fact that Khan is at least fighting the fights is a good thing, that's how the standards are changed, in court. Is Wall Street delusional or afraid?
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There's a good argument that Capital One is buying Discover because of a legal loophole created by the Federal Reserve. Ladies and gentlemen, the Fed!
thebignewsletter.com
In 2010, Congress capped fees for debit card networks so merchants don't get gouged by Visa and Mastercard. But the Fed stuck in a loophole for Discover. And that is leading Capital One to buy it.
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.@linakhanFTC is steering the FTC to protect working families and honest businesses with stronger law enforcement against corporate actors. Our latest factsheet details the @FTC's accomplishments under her leadership. The record speaks for itself. https://t.co/tSDP8Ykkrw
economicliberties.us
The Federal Trade Commission, led by Chair Lina Khan, entered a new era of more effective, modern, and democratic enforcement to better protect consumers, workers, and independent businesses. Chair...
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Good @ProMarket_org article on Gambling for Resurrection, something I first saw @BetterMarkets and @DennisKelleher point out related to SVB: the reaction to interest rate hikes and short term profit extraction via decreased interest rate risk hedges. https://t.co/NZDArE7rQA
promarket.org
Following a widely cited report on unrecognized bank losses due to interest rate rises, Amit Seru and his co-authors have taken a close look at how banks used hedging to offset the recent rise in...
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Just heard in North Carolina: "I don't have enough signal here." It's Durham, not exactly a remote location. I don't even know if this tweet will make it out on its own. How is this "consumer welfare" again??
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Anyway, I am also conflicted about the future of antitrust. But since hard questions are always more fun: I am very much looking forward to attend #StiglerAntitrust23 Conference starting tomorrow: https://t.co/u96RDHuxdC
What should modern U.S. #antitrust policy look like? Join us for two days of engaging conversations at #StiglerAntitrust23. Agenda & livestream: https://t.co/ulS2mqzr0q
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Because it is hard, and acknowledging how complex these issues are leads to regulators/policy makers that are constantly doubting themselves and thus seeking information and opinions and input. And that is how regulation should ideally work.
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This was before being chair of the FTC. And I thought, that is exactly the kind of response a regulator should always be unafraid to give. Run away from anyone that pretends to know all the answers.
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Revisiting an old episode of Capitalisn't in preparation of the @StiglerCenter Antitrust conference tomorrow, and came across @linakhanFTC saying, in regards to the future of antitrust approaches: "I am conflicted about this. It's a hard question".
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A cynical view on how banking supervision and resolution works.
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Why is a token not a security but can be part of an "unregistered securities offering? Why should a token, even if it is part of an "unregistered securities offering", not be regulated as a security? Being precise matters...in the same way that the way you sell a token matters.
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Understanding why each of these questions may have a different answer, and why it matters, is actually a great starting point to think about the relationship between crypto and securities law.
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This is so refreshing to see. I always try to explain that any analysis should be clear on what is being asked. For me there are three related but independent questions: 1. Is it a security ? 2. Was it offered as a security ? 3. Should it be a security ?
“INVESTMENT CONTRACT” Is one of the most misunderstood legal terms in the law. The Howey Test must be the most misapplied legal test or doctrine on social media. “Investment contract” is a legal term of art adopted from state law by Congress when it enacted the 1933 Act.
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How does a dream quarter look like for a former financial regulator @ChicagoBooth? - Crony Capitalism & Fintech Revolution - @zingales - Financial Markets and Institutions - Douglas Diamond - Money and Banking - Randall Krozner - ESG Landscape - Christian Leuz #WhyBooth
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Sen Warren, I agree with your assessment of the Fed’s responsibility. More importantly, so does Nobel Laureate Douglas Diamond https://t.co/KWtylnx7fM
https://t.co/DeW9ZdgqFJ An internal review, however, is insufficient. 1/2
Fed Chair Powell’s actions directly contributed to these bank failures. For the Fed’s inquiry to have credibility, Powell must recuse himself from this internal review. It’s appropriate for Vice Chair for Supervision Barr to have the independence necessary to do his job.
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NEW: @ChicagoBooth Professor Anil Kashyap explains why the collapse of #SVB #SiliconValleyBank and Signature Bank is the result of the failure of the #DoddFrankAct to adequately attend to funding risks from certain business models. https://t.co/4dLfevimYw
promarket.org
Anil Kashyap explains why the collapse of Silicon Valley Bank and Signature Bank are the result of the failure of the Dodd-Frank Act to adequately attend to funding risks from certain business...
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After a fun few hours on Twitter reading about the federal regulatory response to the SVB saga, the distraction is over and I can go back to my book and read about *checks notes* James Landis and the creation of this SEC.
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Is it wrong that among the chaos of SBV I feel proud of financial regulators or is it sad that their job is only properly recognized when shit hits the fan?
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Yeah, the stock is taking a hit. But as @BobEUnlimited correcty points out, common equity is is supposed to do that in Banks. There's a reason "regulatory capital" needs to have, by definition and design, the capacity to absorb losses.
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