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Kashkari calls for breaking up of big banks

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(DIYA TV) — Neel Kashkari, current president of the Federal Reserve Bank of Minneapolis, has become a proponent of a common narrative in American economics: break up the nation’s largest banks, and split them into multiple smaller institutions. Kashkami contends America’s largest financial continue to pose a significant risk to the U.S. economy due to their size. This comes after a number of questionable tactics used by banks, like a bank sign up bonus which is a confusing option for people.

“I believe the biggest banks are still too big to fail and continue to pose a significant, ongoing risk to our economy,” Kashkari said during his first major appearance held at the Brookings Institute, a top U.S. think-tank. He previously served in the Bush administration as a top Treasury official during the height of America’s 2008 financial crisis. Kashkari opined to the crowd that enough time has passed since that epidemic, and that the country has had enough time to understand its causes.

He was the leader during the 2008 bailout program, in which the United States federal government helped the nation’s largest banks save face.

Neel Kashkari, a former U.S. Treasury official, announced that he thinks the nation's largest banks should be broken up (AP Photo/Rich Pedroncelli)

Neel Kashkari, a former U.S. Treasury official, announced that he thinks the nation’s largest banks should be broken up (AP Photo/Rich Pedroncelli)

“Now is the right time for Congress to consider going further than Dodd-Frank with bold, transformational solutions to solve this problem once and for all,” he said.

Kashkari is no stranger to the political arena — the 42-year-old ran for governor of California against incumbent Jerry Brown in 2014, losing by 20 percent of the vote. He said American lawmakers must consider a wide range of options, but breaking up the banks into smaller, less connected and less important entities is paramount; he opined the government’s efforts to reign the banks through the 2010 Dodd-Frank law, “did not go far enough.” He’s suggested the U.S. consider turning large banks into a public utility, forcing them to hold on to so much capital that they’re failure would be virtually impossible, and taxing leverage throughout the financial system to reduce systemic risks wherever they lie, is something else policymakers should have a look at.

“Options such as these have been mentioned before, but in my view, policymakers and legislators have not yet seriously considered the need to implement them in the near term. They are transformational, which can be unsettling,” he said.

The Wall Street lobby has worked tirelessly day and night to ensure things stay the way they are, and the way they’ve always been. Fundamental change in their world is not something the country’s financial elite would take kindly to.

“The economy is stronger now and the time has come to move past parochial interests and solve this problem. The risks of not doing so are just too great,” Kashkari said.

John Dearie, CEO of Financial Services Forum, said the largest financial institutions in the country are much smaller and less complex now than they were the last time Kashkari was involved. Changes were implemented after the bailout, he said. So much so, that the same institutions now have twice the capital and triple the liquidity since Kashkari left government to enter politics.

Stress tests by the Fed have indicated America’s largest banks are currently equipped to withstand an economic crisis far worse than that of 2008, and that they now possess “living wills,” which would guide the banks in such a scenario, without passing the cost off to the taxpayer.

“Of the 10 largest global financial institutions, only a few are US-based. Breaking up the US-based global financial institutions would ensure that one of the US’ most competitive global industries serving companies small and large is turned over to banks based outside the US,” Dearie said.

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Indian Ambassador, Shringla speaks to U.S. Congress about Kashmir

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AMB. Shringla speaks to congress about Kashmir | Diya TV News

WASHINGTON (Diya TV)  — Indian Ambassador to the U.S. Harsh Shringla met with members of Congress at a private roundtable briefing, hosted by Southern California Congressman Brad Sherman. Sherman, who has been a supporter of India, took to Twitter recently to share his concerns about Kashmir and said serious questions about Kashmir were asked at the briefing.

President Trump is being urged to fix the H1-B visa process and do away with country-specific limits, with the latest effort for reform being spearheaded by 60 U.S. business school deans and CEO’s.

In an earthquake, seconds matter. So on the anniversary of the deadly 1989 Loma Prieta earthquake that rocked Northern California, state officials announced the launch of America’s first statewide earthquake early warning system.

Tabla Maestro Zakir Hussain will be coming to Boston next month to perform at the Berklee India Exchange, where he will also be conferred with an honorary doctorate by the esteemed music school. A Zakir Hussain Scholarship at Berklee is also being established.

And we have incredible video of three kids from India rescuing their dog from a snake that’s equal parts courageous and nuts.

Ravi Kapur contributed to this report.

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Federal Court rules Trump must turn over tax returns | Diya TV News

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Trump Tax Returns

NEW YORK (Diya TV) — A federal judge ruled President Trump must turn over eight years of his personal and corporate tax returns to Manhattan prosecutors, striking down the President’s argument that a sitting president cannot be criminally investigated. The ruling was quickly appealed and this case could end up in the Supreme Court to answer the constitutional question of whether presidents can be charged with a crime.

Meanwhile, the President celebrated a victory by FCC Chairman Ajit Pai, as a federal appellate court upheld most of the FCC’s repeal of net neutrality. It also ruled the FCC cannot preempt state net neutrality laws, meaning the rules of the road in states like California remain in place.

The U.S. House Foreign Affairs Committee announced their Asia-Pacific and Non-Proliferation Subcommittee will be holding a hearing asking State Department officials and human rights activists to chime in on Human Rights in Kashmir, the Tamils of Sri Lanka, Muslims in Assam and the human rights situation in Pakistan, which includes the Sindh Province.

Lockheed Martin announced they will build F-16 wings exclusively in India, helping in integrating Indian industry into the $165 billion fighter aircraft market.

Ravi Kapur contributed to this report.

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Tech CEO Pradyumna Samal convicted of large scale H1B fraud

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Pradyumna Samal

SEATTLE (Diya TV) — Tech CEO Pradyumna Samal was convicted of large scale H1B fraud. The CEO of two companies that supplied workers to companies like Microsoft and Amazon plead guilty to using fake documents to get H1-B visas. The Indian national Samal was sentenced to seven years in prison for what federal authorities say “was the largest and most sophisticated H-1B visa fraud scheme we have prosecuted in Western Washington.” 

Inder Singh, a Los Angeles-based Indian American community leader, has died. He was 86 years old. Singh was involved in the inception of a number of Indian American non-profit organizations in the effort to build a stronger relationship between the U.S. and India. Indian Ambassador to the U.S. Harsh Shringla said on Twitter that Singh’s contributions have been “significant and his leadership will be greatly missed.”

Indiaspora launched ChaloGive.org, their first online giving campaign that runs October 2nd to the 8th. The goal is to increase levels of giving by the Indian diaspora, inspired in part by the success of Giving Tuesday in the U.S. and Daan Utsav in India.

Ravi Kapur contributed to this report.

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