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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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New Zealand eliminates India in cricket World Cup

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New Zealand wins Cricket

MANCHESTER, England (Diya TV) — After a rain delay stopped play between New Zealand and India, when play resumed, the Kiwis held on to win by 18 runs, knocking India out of the Cricket World Cup. It’s on to the championship round for New Zealand.

The United States Immigration and Customs Enforcement (ICE) raided an Indian restaurant in Washington DC, detaining several employees.

Airbnb, the Silicon Valley couchsurfing startup turned hospitality behemoth, says they made a direct economic impact of around $150 million in India in 2018.

Indian Airbnb hosts collectively made almost $28 million and welcomed nearly 800,000 guests last year. 

Chennai-based speech recognition startup, Uniphore Software Systems, raised $38 million as part of its Series C round. They’ve received funding from California venture capital firm March Capital Partners and former Cisco CEO John Chambers. 

And Indo-Australian Priya Serrao was crowned Miss Universe Australia 2019.

The 26-year-old policy advisor from the state of Victoria said she will use her new platform to promote multiculturalism. 

Ravi Kapur contributed to this report.

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Trump says tariffs by India are ‘No longer acceptable’

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Tariffs no longer acceptable

WASHINGTON (Diya TV) — In a tweet, President Trump targeted India once again, saying “India has long had a field day putting Tariffs on American products. No longer acceptable.”

Yet earlier this year, the Trump administration stripped India of a preferential status that exempted billions of dollars worth of products from U.S. levies.

One of the most unique characters ever to run for President has died. Billionaire businessman Ross Perot was 89. Many give his independent campaign in 1992 credit for helping Bill Clinton beat incumbent George H.W. Bush.

A day after Democratic Congressman Eric Swalwell got out of the race, another billionaire businessman, Tom Steyer, jumped into the Presidential fray.

India’s OlaCabs recently launched its ride-sharing services in London. And now Ola Electric, their electric vehicle spinoff, just raised a $250 million Series B round at a $1 billion valuation. It plans to bring 10,000 vehicles to the road this year.

And the world will have to wait another day to find out who will play for the Cricket World Cup, after a rain delay stopped play between New Zealand and India.

Ravi Kapur contributed to this report.

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Trump meets Modi & Abe in Japan

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OSAKA, Japan (Diya TV) — President Donald Trump held a trilateral meeting with Indian Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe. According to Ivanka Trump, the conversation encompassed 5G technology, working through details on trade and ongoing national security interests for each party.

From Japan, President Trump went to South Korea and entered the demilitarized zone between South Korea and North Korea. He then walked into North Korea to meet with Chairman Kim Jong Un, becoming the first sitting President to ever to enter North Korea.

Silicon Valley startup Fungible announced they’ve raised $200 million from a group of investors including Softbank, taking their total raise to $300 million. A leader in data-centric computing, Fungible is led by CEO Pradeep Sindhu, who previously founded Juniper Networks.

The NBA free agency signing period kicked off with a bombshell: Kevin Durant is leaving behind the team he won two championships with, The Golden State Warriors, for the upstart Brooklyn Nets. Kyrie Irving will join him there. The Warriors traded for the Nets player most impacted by those deals, D’Angelo Russell.

And England beat India by 31 runs in the Cricket World Cup, giving Team India its first loss of the Cup. India will face Bangladesh next.

Ravi Kapur contributed to this report.

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