Last month, the Federal Reserve announced that 31 out of 33 U.S. banks had passed its latest “stress test,” designed to ensure that the largest financial institutions have enough capital to withstand a severe economic shock.
Passing the test amounts to being given a clean bill of health by the Fed. So are taxpayers – who were on the hook for the initial US$700 billion TARP bill to bail out the banks in 2008 – now safe?
What’s an acceptable percentage to tip? The amount has been accelerating without any clear economic force driving it, and with unclear benefits for all parties involved. In the 19th century and during the first half of the 20th century, a 10% tip was common. By the 1980s, 15% tips had become the standard. Now we observe 18%, 20%, and even 25% tipping rates.
Perhaps as a result, tipping is a constant source of tension and debate, and a favorite topic for social and economic critique. And, like any controversial subject, it has its own little-understood rules and oddities.
This year is ending the way it began for taxpayers without any sign of relief from the repeated burden of bailing out the banks during the financial crises and continued pressure to modify the Dodd-Frank Act in ways that favor bankers and lessen protections for taxpayers.
A year of continued concessions to the financial industry included: delaying a Dodd-Frank mandate that financial firms sell off bundled debt, known as collateralized loan obligations; exempting some private equity firms from registering with the Securities and Exchange Commission; and loosening regulations on derivatives. The recent requirement that banks increase their capital ratio to 16% or 18% in the next few years still leaves the taxpayer responsible for the remaining 80% of the losses.