Goldman, in a research note discussed at CNBC, says the total tab for the US bank rescue operation could run as high as $4 trillion: The cost of restoring confidence in U.S. financial firms may reach $4 trillion if President Barack Obama moves ahead with a “bad bank” that buys up souring assets. The figure […]
Read more...A firestorm of criticism was unleashed from Washington at bonus-reaping-while-Wall-Street-burns bankers, with President Obama deigning to join in the fray. The tone was unusually heated: President Barack Obama fed a swelling populist revolt against Wall Street bonuses, calling it “shameful” that banks doled out $18.4 billion as taxpayers bail out companies and the U.S. remains […]
Read more...Be careful what you wish for. The SEC regulated investment banks, and look what happened to that industry, Similarly, Madoff was registered, had a written roadmap from Harry Markopolos in terms of the issues that merited investigation, and did nothing. Without a serious change in priorities (and likely an upgrade in staff skills) at the […]
Read more...You get a long list of links because I found interesting stuff, but none of it really suited to further commentary by yours truly. Playboy’s playmates may be lonely at Super Bowl XLIII Bloomberg (hat tip reader Ed) Life after the apocalypse Guardian twitter.com/alaistairdarling (hat tip reader Tim) Shire horses on the ‘brink of extinction’ […]
Read more...I am the first to say that I do not understand the whims of the market, but today we saw a pretty schizophrenic display. Attention in the US focused on the Fed’s Open Market Committee statement. Earlier this week, not much was expected, since the Fed is somewhat constrained by fact that the Obama team […]
Read more...Nassim Nicholas Taleb of Black Swan fame predicts that a stock market decline of 20% would take down a lot of private equity firms along with it. Note that Nouriel Roubini predicted a fall of that level when stocks were a tad lower than today. The grim view is confirmed by a BCG study that […]
Read more...The Moose Elizabeth Bishop. A departure from our regular programming (hat tip reader Megan) Emperor penguins face extinction BBC Every Man an Island, Part 1 and Part 2 Byte Size Biology Recycling ‘could be adding to global warming’ Telegraph The Big Banks vs. America: A Roundtable with David Kotok and Josh Rosner Institutional Risk Analyst. […]
Read more...The forecast for a global international contraction by the Institute of International Finance is significant because it is the first to project negative growth for 2009. That may seem unexceptional to some readers. However, the IMF is forecasting growth of 1.5% for 2009, which it actually sees as a serious recessionary level. Why? Emerging economies […]
Read more...This comment by Jeffrey Sachs in the Financial Times is broader than its title suggests. It says that the US should not run willy-nilly into enacting massive spending plans in haste. Sachs makes two core points: a lot of compromises are being made that will render big chunks of the plan ineffective and/or wasteful, and […]
Read more...I am struggling for the right metaphor to describe Timothy Geithner’s conduct. Marie Antionette ain’t bad, but perhaps better is the Last Commandment from Animal Farm: All animals are equal, but some animals are more equal than others This blogger was troubled by Geithner’s demeanor during the Senate hearings on the Bear Stearns bailout, when […]
Read more...A major caveat: the survey cited below comes from a “financial jobs website.” Presumably, users of that sort of site either have no job or are looking to change jobs and therefore are not particularly happy. Nevertheless, the last few years were particularly fat, and the young ‘uns appeared to have gotten conditioned to the […]
Read more...The extraordinary life of a roo called Myrtle Sydney Morning Herald (hat tip reader Nivethan) DR Congo gorilla numbers growing BBC Obama’s Vietnam? Juan Cole, Salon We’re in danger of losing our memories Guardian PwC and Satyam – Another Fine Mess You’ve Gotten Yourself Into Francine McKenna Shell Sells Oil Cargo, Phibro Tanker Leaves as […]
Read more...No, the headline is not an exaggeration. And it demonstrates that credit conditions remain tight for many less than stelar borrowers. From the Financial Times: In a striking example of how the global financial crisis and high food prices have strained the finances of poor and middle-income nations, countries including Russia, Malaysia, Vietnam and Morocco […]
Read more...In case you had any doubts about the propriety of Merrill’s 2008 pay packages, this Wall Street Journal story on the continuing slugfest between Merrill’s former CEO John Thain and Bank of America’s chief Ken Lewis should put any doubts to rest: According to a securities filing last week, Merrill’s overall compensation and benefit expenses […]
Read more...Even if there were a rationale for Citi buying a corporate jet now (which I cannot fathom, given their horrid financial condiiton), why buy new? There are no doubt plenty of used jets for sale right now. This incident illustrates the degree to which a corporate/financial elite has developed in the US. Top executives feel […]
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