An article in the Wall Street Journal about Bank of America’s says a great deal about the woes afflicting Bank of America, thanks to its enthusiastic embrace of Countrywide, both the biggest subprime lender and the biggest subprime servicer. The irony is that one of the reasons BofA coveted a criminal enterprise like Countrywide (they […]
Read more...I enjoyed the interview on Russia TV, but boy, the lighting was harsh!
Read more...The battle lines are forming. In the last two years, local attorneys working for the small minority of borrowers who contest foreclosures have reported a wide range of what in spin doctor land would be called irregularities. These reports were so widespread and consistent as to suggest that malfeasance was endemic, but without corroborating evidence […]
Read more...It may seem perverse to use a particularly strong piece by Martin Wolf of the Financial Times, who even on his rare less than stellar days is reasoned and readable, to illustrate a deep rooted problem even for critical thinkers in the mainstream media, namely, that certain ways of framing issues are simply off limits. […]
Read more...By William C. Black, Associate Professor of Economics and Law, University of Missouri-Kansas City, the author of The Best Way to Rob a Bank is to Own One, who also posts at New Economic Perspectives. The New York Times, in a story entitled “Afghanistan Tries to Help Nation’s Biggest Bank” issued the following correction: Correction: […]
Read more...The “lax” is clearly a tad inflammatory, but tweaks in Basel III rules to allow dubious quality items like mortgage servicing rights as Tier I capital speak volumes. In addition, the various noises from policy makers makes clear that they aren’t willing to make banks raise capital level by much due to fears of the […]
Read more...It’s simply astonishing how often the myth of shareholder rule is parroted by the business press. Let’s see, average CEO pay was 49 times average worker pay in 1980. As of the most recent tabulation, 2008, it was 319 times average worker pay. And since that was the worst year of the crisis, and top […]
Read more...The sudden departure of HP’s CEO Mark Hurd didn’t add up. Ethical lapses by CEOs demonstrating at least adequate performance get buried unless unfavorable media coverage won’t go away, or the internal damage is so great that his authority is impaired. Neither seemed to be the case with Hurd. I hadn’t given the Hurd case […]
Read more...By Jack Sparrow, who writes at Mercenary Trader The employment picture constitutes yet another headwind and a significant one to the already-faltering U.S. recovery. It will undermine future spending, company earnings and profitability. Indeed, the poorer the employment picture, the greater the likelihood that households will become more cautious and that the corporate sector will […]
Read more...The press has been duly supportive of the successful effort by Bill Gates and Warren Buffet to get other mega-rich individuals to give away at least half their wealth to charity. But is this the unalloyed boon that it is presented as being? William Langley, in the Telegraph, points out that the new model of […]
Read more...Some readers already found the CSPAN segment via comments in Links yesterday, so I hope you bear with me posting it for the benefit of other readers. Although I’ve done a fair bit of call in on radio, this was my first time on TV. I think readers will find the mix of questions interesting.
Read more...Robert Frank at the Wall Street Journal contends that the rich don’t need the rest of us all that much (hat tip reader Don B): Late last year, the U.S. economy experienced a surprising decoupling. As stocks boomed, the wealthy bounced back. And while the Main Street economy was wracked by high unemployment and the […]
Read more...Why oh why is it that the US media treats financial services compensation levels as a third rail issue? Rent extraction was the driver of the financial crisis, and the financial services sector made it clear in 2009, by paying itself record bonuses on the heels of being saved from certain death, that it had […]
Read more...A news story today provides further confirmation of the rule by the banking classes in the US, with only token gestures to the rule of law. Per Bloomberg (hat tip Tom Adams), Citigroup is ponying up $75 million to settle SEC charges that the giant bank was not sufficiently forthcoming in the runup to the […]
Read more...GM, with $75 bn in cash in reserves, bought AmeriCredit, a small subprime lender, in an all cash deal for $3.5 bn. GM is also currently in bankruptcy. AmeriCredit, which is rated BB by Fitch, was put on watch by Fitch, after the deal announcement. Fitch is unsure whether the deal will help or hurt […]
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