I know the headline above verges on “dog bites man” but the New York Times story, “In Louisville, View of Banks’ Role in the Everyday” is pure financial services industry PR masquerading as Norman Rockwellesque treacle. I know Fridays in the summer are usually slow news days, and the Grey Lady might occasionally have to […]
Read more...Bloomberg notes that Goldman’s president Gary Cohn has stated that the firm is not close to a settlement of the SEC’s fraud case against it for one of its Abacus CDOs. Note that this is contrary to rumor and speculation as recent as last week and suggests talks are pretty close to dead. The SEC […]
Read more...The latest shoe to drop on the Goldman front is the report on Wednesday that the SEC was investigating yet another one of its synthetic CDOs, this one a $2 billion confection called Hudson. It isn’t clear whether the SEC will file charges, but this one has the potential to be particularly damaging in the […]
Read more...By a retired physician who worked several years in the medical communications and pharmaceutical industry who writes as Francois T Is the federal government really ready to punish those responsible of corporate malfeasance in the pharmaceutical industry? Push hard enough and you are bound to get a push back, even from a slow, at times […]
Read more...Martin Wolf, the Financial Times’ influential economics editor, takes issue with the austerity fad that is sweeping governments in advanced economies. From his comment: Against this background, what would a big tightening of fiscal policy deliver? In the absence of effective monetary policy offsets, one would expect aggregate demand to weaken, possibly sharply. Some economists […]
Read more...A $200 million market is so small as to be beneath most readers’ notice, except when its has the potential to escalate frictions between the US and China. The US has been selectively investigating markets where the Chinese are purported to be engaging in anti-competitive practices and taking action. The first salvo occurred last September, […]
Read more...Bloomberg reports that the FCIC subpoenaed documents from Goldman: The U.S. panel investigating the causes of the financial crisis issued a subpoena to Goldman Sachs Group Inc. after the Wall Street firm failed to hand over documents in a “timely manner.” The Financial Crisis Inquiry Commission “has made it clear that it is committed to […]
Read more...As the Gulf oil leak continues to spew, albeit at a slightly lower rate now, and the American public is becoming resigned to the dreadful spectacle of continued damage to wildlife and coastlines, BP continues to act as a law unto itself. Not that that should be any surprise; the oil producer clearly believed from […]
Read more...I owe readers a longer comment on this, since we may be going into crisis mode (ah, the joys of waking up and toddling out to the computer to see what wheels are falling off the global financial system today). Your humble blogger may be a bit jaded (two years of watching the crisis and […]
Read more...I’ve seen some eye-poppin’, credulity-stretchin’ accounts in my time. The report “The Budgetary Impact and Subsidy Costs of the Federal Reserve’s Actions During the Financial Crisis,” just released by the Congressional Budget Office, ranks with the most extreme. It claims that the budgetary cost (which corresponds roughly to expected losses) of the Fed rescue facilities […]
Read more...If you think America is a nation of laws, remember that some people think laws exist merely to be circumvented. One example that has remained below the radar is creditors seizing Social Security and other public benefits which by law are beyond their reach. The peculiar, and permitted abuse is that banks are not required […]
Read more...A sudden bout of semi-candor from BP suggests the top brass of the miscreant oil company recognized that it is in such deep doo-doo that the normal corporate PR playbook is no longer operative. Companies and governments often refuse to admit error or blame it on circumstances out of their control as a way to […]
Read more...We’ve taken the liberty of designating the biggest money pits of the financial crisis as “black holes.” And one the characteristics of black holes is that anything that crosses the so-called “Schwarzschild radius” does not escape. That means that it is impossible to obtain any information from inside the Schwarzschild radius. That feature seems particularly […]
Read more...Brad DeLong points out that Ronald Reagan was far more concerned about unemployment than Team Obama (or Washington generally) is, and also took far more aggressive measures to combat it. From The Week (hat tip reader Marshall): By the start of 1983, labor unions were frantically giving back previously-promised wage increases and offering wage cuts […]
Read more...Public officials of all sorts have tried ratcheting up their halting efforts to Do Something about Wall Street chicanery to appease an unhappy public. One manifestation has been increased frequency of a long-established enforcement pattern, of picking off select, high profile targets while leaving many corrupt practices in place. The object lesson du jour is […]
Read more...