Posted by Larry Doyle on March 13th, 2010 6:47 PM |
Feedback from my initial conversation with Steve Megremis of The Daily Bail was so overwhelming that I am compelled to have Steve back on No Quarter Radio’s Sense on Cents with Larry Doyle this Sunday evening from 8-9pm ET.
I first spoke with Steve in mid-January. Given the pace of developments in Washington, on Wall Street, and at so many other points on our economic and political landscape, I am thrilled to have him back on the show. We will leave no stone unturned in discussing healthcare, financial regulatory reform, the Fed, Lehman Bros., and so much more. I guarantee we will pull no punches in promoting truth, transparency, and integrity in our discussion. Don’t miss it!! Read the rest »
Posted by Larry Doyle on March 13th, 2010 2:34 PM |
Given the global interest in this story, I am bumping it up from the original posting on 3/12/2010. LD
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Former Lehman Bros. CEO, Dick Fuld
Reports that Lehman was effectively ‘cooking its books’ prior to its ultimate demise are not a surprise.
Reports that Dick Fuld, then CEO of Lehman, was not aware of the nature of this cooking are both ridiculous and pathetic.
The lifeblood of every financial institution on Wall Street is access to financing for its operations. That financing very often comes in the form of repurchase agreements (repo financing), in which the institution borrows funds while pledging assets. These short term loans, often overnight loans, are unwound at a preset date and preset prices. The rates borrowers have to pay for funds borrowed depend on the credit quality of the borrower itself and the quality of the assets pledged. Read the rest »
Posted by Larry Doyle on March 13th, 2010 7:13 AM |
President Obama will likely nominate Janet Yellen of the San Francico Fed to replace Donald Kohn as number two in the hieracrchy at the Federal Reserve behind Fed Chair Ben Bernanke.
What can we learn about Ms. Yellen? Let’s read Larry Kudlow, a highly regarded economist and market practitioner with extensive experience on Wall Street, in Washington, and on the airwaves. Kudlow and Yellen look at the economy from a decidedly different perspective. Kudlow recently wrote of Ms. Yellen’s nomination and what it says about the Obama administration in his Kudlow’s Commentary:
The new Obama Fed is going to be very dovish when it comes to fighting future inflation and defending the value of the dollar. Read the rest »
Posted by Larry Doyle on March 12th, 2010 2:52 PM |
On Wall Street, information is everything.
Timely access to information as to who is buying/selling what, how much they are buying/selling, and why they are buying/selling is absolutely invaluable. The Wall Street banks fight tooth and nail to protect their information franchises.
That said, there are supposed to be rules as to how information is handled and processed so that trading complies with the rules of the road. Banks are not supposed to front run clients. Banks are not supposed to give up client names. Do the banks practice what the regulators preach? Read the rest »
Posted by Larry Doyle on March 12th, 2010 12:00 PM |
Brad Hintz is currently an analyst at Sanford C. Bernstein, a division of Alliance Capital Management. In the 1990s, Hintz served as CFO of Lehman Bros.. As such, Hintz is well positioned to comment on the ‘cooking’ that occurred at Lehman in the midst of the economic crisis which led to Lehman’s filing bankruptcy.
How does Hintz define Lehman’s accounting? In a word, “shenanigans.”
Take a look at a brief Bloomberg video clip to get an insider’s view of the Lehman kitchen:
In the spirit of full disclosure, while looking for background material on Mr. Hintz himself, I unearthed the fact that Mr.Hintz was sanctioned by the NASD (now FINRA) for selling his own personal positions in stocks (Lehman and Morgan Stanley) while continuing to recommend them. Read the rest »
Posted by Larry Doyle on March 11th, 2010 2:08 PM |
…shame on you, fool me twice, shame on me!!!
There are a handful of financial journalists who pull no punches in telling the absolute truth and in providing real transparency. Bloomberg’s Jonathan Weil holds a special spot in the Sense on Cents Hall of Fame for his determination in calling people and institutions on the carpet. From Wall Street to Washington to around the global financial landscape, Weil leaves no stone unturned in promoting integrity. His commentary today is superb. Please share it with friends. Weil writes, Greece Lifts a Page From Citigroup’s Playbook:
Is it too much to ask for the world’s titans of government and finance to speak credibly when they open their mouths? Read the rest »
Posted by Larry Doyle on March 11th, 2010 9:31 AM |
Does crime pay on Wall Street?
When those implicated in ‘pay to play’ schemes on Wall Street are not dealt with in truly appropriate fashion, everybody loses. Why? We end up with a loss of confidence not only in the markets, but even moreso a loss of confidence in our judicial system. I am not so naive as to think that our fields of justice are level, but that doesn’t mean we should not pursue that goal and highlight inequities when and where we see them.
Those engaged in financial crimes or schemes including ‘pay to play’ should never be able to buy their own justice by writing a check. That system of justice will never truly dissuade those engaged in or attracted to ‘pay to play.’
I see a strong sign of just such a potential inequity this morning. It smells. Read the rest »
Posted by Larry Doyle on March 11th, 2010 8:10 AM |
News this morning that China’s inflation rate has hit a 16-month high is garnering significant attention.
China’s economy is only one-fifth the size of the U.S. economy while China’s population is more than four times that of the United States. In fact, China’s population is approximately one-fifth of the entire world’s population. Clearly, the People’s Republic of China represents a huge growth opportunity in this century.
Bloomberg highlights this inflation news this morning in writing, China Inflation Quickens as Industrial Output Climbs:
China’s inflation reached a 16- month high, industrial output climbed and new loans exceeded forecasts, adding to the case for the government to pare back stimulus measures. Read the rest »
Posted by Larry Doyle on March 10th, 2010 2:36 PM |
How often have Americans heard politicians screaming at banks for not providing credit? How often have those same politicians and bank regulators informed us that they are working to have banks inject money into the economy to support Main Street?
Regrettably, America deals with this pandering and posturing from our political leaders and regulators all too often. While Americans are being told one thing, what are the regulators telling the banks? Hold cash.
I am not shocked, but certainly disappointed, that American financial periodicals failed to run this story detailing these recommendations from our bank regulators. The London based Financial Times highlights this bombshell in writing, Regulators Tell U.S. Banks to Hold Funds: >>>> Read the rest »
Posted by Larry Doyle on March 10th, 2010 1:22 PM |
When investors lose their shirts, what is the next thing that happens? They get pissed. Then what? They call their lawyers and file lawsuits. While individual firms on Wall Street face lawsuits all the time, it is not often that the institution of Wall Street itself is sued.
In late January, we witnessed a massive lawsuit filed on behalf of the Federal Home Loan Bank of Seattle against a large number of Wall Street banks. To reference that suit, read here. Today, The Wall Street Journal highlights Connecticut Attorney General Richard Blumenthal to Sue Moody’s, S&P, the pillars of the Wall Street ratings game:
Connecticut Attorney General Richard Blumenthal will announce a lawsuit Wednesday against rating firms Moody’s Investors Service and Standard & Poor’s alleging that they knowingly assigned “tainted ratings” for “risky investments” backed by subprime loans. Read the rest »
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