RSS Feed
Twitter
Facebook
Email
HomeWaMu Mortgage Bankers = Arrogant A$$holes (UPDATED)
Posted by Larry Doyle on April 15th, 2010 10:36 AM |
You get the reputation you deserve.
Whether on Wall Street or Main Street, individuals, firms, or entire industries are known by the manner in which they carry themselves. While I am all for having a good time, that little virtue called class should never be compromised. To that end, the mortgage banking industry has always had a reputation for being less than classy and professional. (more…)
Overnight Developments April 15, 2010
Posted by Larry Doyle on April 15th, 2010 6:52 AM |
There have been a number of developments overnight which highlight the fact that the cross currents on our global financial landscape are anything but smooth and consistent. Let’s touch on a number of these stories with a brief editorial comment so we can most effectively navigate the economic landscape.
1. China’s 1st quarter GDP registers an 11.9% year over year increase. Be mindful this increase is compared to 1st quarter 2009, when the global economy came to a virtual standstill. What will China do to slow their economy from overheating? (more…)
Sense on Cents Responds to Obama Administration Request for Input
Posted by Larry Doyle on April 14th, 2010 2:34 PM |
President Obama wants input on the reform of the housing finance system. Given my career, I consider myself eminently qualified to give it to him. Despite this request, though, I still think he should focus on job creation (which he highlighted during his State of the Union address).
I welcome giving President Obama, Treasury Secretary Geithner, and the rest of the the White House economic team a very healthy dose of Sense on Cents. (My response is a little lengthy, but it is not everyday the President gives us this opportunity. Out of respect, I owe him my best effort.) I will let you know if they respond with anything more than a form letter, or if they do not respond at all. From the U.S. Treasury today:
Did Hudson Castle Facilitate Fraud at Lehman?
Posted by Larry Doyle on April 13th, 2010 1:33 PM |
Perpetrating a fraud is never as easy as it may appear. Although in hindsight frauds may appear to be simplistic, there are typically many more moving parts than meets the eye. To this end, the idea that Bernie Madoff perpetrated his massive Ponzi scheme by himself or with merely a few associates is beyond ridiculous. Just as Madoff had outside feeder funds and brokers that provided cover for him, today it appears that the once proud and venerable firm of Lehman Brothers also had an outside firm which enabled it to ‘manage its books.’ Who is this firm? An outfit known as Hudson Castle. Who is Hudson Castle and what was the nature of its relationship with Lehman? Let’s navigate. (more…)
My Experience with Washington Mutual
Posted by Larry Doyle on April 13th, 2010 11:01 AM |
What really happened at Washington Mutual?
With former Washington Mutual executives facing a Senate subcommittee today, all eyes and ears in Washington are focused on the lending practices and management of this failed thrift.
Did Washington Mutual knowingly originate fraudulent loans? Did WaMu reject mandates from regulators to change lending practices? Did the regulators themselves even know what was going on at Washington Mutual? All great questions deserving full and total transparency if America is ever to fully understand what happened on Wall Street. (more…)
Felix Rohatyn Promotes a Domestic IMF
Posted by Larry Doyle on April 13th, 2010 8:53 AM |
Given the massive budget gaps and pension shortfalls encompassing a large swath of our municipal landscape, should our nation think about launching a domestic version of the IMF (International Monetary Fund)? If we were to listen to the wise old Wall Street veteran and Washington confidante Felix Rohatyn, we should do just that.
Rohatyn, a senior investment banker at Lazard Freres, was heavily involved in the restructuring and recapitalizing of New York City during its fiscal nightmare back in the 1970s. He is not bashful in stating that a domestic IMF may very well be necessary to address our current municipal deficits. (more…)
Ambulance Chasing on Wall Street
Posted by Larry Doyle on April 12th, 2010 10:58 AM |
What is driving our markets higher? A rebound in earnings along with a rebound in the economy, correct? Well, let’s take a quick look at corporate earnings.
Thanks to our Sense on Cents Hall of Famer and resident Economic All-Star David Rosenberg, we learn this morning that:
Financial sector profits have accounted for 85% of the overall increase in corporate earnings.
When I read this, I immediately think of the market akin to that gutless driver who jumps behind an ambulance as it screams down the street. Who is in that ambulance? Main Street. Who is in that car getting the ‘free ride’? Wall Street. (more…)
I Come to Bury Judge Rakoff, Not to Praise Him
Posted by Larry Doyle on April 12th, 2010 9:11 AM |
U.S. District Judge Jed Rakoff
America loves a hero. Those who go boldly into the dark, defying death, and willing to sacrifice themselves for the well being of their brethren are truly special. Why are so many Americans enraged at the power structure in Washington? For the very simple reason that Americans see few – if any – heroes amongst our elected public servants.
Do we find any heroes on Wall Street? There are many great, heroic citizens in every line of work, including Wall Street, who work tirelessly to fend for their families. These people are heroes, but not on a national level.
Who are our national heroes at this time? Who is truly willing to call out the embedded incestuous power structure that has corrupted and continues to corrupt our society? I will nominate Simon Johnson and James Kwak, co-authors of 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, for serious consideration as national heroes. Why? Johnson and Kwak properly frame the critical debate facing America today. This debate focuses on the fact that the incestuous relationship between our political and financial forces is killing America. Unless and until that incestuous relationship is exposed and unwound, our nation faces grave threats. (more…)
No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes 13 Bankers Co-Author James Kwak, Tonight at 8pm ET
Posted by Larry Doyle on April 11th, 2010 7:08 AM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
***********************
I am thrilled to have James Kwak join me this evening, April 11th, from 8-9pm ET on No Quarter Radio’s Sense on Cents with Larry Doyle.
If Wall Street banks are ‘too big to fail,’ what is America to do? While those on Wall Street fight to maintain their power base and those in Washington deal with their conflicted interests between Wall Street and Main Street, two individuals lay out a very simple solution.
Simon Johnson and James Kwak convincingly answer that if banks are in fact ‘too big to fail,’ then ‘make them smaller.’ Johnson and Kwak highlight this reality and so much more in 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, a book that was just released but will surely sweep the country. The reviews so far are off the charts. Kwak and Johnson are widely followed at their site Baseline Scenario, which, in my opinion, is the most well written and informative financial and economic website in the blogosphere. (Sense on Cents being a close second!!)
What are people saying about 13 Bankers? Well, let’s stop and start with Elizabeth Warren, Professor of Law Harvard Law School and Chair, TARP Congressional Oversight Panel. She writes:
“The best explanation yet for how the smart guys on Wall Street led us to the brink of collapse. In the process, Johnson and Kwak demystify our financial system, stripping it down to expose the ruthless power grab that lies at its center.”
My interview with James Kwak this evening is a can’t miss. Please spread the word to friends and colleagues. Listen to the show LIVE at the BlogTalkRadio website. Share your thoughts and questions by calling (347) 677-0792, or mix it up in the chat room with an always energized group. As a reminder, all of my radio shows are archived and previous episodes can be listened to right here at Sense on Cents by clicking on the No Quarter Radio tab. (FYI, I keep an audio player of my most recent episode in the right sidebar). In addition, all No Quarter Radio programming is available as a free podcast on iTunes. From the iTunes Store, type “NQR podcasts” in the search window.
LD
