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HomeBarclays’ Libor Scandal: Prison Will Remedy
Posted by Larry Doyle on July 2nd, 2012 7:11 AM |
Many executives on Wall Street and in The City, London’s central business district, have reason to be VERY NERVOUS this morning.
Their sweaty palms have nothing to do with the ongoing crisis in Europe or this week’s likely weak employment report here in the United States. The nerves have everything to do with the fallout from the Libor-manipulation story that has been centered on Barclays but likely encompasses every major bank in the global markets.
The industry would like to take one large broom and sweep this story back under the rug. The weekend ‘execution’ of Barclays chairman Marcus Agius is an attempt to do just that. (more…)
Listen to “Main Street Out Loud” This Saturday
Posted by Larry Doyle on June 29th, 2012 12:40 PM |
Please listen in this Saturday evening from 6-8pm (EST) as I will bring a healthy serving of “sense on cents” to Main Street Out Loud, a nationally renowned radio show emanating from Phoenix, AZ.
Hosted by Rudi K, Main Street Out Loud:
. . . is now recognized as “the premier political and issue driven talk show on weekend radio“. We invite you to tune in to a live broadcast and/or listen to past programs (see archives). Hear for yourself why we continue to increase our audience share around the world. We enjoy hearing from listeners–so send us an email. We really do want to know “What’s on your mind?”
This Saturday, Rudi will address:
(more…)
Obamacare: Taxation by Misrepresentation?
Posted by Larry Doyle on June 29th, 2012 8:54 AM |
Chief Justice John Roberts informed the nation yesterday that the legislation known as Obamacare is viable based upon Congress’ ability to tax. Should it matter that the legislation was not represented to the nation in that manner? That is a point worthy of very real debate for years to come.
While many conservatives in the nation are disappointed with Roberts’ opinion and ultimate deciding vote, I actually think he was more concerned with a larger message, if that is possible. What was he really saying? A number of things including: (more…)
Barclays Libor “Price Fixing” : Collusion Is Illegal . . .
Posted by Larry Doyle on June 28th, 2012 10:53 AM |
News that Barclays Bank has been hit with a $453 million fine for its involvement in manipulating the London Interbank Overnight Rate, commonly referred to as Libor, has crushed the stock of the UK-based bank. Barclays stock is down close to 15% in early trading.
This story is interesting on so many fronts, including:
1. The alleged activity went on for years. The FSA’s investigation goes back to the middle of the last decade. How do we know when the collusion really started? (more…)
JP Morgan: 9B Loss? Is That It? A Hedge? Really?
Posted by Larry Doyle on June 28th, 2012 7:34 AM |
On May 10th, JP Morgan CEO announced that the bank faced a $2 billion loss on a hedge that had gone awry in its Chief Investment Office.
Many analysts and commentators discounted the fact that for an institution of JP Morgan’s size a surprising $2 billion loss, while significant, was not overly significant.
Perhaps they were right. If a $2 billion loss is insignificant, then what about an $8-9 billion loss. Significant yet? (more…)
JP Morgan’s Five P’s and Bernie Madoff
Posted by Larry Doyle on June 27th, 2012 7:59 AM |
Have you ever had an experience while reading something when you stop and think, “They didn’t just say that, did they?” I had just such an experience yesterday while reading a Bloomberg commentary on JP Morgan.
Under the heading of “You cannot make this stuff up,” I virtually gagged when I read of why JP Morgan had chosen not to allocate credit to Chesapeake Energy. Given current issues with Chesapeake, it would appear that JP Morgan’s decision not to engage Chesapeake was prudent. Then why the gag? (more…)
What Was Curt Schilling Thinking?
Posted by Larry Doyle on June 26th, 2012 5:20 AM |
Investing, in general terms, evokes a sense of hope and excitement of steady growth and longstanding positive returns.
These emotions are accentuated when it comes to investing within the realm of venture capital. Not that making enormous and outsized returns within venture capital is to be expected, but the dreams of such are not uncommon. If it were only so easy to make these dreams come true.
To those wading into the waters of venture capital, I would say WAKE UP and BE VERY CAREFUL! (more…)
Simon Johnson: Enormous Risk on Economic Horizon
Posted by Larry Doyle on June 25th, 2012 7:56 AM |
What is my risk?
In the throes of evaluating any and all proposals or investment opportunities, I always want to understand where the risks lie and just how great those risks may be. From there, I try to evaluate if the projected return on invested capital is attractive relative to the risks undertaken.
What are the risks investors face? Interest rate risk, credit (i.e default) risk, volatility risk, structure risk, counterparty credit risk, prepayment risk, general market risk, liquidity risk, extension risk, transparency risk, political risk, and currency risk. Well, if that were not enough to consider, there is another very real risk lurking on our economic horizon. What might that be? (more…)
Michael Burry: UCLA Commencement Address . . . . Strongly Recommended
Posted by Larry Doyle on June 24th, 2012 10:25 AM |
The lessons we learn from those who see the ocean while all are focused on a wave are truly special.
Thanks to our friend Huckleberry for prompting me to view the UCLA commencement address recently delivered by one Dr. Michael Burry.
Burry strikes me as a relatively soft-spoken and unassuming individual. His message is anything but. This address is a must view.
Burry may be talking primarily to the UCLA graduates but his message resonates far beyond that small group. He provides wisdom to graduates and people everywhere who care to learn how we have come to be enmeshed in such an economic crisis.
What does Burry recommend we do? (more…)
Taibbi: Wall Street Bribes, Bid-Rigging & Collusion
Posted by Larry Doyle on June 22nd, 2012 2:07 PM |
There are many markets on Wall Street with very serious ethical issues. From my perspective, no market over the last number of decades has been more ethically challenged than the world of municipal finance.
In the spirit of fairness, I would maintain once again that the overwhelming percentage of people on Wall Street in general and municipal finance specifically are very good, decent people. Regrettably, though, the premise of fair and ethical dealings within many markets and certainly municipal finance has gotten so blurred as to be unidentifiable.
In a MUST READ commentary that pulls back the cloak on the bribes, bid-rigging and collusion within the municipal finance markets, Rolling Stone’s Matt Taibbi provides a chilling look into this corner of Wall Street. (more…)
