Archive for the ‘Wall Street’ Category
Posted by Larry Doyle on August 23rd, 2010 12:23 PM |
What is something worth? Very simply whatever somebody is willing to pay for it, correct? While regulations or the lack thereof have a big impact on overall levels of returns and compensation, all other things being equal, I do not begrudge those who take risk, work hard, and reap rewards. I applaud them. I view that process as the essence of capitalism.
Does this line of thinking still work in our Uncle Sam economy circa 2010? One of the overriding themes highlighted in Observations on My Afternoon in New York City addressed the topic of market valuations. I wrote:
4. Investors do not want to sell what they currently own because they do not know what they might purchase to replace it. Investors do not want to allocate more capital because they are concerned about market valuations in general.
I should have been even more pointedly specific in writing this statement. While I do believe many people in the market today are concerned about the overall level of the market, the point I was trying to get across is that people do not trust or believe the individual values of investments at current prices. Why is this the case and how does this happen? (more…)
Tags: book of Ecclesiastes, economic outlook unusually uncertain, Fed's balance sheet, Government Clouds Valuations of Investments, market valuations, reaping rewards, taking risk, the essence of capitalism, the price of everything the value of nothing, Uncle Sam economy, what is something worth, working hard
Posted in General, Wall Street | 8 Comments »
Posted by Larry Doyle on July 2nd, 2010 12:42 PM |
Is America supposed to believe that the economic crisis emanating on Wall Street and costing our economy trillions of dollars was all on the up and up and was merely a ‘perfect storm’? Although many on Wall Street and in Washington would have us believe just that, a true measure of ’sense on cents’ dictates that we not be so naive.
Regrettably, our financial regulators and most state attorneys general have shown themselves to be incapable, unwilling, or incompetent in pursuing the massive financial transgressions and fraud that lie at the foundation of our crisis. Well, it is time for “hook ‘em horns!!”
The Democratic candidate for Attorney General in the great state of Texas, Barbara Ann Radnofsky, has written a Legal Complaint and Legal Brief which form the basis for a lawsuit against Wall Street and the underlying fraud which has brought our nation to its knees. (more…)
Tags: Barbara Ann Radnofsky, financial fraud on Wall Street, financial regulation, financial regulators, fraud on Wall Street, hook em horns, lawsuits against Bank of America, lawsuits against Goldman Sachs, lawsuits against JP Morgan, lawsuits against Morgan Stanley, lawsuits against rating agencies, lawsuits against Wall Street banks, perfect storm, state attorneys general fighting Wall Street, State of texas vs Goldman Sachs et al, State of Texas vs Wall Street, sue wall street, suewallstreet.com, texas Attorney general campaign, Texas Democratic Party, Wall Street lawsuits
Posted in General, Wall Street | 4 Comments »
Posted by Larry Doyle on June 21st, 2010 8:52 AM |
How does one make progress while navigating the economic landscape?
In my opinion, the key that unlocks the door to real, long term progress is the ability of an individual or an enterprise to continually and increasingly “add value.” How does one do that? Initially, one needs to develop skills and relationships. From there, one needs to hone those skills and expand those relationships. Ultimately, one can leverage and ’sell’ this ability to ‘add value’ to an ever wider audience. In the process, the individual, firm, enterprise, or industry that can drive this process should and typically does flourish.
During the course of my career on Wall Street, I never wanted to plateau in terms of adding value. I was convinced that I needed to continually grow my skills and relationships. I encourage those whom I mentor to take this approach to their careers.
Against this backdrop, the question begs “does Wall Street as an industry truly add value?” (more…)
Tags: adding value, career growth, does Wall Street add value, Financial Leaders of the 20th Century, Giants of the 20th Century, how does one add value, how does one grow a career, how to get ahead, how to succeed, John Bogle career, skills and relationships, structured transactions on Wall Street, value added, Vanguard Bogle Financial Markets Research Center, Vanguard's John Bogle, Wall Street, Wall Street innovations, who is John Bogle
Posted in General, Wall Street | 1 Comment »
Posted by Larry Doyle on May 21st, 2010 9:05 AM |
In the midst of all the legislative wrangling in Washington and the financial gyrations on Wall Street, what does it all mean for everyday American investors? I am not so sure it means all that much. How much are everyday Americans impacted by proprietary trading, derivatives, merged regulators? Very little actually. I am not writing this to discount the proposed financial regulatory reform coming out of Washington, but I remain underwhelmed that it will truly protect everyday investors from the ways of Wall Street.
To this end, I am happy to propose my own Sense on Cents Financial Reforms which I believe regulators should impose on financial intermediaries (brokers, bankers, money managers, et al). I am not only proposing these reforms here, but I am sharing them today with Washington based financial regulators. In deference to my readers, you’re getting the first look. Feel free to share your thoughts on my proposed reforms, and add others which you believe should be implemented. (more…)
Tags: caveat emptor, competency risks, corporate credit risks, counterparty risks, currency risks, derivatives, extension risks, financial reforms, financial regulation, financial regulators, financial regulatory reforms, FINRA, how will financial regulatory reforms impact everyday Americans, interest rate risks, investment risks, liquidity risks, market risks, options, prepayment risks, proprietary trading, Risk Parameters, SEC, Sense on Cents, structure risks, transparency risks, volatility risks, Wall Street, what is a prospectus
Posted in General, Wall Street, regulation | 8 Comments »
Posted by Larry Doyle on May 6th, 2010 12:57 PM |
FINRA is supposed to be the Wall Street cop, right? Is the cop a real cop or more of a facade? Well, when the Wall Street banks which FINRA is charged to oversee do not observe the most basic of FINRA rules and regulations, in my opinion, FINRA is exposed as nothing more than a facade.
Evidence of this was on display just yesterday as Bloomberg highlighted in reporting, Goldman Sachs Said to Be Late to Report SEC Probe to FINRA:
Goldman Sachs Group Inc. was late in notifying the Financial Industry Regulatory Authority that trader Fabrice Tourre might be sued for fraud by the U.S. Securities and Exchange Commission, according to people familiar with the matter. (more…)
Tags: Fabrice Tourre, FINRA, FINRA rules, Goldman did not report Wells Notice, Goldman Sachs, Goldman Sachs Said to be Late to Report SEC Probe to FINRA, Goldman Wells Notice, SEC Fraud charge against Goldman, self-regulation on Wall Street, Wells Notice
Posted in FINRA, General, Goldman Sachs, Wall Street | 1 Comment »
Posted by Larry Doyle on April 20th, 2010 9:17 AM |
Incestuous relationships can last a long time. When two willing consorts are engaged in incest without it being exposed, the incest can grow and ultimately become cancerous. Incestuous partners may believe they are pleasing each other at little expense to other family members. What a lie. Make no mistake, there is always a third party involved in incest. Who is that? Collectively, the family. In the case of our financial crisis circa 2010, the incestuous relationship between Wall Street and Washington has badly damaged the American family. Let us not allow either of these incestuous partners to define our current turmoil by asking family members to pick sides.
Why am I writing this? (more…)
Tags: FINRA, FINRA-ARS, incestuous relationship between Wall Street and washington, independent investigation of finra, Obama Administration, Obama's trip to Wall Street, SEC charges against Goldman Sachs, timing of SEC charges is cover for Obama, victims of financial crisis, victims of incest, Wall Street-Washington incest
Posted in General, Wall Street, Washington D.C. | 4 Comments »
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…)
Tags: ambulance chasing, credit cards, David Rosenberg, Fed Funds, Federal Reserve, financial sectors, oligarchy, oligopoly, Wall Street, Wall Street vs Main Street, wealth transfer, what is driving the market higher, why is the market up?
Posted in General, Wall Street | 3 Comments »
Posted by Larry Doyle on April 9th, 2010 9:12 AM |
Who in America is going to stand up and accept appropriate culpability for his/her contribution to our current economic crisis? Who in America is also willing to expose the incestuous nature of the Wall Street-Washington relationship which provided the cover for the activities which have debilitated our nation?
Let’s review what we have learned so far:
1. Blame has been directed at bank executives…but they got paid handsomely, and have not accepted full responsibility.
2. Blame has been directed at ratings agencies….but they also got paid handsomely to provide ratings, while not really knowing what they were doing. (more…)
Tags: Ben Bernanke, blame for crisis, Chris Dodd, culpability for crisis, Fannie Mae execs, FCIC, finger pointing, FINRA, Franklin Raines, Freddie Mac execs, Larry Summers, Leland Brendsel, mortgage originators, Phil Gramm, public service, public service and private wealth accumulation, ratings agencies, reasons for our economic crisis, regulators, Rham Emanuel, Robert Rubin, SEC, Tim Geithner, Wall Street executives, Wall Street-Washington incest, Washington, what is to blame for our economic crisis, who is to blame for our economic crisis
Posted in General, Wall Street, Washington D.C. | 5 Comments »
Posted by Larry Doyle on March 30th, 2010 9:18 AM |
What will be the next explosion in financial chicanery if not outright fraud? Collusion, that is price fixing. Why? A number of reasons, including:
1. The financial industry has become an oligopoly, (some may say cartel) thus setting the table for increased collusion to propagate.
2. Lower volumes across exchanges, which pressure revenues and incentivize market participants to collude to generate greater profits. (more…)
Tags: Barclays, cartel, cheating on Wall Street, collusion, David Strang of Barlow Lyde & Gilbert LLP in London, financial collusion, future crimes on Wall Street, future frauds on Wall Street, future of Wall Street, lessened competition on Wall Street, move to financial simplicity, Office of fair Trading, oligopoly, price fixing, Royal Bank of Scotland, Wall Street's future, Wall Street's next great crime, Wall Street's next great fraud, what do lower volumes mean on Wall Street, why will collusion increase
Posted in General, Wall Street, oligopoly | 2 Comments »
Posted by Larry Doyle on March 22nd, 2010 1:53 PM |
Is our nation trending away from the principles of capitalism which built the foundation upon which we rest? Another healthcare whine? Nope. I am talking about the once proud pillars of capitalism centered on lower Manhattan, otherwise known as Wall Street.
Let me simplify the debate. What is capitalism? Are you willing to accept the definitions provided by my Investing primer, Investopedia?
What Does Capitalism Mean?
An economic system based on a free market, open competition, profit motive and private ownership of the means of production. Capitalism encourages private investment and business, compared to a government-controlled economy. Investors in these private companies (i.e. shareholders) also own the firms and are known as capitalists.
What does the Financial Times have to say about our financial system this morning? (more…)
Tags: banking fees, Bear Stearns, capitalism, competition in banking, conflicts of interest, Few Banks, Financial Times Fat Fees, Goldman Sachs, it is what it is, it isn't what it isn't, lack of financial competition, Lehman Bros, oligopoly, principles of capitalism, tenets of capitalism, UK Office of Fair Trading, Wall Street, what is capitalism
Posted in General, Wall Street | 5 Comments »