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Steven Rattner’s “Conduct Was Inappropriate, Wrong, and Unethical”

Posted by Larry Doyle on April 15th, 2010 1:37 PM |

Steven Rattner

Will New York Attorney General Andrew Cuomo and SEC Chair Mary Schapiro have the balls to go after former White House car czar Steven Rattner for his role in a New York State Pension “pay to play” scandal?

We will learn a lot about Cuomo and Schapiro in the process. Let’s not overlook what we’ll learn about the White House, as well.

Recall that Rattner, prior to serving as car czar, was co-founder of Quadrangle, the firm implicated in the New York State Pension “pay to play” scheme exposed by Cuomo. The SEC had a separate investigation of Quadrangle’s activities, as well. Read the rest »


WaMu 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. Read the rest »


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? Read the rest »


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:

Read the rest »


Rep. Jen Hensarling (R-TX): “You Are a Sucker”

Posted by Larry Doyle on April 14th, 2010 10:10 AM |

Charity is one thing. Throwing good money after bad is an entirely different can of worms.

Is the Obama administration’s housing policy trying to be charitable in support of those who have truly fallen on hard times and need government assistance, or is it more redistributing wealth to those who made unwise financial decisions from the outset? Do Obama and team know the difference? Read the rest »


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. Read the rest »


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. Read the rest »


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. Read the rest »


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. Read the rest »


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. Read the rest »


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Larry Doyle

Larry Doyle A Wall Street veteran's views and instincts on the markets, economy, and all things financial.







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