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HomeLet’s Review “What They Said About Fan and Fred”
Posted by Larry Doyle on June 3rd, 2010 5:55 AM |
What do you have to do today? What did you do yesterday? What is on your schedule for tomorrow? What did the market do yesterday? What will the market do today? What might it do tomorrow?
America lives in the moment. While in certain circumstances that emphasis on the immediate may be helpful and appropriate, in my opinion, that approach generates a lack of real depth and understanding within our national psyche.
Real sense on cents requires a much greater understanding of the past in order to generate a much more astute projection of the future. We must hold our financial and political leaders to a similar — if not even more vigorous — standard. Regrettably, we allow the Wall Street and Washington establishments, in concert with an ineffective media, to frame our national debate. In the process, are we mere mindless lemmings being led to slaughter? (more…)
Tags: accounting at Fannie and Freddie, Alan Greenspan, armando falcon, Barney Frank, Christopher Dodd, Chuck Hagel, Chuck Schumer, Fannie Mae Freddie Mac, Franklin Raines, Gregory Meeks, I want to roll the dice, Let's review What They Said About Fan and Fred, let's roll the dice, losses at Fannie and Freddie, Maxine Waters, OFHEO, Richard Shelby, Robert Bennett, Senate Banking, sub-prime mortgages, Thomas Carper
Posted in Fannie Mae, Freddie Mac, General | 7 Comments »
Independent Investigation Required
Posted by Larry Doyle on April 21st, 2009 1:14 PM |
How does our economy and country move forward after having experienced rampant abuses throughout our financial industry? It is disheartening that we have not already seen an aggressive pursuit and prosecution of many involved in these financial improprieties. Bloomberg releases a story today indicating House Speaker Pelosi Wall Street Probe Modeled on Pecora After Wall Street Crash.
While a thorough investigation is critically important to improve the health and well being of our markets and economy, I would propose we employ an independent investigation. Why?
Our financial industry is intertwined with the regulatory and political oversight which is supposed to monitor it. If we employ a currently sitting legislative body to investigate Wall Street, can or will we receive a truly unbiased analysis? Do we recall Franklin Raines of Fannie Mae being questioned by members of Congress who had received significant campaign contributions from Fannie? The “investigation” of Freddie and Fannie was certainly more theatre than true investigation. Will we get the same with Ms. Pelosi’s probe? Bloomberg offers:
House Speaker Nancy Pelosi plans to push for a comprehensive inquiry, saying that three-quarters of Americans want to know what led to the bankruptcy of Lehman Brothers Holdings Inc. and the collapse of Bear Stearns Cos. and Merrill Lynch & Co. She favors one patterned after Senate Banking Committee hearings led by Ferdinand Pecora starting in 1933, according to her spokesman, Nadeam Elshami.
The Pecora review “was probably the single most important congressional investigation in the history of our country, except perhaps the Watergate hearings,” Donald Ritchie, associate historian for the U.S. Senate, said in an interview. (more…)
Tags: Auction Rate Securities, bankruptcy of Lehman, Barney Frank, campaign contributions by Wall Street, Center for Responsive Politics, Charles Geisst, Chris Dodd, Chuck Hagel, collapse of Bear Stearns, Donald Ritchie, Fannie Mae, FINRA, FINRA's investment portfolio, Franklin Raines, Freddie Mac, historian of U.S. Senate, independent investigation of Wall Street, Legalized Bribery, Leon Panetta, Mary Schapiro, Pecora investigation, SEC, SRO, Wall Street, Wall Street oversight, William Black
Posted in Banking Institutions, Barney Frank, Congress, FINRA, Franklin Raines, Freddie Mac, General, Government funds, Wall Street | 5 Comments »
Charlie Rose Speaks to Tim Geithner
Posted by Larry Doyle on March 11th, 2009 12:54 PM |
I will provide my insights and perspectives on Charlie Rose’s interview of Treasury Secretary Tim Geithner last evening. The interview has been broken down into 6 separate clips, with my commentary preceding each clip.
Part 1
In this clip, Geithner wears both the political and policy hats. While promoting the Obama agenda initially (housing, education, healthcare, energy), he then turns toward the specifics of unlocking the consumer credit securitization markets via the TALF (Term Asset Backed Securities Loan Facility). This facility attempts to restart the securitization market and model which I wrote was broken back on November 12th (The Wall Street Model Is Broken…and Won’t Soon be Fixed). That market provides approximately 40% of the financing to a wide array of consumer finance markets. Geithner attempts to portray a measure of confidence and aggressiveness. The market has currently responded with a vote of no confidence.
Part 2 (more…)
Tags: Asset Backed Securities, Budget, Chuck Hagel, Congress, Economic All Star, FINRA, John Mauldin, Jumbo mortgages, Larry Summers, Leon Panetta, Mark-to-Market, Obama Administration, Omnibus Bill, Paul Keating, Robert Rubin, SEC, Stimulus Plan, TALF, Tim Geithner, World Bank
Posted in Auto Industry, Bad Bank, Bank Stress Test, Banking Institutions, Barack Obama, Chuck Hagel, Commerce, Congress, Credit Risk, Current Affairs, Economy, Equity Markets, FINRA, General, Lobbyists, Mortgages, Obama Administration, Republicans, Risk, Tim Geithner, Wall Street | 7 Comments »
How Wall Street Bought Washington
Posted by Larry Doyle on March 9th, 2009 3:35 PM |
A great American and loyal reader (thanks FL) shared a report recently produced by not-for-profits Essential Information and The Consumer Education Foundation. This report, Sold Out: How Wall Street and Washington Betrayed America, has gotten little to no attention in the general media. What a shame. I find of particular interest the fact that a number of the currently discussed regulatory changes are directly addressing the points highlighted in this report. I personally view these proposed regulatory changes as substantiating this report and adding credibility to its effort. For the naysayers in the audience, I would ask you to review the report and reconsider your assessment.
I was struck a month ago by the incriminating statements put forth by Senator Chuck Hagel and CIA head Leon Panetta, which I highlighted on February 16th in Legalized Bribery. Those statements bluntly indict our massive system of lobbying, political fundraising, and the quality of those running for elected office! In light of that article, I am more and more convinced that our elected officials have turned their offices into massive for profit machines at the expense of our public well being.
I commend the authors of this report, Roger Weissman and James Donahue, for taking the time and making the extensive effort to expose the truth. The full report, 231 pages in length, spares no detail. In studying it, I found the information and analysis riveting. Let me try to summarize it for you. (more…)
Tags: Arthur Levitt, California electricity crisis, CFTC, Chris Cox, Chuck Hagel, Citibank, derivatives, Enron, Essential Information, Fannie Mae, FDR, Freddie Mac, Glass-Steagall, greed, James Donahue, Leon Panetta, media complex, Merrill LYnch, off-balance sheet accounting, Paul Volker, Phil Gramm, President Clinton, regulation, Roger Weissman, The Consumer Educational Foundation, Travelers, Wall Street, Washington
Posted in American Consumers, Bank Failure, Banking Institutions, Barack Obama, Business, Christopher Dodd, Chuck Hagel, Chuck Schumer, Congress, Credit Derivative Swaps, Current Affairs, Democratic Party, Economy, Education, Equity Markets, Fannie Mae, FINRA, Freddie Mac, General, Housing Crisis, Insurance Industry, Leon Panetta, Lobbyists, Obama Administration, Rahm Emanuel, Republicans, Reputation, Wall Street | 14 Comments »
Legalized Bribery
Posted by Larry Doyle on February 16th, 2009 6:57 PM |
Quality business relationships are always mutually beneficial. If they are not mutually beneficial, then they will not thrive or perhaps even last at all. A strong business relationship, like any personal relationship, needs a foundation of honesty and
integrity. As in any relationship, there will be plenty of instances in which the parties have disagreements and misunderstandings. If the relationship is strong enough, it can not only endure through these times but often grow stronger as a result of them.
The challenge in any relationship is when one party is conflicted and attempts to serve two masters. These conflicted relationships – whether personal, political, social, or business – must change in order to grow or are doomed to languish and underperform if not die completely. On Wall Street, a business that so grossly prioritizes short term profits versus long term customer relationships will not grow. Perhaps for a period of time the excess profits will be addicting and mesmerize management, but over time that model will not work. Bear Stearns is a classic example of this principle. From having worked there for 7 years in the 90s, I evidenced it firsthand. (more…)
Tags: Bill Moyers interview with Simon Johnson, Chuck Hagel, Leon Panetta, So Damn Much Money by Robert Kaiser, Washington and Wall Street relationship
Posted in American Consumers, Chuck Hagel, Congress, Current Affairs, Earmarks, Economic Stimulus, Economy, General, Leon Panetta, Lobbyists, Stimulus Plan | 4 Comments »
