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HomeGoldman Sachs Stonewalling Highlights Trading Mentality
Posted by Larry Doyle on June 8th, 2010 3:30 PM |
Did Goldman Sachs ‘flip the bird’ at the Financial Crisis Inquiry Commission and, in turn, America by its handling of the commission’s request for information? The fact that the FCIC felt it necessary to issue a subpoena to Goldman is an indication as to how serious the commission is handling this issue. Why would Goldman be so brazen and bold in its dealing with the commission?
Nathaniel Popper of the Los Angeles Times wrote a comprehensive article on this Goldman bombshell this morning, Goldman Sachs Stonewalling, Federal Panel Says:
Goldman Sachs Group Inc., already under fire for its actions leading up to the financial crisis, came under attack from a federal commission that accused it of refusing to divulge information, including documents detailing its controversial bets on the mortgage market. (more…)
Is the Financial Crisis Inquiry Commission Providing Cover for FINRA?
Posted by Larry Doyle on May 6th, 2010 11:03 AM |
The Financial Crisis Inquiry Commission is charged with the following:
… a bipartisan commission that has been given a critical non-partisan mission — to examine the causes of the financial crisis that has gripped the country and to report our findings to the Congress, the President, and the American people.
So far, I would grade the Commission’s work as an F, as in failing . . . as in f@*%ing pathetic. Why so harsh? 
(more…)
Citigroup: The Blind Leading the Blind
Posted by Larry Doyle on April 7th, 2010 1:28 PM |
When in doubt, hire a consultant.
When something fails, blame the consultant.
Shirk responsibility and pass the buck.
When will somebody with a set of balls on Wall Street stand up and take responsibility for the massive failures of risk management and business execution which led to the economic crisis which brought our country to its knees? (more…)
Mary Schapiro and Mark McGwire
Posted by Larry Doyle on January 15th, 2010 10:22 AM |
“I’m not here to talk about the past.”
Mark McGwire, the steroid abusing home run hitting phoney, may have issued a massive mea culpa this week, but his career will forever be defined by his March 2005 Congressional obfuscation.
In my strong opinion, Mary Schapiro is the financial industry’s equivalent of Mark McGwire. How so? In McGwire’s 2005 testimony, he very much wanted to position himself as a positive influence for future developments regarding the use and abuse of steroids in baseball. Fast forward to January 14, 2010 and we witness Mary Schapiro very much trying to assume the same positive position in her testimony and answers to the Financial Crisis Inquiry Commission. In Schapiro’s opening statement, Testimony Concerning the Financial Crisis, she states as much:
To assist the Commission in its efforts, my testimony will outline many of the lessons we have learned in our role as a securities and market regulator, how we are working to address them, and where additional efforts are needed. I look forward to working with the FCIC to identify the many causes of this crisis.
Oh, how kind. (more…)
Can Mary Schapiro be in Two Places at Once?
Posted by Larry Doyle on January 14th, 2010 9:24 AM |
Mary Schapiro is going to be very busy today. How so?
Her presence will very much be a factor in two venues which are holding public hearings. What venues? What hearings? What will the public learn from and about Ms. Schapiro today?
Most eyes will be on Washington where Ms. Schapiro, the current SEC Chair, will be a witness in the second day of hearings of the Financial Crisis Inquiry Commission. The Commission is charged with unearthing the truth in the factors that led to our economic crisis. Should we expect any grand mea culpas from Ms. Schapiro in front of the Commission? I think not.
Ms. Schapiro and her former FINRA colleagues have proven to be artful dodgers when it comes to skirting the tough questions. Avoiding tough questions is not difficult when the questions themselves are softballs offered by her incestuous partners in Washington. When did we first witness this reality? A year ago tomorrow. (more…)
Financial Crisis Inquiry Commission Questioning
Posted by Larry Doyle on January 13th, 2010 11:28 AM |
I did not expect to learn anything riveting from today’s Financial Crisis Inquiry Commission’s questioning of the Wall Street CEOs and I didn’t. Why?
The executives being questioned represent the survivors or are new to the game. Who are they?
Lloyd Blankfein of Goldman Sachs
Jamie Dimon of JP Morgan
John Mack of Morgan Stanley
Brian Moynihan of Bank of America
The Commission will be at work during calendar 2010, but the initial performance will pack the biggest punch and get the most attention. Why? Simply because the media will provide the greatest coverage to the opening round. (more…)
The Financial Crisis Inquiry Commission Should Investigate…
Posted by Larry Doyle on January 11th, 2010 9:28 AM |
Will America ever truly learn what happened on Wall Street that brought our markets, our economy, and our country to its knees?
We should not expect the incestuous Wall Street-Washington partners to implicate themselves and thoroughly expose their shortcomings. A full 16 months since the failure of Lehman Bros. and how much have we truly learned? What change has really occurred? Who has been fired in Washington? Who has been indicted on Wall Street? Will the Financial Crisis Inquiry Commission, charged with investigating the factors which facilitated our economic disaster, truly be effective?
The truth may hurt but if the hard questions are not asked, the failings are not exposed, and those responsible are not held to account, then the lessons will not be learned, and the experience will likely repeat itself.
Will the commission pretend to investigate, but ultimately wilt under the pressure of the incestuous pillars of power? Will the commission rise above the fray, hold people and institutions to account, and make our country proud? Will the commission use its power to subpoena, if need be?
Whom should the commission pursue? What agencies and institutions should the commission target? If I were on the commission, I would recommend pursuing the following targets: (more…)
Congress Establishing Financial Crisis Inquiry Commission
Posted by Larry Doyle on May 21st, 2009 5:18 PM |
The law firm of Wilmer Hale recently released the following statement:
CONGRESS TO ESTABLISH FINANCIAL CRISIS INQUIRY COMMISSION
May 7, 2009By Reginald J. Brown, Jamie Gorelick, Anne Harkavy, Randolph D. Moss, William R. McLucas, Howard M. Shapiro, Michael J. Sharp,Matthew A. Chambers
Yesterday, the House of Representatives passed S. 386, the Fraud Enforcement and Recovery Act of 2009, by a 367-59 vote. Among other things, S. 386 establishes a Financial Crisis Inquiry Commission (the “Commission”), with broad authority to examine the domestic and global causes of the current U.S. financial and economic crisis. The Senate passed a similar bill in late April and final passage, most likely of the House version, is expected soon.
Under both versions of the bill, the Commission will have roughly 18 months to investigate the circumstances that led to the financial crisis and issue a report to Congress with its findings and recommendations. The Commission will have broad investigative authority, including subpoena power, and the ability to refer any evidence of criminal activity to the U.S. Attorney General and state attorneys general. Other key provisions, as described in the House bill, include the following:
Membership:
The Commission will have ten members, who must be private citizens and may not be employed by any government entity. [§ 5(b)(2)(B)] Commission members will be appointed as follows: Three each appointed by the Speaker and Senate Majority Leader; two each appointed by the minority leaders in the House and Senate. [§ 5(b)(1)(A-D)] The Chair and Vice Chair must be from different parties and will be selected jointly by the respective leaders. [§ 5(b)(3)] Members are expected to be prominent U.S. citizens with national recognition and depth of experience in fields such as banking, regulation of markets, taxation, finance, economics, consumer protection and housing. [§ 5(b)(2)(A)] (more…)
