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Posts Tagged ‘Wall Street bailout’

“Greatest Wall Street Backdoor Bailout of All Time”: Sense on Cents Instant Classic

Posted by Larry Doyle on November 12th, 2013 10:01 AM |

It is not often that, in the midst of my daily morning reads, my jaw drops and I am left aghast by a writer’s hard hitting delivery. While many an editorial and commentary dive into topics that I appreciate and find riveting, I do not often find a writer from inside the arena who freely and openly speaks his/her mind.

This morning I had just such a pleasure.

While America and the world have been force-fed the notion that the Federal Reserve’s quantitative easing programs have been the magic elixir nursing our economy back to health, Andrew Huszar has a decidedly different take.

Who is Huszar? Only a former Fed official responsible for executing a large part of the Fed’s bond buying. Currently a senior fellow at Rutgers Business School, Huszar gains immediate induction into the Sense on Cents Hall of Fame as he pulls no punches in delivering a knockout in this morning’s WSJ. He begins with an apology. It only gets better from there.

I can only say: I’m sorry, America.  (more…)

New Banking Rules Have Not Hurt Jamie Dimon

Posted by Larry Doyle on June 8th, 2011 12:20 PM |

When do you know that somebody is tone deaf?

Those with any measure of ‘sense on cents’ know when an individual is tone deaf. How so?

When said individual racks up compensation in the multiple tens of millions of dollars from an industry that was bailed out by taxpayer funds and then complains about changes in regulatory oversight, you know that individual is tone deaf.

To whom do I refer? Welcome to the world of JP Morgan CEO Jamie Dimon. (more…)

“I Just Can’t Trust Them…”

Posted by Larry Doyle on January 20th, 2011 7:06 AM |

Screw me once, shame on you!! Screw me twice, ….

You know how that works. Yes, indeed, we do know how that works. In fact, Americans know all too well that they were badly screwed by many within the financial industry. In the spirit of fairness, there were also many consumers who screwed the system by knowingly falsifying info on mortgages and loans. From both ends, the biggest loser over the course of the last decade has been our virtues of truth, transparency, and integrity. Rest assured, though, that pursuit goes on and it is having ripple effects across Wall Street specifically and the financial industry as a whole.

I see clear evidence of this dynamic in a recent commentary at The Center for Public Integrity. Why are banks very concerned and scrambling to protect their franchise value? (more…)

A Windfall Profit Tax for Wall Street?

Posted by Larry Doyle on January 12th, 2010 8:42 AM |

The American taxpayer bailed out Wall Street. How does Wall Street return the favor and refund the American taxpayer? Why is Washington pursuing this topic now? The Washington establishment feels the beating pulse of rage from the American public.

I guess it would have been too much to expect the Washington crowd to proactively address the topic of repayment from its incestuous partners on Wall Street. In fact, we should expect to hear the Wall Street establishment bellow that they have paid back the TARP funds and that should be sufficient. Wall Street should not be so naive. The American taxpayer bailed out the entire industry as much as it bailed out any single specific firm. Washington should not be so cute in structuring a repayment program where the costs are conveniently passed along to the American public. American taxpayers should not be easily placated. (more…)

Two Sets of Books Require Two Sets of Accounting Standards

Posted by Larry Doyle on December 8th, 2009 2:43 PM |

What was at the core of the current economic crisis?

The financial transactions embedded in the SIVs (structured investment vehicles) located off-balance sheet within our major financial institutions brought our country to its knees. As the securities housed in these SIVs plunged in value, Uncle Sam was forced to ride to the rescue and bail out Wall Street.

Uncle Sam’s bailing required not only billions in dollars but also the coordination and complicity of the accounting industry. The Federal Accounting Standards Board (FASB) knows that Congress, supported by Wall Street, jammed revised accounting standards in place in order to facilitate Uncle Sam’s bailout.

The FASB, in an attempt to save face and a degree of integrity, has pushed back on Wall Street by passing FAS 166 and 167 which would require investments in off-balance sheet vehicles to be brought on-balance sheet. The implementation of FAS 166 and 167 is imminent and would require financial institutions to set aside increased capital against selected assets.
(more…)






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