Posts Tagged ‘Wall Street’
Posted by Larry Doyle on November 17th, 2010 7:25 AM |
When I worked at JP Morgan, we had a year end review process that I believe was largely a joke. Why? It lacked integrity and honesty. How so? Individuals largely gamed the system by not being forthright with each other. As a result, the overall assessment of individuals, departments, divisions, and the firm itself were skewed. I recall looking at the composite and average scores and remarking to my boss, “Our people and our firm are NOT this good.”
Mind you, JP Morgan had and still has some real strengths — but it also had some real weaknesses. Excessively bureaucratic would be a good start on the ‘weakness’ list.
I did try to grade myself and others in an honest and constructively critical fashion. Some of my reports would come to me after the fact inquiring about my assessments of them. They would often be concerned. I would respond that I had little interest in ‘gaming the system’ but I had every interest in making them a stronger and more productive employee. My being forthright and honest was “the means,” their improving and becoming more productive was “the ends.”
I raise this topic today because every individual and every organization needs a very healthy dose of constructive criticism. (more…)
Tags: a stronger America, criticism of Finra, critiquing FINRA, Financial Industry Regulatory Authority, FINRA, incest, integrity and honesty, Investment News Daily, John Busacca, JP Morgan year end review, JPM, Larry Doyle, Mary Schapiro, public service, Sense on Cents, Wall Street, Wall Street relationship with Washington, Washington, year end reviews
Posted in FINRA, General | 12 Comments »
Posted by Larry Doyle on September 20th, 2010 7:13 AM |
What can we believe? Can we believe the economic reports put forth by our government? Can we believe the quarterly reports put forth by our financial institutions? Can we believe the price action in our markets? While “the market is the market,” has our country ever experienced a period in which there is such a massive disconnect between the real economy and what Uncle Sam has generated?
I am often reminded of the fabulous hit movie, The Truman Show, when thinking of our current economy and markets. How much of our economy is based on reality and what is merely staged? Bloomberg’s Jonathan Weil once again distinguishes himself in providing an “economic and market reality check” of our ‘Uncle Sam’ economy circa 2010. Weil writes, Zombie Banks Have Us Right Where They Want Us:
Two years after the collapse of Lehman Brothers and what rightfully should have been the death of American International Group, U.S. capital markets face a crucial question.
How long will it take before we see some semblance of robust free-market capitalism return, where the value of an asset is based on what bona fide market participants will pay for it, the cost to borrow money is based on a company’s fundamental financial strength rather than its ability to access a government safety net, and corporations are free to fail no matter what their size? (more…)
Tags: AIG, aig bondholders, ally bank, american international group, americredit, Bloomberg's Jonathan Weil, Dodd-Frank Act, free market capitalism, Jim Carrey, Larry Doyle, lights camera action, michael carpenter, our economic reality, our economy is not real, Sense on Cents, The Truman Show, too big to fail, Wall Street, Weil Zombie Banks Have Us Right Where They Want Us, who is jonathan weil
Posted in General | 4 Comments »
Posted by Larry Doyle on August 19th, 2010 12:14 PM |
I spent yesterday afternoon in New York City meeting with a variety of people. Without violating any confidences, there were a number of common themes that came from all my conversations. The themes included:
1. The financial system remains very fragile.
2. The economy remains in very tough shape.
3. Trading volumes in both equity and fixed income markets remain depressed. Equity volumes from just this past May are down by over 30%. I have heard of summer doldrums, but these figures are a lot more than that.
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. (more…)
Tags: Economy, financial system fragile, lack of trust, tape bomb, trading volumes, Wall Street
Posted in General | 13 Comments »
Posted by Larry Doyle on July 16th, 2010 7:34 AM |
Who’s next?
We can debate all day long whether the settlement of SEC charges against Goldman Sachs for $550 million is fair or not. While that debate will occur all over Wall Street and throughout the world of global finance today, the question regarding the size of this settlement is not important in and of itself. I am not saying that $550 million is not a lot of money. Nor am I saying that Goldman may be getting off easy. The only question I have is, “Who’s next? ”
Are we to think that the Goldman Abacus-CDO transaction is the only ABS-backed CDO that employed improper marketing? Do not be so naive. In fact, if Goldman employed improper marketing in one deal, are we to believe they did not do the same in many others? Do you ever find just one mouse? (more…)
Tags: Abacus settlement, ABS-CDO market, ACA, American Capital Access, Anna Katherine Barnett-Hart honors thesis, Asset backed Alert, do you ever find just one mouse, Fabrice Tourre, Goldman Sachs, Goldman settlement with SEC, Goldman's settlement with SEC, is Goldman settlement with SEC fair, John Paulson, Mary Schapiro, Paulson, Robert Khuzami, SEC settlement with Goldman Sachs, size of ABS-CDO market, Wall Street, Wall Street CDO settlements, who's got next
Posted in General, Goldman Sachs, SEC | 8 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 | 2 Comments »
Posted by Larry Doyle on June 2nd, 2010 1:20 PM |
Has America lost the courage to aggressively address those who commit fraud? Is the American public even aware of the massive fraud perpetrated by those in our financial system which led to our current economic crisis? Are those in Washington willing to take a stand, risk their own skins, call out those engaged in fraud, even if some of the fraudsters occupy neighboring seats at nearby regulatory bodies?
Unless we find people in our government who are willing to make these calls, repeat them publicly in a long, loud fashion, and compel prosecutors to issue indictments, then I fear our union will pay a price and incur a cost that may be immeasurable.
Why so strong? Why so strident? (more…)
Tags: addressing fraud, AIG, Arlen Specter, Barack Obama, Ben Bernanke, bill thomas, Brooksley Born, caveat emptor, CDS, Charles Keating, Conspiracy of Fools, control frauds, Dick Cheney, economic theory, efficient market hypothesis r, Enron scandal, Fannie Mae, FCIC, Financial crisis inquiry commission, financial frauds, fraud in our economy, frauds, Freddie Mac, George Akerlof, George W. Bush, Goldman Sachs, Hank Paulson, heather murren, how to address fraud, IBG YBG, indict fraudsters, investigating fraud, James Stewart's Den of Thieves, Joe Biden, John K. Galbraith, John Paulson, Kurt Eichenwald, Levy Economics Institute, liar loans, Lloyd M. Bentsen Jr. chair in Government Business Relations, market discipline, Mary Schapiro, Nelson's Eye, neutron loans, ninja loans, Paul Romer, Peter Fisher, phil angelides, rational expectations, Representative Doggett, Robert Johnson, Savings and loan fraud, SEC, speculation, systemic fraud, Thomas Ferguson, Tim Geithner, University of Texas, Wall Street, Washington, William K. Black
Posted in General | 4 Comments »
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, regulation, Wall Street | 8 Comments »
Posted by Larry Doyle on April 23rd, 2010 9:08 AM |
Living life on the edge may be exhilarating and at times highly profitable, but in the process the risks can be enormous and the impact longstanding. So is the world of Goldman Sachs circa 2010.
Goldman’s pursuit of a highly proprietary business model since the late 1990s has now placed the firm squarely in the crosshairs as the master villain on Wall Street. The executives at Goldman may deem this view to be unfair, but they have nobody but themselves to blame. This blame goes far beyond current Goldman chief Lloyd Blankfein. The blame can be directed at former chiefs Jon Corzine and Hank Paulson, as well. (more…)
Tags: follow the money, Galleon insider trading scandal, Goldman Sachs, Goldman's prime brokerage business, Goldman's trading records, Hank Paulson, Lloyd Blankfein, Raj Rajaratnam, Rajat Gupta, Wall Street, Warren Buffett
Posted in General, Goldman Sachs | No 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 7th, 2010 9:03 AM |
Shut up!!!
Imagine being in a situation in which you knew you had to be quiet in order to advance your own personal career, rather than speaking up and blowing the whistle on irregularities and improprieties within your firm. This message is consistently relayed by many a whistleblower who has suffered from having tried to do the right thing. What is the result? Firms tout their virtuous values of integrity, respect, and excellence while effectively muzzling those who would blow the whistle on crimes and illegal practices.
I believe this reality is all too present in many, if not most, industries in our society today. There is absolutely no doubt it is present on Wall Street. (more…)
Tags: Barney Frank, code of silence, Darrell Issa, David Kotz, FINRA, paul Kanjorski, POGO, project on Government Oversight, SEC OIG report on whistleblowers, SEC whistleblower, SEC whistleblower program, Wall Street, Wall Street business as usual, Wall Street regulation, Wall Street sro, whistleblowers on wall street, whistles on Wall Street
Posted in FINRA, General, POGO, SEC | 8 Comments »
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