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HomeChuck Schumer (D-NY), The Undertaker
Posted by Larry Doyle on April 23rd, 2010 11:22 AM |
Chuck Schumer (D-NY)
No single member of Congress has received more financial support from the financial services industry than Chuck Schumer (D-NY). As such, Schumer is catching a lot of heat from the industry these days for not properly defending its interest against pending financial reform legislation.
The simple fact is, though, both the industry and Schumer do not appreciate that America has already graded them as huge failures. Hell, if we listen to Schumer himself, we can not come up with any other determination than that he has failed his constituents in New York and the country as a whole. How so? (more…)
What Else Was Happening at Goldman Sachs?
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…)
Consumer Metrics Institute: ‘Double Dip’ Very Real
Posted by Larry Doyle on April 22nd, 2010 2:44 PM |
I have become a huge fan of Rick Davis of the Consumer Metrics Institute, the Colorado-based effort that tracks real-time consumer purchases to project future economic growth. Recall that during my March 28th conversation with Rick on No Quarter Radio’s Sense on Cents with Larry Doyle, Rick projected that 2nd quarter 2010 GDP would register a -1.5% (yes, that is a negative GDP for 2nd quarter 2010). You can read a recap of my interview with Rick here.
What does Rick see lately? Let’s navigate. Rick wrote yesterday:
Speaking of what we do, our Contraction Watch (see top chart below) continues to show a contraction event that has not yet formed a clear bottom. The contraction has, however, extended long enough that the likelihood of the dreaded ‘double dip’ has become very real. (more…)
President Obama, Address ‘The FINRA Fiasco’
Posted by Larry Doyle on April 22nd, 2010 7:36 AM |
President Obama is coming to Wall Street today to ‘talk tough’ and show America who’s the boss. If our President wants to truly gain any sort of credibility with the American public, he should immediately address the points I raised in a recent interview with Ilene from Phil’s Stock World.
Regular readers of Sense on Cents will be familiar with these topics. I have recently provided all of this information and more to the appropriate senior level people within the SEC. Will it be fully and properly addressed? America wants answers.
This interview is rather extensive, but let’s make sure President Obama knows some of the questions Americans really want answered. Mr. President, you have the bully pulpit. (more…)
Must See Testimony by William Black
Posted by Larry Doyle on April 21st, 2010 2:07 PM |
Yesterday, former bank regulator William Black provided riveting testimony before the House Financial Services Committee in which he unleashes on the many realities (failed regulation, fraudulent underwritings, etc) embedded in the Wall Street-Washington incestuous relationship. This video clip is a must see:
Treasury’s Housing Program: “Big Hat, No Cattle”
Posted by Larry Doyle on April 21st, 2010 12:04 PM |
High five to 12th Street Capital for pointing out the quarterly release of the Special Inspector General for the Troubled Asset Relief Program. While this report covers a wealth of topics, let’s zero in on the SIGTARP’s summation of the Treasury’s HAMP (Home Affordable Modification Program).
As our friends at 12th Street write:
Ultimately, the report goes on to focus on HAMP and I would say this sums it up best:
“In sum, until Treasury fulfills its commitment to provide a thoughtfully designed consistently administered, and fully transparent program, HAMP risks being remembered not for catalyzing a recovery from our current housing crisis, but rather for bold announcements, modest goals, and meager results.”
Goldman’s Animal House
Posted by Larry Doyle on April 21st, 2010 8:41 AM |
Trust. Would you know it if you saw it? Would you be able to distinguish real trust from the appearance of trust? Whom can you trust?
Wall Street is an industry in which trust is too often promoted, but too seldom practiced. When somebody would say to me “Trust me on this,” I would get increasingly concerned. Why? Real trust is a virtue which goes without saying.
On this note, Wall Street’s favorite punching bag Goldman Sachs is dealing with the most egregious violation of fiduciary responsibility: a violation of trust. Even if Goldman is cleared of the fraud charges brought by the SEC, Goldman is already guilty of a greater charge, that is, a violation of trust in being fully forthcoming in its disclosures. (more…)
My Take on Why the SEC Did Not Pursue Allen Stanford
Posted by Larry Doyle on April 20th, 2010 4:19 PM |
Why did the SEC charge Goldman Sachs with fraud last Friday and not another day? Little doubt the SEC was trying to deflect attention from the scathing review of the SEC in its Investigation of Stanford Financial debacle. How bad is it? Well, let’s review a letter embedded in the SEC OIG’s review of the Stanford Alleged Ponzi Scheme,
Below please find a referral from NASD concerning Stanford Financial Group
Id. at 1. The letter stated: (more…)
Great American Ed Morrow Lashes Out at Mary Schapiro
Posted by Larry Doyle on April 20th, 2010 1:10 PM |
Edwin P. Morrow, Chairman & CEO of IARFC
I am heartened when great Americans across our country are willing to stand up and lash out at those involved in the Wall Street-Washington incest. I crossed paths with just such an American this morning in Ed Morrow, the chairman and CEO of the International Association of Registered Financial Consultants, a non-profit educational society for the financial planning industry.
Ed wrote to his representaitve John Boehner (R-OH) on financial regulatory topics which he feels are vitally important to his members. I thank Ed for his courage to speak his mind and his willingness to let me run his letter here at Sense on Cents. Thank you to our great American Ed Morrow for writing the following: (more…)
