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HenryTo
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rffrydr
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 Posted: Tue Jan 26, 2010 11:21 am Post subject: |
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Does this chart mean what the makers think it means?
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HenryTo
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| Posted: Thu Jan 21, 2010 1:22 pm Post subject: |
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It seems like Obama is indirectly reinstating Glass-Steagall without explicitly pushing legislation for it. It's probably the best the banks could hope for under the current political environment, however.
The hedge funds will love it. While it will drive liquidity lower in the short-run, investment banks scaling back their trading/principal investing operations will no doubt result in more inefficiencies and for the hedge funds to step in and capture those inefficiencies and illiquidity premiums. |
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rffrydr
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| Posted: Thu Jan 21, 2010 10:46 am Post subject: |
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"If these guys want a fight, a fight we will give them" Obama today
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rffrydr
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| Posted: Thu Jan 21, 2010 7:08 am Post subject: |
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Like the bank "tax" hopefully the loophole will be built in, otherwise file under "Capital vs. Labor."
Otherwise who's gonna want hold equity in these things? 
We'll have to see how Goldman handles the other side
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HenryTo
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| Posted: Thu Jan 21, 2010 5:32 am Post subject: |
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No reinstatement of Glass Steagall just yet, but this is a good start:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aE_FU.hDsiao
| Quote: | President Barack Obama will offer proposals to limit financial institutions’ size and trading activities as a way to reduce risk-taking, an administration official said.
Obama will announce the rules today after meeting with former Federal Reserve Chairman Paul Volcker at the White House. The proposals will be part of an overhaul of regulations and will specifically address firms’ proprietary trading, the official said yesterday on the condition of anonymity.
Obama is renewing his focus on economic issues in an effort to tap into voter anger about the struggling economy, taxpayer bailouts and growing bank profits at a time of 10 percent unemployment and a federal deficit that rose to $1.4 trillion last year. |
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rffrydr
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Ven
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Joined: 30 Dec 2009
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| Posted: Fri Jan 15, 2010 1:33 pm Post subject: |
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The problem with the bonuses is NOT just PR.
Imagine this story. Banker burns down the whole neighborhood. He borrows money from everyone in the neighborhood. Uses his insider connection in the market, the Fed, to make a profit on the capital (and the profit comes from an indirect tax on the rest of the neighborhood). He uses his profit to rebuild his house. He pays back the rest.
Now, the banker says "what do you want? I payed back the money."
His house is rebuilt.
Everyone else's house is still burned to the ground. He did it.
See where this might be a problem? |
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rffrydr
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rffrydr
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| Posted: Fri Jan 15, 2010 8:32 am Post subject: |
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From JPM:
| Quote: | | ....During 2009 alone we offered approximately 600,000 new trial loan modifications to struggling homeowners. Of these, 89,000 loans have achieved permanent modification. By March 31, 2010, we will have opened 51 Chase Homeownership Centers across the country, and we already have more than 14,000 employees dedicated to mortgage loss mitigation.”.... |
Okay....better late than never.
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rffrydr
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rffrydr
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| Posted: Sun Jan 10, 2010 10:36 am Post subject: |
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British banks making up the bonus tax--thus taxing the investors. I own some of those "preferreds" and I'm xxx. When are these guys gonna get it. The bonus tax wasn't about the money it was about the "bonus." Bonus and failure do not mix either in dictionaries or popular opinion. The People want contrition and they get connivance.
Toxic asset bonuses is the way to square that circle. With a a share in the FED's Maiden Lane holdings at Christmas, for example, who needs money? Hell, they could even have called it public service and leveraged it into a new home loan 
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rffrydr
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rffrydr
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| Posted: Tue Dec 15, 2009 4:47 pm Post subject: |
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Again, it's the fundamental weakness of capitalism, time. Time cuts through most of the reforms we've seen from increased capital to pre-emptive bankruptcy plans. And it's abuse runs deeper than anything we can expect to see from the "authorities."
http://www.ft.com/cms/s/0/4fd97d0a-e84f-11de-8a02-00144feab49a.html
| Quote: | How to fix all this? The accounting issue apart, there is in the end only one solution, in two forms.
First, the institutions need to decide who they can trust with their money, and give them long-term contracts accordingly. The agreement would specify fund managers' targets over perhaps five years, and the penalties for failure.
Second, there should ideally be a corresponding shift to the model of private equity rather than hedge funds. That is, investors should commit their money for a fixed term and abide by the consequences. In return for that risk, they should of course be charged much lower fees. |
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rffrydr
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