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Tag Archives: Goldman Sachs

Larry Summers and derivatives

A lot of threads related to our financial crisis come together in the form of Larry Summers and derivatives. Actions taken out of a fear of global instability and ignorance of the potency of leveraged bets using derivatives weave through this story. It’s a long list of damage caused by Wall Street banks and derivatives […]

“In cases like this, the outcome is always along the lines of 50, 60 or 70 cents on the dollar”

~ We still don’t know why the Federal Reserve paid 100 cents on the dollar to the counterparties of AIG… the mystery is another mark against the “too big to fail” banks and their closely woven interconnection with the Federal Reserve … Bloomberg reminds us of a comparable closeout of a swaps transaction around the same time […]

Proof of Trillin’s thesis

~~ OMG… Bird and Fortune prove Trillian’s thesis… and a few commonly held beliefs… (HT ZeroHedge) Link to Bird and Fortune video at the Financial Times…

Goldman’s kabuki dance and the Tobin tax

How is it that the “smartest guys in the room” are out trumpeting that “inequality helps everyone“? Bloomberg reports that: ~~~ “A Goldman Sachs International adviser defended compensation in the finance industry as his company plans a near-record year for pay, saying the spending will help boost the economy. “We have to tolerate the inequality […]

Enforcing securities laws

Bloomberg has reported: ~~~~ “The U.S. Securities and Exchange Commission hired Adam Storch, a 29-year-old former employee in Goldman Sachs Group Inc.’s business intelligence unit, as the enforcement division’s first chief operating officer, according to people familiar with the decision. The COO, who started Oct. 13, has “a great deal of background” in technology and managing processes […]

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]

You go Ms. Evans…

The heart of sucessful democracy is informed and active citizens… they are the jewels of freedom… I love this post in the Nashville Scene blog… ~~~~Councilwoman Emily Evans Accused of Being Uppity Showoff By Caleb Hannan in 40 Jealous Whores,Hannan, Politics Belle Meade Councilwoman Emily Evans gets the royal treatment in Sunday’sTennessean. In the article, Michael Cass explores […]

ra ra ra rating shopping

Everyone has missed the main point of the problem of the Federal Reserve mandating the use of ratings from Moody’s, S&P and Fitch for the TALF program … the problem is rating shopping… Which means that issuers of the securities that the Federal Reserve is buying have shopped around for the best ratings… selectively disclosed […]

Le le le leverage

Analysis and discussion with Brad Hintz ,Analyst of Sanford C Bernstein talking about financials. He talks about leverage levels at Goldman Sachs and Morgan Stanley running around 13 times versus the 30-40 times levered pre commercial bank mutation…. Mr. Hintz previously served as the CFO of Lehman Brothers so I’m always very interested in his […]

Open Yucca Mountain

Analysis and report by Mark Pittman of Bloomberg News regarding another $1 trillion writedown for banks. (Bloomberg News) (Running time 4:00 minutes)/// Writedowns and asset sales…. how will these assets be purchased? Will it be an open and transparent process or a “rigged game”? From FT.com ~~~~ “US banks that have received government aid, including Citigroup, Goldman […]