I’m planning to write about the new Senate draft of legislation but I wanted to bring up the general lack of discussion in the Congress about the findings of the Lehman Examiner.
The failure of Lehman represented the largest corporate failure ever (over $600 billion dollars), triggered a global financial meltdown and was exactly the [...]
More on Lehman, AIG and repo from Riski…
I did want to point out that the Lehman Examiner (Jenner and Block) cost the estate $38 million dollars for their work… in contrast the Financial Crisis Inquiry Commission, which is tasked to examine the entire financial meltdown, has a budget of $8 million…. it is really shameful how [...]
Tuesday, October 27, 2009
An excellent opinion piece by John Kay, an economist, in the Financial Times … he begins by naming the litany of institutions that were brought down in the “Credit Crisis of 2007-2009″…
He then describes the difficulty of regulating large, complex institutions with these words… “The variety of institutions is matched by the variety of regulators. [...]
Thursday, October 22, 2009
~~ 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…
Friday, September 18, 2009
The SEC approved additional rules for credit rating agencies yesterday.
This follows on numerous rulemakings over the past several years…
Kudos to the Commission and staff for their effort to shape rules for this space.
Credit rating agencies lie at the nexus of credit markets. Their “opinions” determine pricing and credit availability for all rated entities.
Central to the credit [...]
This is a repost from Shopyield, August 24, 2008 at the time of last year’s Jackson Hole conclave… here is Chairman Bernanke’s speech from the event this year …
~~ “None of them knew the color of the sky. Their eyes glanced level, and were fastened upon the waves that swept toward them. These waves were [...]
I attended the House Committee on Financial Services Capital Markets Subcommittee hearing today… the topic was the oversight of derivatives… lots of discussion about the failure of AIG and what happened there too…
It is more clear to me than before that legislators need systems to share information to effectively legislate regulation for financial markets … yes tools [...]
Filed in Creativity, Launching..., Open engines, Regulatory, Trading, Transparency
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Also tagged AIG, Bear, CDS, Congress, derivatives, JP Morgan
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The aftermath of the Credit Panic of 2007-2009 includes the destruction of large swaths of the global financial system.
Good riddance to excessive leverage, the structured finance market and the shadow banking system… you brought us nothing and left us with an expensive pile of too-big-too-fail wreckage…
A war to establish the contours of the financial system [...]
Filed in Open engines, Regulatory, Restructuring, Transparency
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Also tagged AIG, bailout, Bear, CDS, CFTC, Citi, Congress, Federal Reserve, OTC, SEC
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Wednesday, April 29, 2009
~~~~”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 its Form [...]
Filed in Launching..., Open engines, Regulatory, Restructuring, Transparency
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Also tagged ABS, Bear, BofA, CDO, Citi, Congress, dealers, Fitch, Goldman Sachs, JP Morgan, MBS, Merrill, Moodys, Morgan Stanley, NRSRO, ratings, S&P, SEC
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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 information [...]
Filed in Liquidity, Open engines, Recession busters..., Regulatory, Restructuring, Transparency
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Also tagged AIG, Bear, Federal Reserve, Fitch, Goldman Sachs, Moodys, Morgan Stanley, NRSRO, ratings, S&P, SEC
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