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Tag Archives: prop trading

Extend and pretend round II

Ross Levine and Glenn Loury of Brown University argue that the 2007-2009 financial crisis is repeat of the S&L crisis  “extend and pretend” treatment of bank solvency. Expect this to become a meme soon… cause it’s true… And another important critique of extend and pretend at ZeroHedge… a comparison to the Latin debt crisis and […]

Unraveling the profit puzzle at Goldman Sachs I

From PBS’s Lehrer show… ” As part of his continuing series of reports making sense of business and the economy, Paul Solman examines the inner workings of investment powerhouse Goldman Sachs and how it makes money.”

Drive the algos overseas…

The Chicago Fed has published a short paper on high frequency trading… makes you wonder how much economic activity this trading represents for the Chicago area… The fundamental issues around high frequency trading are systemic risk and investor fairness. Unfortunately this paper doesn’t address either one of those issues… From the conclusion of the paper “Controlling risk […]

Derisking the banking system

Senate hearing on prop trading – Feb 2, 2010 Source: PROHIBITING CERTAIN HIGH-RISK INVESTMENT ACTIVITIES BY BANKS AND BANK HOLDING COMPANIES Senate Banking Committee Hearing: Tuesday, February 2, 2010 , 02:30 PM 538 Dirksen Senate Office Building The witness will be: The Honorable Paul Volcker, Chairman of the President’s Economic Recovery Advisory Board. Honorable Neal […]

If we focus our banks on small enterprises that will make our economy more dynamic