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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
Posts: 115
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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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HenryTo
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| Posted: Mon Nov 16, 2009 10:48 am Post subject: |
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Looks like the HF folks still don't quite get it (come on, purchasing those $5 calls with just 9 days until expiration?), but then if everyone is still doing it, it must be okay? The SEC certainly does not think so.
3Com Options Trades Before Hewlett Bid Said to Be Probed by SEC
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0LDGguBASUU&pos=4 |
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rffrydr
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| Posted: Sun Nov 15, 2009 9:57 am Post subject: |
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Progress finally being made towards linking debt to floundering banks in crises. Still "wait-and-see" attitude from FED and S&P while Lloyds et. al. pioneer the process.
The knock is that why would a rational investor forsake "equity-like" returns while retaining all the downside of equities. Returns on equities vs. bonds on almost any time frame for the last 30years should be reason enough for these "rationalists."
The position really amounts to the selling of a put. This could be very desirable for any "return-to-mean" investor and well as equity funds seeking to balance out their positions.
The real reason this is so hard has to do with 100yrs of legal precedent in property and bankruptcy. That CoCo's are not a direct challenge to bonds should assuage this concern.
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rffrydr
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| Posted: Tue Nov 10, 2009 11:21 pm Post subject: |
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Big business IS the enemy of capitalism. The goal is not growth. The goal is to grow to the right size. The right size is the size that excludes your competitors. An island....in extremis, japan.
At least that's the way it "used to" be. Going forward it seems "a" strong competitor is desired. Google would not be Google without microsoft. Detroit without Japan. Starbux without McDees.....WalMart without Amazon?
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