There is a New York Times article – no, post mortem, on Citibank that is symptomatic for what has been going on on Wall Street for the past 5 -10 years and underlies the deepness of the malaise that afflicts the US Financial System. Here is an excerpt: “Today, Citigroup, once the nation€™s largest and […]
Greedy Guts Bring Down Citibank …. Read More »
Up until recently, the Financial Community has been spurning participating in a solution to the financial problems plaguing capital markets due to the leverage, derivative and sub-prime fiascoes. But now the Adminsitartion is supposedly reading the riot act to the big banks and financial houses regarding the fall of Lehman Brothers. See here. Now, this
Greedy Guts vs Moral Hazard Read More »
Success Breeds Failure is the title of Paul Krugman column in the NYTimes. It is chillingly accurate. Forces are marshalling against any Wall Street Reform after the mortgage and investment banking crisis of this past year which a)had the Fed rescuing again investment bankers, hedge funders and private equity firms who say to the companies
Greedy Guts US – More Fallout Read More »
The depth of the injury that Wall Street Greed has done to the US Economy is stunning. But now it is being made worse by the major financial institutions working for their own ends primarily at the risk of the whole economy. Yet the cost to taxpayers through their Moral Hazard Insurance Agents(think US Treasury
As proof that the notions that Private Equity, Hedge Funds and the Investment Banks are out of fiduciary trust limits and without control I will offer various articles by respected journals. Here are some sources: Business Week – huge debt levels smack against the Wall of Debt calls Barrons – December 24, 2007 Cover Story
Greedy Guts US: Readings Read More »
All through the debacle on Wall Street, the issue of Moral Hazard has been lingering. Moral Hazard says that people with insurance may take greater risks than those without such insurance. In the current stock market, hedge fund and other investment bankers have been dealing with very high risk transactions and extremely high leverage –
Greedy Guts Us : Moral Hazard Read More »
Our continuing series on the credit crunch gripping US financial markets in which key Financial Players in the mortgage and security creation and evaluation businesses (think Moody’s and Standard and Poors in the latter case) did an Eliot Spitzer – failed to deliver on the fiduciary trust and monetary integrity for which they are paid
Greedy Guts Itself has had widespread consequences – collateral damage that was either not anticipated or, more likely, simply ignored by the round-up of Usual Suspects like an Anthony Mozilo, the Quants and every Big US Bank and its CEO that has foreign Sovereign Funds as new large shareholders. This section will track the spread
Greedy Guts Itself: The Fallout Update Read More »
In my Greedy Guts Itself series of articles here I have been arguing that today’s quant driven derivative instruments (poorly understood and very hard to measure) plus the automatic computer-driven trading systems are one of the major factors (but not the only ones) driving the current sub-prime fiasco and the general malaise in the financial
Derivative Caution: Greedy Guts Not Alone Read More »
Well Greed Guts are now into round 4 of the debacle – the Tag Team Match known as the Blame Game: See You in Court. It will not be pretty if the New York Times and/or The Economist are right on Denmark . Take a 5th of your favorite hooch if you are a spectator
Greedy Guts Itself: The Tag Team Match Read More »
