c smith

Volcker's Wake Up Call: Spread the Word

So how do you propose we resolve these "agency conflicts"? How about we require all the issuing banks (the securitizers) to keep every dollar of the low quality tranches of this stuff on their books, with a direct link to management's bonus pool. That is, when the dregs fail, management takes it right in the pocket. Then they might not write $trillions in garbage loans and stick the taxpayer with the bill.

> The central issues that drove the credit meltdown were derived from agency conflicts, and the improper incentives created by government involvement in subsidizing the overproduction of housing stock.

Wasted Lessons from AIG

amen to that one...get the basics right (peoples names, split values) if you want any credibility on the rest...


On Oct 16 06:23 PM y2k_free_radical wrote:

> I would think the author would also be aware that AIG's price quoted
> represents a recent 20:1 reverse split with the pre split price being
> around $2.00 after trading as low as $0.45 or so---DOC HARRY