ResourceWise's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/173589/comments http://seekingalpha.com/article/167745-hands-off-goldman-bonuses?source=feed#comment-723343 723343 Wed, 21 Oct 2009 09:44:08 -0400 http://seekingalpha.com/article/163244-citi-s-cities?source=feed#comment-689655 689655 Thu, 24 Sep 2009 13:57:23 -0400 http://seekingalpha.com/article/162841-outlandish-ceo-pay-how-to-fix-the-problem?source=feed#comment-687277 687277
1. Establish a clear link between pay and performance for all employees not just CEOs, where performance covers short term results as well as the actions taken to protect the longer term health of the franchise. Pay variable compensation i.e. bonuses based on net income not on revenues.
2. Risk rate revenues and treat the higher risk revenues to higher capital requirements.
3. Separate customer funds from bank funds (revive some form of the Glass Steagall Act, 1933).
4. Examine the social usefulness of activities that take place in the financial markets e.g. short selling, spread betting, high frequency trading, and tax arbitrage. Ban those activities that can cause harm to others.
5. Examine product structures that enable banks to profit from risk taking and pass on all risk to third parties (e.g. to customers, counter parties and tax payers). The cost of risk needs to be fully borne by the originator of the transaction and should not be passed on to other market participants without their specific agreement.
6. Bring all market participants (e.g. banks, hedge funds, private equity funds, insurance cos. etc) onto the same level playing field - with clearly marked boundaries, switch the lights on and let the games begin – in full sight of the regulators.
7. Simplify regulations, consolidate regulators and provide them with massive teeth.
8. Restrict gambling to clearly designated and regulated casinos – not the stock/bond/currency/co... markets.

It is clear to even a casual observer that many aspects of the current markets need substantial redesign. Let’s do that instead of demonising individuals who have just tried to take advantage of a crooked table with loaded dice.]]> Wed, 23 Sep 2009 08:58:16 -0400
1. Establish a clear link between pay and performance for all employees not just CEOs, where performance covers short term results as well as the actions taken to protect the longer term health of the franchise. Pay variable compensation i.e. bonuses based on net income not on revenues.
2. Risk rate revenues and treat the higher risk revenues to higher capital requirements.
3. Separate customer funds from bank funds (revive some form of the Glass Steagall Act, 1933).
4. Examine the social usefulness of activities that take place in the financial markets e.g. short selling, spread betting, high frequency trading, and tax arbitrage. Ban those activities that can cause harm to others.
5. Examine product structures that enable banks to profit from risk taking and pass on all risk to third parties (e.g. to customers, counter parties and tax payers). The cost of risk needs to be fully borne by the originator of the transaction and should not be passed on to other market participants without their specific agreement.
6. Bring all market participants (e.g. banks, hedge funds, private equity funds, insurance cos. etc) onto the same level playing field - with clearly marked boundaries, switch the lights on and let the games begin – in full sight of the regulators.
7. Simplify regulations, consolidate regulators and provide them with massive teeth.
8. Restrict gambling to clearly designated and regulated casinos – not the stock/bond/currency/co... markets.

It is clear to even a casual observer that many aspects of the current markets need substantial redesign. Let’s do that instead of demonising individuals who have just tried to take advantage of a crooked table with loaded dice.]]> http://seekingalpha.com/article/146611-unwinding-the-goldman-sachs-myth?source=feed#comment-571418 571418
We need to give careful thought as to the purpose such institutions serve and the price at which they serve that purpose. Currently these folk get paid as if they have solved the problem of world hunger and developed a pill to cure cancer - in a sinlge dose!]]> Thu, 02 Jul 2009 10:02:51 -0400
We need to give careful thought as to the purpose such institutions serve and the price at which they serve that purpose. Currently these folk get paid as if they have solved the problem of world hunger and developed a pill to cure cancer - in a sinlge dose!]]> http://seekingalpha.com/article/132016-citigroup-stock-drama-capitalist-conspiracy-or-profit-pursuit?source=feed#comment-471296 471296 Please provide your perspective. Thanks
]]> Tue, 21 Apr 2009 12:27:27 -0400 Please provide your perspective. Thanks
]]> http://seekingalpha.com/article/124290-the-good-and-bad-in-hedge-funds-today-a-manager-s-view?source=feed#comment-413920 413920
1. While hedge funds protect themselves from a ‘run’ by using gates - why do they simultaneously insist that short-selling i.e. selling shares that they do not own with the explicit purpose of driving down share price, is a good practice? Other than creating a ‘run’ on the victim’s shares and in the process making large sums of money for the hedge funds, short-selling seems to serve no useful economic purpose. Or does it? Moreover if hedge funds are such vociferous advocates of free markets why not allow investors to withdraw their money as and when they want it back?

2. Why charge a 2% fee irrespective of whether the investments make money or not? Hedge funds claim to make money in both rising and falling markets, in which case they should put their money where their mouth is and stick to the 20%-of-profits performance fee.

3. Experts seem to suggest that high-leverage by governments, banks and consumers have contributed to the severity of the financial crisis. What has been the contribution of hedge funds to this high-leverage?

Your response to these questions will certainly add to the general awareness of Main Street and the media. Thanks in advance!

]]> Thu, 05 Mar 2009 08:51:16 -0500
1. While hedge funds protect themselves from a ‘run’ by using gates - why do they simultaneously insist that short-selling i.e. selling shares that they do not own with the explicit purpose of driving down share price, is a good practice? Other than creating a ‘run’ on the victim’s shares and in the process making large sums of money for the hedge funds, short-selling seems to serve no useful economic purpose. Or does it? Moreover if hedge funds are such vociferous advocates of free markets why not allow investors to withdraw their money as and when they want it back?

2. Why charge a 2% fee irrespective of whether the investments make money or not? Hedge funds claim to make money in both rising and falling markets, in which case they should put their money where their mouth is and stick to the 20%-of-profits performance fee.

3. Experts seem to suggest that high-leverage by governments, banks and consumers have contributed to the severity of the financial crisis. What has been the contribution of hedge funds to this high-leverage?

Your response to these questions will certainly add to the general awareness of Main Street and the media. Thanks in advance!

]]> http://seekingalpha.com/article/124120-comparing-wall-street-compensation-to-the-nba?source=feed#comment-413707 413707 ROI) of these clubs. The negative impact of the toxic weapons of mass financial destruction created and unleashed by players in the financial markets covers the globe. I agree that Cuomo should not just chase Merrill's top dogs, but needs to widen his net to cover the top dogs in all those NY based financial institutions that have contributed to this global carnage. ]]> Thu, 05 Mar 2009 03:47:17 -0500 ROI) of these clubs. The negative impact of the toxic weapons of mass financial destruction created and unleashed by players in the financial markets covers the globe. I agree that Cuomo should not just chase Merrill's top dogs, but needs to widen his net to cover the top dogs in all those NY based financial institutions that have contributed to this global carnage. ]]> http://seekingalpha.com/article/124183-massive-cuts-required-to-restore-investment-bank-returns?source=feed#comment-413701 413701 Thu, 05 Mar 2009 03:32:51 -0500 http://seekingalpha.com/article/124194-a-scenario-for-a-u-s-and-global-recovery-part-2-banks?source=feed#comment-413696 413696 Thu, 05 Mar 2009 03:17:15 -0500 http://seekingalpha.com/article/123838-the-elimination-of-the-consequences-of-bad-behavior-continues?source=feed#comment-412384 412384
On the other hand if a bank recognizes the difficulty their customer is in – due to losing his job, and makes some adjustment to try and keep the mortgage going, that is just common business sense.
]]> Wed, 04 Mar 2009 08:42:36 -0500
On the other hand if a bank recognizes the difficulty their customer is in – due to losing his job, and makes some adjustment to try and keep the mortgage going, that is just common business sense.
]]> http://seekingalpha.com/article/123757-jim-rogers-it-s-better-to-let-financials-fail?source=feed#comment-410683 410683 ]]> Tue, 03 Mar 2009 07:39:47 -0500 ]]> http://seekingalpha.com/article/123425-citigroup-the-death-of-buy-and-hold-investing?source=feed#comment-408904 408904 Mon, 02 Mar 2009 05:55:58 -0500 http://seekingalpha.com/article/123465-nationalization-by-any-other-name?source=feed#comment-408894 408894 Mon, 02 Mar 2009 05:36:32 -0500 http://seekingalpha.com/article/122542-bank-nationalization-the-bigger-picture?source=feed#comment-404015 404015 Thu, 26 Feb 2009 03:23:16 -0500 http://seekingalpha.com/article/122023-bank-nationalization-it-s-no-panacea?source=feed#comment-399554 399554 Mon, 23 Feb 2009 05:35:46 -0500 http://seekingalpha.com/article/118965-more-on-pay-caps-and-populist-rage?source=feed#comment-378257 378257 Fri, 06 Feb 2009 10:25:09 -0500 http://seekingalpha.com/article/113297-citi-s-pandit-is-forgoing-his-bonus-was-there-an-alternative?source=feed#comment-347191 347191 Tue, 06 Jan 2009 07:18:04 -0500 http://seekingalpha.com/article/112284-who-owns-chrysler-s-headquarters?source=feed#comment-338590 338590 Fri, 26 Dec 2008 09:09:03 -0500 http://seekingalpha.com/article/111787-cramer-s-mad-money-return-to-the-forbidden-citi-12-19-08?source=feed#comment-335514 335514 Mon, 22 Dec 2008 08:24:50 -0500 http://seekingalpha.com/article/107760-why-citigroup-imploded?source=feed#comment-314486 314486 Traveler’s management wrested control and the resultant dysfunctional company stumbled repeatedly over the past ten years. Every time a major stumble occurred there was a wringing of hands, firing of the ‘culprits’ but no change in the culture – cabals continued to rule, crushing dissent and appointing people to roles for which most were visibly unqualified. In fact the main qualification was that you were ‘trusted’ by Sandy and his inner circle – nothing else seemed to matter.
The same culture still prevails – only some of the people in power have changed. It’s going to be a long haul back, provided the leadership actually make the effort to modernise management practices to represent the current century!
]]> Tue, 25 Nov 2008 08:55:53 -0500 Traveler’s management wrested control and the resultant dysfunctional company stumbled repeatedly over the past ten years. Every time a major stumble occurred there was a wringing of hands, firing of the ‘culprits’ but no change in the culture – cabals continued to rule, crushing dissent and appointing people to roles for which most were visibly unqualified. In fact the main qualification was that you were ‘trusted’ by Sandy and his inner circle – nothing else seemed to matter.
The same culture still prevails – only some of the people in power have changed. It’s going to be a long haul back, provided the leadership actually make the effort to modernise management practices to represent the current century!
]]> http://seekingalpha.com/article/106812-will-citigroup-regain-its-lost-luster?source=feed#comment-310601 310601 Thu, 20 Nov 2008 07:17:29 -0500 http://seekingalpha.com/article/100184-destruction-of-wealth?source=feed#comment-283820 283820 Thu, 16 Oct 2008 13:04:23 -0400 http://seekingalpha.com/article/98573-citigroup-should-walk-away-from-wachovia?source=feed#comment-274474 274474 Mon, 06 Oct 2008 05:43:34 -0400 http://seekingalpha.com/article/98575-how-much-will-a-wells-wachovia-deal-cost-taxpayers?source=feed#comment-274473 274473 Mon, 06 Oct 2008 05:41:40 -0400 http://seekingalpha.com/article/98562-batten-down-the-hatches-economic-forecast?source=feed#comment-274471 274471 Mon, 06 Oct 2008 05:17:14 -0400 http://seekingalpha.com/article/98491-credit-crisis-sharpens-anger-over-ceo-pay?source=feed#comment-274469 274469
A fresh regulatory framework that creates transparency for all players in the markets is an absolute necessity. Congress needs to invest some quality time in building a new integrated framework as well as creating an independent regulator that has authority over all market participants. They also need to coordinate regulatory efforts with rest of the world to minimize arbitrage.

Meanwhile as the system deleverages, we’ll just have to grit our teeth and keep our fingers crossed.

]]> Mon, 06 Oct 2008 04:58:03 -0400
A fresh regulatory framework that creates transparency for all players in the markets is an absolute necessity. Congress needs to invest some quality time in building a new integrated framework as well as creating an independent regulator that has authority over all market participants. They also need to coordinate regulatory efforts with rest of the world to minimize arbitrage.

Meanwhile as the system deleverages, we’ll just have to grit our teeth and keep our fingers crossed.

]]> http://seekingalpha.com/article/98479-citi-examines-its-carrots-and-sticks?source=feed#comment-273428 273428 Sat, 04 Oct 2008 11:32:37 -0400 http://seekingalpha.com/article/98271-the-u-s-shouldn-t-pay-ransom-to-wall-street?source=feed#comment-271701 271701 Thu, 02 Oct 2008 12:30:50 -0400 http://seekingalpha.com/article/98070-the-cost-of-putting-expedience-before-justice?source=feed#comment-271610 271610 Thu, 02 Oct 2008 11:43:04 -0400 http://seekingalpha.com/article/98178-fear-and-greed-premise-for-capitulation-and-overreaction?source=feed#comment-271416 271416 Thu, 02 Oct 2008 09:25:32 -0400