farmer448

Outlandish CEO Pay: How to Fix the Problem

First and foremost the companies directors and Chairman of the board should be held accountable for their fiduciary duty. If the SEC comes after a company, the board and c-level executives should be responsible for all fines. They were responsible and should be held accountable (Bank of America).
Right now directors are not held accountable for their actions.

Where's the Derivatives Exposure?

I am a bit confused. If a derivative is a form of hedge or insurance, then why is 80% of the insurance written by 5 banks? It would seem to me that this is a heavy concentration of risk that go against the basic business principals of risk.

Banks Try to Block Regulation, Saying It Will Hamper Innovation

Maybe it is time to disallow Corporations, Limited Liability Partnerships, Limited Liability Corporations any of the rights of citizens.

Credit Cards: Do the Banks Own the Senate?

Rhetorical questions are not appreciated in a debate

Friday Market Recap

Gee could it be Friday was also triple witching....

Sorkin's Questions to Bank CEOs, Answered

How do you restore the checks and balances a true board of directors should be.

Why should CEO's be paid based on stock price. They control some but not all of the stock price. The CEO's should be paid based on the elements they control such as ROE, ROI, ROA.

Nationalizing Bank Losses

So lets see if i have this right.

If we let the banks go bankrupt and let the legal system sort out the mess then the common and preferred stock holders will get wiped out, the debt holders will be converted to equity holders (including what ever CDO's). Of course this will take time and their will be chaos and rioting in the streets because the big national banks will be in the toilet while local/regional banks will survive.

if we nationalize the banks, the management, the common and preferred sotckholders get wiped out, Bank debt holder will probably be made whole through some equity and some new debt and US citizens will be on the hook for a 30-40% haircut. (I am assuming things will be as bad as the savings and loan crisis where I have read the US took 300 billion of bad debt and recovered 200 billion.
The far right will scream we are now a socialist nation with the government replacing management. (Of course we now know all to well how the current Boards of DIrectors and Management have done in maintaining a healthy finance system)

If we continue with TARP, the management stays, the stockholders (common and preferred) get a free lunch, the debt holders are assured that they will continue to be whole, the US citizen will take 100% of the haircut and the dirty commie liberals will call it all coporate welfare.

The only problem is the government is already screwed. In the past 8 years we have more that doubled thenational debt, appointed political hacks into jobs requiring macro-economic competence and sensitivity, have a legal system that no longer respects the rule of law and I can go on and on.

So where is the reboot button?

Thain's Bonus

Mr. Thain,

You have no style.

Wall Street Breakfast: Must-Know News

Citigroup and Wachovia the two ethical banks. So Wachovia made an agreement with Wells Fargo. No Problem, Managements in banks do not have to keep their word. Another reason to doubt the credibility of Wall Street and to realize, Agreements between Mnagements are just so much toilet paper.

The Hedge Fund of America, LP

How about Paulson, President Bush, Vice President Cheney, and every member of Congress voting for this put all but 2 million of their investments into this fund. I mean this is necessary and these guys were in charge so it is time for them to personally guarentee the deal.