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.
Sorkin's Questions to Bank CEOs, Answered [View article]
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.
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.
The only problem with this is the value of money is based on the public confidence. So are we going back to 1800s where each bank had their own currency.
How Big Is Too Big for Banks? [View article]
Was the AIG Bailout a Goldman Bailout by Proxy? [View article]
I don't know how much the international issues played in the discussions of the bailout. The bailout of AIG did effect London and the EC.
Where's the Derivatives Exposure? [View article]
Banks Try to Block Regulation, Saying It Will Hamper Innovation [View article]
Sorkin's Questions to Bank CEOs, Answered [View article]
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.
The Hedge Fund of America, LP [View article]
Making Sense of the Brokerage Bust [View article]
The Problem with Hedge Funds [View article]
Same thing for commodities, is it supposed to minimize risk or be a crap shoot.
So I will start listening when Wall Street Leaders Step Up and do whats right.