Pinkybrain

CIT: Lessons Learned

Yes, I'm sure that the Wells Fargos of the "government anoited" have been glad to take this business. Using taxpayer money and of course charging more for lending to these companies. After where is their downside, if they these borrowers survive Wells Fargo, et al will make greater profits to spread about the "bonus tree". If these companies don't survive, having to pay higher rates in a weak economy, well Wells can always go back to "mother" and get more taxpayer money. After all, they "CANNOT BE ALLOWED TO FAIL".
Don't you see something wrong with this and your analysis?


D

The Lehman Debacle

Where were all these "SMART" men, seasoned professionals, that could not foresee what was an obvious outcome with the Lehman failure. I realized it, didn't you?

The Importance of Accounting (SEC Does Something Useful!)

Below is exurpted from the SEC report Page 14, Note the last sentence in this paragraph.


From the sample of financial institutions studied in this section of the study, the Staff observed
that fair value measurements were used to measure a minority of the assets (45%) and liabilities
(15%) included in financial institutions’ balance sheets. The percentage of assets for which
changes in fair value affected income was significantly less (25%), reflecting the mark-to-market
requirements for trading and derivative investments. However, for those same financial
institutions, the Staff observed that fair value measurements did significantly affect financial
institutions’ reported income.

Why GE's Selling Its Appliance Division

Even large dinosaurs get eaten by more aggressive predators. Nature is very efficient and so should business.