phat cat

Wall Street Bankers: Rewarding Failure

There is another take on this. As most of these financial stocks have plummeted over 60%, some even more, there's a tax consequence to those who are granted stocks. Assume at a tax rate of 35%, if those bankers have not sold their company stocks, they are essentially paying all the bonuses to the IRS. For those unfortunate ones who's stocks drop below that threshold, they are in negative territory. So everyone should just relax as everything works out at the end.

Lehman CDS Datapoint of the Day

This is interesting, i just read another comment that Oct. 21 is the "armageddon date" where 100's billions of CDS is going to be physically settled and major funds/banks are going to fail. Shouldn't the government come out and clarify this? The CDS market is so opaque, a quick resolution to clear up the total liabilities and who're the major losers (I'd think these are the institutional investors like asset managers and hedge funds) and who are the winners.