k9s-4-k8

AIG Bonuses Are Just the Tip of the Iceberg

The Dems call to return the money is a sham. Not that they might not attempt to get it back but that they weren't behind the bonuses going forward in the first place.
When the original stimulus bill was being drafted Senators Snow (R) and Wyden (D) proposed an amendment that would have blocked just this type of bonus payout. Chris Dodd (D) the chairman of the Senate finance committee together with backing of the Obama administration dropped it from the stimulus bill. Now its been revealed that Congress and the administration knew for more than a month that AIG was going to do this bonus plan. Within the last month the treasury sent another 30 billion to AIG. The outrage from Dems is ridiculous! They knew about this all along and in fact dropped legislation that would have made these bonuses impossible to do. Now they're outraged and protesting to Libby?

Goldman and Morgan Stanley: Banks of Choice - Barron's

Can't help but note the sell off on MS and GS the first trading day after Barrons' report. Maybe a little buy on the rumor, sell on the news? Always makes me wonder if some financial writers hold a story till some institution gives them the go ahead to publish so that they can sell into the story. But maybe I'm being too conspiracy minded. Its hard in a bear market.

The AIG Bailout: Why Was the Onus Placed on Taxpayers?

It looks pretty unlikely that under the best of circumstances, we will only not owe quite as much as we do now on AIG loans. AIG has businesses to sell, and some with actual tangible assets, but a lot of others hold a great portion of their value in intangibles that are dissolving before our eyes. Consider the CEO's argument for paying out bonuses to those same executives that over-exposed AIG in the CDS market? There isn't much fear that Goldman is going to be calling on those guys. How attractive does AIG derivatives trading department look on their resume anyway. These guys will be following the tried and true career path of so many others that fail in business. They'll teach. Who is really going to want to buy this talent, or this business?

TARP Accountability: Bankers Say 'What, Me Sorry?'

I forgot to add the Federal Reserve to my list of who to blame.

TARP Accountability: Bankers Say 'What, Me Sorry?'

I believe there is blame to go around from the bankers, to mortgage companies, to rating agencies, to Fannie and Freddie, to the Clinton Administration, to the Congress, to home buyers, to European banking, to Bush, to the SEC.
Today, we have one guilty party asking another guilty party to confess up. Being that Congress specifically will use any statement as fodder to support their own denial of any responsibility, why should bankers help Congress mislead?

Why Capping Pay Is Likely to Work

I think we should learn from the Obama admin and push for milestones for Congress to cut wasteful spending, and achieve a balanced budget by some time in the future or face a 50% cut in Congressional pay. They get paid $174,000 a year both Congress and the Senate with leaders receiving a bit more. They get automatic cost of living increases and the best medical/dental/ retirement plan available for a short stint in national politics. They built the embedded moral hazard into the mortgage market that was the foundation to this financial crisis, and yet they get off scot-free as all blame goes to everyone else, who btw are also guilty.