mgv11

A Solution for Wall Street Compensation

Carney underestimates the self serving nature of men/investment banking and has now succesfully dragged you down his path. As an accountant cfo we have to interpret rules and we base our decisions on some formal citation to cya ourselves. Bankers are no different, they have their own self interest in mind within some interpretation of the rules. Once the rules were relaxed they found the loopholes and then proceeded to be surprised by the implosion. They were within the law of the land that was enabling them to enrich themselves. If you take out commissions and bonus based on a commission structures they will look at their jobs differently than they do now. Will they be wrong again, certainly... will being wrong be as profitable for them, I would hope not. My hopes would be that caution would factor itself back into how they run their shops vs throwing caution to the wind.

What's Citi Doing to Pandit?

I just saw Pandit on CNBC at some roundtable, he looked more like the guy on the left. He also was saying all the right things..... for what that is worth anymore with execs.

'Nationalize Insolvent Banks': Buffett Didn't Get Roubini's Memo

A breath of fresh air, the damage is done to the banks, recovery is now the issue. So let me ask, why are we so gung ho to seperate these toxic assets from the banks to "the smart investors"? Because they have more value than ever before! I almost want to call it a conspiracy allowing the wealthy to get wealthier.

But back to the recovery of the banking system, what turns it around? the new investors? the new bankers? the ones who just bought the toxic assets? Seems inconsistent to me... it is simply a transfer of future wealth to the current rich from the common equity owners who were recently wiped out. By liquidating all the banks in trouble to those buyers who didn't get wiped out... and they will be using the toxic assets to make their money.... I'm sorry my money, Mr. Common Equity holder.

To Merideth Whitneys current point... credit card debt, really what she is saying is SELL it now before the disaster hits. I'm thinking the toxic asset investors don't want it yet. The time to sell it was 2 to 3 years ago.

The banks have dug themselves a hole, time will heal many of them, not all, we're seeing failures every friday. Right now, I'd rather see the common equity owners ( yes that means gov't too) who have taken a beating have a shot at riding the wave of the future as they recover vs transfering these assets to private investors who quite honestly probably don't need it... and does anyone know for sure they can help the economy? I'm thinking they've put on their protective clothing and waiting for the disaster to bottom, then they'll step in and help. I'll bet the current banks are more motivated than these investors. The ironic part is when stepping in at the botton you look like the saviour but in reality all they are is opportunist with better timing.

Just a thought

FAS 157: Blackstone and Its Banker Buddies Have It Wrong

I wonder how much of this FAS 157 valuation issue is being lead by what I can only observe as an overly cautious audit industry since Sarbanes - Oxley. It would appear no matter which way the pendulum swings there seems to be pain somewhere.