Money and Finance
- Excerpt From M&t Bank Letter…
Some interesting thoughts and factoids from Robert Wilmers’ annual letter:Last year, a consumer beverage company — a user of aluminum — provided testimony to the Senate Committee on Banking, Financial Institutions and Consumer Protection about bottlenecks...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...
- Warren Stephens: How Big Banks Threaten Our Economy
As of this past January, any bank operating in the United States with more than $50 billion in assets must have the business equivalent of a living will—plans for what to do in the event of catastrophe. Every well-managed business should have contingencies...
- Buffett Awards Wall Street-sized Pay Praised By Dimon
Berkshire Hathaway Inc. (BRK/A) Chief Executive Officer Warren Buffett, who has said banker greed helped deepen the U.S. financial crisis, attracts the workers he wants with compensation that competes with Wall Street awards. Berkshire gave $17.4 million...
- Complexity Is The Perfect Moat.
Found via Claire Barnes. The most obvious features of recent political and financial "solutions" are their staggering complexity and their failure to fix what's broken. The first leads to the second. Consider the healthcare "reform," thousands of...
Money and Finance
JPMorgan’s Follies, for All to See
BE afraid.
That’s the takeaway for both investors and taxpayers in the 307-page Senate report detailing last year’s $6.2 billion trading fiasco at JPMorgan Chase. The financial system, thanks to dissembling traders and bumbling regulators, is at greater risk than you know.
After bailing out the nation’s banking system in 2008, taxpayers and investors have been assured that such a crisis will not happen again. The Dodd-Frank legislation was supposed to make our system safe from the kinds of reckless banking activities that brought the economy to its knees.
The Senate report disproves this premise with vigor.
Its pages of e-mails, testimony, telephone transcripts and analysis show that traders in the bank’s chief investment office hid money-losing derivatives positions, if only temporarily; that risk limits created by the bank to protect itself were exceeded routinely; that risk models were changed to minimize losses; that bank executives misled investors and the public; and that regulations are only as good as the regulators enforcing them.
- Excerpt From M&t Bank Letter…
Some interesting thoughts and factoids from Robert Wilmers’ annual letter:Last year, a consumer beverage company — a user of aluminum — provided testimony to the Senate Committee on Banking, Financial Institutions and Consumer Protection about bottlenecks...
- Clouds Seen In Regulators’ Crystal Ball For Banks
Five years ago, the financial regulators of the United States — and more broadly the world — didn’t see the storm coming. Would they if a new one were brewing now? The answer to that is far from clear. The regulators have more information now, and...
- Warren Stephens: How Big Banks Threaten Our Economy
As of this past January, any bank operating in the United States with more than $50 billion in assets must have the business equivalent of a living will—plans for what to do in the event of catastrophe. Every well-managed business should have contingencies...
- Buffett Awards Wall Street-sized Pay Praised By Dimon
Berkshire Hathaway Inc. (BRK/A) Chief Executive Officer Warren Buffett, who has said banker greed helped deepen the U.S. financial crisis, attracts the workers he wants with compensation that competes with Wall Street awards. Berkshire gave $17.4 million...
- Complexity Is The Perfect Moat.
Found via Claire Barnes. The most obvious features of recent political and financial "solutions" are their staggering complexity and their failure to fix what's broken. The first leads to the second. Consider the healthcare "reform," thousands of...