Certain networks just attract conspiracy theorists and the theories that these theorists theoretically theorize with the same level of surreal magnetism that acts between big oil and Maxine Waters. That’s not to say, for instance, that Goldman Sachs isn’t totally responsible for spiking oil prices up to nearly $150 a barrel, unleashing law enforcement on Governor Spitzer at a particularly (in)opportune time, sinking Bear Stearns in retribution for that firm’s failure to pitch in to rescue LTCM, and arranging to demoralize Tim “The Safecracker” Geithner and Ben “The Beard” Bernanke by getting them to wear the same tie while attending recent Congressional hearings,* just that smoke and fire may or may not be totally related.
Goldman, at least, appears mostly to have an appearance of quiet (and loud) competence. It is not all that intellectually pressing to imagine Goldman at the center of a plan to irradiate a bunch of gold (see what we did there?) and thereby reduce available supply to spike the price and boost the value of the long positions it may or may not hold in the metal (“Gold-man Sachs-en-fin-ger” even sounds cool when Karaoked loudly to the theme song). But, it seems to us, that this sort of thing begins to collapse in on itself when AIG becomes the supposed criminal mastermind organization at the center of a plot complex enough to involve more than three laptop computers with disparate versions of Windows. So, when we see posts like the one Zero Hedge penned this weekend (“AIG Was Responsible For The Banks’ January & February Profitability”) you can color us skeptical- at least of the conspiracy laden parts. (Not that we do or do not love Zero Hedge, but still). We have no doubt that AIG poured an Imperial Asston of cash into a series of counter-parties in January and February. What, exactly, is mysterious about this?
Archive for March 2009
Study Has Banks Admitting Pay Structure Was A Contributing Factor (WSJ)
“Banks almost unanimously agree that their compensation packages contributed to the global financial crisis but still are struggling to correct some of the flaws in their pay structures, according to a survey of financial institutions due for publication Monday.
The survey, conducted by U.K. management consultancy Oliver Wyman, was commissioned by the Institute of International Finance, a global association of banks and other financial companies based in Washington, D.C. It found 98% of responding banks “believe the compensation structures were a factor underlying the crisis.”"
Thoughts On Ratigan Leaving (MarketWatch)
People think Dylan Ratigan is the Che Guevara of business news.
Geithner Says Some Banks Need ‘Large Amounts’ Of Assistance (Bloomberg)
The article has a couple of strong points, most notably that there’s an open admission that if this plan changes (or there’s a hint at change, or someone looks at it wrong) it’s going to fuck any chance of success.
“”We still don’t have the transparency and oversight,” McCain said on “Meet the Press.” He said his biggest concern is that the cost of stemming the financial crisis will worsen annual deficits projected to exceed $1 trillion for many years.
“What I am most worried about is laying the debt on future generations of Americans,” he said.”
Blackstone Tells SEC To Get Bent (Bloomberg)
The SEC asked both Fortress and Blackstone to disclose their performance in their financial reports; Fortress agreed, Blackstone declined. You have to wonder what the long term agenda is going to be for the reporting agencies: there’s going to be a marked change to the regulatory landscape, of that we’re certain – but where and how the power fall have yet to be seen.
“In the prospectus for its initial public offering, Blackstone said it intends to be a “different kind of public company” whose managers take a long-term perspective. The firm won’t provide earnings forecasts because the performance of its businesses may vary in “significant and unexpected ways” from quarter to quarter, according to the filing.”
China Looks For Global Currency (Reuters)
This is fun:
“Beijing’s ultimate goal is to replace the globally dominant dollar with a beefed-up Special Drawing Right, the International Monetary Fund’s in-house unit of account, which would become a “super-sovereign reserve currency.”
[...]
However, with 5,000 years of history behind it, Beijing is ready for a long game. Zhou knew his trial balloon would immediately be shot down, save for backing from Russia. Hence his acknowledgement that creating a new international monetary order would require “extraordinary political vision and courage”.
Translation: Beijing realizes that a currency does not lose its global domination overnight. Even after the United States overtook Britain in economic size in the late 19th century, it took two world wars that drained Britain’s Treasury and its military might before the dollar supplanted sterling. The American grandmaster will not surrender his title lightly.”
Mr. Wagoner has been CEO since 2000 and has managed the company through some of its most difficult moments. Over the last four years, GM has reported losses of $82 billion and nearly ran out of money at the end of 2008 before the U.S. Treasury Department provided emergency loans.
GM’s Wagoner Will Step Down [The Wall Street Journal]
Attention all D-Rat fans. If you thought you’d get once last chance to watch the Fast Money ringmaster at work before he sails off into the sunset of–finger crossed– late night television, think again!
In what was a mutual decision, [CNBC's Brian] Steel tells TVNewser, “Dylan has told us he is leaving effective today….Due to the serious economic times in which we live, we made a decision that it would be a distraction for Dylan to host ‘Fast Money’ today.”
Melissa Lee is expected to fill in on “Fast Money” for the time being.
Ratigan Update: Off Air [mediabistro]
Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following the takeover of Merrill Lynch & Co., people familiar with the proposal said.
Bank of America, which has received $45 billion of taxpayers’ money, may raise the annual base pay for some managing directors to about $300,000 from $180,000, said the people, who declined to be identified because the final numbers are still under discussion. Salaries for less-senior directors would climb to about $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, the people said.
Bank of America May Raise Investment Bankers’ Salaries by 70% [Bloomberg]
Ok, let’s take a little breather.
The Obama Portfolio (Since Inception): +15.49%
Earlier: The Obama Portfolio
We aren’t laughing with you, Max, we are laughing at you.
“So any country looks at those examples and they say, ‘You know if we get out of the U.S. dollar, does this mean that U.S. Marines are going to show up in our backdoor and start to cause mischief?’” Keiser said. “That’s a legitimate concern these countries have.”
BBC Host and HuffPo Blogger Warns of U.S. Military Action if China Pushes for Global Currency [Business and Media Institute]
“How Do You Spell It? Well, It’s An Acronym. ‘S’ As In Sam, ‘M’ As In ‘Man,’ ‘D’ As In Dog. Know What It Stand For?”
By Bess Levin
The CEOs arrived today at the White House alone and escorted by other company executives; some were quickly ushered in through the security gate by Bartlett, while others were forced to go through the usual routine for visitors. Dimon was asked to repeat his name twice and spell it once. He said he was there for a meeting with the president.
Bank CEOs Tell Obama They Are Working Toward Recovery [Bloomberg]
Got some time on your hands? Mail call:
Just saw Michael Moore in front of the Brown Brother’s building on Broadway in lower Manhattan. He’s conducting street interviews, presumably for the new big bad Wall Street movie. The guy he was interviewing looked like Joe the Plumber, I’m guessing that he’s getting a “working man’s” take on things.
We maintain D-Rat would be open to hosting a lifestyle show for bros, but apparently the (soon to be) former Fast Money ringermaster is considering a number of big dreams.
Insiders tell TVNewser the Page Six item is “overblown.” “It’s less about Krakower and more about him,” says the source. “He wants to be the next Letterman.”
And Ratigan has made no secret of that. “My dream job is late-night TV,” Ratigan told Marketwatch.com’s Jon Friedman in 2007. That summer, Ratigan also hosted a game show for CNBC.
Dylan Ratigan Departing CNBC [TVNewser]
If Ken Lewis’s li’l slip of the tongue with Erin Burnett is any indication, not so good! As you’re aware, Ken Lewis sent an email blast out a couple weeks ago letting everyone know that Bank of Amerillwide was profitable for January and February (not mentioning anything like writedowns or shizzle like that). Just now when asked by Burns how the firm’s been doing of late, K to the L said trading wasn’t “as good” in March, then paused when EB wondered if they were still profitable, said some stuff about deposit flows, got flustered, and was all, “uhh, we’re too far into the quarter to discuss, gotta go, k bye!”
