Maria Bartiromo: Tim Geithner apparently flagged the problem 5 years ago. Why didn’t he do more about this? He basically called the Bank of England and said he was worried about the approach in terms of Libor, that they needed to change it. Did he do enough?
Eliot Spitzer: Look I think it would be preemptory to say one way or the other. This is something that needs an awful lot of examination. I think the fact that he knew in ’07, sent a memo in ’08 is only the first layer of inquiry. Did he follow up on it? Libor, as everyone who watches CNBC knows, is the heart and soul, it is the blood stream of the financial system. If anyone is rigging it or playing games with it then you must follow up. Anybody who is in the regulatory position that Tim Geithner was in, in my view the most important bank regulatory position in the world, how do you not follow up and say wait a minute guys what have you done? So it’s unclear, and I hate to use this metaphor perhaps, but was this the sort of memo that was being sent at Penn State where you just kind of brush it aside or was it really an effort to do something?
MB: Oh god.
ES: This bears an awful lot of inquiry. Because it goes to the very real question of whether the NY Fed did not fulfill its fundamental function to ensure the soundest [and] security of the balance sheets of the banks all the way through the period leading up to the crisis. Is this one piece of evidence that runs contrary to that or one piece of evidence that supports it? We don’t know yet.
MB: What a comparison.
ES: Well let me tell you Maria, unfortunately when you see memos at the top being written like that, you never know, you have to ask the question, what preceded it, what came after it, otherwise you don’t understand the texture of what was being done by that senior person. Read more »
Mike McQueary, the embattled eyewitness who testified he saw Jerry Sandusky with a young boy in a locker-room shower in 2002, has put his State College house up for sale. Kissinger, Bigatel and Brower Realtors are handling any potential transaction with the house, valued at $575,000 [SC]
As some of you may recall, back in June we informally crowned Raj Rajaratnam’s attorney John Dowd lawyer of the year. Dowd responded to what he deemed an unfair article in the Wall Street Journal by telling the reporter “This is the worst piece of whoring journalism I have read in a long time,” asking “How long are you going to suck [U.S. Attorney for the Southern District of New York] Preet’s teat?” and concluding thusly “Preet is scared shitless he is going to lose this case so he feeds his whores at the WSJ. What a disgrace for an otherwise great paper.” He told CNBC “Get the fuck out of here. That’s what I’ve got for CNBC” when asked if he wanted to give a comment. And on the steps of the courthouse, he declared the Raj guilty verdict a “23-14″ victory for the defense. If anyone was to find themselves in some kind of legal trouble, be it of the insider trading variety or otherwise, he was the guy you wanted in your corner. Unfortunately, according to Dowd, the Galleon case was his last. And he’s truly not to be coaxed out of retirement, we’d like to suggest an alternative for your go-to legal counsel. He may not be versed in securities laws, but he’s got the fire inside him. Read more »
The Columbia University marching band has been banned from performing at Saturday’s home finale against Brown, after poking fun at the Lions’ losing ways following a 62-41 defeat last weekend at Cornell. After every game, win or lose, the Columbia band plays the school fight song, “Roar, Lion, Roar.” But last Saturday, the band altered the lyrics to highlight the team’s recent struggles — the Lions are 0-9 this season. The altered verse began with the lyrics, “We always lose, lose, lose; by a lot, and sometimes by a little,” according to an article in the Columbia Spectator, the school’s student newspaper. “Our football players, coaches, alumni, parents are extremely hurt, disappointed and angry by the band’s behavior at Cornell,” Columbia athletic director Dr. M. Dianne Murphy said. [ESPN, related]
Two weeks back, former Penn State defensive coordinator Jerry Sandusky was charged with 40 counts of sexual abuse perpetrated against young boys, including an alleged incident in which Sandusky raped a 10 year-old in the shower. Since then, even more victims have come forward, and it’s been difficult to imagine how they’re coping, particularly when Sandusky will only admit to “enjoying” young people, with whom he claims he has only ever touched on the leg (though not with sexual intent), hugged, showered and just generally “horsed around.” Beyond the actual victims, which is to say, the people who were touched in highly inappropriate ways by a man 40 and 50 years their senior who was often times naked when doing so, we’ve also heard about the aftermath struggles of others affected (in their minds) by the alleged crimes, such as Joe Paterno, the PSU undergrads for whom getting drunk and watching sports on a Saturday has been ruined!!! and the school store, where merchandising sales have taken a hit.
And yet there is another group of people who, in the last couple weeks, have been overlooked. People who’ve had their entire worlds turned upside down. People for whom we should consider saying a prayer. Naturally, we speak of the legion of Merrill Lynch brokers who graduated from Penn State in the last several decades. How are they holding up? Barely hanging on by a thread here, is how. Read more »
From time to time around these parts, we like to offer tips for those looking to successfully make the jump from one firm to another. Obviously a solid record of making money for your employer will help but in addition, or perhaps in lieu of that, nailing the first and last interview is key, and whether you’re a college senior, a third year analyst or a 20 year veteran of the industry, the interview is something with which some people still struggle. While eye contact, handshakes and how to discuss your “worst quality” have all been covered, one topic we haven’t yet discussed is what to do in the event the person conducting your session asks for your thoughts on sex abuse. Specifically, the sex abuse scandal that went down at your respective alma mater. Luckily, career services at Penn State is all over it. Read more »