The Federal Reserve and the Treasury are preparing broad new rules that would force the financial industry to rein in excessive compensation schemes and commission practices that disproportionate made gazzillionaires at the expense of investors and taxpayers out of many financial executives – many just out of college – during the global financial meltdown.
The Federal Reserve chairman, Ben S. Bernanke, speaking at a Brookings Institute Conference, said Tuesday that it was “very likely” that the recession had ended although he cautioned that it could be months before unemployment rates dropped significantly.
Mon, 14 Sept – President Obama reinvigorated his administration’s effort to reform the financial regulatory system by taking his bare knuckled message directly to Wall Street. Speaking at Federal Hall and using the one year anniversary of the Wall St. collapse the president reminded prominent financial industry executives of their role and risk-taking behavior that led to a global economic melt-down.
According to reports in both the Financial Times of London, as well as the New York Times, the Federal Reserve has made a $14Bn profit on TARP loan programs to struggling banks using tax-payer funds.
Interesting segment by 60 Minutes’ Steve Kroft, in which he walks viewers through the fundamentals of these financial WMDs called Credit Default Swaps which were the derivative products underlying the near collapse of the global financial markets.
The world’s central bankers meeting for an annual Federal Reserve summer symposiun retreat say tougher regulatory reforms and oversight necessary for a full recovery, and agree to keep coordinated interest rates low to help boost global economic recovery.
The New York Times featured an interesting article in today’s paper spotting a trend that more college graduates and corporate professionals are flocking to China in search of greener pasteurs for their careers.
Question: What happens when an 80% shareholder of a company decides that the $165 million in bonuses contracted to employees prior to the purchase of shares are an abuse of the over $170 billion given in taxpayer bailout? Answer: American International Group CEO, Edward Liddy, asks bonus recipients who received $100,000 or more to return […]
The FOMC today announced plans to buy $300B in treasuries and up to $750B in mortgage-backed securities, effectively agreeing to print a trillion dollars. Well, we knew the money had to come from somewhere. When the federal government wants money, there are four places they can get it: 1) Take from other parts of the […]
In a strange piece of spin, the New York Times says today that the financial crisis will wind up being good for China. It’s an unconvincing position to say the least. It’s true that, unlike the West, China has no trouble with currency exchange or stock markets, which are state regulated, or bank failure, because […]
AIG Executives have been given huge bonuses with taxpayer money, and everyone is furious. AIG claims that they have contractual obligations which predate the largest private sector bailout in history. Politicians say these obligations are secondary to satisfying taxpayers who are keeping them above water. Pundits, smelling blood in the water, have come out in […]
“Tight credit markets and the global economic downturn are rapidly swelling the population of U.S. companies with high default risk and weak liquidity. The Bottom Rung, a new Moody’s database and quarterly publication, captures and comments on these low-rated companies.” March 10th marked the inaugural debut of Moody’s newest ratings publication by its Global […]
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