Archive for the ‘Banking’ Category

The G-20 Summit: Beware the FreePassers!

Monday, April 13th, 2009

The G-20 summit was a true public relations success. Despite low expectations, the spin at the close of the conference promoted the concept that there was a consensus among the nations that participated.
The FreePasser Issues Still Remain!
However, despite the public claims of success, serious economic problems underlying the current global financial crisis still remain. These [...]

Goldman Gets the Message!

Monday, April 13th, 2009

Last week Lloyd Blankfein, the CEO of Goldman Sachs, gave a speech to a group of institutional investors in which he called for new pay standards and regulation of hedge funds and private equity groups.
Back to the Future
When it comes to Wall Street pay standards, it might be called “Back to the Future.” These pay arrangements [...]

The True Cost of Government Bailouts

Tuesday, March 31st, 2009

The main justification for all the government bailouts seems to be that the economy cannot survive without them and, that if properly handled, the desired result can be achieved with minimal if any cost to the taxpayer.
The Example of the Resolution Trust Corporation (RTC)
Many use the Resolution Trust Corporation as an example and reference that, [...]

A Solution to the Financial Crisis: Require Insurance Before the Bailouts

Sunday, March 15th, 2009

There is a passionate discussion going on about the government bailout and its costs. Some say that there should be no bailout, and that the the taxpayer is being unfairly stuck with the cost. Some believe that the financial system should be allowed to operate without interference - that, ultimately, the free market will prevail. On the other [...]

A Question About the Economic Rescue Plans: Who Picks Up the Tab?

Monday, February 23rd, 2009

 
The government has announced plans to rescue the banking system, to stimulate the economy, and to prevent mortgage foreclosures. These programs have generated many questions regarding their implementation and efficacy. However, the really big question that no one in Washington, D.C. seems to be asking is, Who picks up the tab for the cost of all of these programs?
Bringing up [...]

Trust in Banks and the Congressional Pig Roast: FreePassers in the Beltway

Tuesday, February 3rd, 2009

Although my last several posts have focused on FreePassers in corporate America and on Wall Street, we also find an abundant number of them in government, especially in Washington, D.C.
Trust the Banks: One of the Greatest Lies in History
When the original TARP (Troubled Asset Relief Program) legislation was first introduced it had few restrictions and was [...]