Poem about the state of the America. (Marketplace Minute for 7/2 (via))
TEXT OF POEM
We were gonna pay for financial reform
with a tax on the banks, who created the storm.
Instead, the money will come from — I swear —
the bailout fund. ‘Cause that seems fair.
The recovery is tiring.
Nobody’s hiring.
Something wrong with Toyota’s wiring.
Let’s see …
World Cup … the Americans lose.
I’m trying to find some positive news.
Oh, the oil spill’s fixed! … Nah, I’m just teasin’ —
It’s spewing like hell and it’s hurricane season.
Uh, Supreme Court squashes the handgun ban?
I guess that’s good, for a firearm fan.
You know what, these headlines are leaving me flat
It’s a three-day weekend, let’s focus on that.
Have fun with your sparklers and Francis Scott Key,
and I’ll see you at marketplace.org.
Picking up pennies in-front of the steamroller.
Wall Street’s reputation was tainted after the Enron scandal. In June 2002, Henry Paulson delivered a powerful speech at the National Press Club in Washington, calling for financial accounting reform, improvements to corporate governance standards, and preventing conflicts of interest at investment banks. Three days later, the New York Stock Exchange unveiled a reform plan with several points mirroring Paulson’s comments. (via)
At this time, June 2002, he was CEO of Goldman Sachs for almost 3 years.
- Did it help? No!
- Did the financial lobby water down the bill at this time too? I guess so!
- Are regulators and central banks running behind the curve, always? Yes!
RULE #1: Never make the same mistake twice. You are your best critic. When you make a mistake or do something wrong, take it onboard and take it seriously. Be hard on yourselves. Do what you have to in order to not make the same mistake twice.
RULE #2: If some part of your platoon’s training is not working, perhaps it’s a matter of command and control or a gear problem or tactical maneuver; fix it now!
RULE #3: Take your responsibilities seriously and be accountable for your actions. Don’t cut corners and don’t take the easy way out. Always do things the right way even if the right way is the hard way.
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Does your business make $100 million a day in revenue?
Goldman’s trading desk recorded a profit of at least $25 million (£16.8 million) on each of the quarter’s 63 working days, making more than $100 million a day on 35 occasions, according to a regulatory filing issued on Monday.
The result, following a series of regulatory probes into Goldman’s trading activities, could fuel criticism of its business model and market behavior.However, JPMorgan also achieved a loss-free quarter in its trading unit — making an average of $118 million a day, nearly $5 million an hour — as it built on the gains made during the financial crisis when rivals faltered or failed.
Goldman’s executives said the trading performance had been due to its robust risk management and booming markets.
The 14 largest global investment banks reported $78.8 billion first-quarter revenues, their best numbers in three years and just 1 percent shy of the record.
Analysts said the resurgence might give ammunition to politicians who want to impose a global banking tax and could strengthen the hand of regulators seeking to force banks to hold more capital and liquid assets against future problems.
“At a time when many individuals are still having to tighten their belts… this increases the attractions of forcing the banks to carry a higher share of the burden,” said Richard Reid, research director at the International Centre for Financial Regulation.
Goldman, which is already facing civil fraud charges from U.S. regulators over a mortgage-backed security, could also face particular calls to rein in its operations.
Morgan Stanley analysts found that Goldman had continued to lead the pack in revenue overall in the first quarter as industry leader in equities and in fixed income, currencies and commodities (FICC).
(via MSNBC/FT)
And that at times when GSEs ask again for $8.4bn in fresh bailout money.
Fannie Mae said on Monday it would need an additional $8.4 billion from the U.S. Treasury. The two firms have now tapped about $145 billion from the government and the Obama administration has said it will backstop losses, no matter how high they go, through 2012. (via Reuters)
History doesn’t repeat, it rhymes.
Reads like August/September ‘08
G7 finance minsters and ministers, ECB and the biggest Eurobanks will hold a telefon conference to discuss the situation. The bailout of Greece didn’t calm sovereign debt markets (via FT germany)
El-Erian from Pimco is right, because the EuroUSD tumbles,
- the USD appreciates - skrewing Obama and his export plans.
- 10yr treasuries risen to 8m high 3.55%.
- And banks fear (internally) haircuts (structured defaul managed via the London Club). Banks are junk since +2yrs, they can’t take any further losses, they have problems raising capital for BASEL III (look out for some low prices assets in the future - deflation), the bailing out Greek government was in reality a bailout of the European banks who hold their debt. But which banker an politician opens his pie hole nowadays for the truth anyway? Who cares? Mainstream media doesn’t care, they report what they are told!
