Comments on: The Rhetoric of More of the Same http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/ Tue, 24 Nov 2009 01:54:47 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: masaccio http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61655 masaccio Wed, 02 Apr 2008 03:57:28 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61655 <p>This is an interesting question. I googled around and found three insurance companies with write-downs on the big shitpile. The largest by far was AIG, which seems to have eaten nearly $5bn in write-downs on credit default swaps and so on. There are two others with small losses. I do think, however, that if there were a lot of these, it would be public by now.</p> This is an interesting question. I googled around and found three insurance companies with write-downs on the big shitpile. The largest by far was AIG, which seems to have eaten nearly $5bn in write-downs on credit default swaps and so on. There are two others with small losses. I do think, however, that if there were a lot of these, it would be public by now.

]]> By: Rayne http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61644 Rayne Wed, 02 Apr 2008 03:36:54 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61644 <p>Two words: Arthur Andersen.</p> <p>I’ve seen and heard enough about auditing failures to know that even these required spreads and mandated reserve levels are not fail-safe.</p> <p>Can think of at least two other serious problems with restated earnings in Tier III auto supplier industry that involved 2 of the former Big Five, may have pushed a firm to bankruptcy. If they screwed that up, can hardly believe they’d stop at auto parts.</p> Two words: Arthur Andersen.

I’ve seen and heard enough about auditing failures to know that even these required spreads and mandated reserve levels are not fail-safe.

Can think of at least two other serious problems with restated earnings in Tier III auto supplier industry that involved 2 of the former Big Five, may have pushed a firm to bankruptcy. If they screwed that up, can hardly believe they’d stop at auto parts.

]]> By: jdmckay http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61499 jdmckay Tue, 01 Apr 2008 18:08:31 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61499 <blockquote><p>(Insurance portfolios) must have a spread of investment in “safe” form, and, as I recall, cannot have more than 5% in lower-rated investments, the more speculative kind of things. That may explain why we don’t see big insurance companies writing down their asset like the big banks and brokers are doing.</p></blockquote> <p> - AFAIK most of the mtg bonds were AAA/”investment” grade<br /> - Too soon to know exposure of Insurance portfolios to any of the junk mtg stuff, from what I know @ this point.</p>

(Insurance portfolios) must have a spread of investment in “safe” form, and, as I recall, cannot have more than 5% in lower-rated investments, the more speculative kind of things. That may explain why we don’t see big insurance companies writing down their asset like the big banks and brokers are doing.

– AFAIK most of the mtg bonds were AAA/”investment” grade
– Too soon to know exposure of Insurance portfolios to any of the junk mtg stuff, from what I know @ this point.

]]> By: Minnesotachuck http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61495 Minnesotachuck Tue, 01 Apr 2008 17:55:47 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61495 <p>Left handed presidents:<br /> <a href="http://www.infoplease.com/askeds/left-handed-presidents.html" rel="nofollow">http://www.infoplease.com/aske.....dents.html</a></p> Left handed presidents:
http://www.infoplease.com/aske…..dents.html

]]> By: bmaz http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61481 bmaz Tue, 01 Apr 2008 16:46:35 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61481 <p>I will do that, it looks interesting. I should have discussed more the real nature of the Fed, which is interesting and different than most people assume. And I probably propagated that somewhat by focusing on the Paulson and IB side of things. I have since been reminded, both by friends and subsequent articles, of the peculiar structure of the Fed which, to be honest, I haven’t thought about since probably some law school class or something.</p> I will do that, it looks interesting. I should have discussed more the real nature of the Fed, which is interesting and different than most people assume. And I probably propagated that somewhat by focusing on the Paulson and IB side of things. I have since been reminded, both by friends and subsequent articles, of the peculiar structure of the Fed which, to be honest, I haven’t thought about since probably some law school class or something.

]]> By: klynn http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61459 klynn Tue, 01 Apr 2008 15:35:27 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61459 <p>Yep, it was a “Well, duhhhh!!!!”</p> <p>I remembered your fun fact post too.</p> <p>If you have the time, you’ve got to go read the Fed history at the link above. It really is a nice piece of propaganda!</p> <p>Oh, the need for coffee…</p> Yep, it was a “Well, duhhhh!!!!”

I remembered your fun fact post too.

If you have the time, you’ve got to go read the Fed history at the link above. It really is a nice piece of propaganda!

Oh, the need for coffee…

]]> By: bmaz http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61449 bmaz Tue, 01 Apr 2008 15:04:39 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61449 <p>Well. duh! Heh heh Hey, I don’t know if you caught it or not, but in one of my Bear Posts during EW’s fun frolic off line - ah, <a href="http://emptywheel.firedoglake.com/2008/03/28/wheel-squirrels-stumble-into-bear-nuts-an-economic-update-and-forum/" rel="nofollow">here it is</a> - I found the fun fact that eight of the top ten biggest donors in this year’s Presidential campaign are - wait for it - Wall Street firms.</p> <blockquote><p>Eight of the 10 largest donors so far to the U.S. presidential campaigns are Wall Street banks, led by Goldman Sachs, according to research Thursday from a political watchdog group. Goldman and its executives have pumped $1.7 million into the races, with 70 percent going to Democrats Barack Obama and Hillary Clinton, despite former CEO Henry Paulson’s present job as treasury secretary for the Republican Bush administration.<br /> …<br /> After Goldman, top-giving banks are Citigroup, Morgan Stanley, Lehman Brothers, Merrill Lynch and JPMorgan Chase, which is buying troubled rival Bear Stearns in a government-engineered bailout.</p></blockquote> Well. duh! Heh heh Hey, I don’t know if you caught it or not, but in one of my Bear Posts during EW’s fun frolic off line – ah, here it is – I found the fun fact that eight of the top ten biggest donors in this year’s Presidential campaign are – wait for it – Wall Street firms.

Eight of the 10 largest donors so far to the U.S. presidential campaigns are Wall Street banks, led by Goldman Sachs, according to research Thursday from a political watchdog group. Goldman and its executives have pumped $1.7 million into the races, with 70 percent going to Democrats Barack Obama and Hillary Clinton, despite former CEO Henry Paulson’s present job as treasury secretary for the Republican Bush administration.
…
After Goldman, top-giving banks are Citigroup, Morgan Stanley, Lehman Brothers, Merrill Lynch and JPMorgan Chase, which is buying troubled rival Bear Stearns in a government-engineered bailout.

]]> By: klynn http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61445 klynn Tue, 01 Apr 2008 14:48:37 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61445 <p>bmaz,<br /> Think I got my “behind closed doors” answer…</p> <p>Companies Supporting Multiple Pioneers or Rangers Company </p> <p>Rangers & Pioneers In 2000 & 2004, #’s, Industry</p> <p>Bear Stearns & Co. 4 Finance<br /> Morgan Stanley 4 Finance<br /> *American Financial Group 3 Insurance<br /> Blank Rome 3 Lobbyists<br /> Cassidy & Associates 3 Lobbyists<br /> Credit Suisse First Boston Corp. 3 Financial<br /> Goldman Sachs & Co. 3 Finance<br /> *Harbour Group 3 Finance<br /> *Mitchell Brothers, Inc. 3 Homebuilder<br /> Poole McKinley & Blosser 3 Lobbyists<br /> Reynolds DeWitt & Co. 3 Finance<br /> Akin Gump Strauss Hauer & Feld 2 Lobbyists<br /> American Continental Group 2 Lobbyists<br /> Aon Corp. 2 Insurance<br /> Cardinal Investment Co. 2 Finance<br /> *Chrysalis Ventures 2 Finance<br /> Deloitte& Touche 2 Accounting<br /> Dover Management, LLC 2 Finance<br /> *E&A Industries, Inc. 2 Energy<br /> Fidelity Investments 2 Finance<br /> Freeman Spogli & Co. 2 Finance<br /> Gallatin Group 2 Lobbyists<br /> Haynes & Boone 2 Lawyers<br /> *Holy Cross Hospital 2 Health<br /> JPMorgan 2 Finance<br /> Kojaian Companies 2 Developer<br /> MBNA Corp. 2 Finance<br /> Microsoft 2 Computers<br /> Northwestern Mutual Life 2 Insurance<br /> Park Strategies 2 Lobbyists<br /> *Pilot Corp. 2 Energy<br /> PricewaterhouseCoopers 2 Accounting<br /> Reliant Energy 2 Energy<br /> *Reynolds Plantation 2 Developer<br /> *Siegel Groupt> 2 Developer<br /> Trust Co. of the West 2 Finance<br /> U.S. Sugar Corp. 2 Agriculture<br /> WellCare Health Plans, Inc. 2 Health</p> <p>More here:</p> <p><a href="http://www.tpj.org/pioneers/pioneers04/who_multi.html" rel="nofollow">http://www.tpj.org/pioneers/pi.....multi.html</a></p> bmaz,
Think I got my “behind closed doors” answer…

Companies Supporting Multiple Pioneers or Rangers Company

Rangers & Pioneers In 2000 & 2004, #’s, Industry

Bear Stearns & Co. 4 Finance
Morgan Stanley 4 Finance
*American Financial Group 3 Insurance
Blank Rome 3 Lobbyists
Cassidy & Associates 3 Lobbyists
Credit Suisse First Boston Corp. 3 Financial
Goldman Sachs & Co. 3 Finance
*Harbour Group 3 Finance
*Mitchell Brothers, Inc. 3 Homebuilder
Poole McKinley & Blosser 3 Lobbyists
Reynolds DeWitt & Co. 3 Finance
Akin Gump Strauss Hauer & Feld 2 Lobbyists
American Continental Group 2 Lobbyists
Aon Corp. 2 Insurance
Cardinal Investment Co. 2 Finance
*Chrysalis Ventures 2 Finance
Deloitte& Touche 2 Accounting
Dover Management, LLC 2 Finance
*E&A Industries, Inc. 2 Energy
Fidelity Investments 2 Finance
Freeman Spogli & Co. 2 Finance
Gallatin Group 2 Lobbyists
Haynes & Boone 2 Lawyers
*Holy Cross Hospital 2 Health
JPMorgan 2 Finance
Kojaian Companies 2 Developer
MBNA Corp. 2 Finance
Microsoft 2 Computers
Northwestern Mutual Life 2 Insurance
Park Strategies 2 Lobbyists
*Pilot Corp. 2 Energy
PricewaterhouseCoopers 2 Accounting
Reliant Energy 2 Energy
*Reynolds Plantation 2 Developer
*Siegel Groupt> 2 Developer
Trust Co. of the West 2 Finance
U.S. Sugar Corp. 2 Agriculture
WellCare Health Plans, Inc. 2 Health

More here:

http://www.tpj.org/pioneers/pi…..multi.html

]]> By: klynn http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61443 klynn Tue, 01 Apr 2008 13:56:27 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61443 <p>Yep, I just wondered “who” all the big players were behind closed doors. I have my well educated guesses. As I read the Fed history, this regulatory approach has been in the making for some time. I was trying to explain all of this to my kids and took them to the Federal Reserve website to have them read the history of the Federal Reserve… You should go read it — it makes no bones about “conservative” and “liberal/progressive” views on banking and finance. The language really “threw” my kids! Here it is:</p> <p><a href="http://www.federalreserveeducation.org/fed101/history/" rel="nofollow">http://www.federalreserveeduca.....1/history/</a> </p> <p>Anyway, the historic battle between “banker” held and “public” held continues. Guess that tension after all these years has finally been resolved. Bankers are winning!!!</p> <p>Of course there is some long standing understanding that we “owe” JP Morgan something historically.</p> <p>The “chicken or the egg” on finance — the people or the banks/corps– seems to go round and round in history. This round currently is banks 1, people O (goose egg).</p> <p>So, I would love to see more dialogue here as to “what” the people could do to bring an economy strategy to either a positive sum or zero sum because the negative sum for the people at present is not going to fly. We HAVE to back Dodd with solid and sound policy. The banking industry has been ready for this battle since the founding of the Fed. Once the “people” negotiated a compromise that gave rights of concern to both the people and the banks, I think the people became complacent wrt the institutions and mechanisms of our federal financial stability as a nation.</p> Yep, I just wondered “who” all the big players were behind closed doors. I have my well educated guesses. As I read the Fed history, this regulatory approach has been in the making for some time. I was trying to explain all of this to my kids and took them to the Federal Reserve website to have them read the history of the Federal Reserve… You should go read it — it makes no bones about “conservative” and “liberal/progressive” views on banking and finance. The language really “threw” my kids! Here it is:

http://www.federalreserveeduca…..1/history/

Anyway, the historic battle between “banker” held and “public” held continues. Guess that tension after all these years has finally been resolved. Bankers are winning!!!

Of course there is some long standing understanding that we “owe” JP Morgan something historically.

The “chicken or the egg” on finance — the people or the banks/corps– seems to go round and round in history. This round currently is banks 1, people O (goose egg).

So, I would love to see more dialogue here as to “what” the people could do to bring an economy strategy to either a positive sum or zero sum because the negative sum for the people at present is not going to fly. We HAVE to back Dodd with solid and sound policy. The banking industry has been ready for this battle since the founding of the Fed. Once the “people” negotiated a compromise that gave rights of concern to both the people and the banks, I think the people became complacent wrt the institutions and mechanisms of our federal financial stability as a nation.

]]> By: bmaz http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/comment-page-1/#comment-61441 bmaz Tue, 01 Apr 2008 13:06:20 +0000 http://emptywheel.firedoglake.com/2008/03/31/the-rhetoric-of-more-of-the-same/#comment-61441 <p>That may be an easier answer than you realize. I think this was the price for Bush getting the fox to come to the henhouse. The economy was already an issue and the Administration was badly in need of credibility when searching for a replacement for John Snow at Treasury. Well, Paulson sure didn’t come for the salary (took a cut from 30+ million at Goldman Sachs to 183,000/yr), he came to make things better for his business.</p> That may be an easier answer than you realize. I think this was the price for Bush getting the fox to come to the henhouse. The economy was already an issue and the Administration was badly in need of credibility when searching for a replacement for John Snow at Treasury. Well, Paulson sure didn’t come for the salary (took a cut from 30+ million at Goldman Sachs to 183,000/yr), he came to make things better for his business.

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