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Category Archive: Finance

  1. SEC Is Bothering With 2007 Citigroup Disclosure" rel="bookmark">Why The SEC Is Bothering With 2007 Citigroup Disclosure

    Last week while appear­ing on FOX Busi­ness Net­work I was repeat­edly asked why the SEC was both­er­ing with a civil enforce­ment action against Cit­i­group for alleged bad 2007 mort­gage port­fo­lio dis­clo­sure. My FOX Busi­ness friends thought that the SEC’s action was dumb because the U.S. Gov­ern­ment is the largest stake­holder in Cit­i­group and effec­tively con­trols […] [read full story]

    Posted in: economy, Finance, FOX BUSINESS NETWORK, Politics, REGULATION, SEC
  2. Securitization Accounting Rules Are Changing

    Accoun­tants are chang­ing the rules gov­ern­ing most of the shadow bank­ing sys­tem and almost no one is notic­ing. About 10 days ago the Finan­cial Account­ing Stan­dards Board con­firmed that by year end “secu­ri­ti­za­tion account­ing” will be dif­fer­ent and the changes are likely to have a big­ger effect on finan­cial insti­tu­tions than mark to mar­ket account­ing. […] [read full story]

    Posted in: Accounting, economy, FAS 140, FIN 46, Finance, Public Policy, Securitization
  3. SEC Declares War On Capital Market’s Criminals" rel="bookmark">The SEC Declares War On Capital Market’s Criminals

    It didn’t take long for the “new SEC” to begin enforc­ing the law and declar­ing war on white col­lar crim­i­nals that have preyed on the cap­i­tal mar­kets. A cou­ple of weeks ago the SEC filed an insider trad­ing civil suit against two for­mer traders in con­nec­tion with trad­ing in credit default swaps using insider infor­ma­tion […] [read full story]

    Posted in: Cox, Credit Default Swaps, economy, Finance, Mary Schapiro, Public Policy, REGULATION, Regulatory Reform, SEC
  4. Banking’s Dirty Little Compensation Secret

    Banking’s dirty lit­tle com­pen­sa­tion secret is that most of the fury over bank exec­u­tive pay lim­its is fake. Since the for­ma­tion of the FDIC dur­ing the Great Depres­sion Fed­eral reg­u­la­tors have had the legal author­ity to limit bank pay and have reg­u­larly used that author­ity. But vocal Admin­is­tra­tion crit­ics seem to be inten­tion­ally mis­lead­ing the […] [read full story]

    Posted in: Bank Compensation, BANKS, economy, Finance, Obama, Politics, Public Policy, REGULATION
  5. Obama’s Stress Tests Are Designed To Help Banks Raise Capital

    Most crit­ics of the Stress Test have missed the point of the tests and under­es­ti­mate the Obama Administration’s clev­er­ness in help­ing banks raise cap­i­tal. The Stress Tests weren’t about reg­u­la­tory super­vi­sion and cer­tainly weren’t an excuse for the Obama Admin­is­tra­tion to nation­al­ize the banks. The tests were designed to pro­vide stan­dard­ized bench­marks, assump­tions and pro­jec­tions […] [read full story]

    Posted in: BANKS, Confidence, Credit Crisis, economy, Finance, Obama, Politics, Public Policy, REGULATION
  6. TALF Isn’t Working And Needs To Be Fixed" rel="bookmark">TALF Isn’t Working And Needs To Be Fixed

    TALF isn’t work­ing and needs to be fixed. It was sup­posed to repair the secu­ri­ti­za­tion and struc­tured finance bond mar­ket with $1 tril­lion of U.S. gov­ern­ment fund­ing, but instead TALF has been a non-event and an irrel­e­vant pro­gram. Appli­cants to the TALF pro­gram are hard to find and the secu­ri­ti­za­tion and struc­tured finance mar­ket remains […] [read full story]

    Posted in: BANKS, Credit Crisis, economy, Finance, Politics, Public Policy, Securitization, TALF
  7. Mark to Market Accounting Is Still Out Of Control And Is Spreading To Main Street

    The account­ing pro­fes­sion still hasn’t got­ten mark to mar­ket account­ing right. The rules and their appli­ca­tion remain a seri­ous dan­ger to the econ­omy and gov­ern­ment inter­ven­tion is needed to save Main Street from being the next vic­tim of fair value account­ing. On April 9, 2009 the most recent changes to mark to mar­ket account­ing were […] [read full story]

    Posted in: CITIGROUP, Economic Statistics, economy, FAS 141R, FAS 157, FAS 159, FASB, Finance, Mark to market accounting, Morgan Stanley, Politics, Public Policy
  8. China Economic Growth Claims Lack Credibility

    On April 16th the China National Bureau of Sta­tis­tics (the “NBS”) announced with great fan­fare that the Chi­nese econ­omy was spe­cial because even in the face of an emerg­ing global depres­sion China was able to con­tinue to grow at a rapid pace in the first quar­ter of 2008. Accord­ing to Chi­nese offi­cials, the head­line Chi­nese […] [read full story]

    Posted in: Asia, China, Finance, GDP, Politics