Comments on: Regulatory Malfeasance and the Financial System Collapse http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Wed, 15 Feb 2012 00:33:57 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Mark E Hoffer http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/comment-page-1/#comment-162416 Mark E Hoffer Wed, 15 Apr 2009 21:17:48 +0000 http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/#comment-162416 "In the words of Freddie Mac in response to notice of proposed rulemaking in 2001 (as published in the National Journal), such practices would encourage banks “…to structure securitizations that reduce their capital requirements to a fraction of what they would otherwise be required to hold, even though the risk exposure remains the same. The results could be a net reduction in the amount of capital in the banking system to protect against credit risk.” Fannie Mae said even more clearly back then, “There should be equal capital for equal credit risk, regardless of the form in which the risk is held.” from post, above.. these 'issues', as the above is a singular point, have been Well Known for many Moon.. the whole: "Nobody saw it coming/expected it to happen" is one the Greatest lines of Hogwash/ PR BS seen in some time.. Bernays would be Proud. "Today, few people outside the public relations profession recognize the name of Edward L. Bernays. As the year 2000 approaches, however, his name deserves to figure on historians' lists of the most influential figures of the 20th century. It is impossible to fundamentally grasp the social, political, economic and cultural developments of the past 100 years without some understanding of Bernays and his professional heirs in the public relations industry. PR is a 20th century phenomenon, and Bernays--widely eulogized as the "father of public relations" at the time of his death in 1995--played a major role in defining the industry's philosophy and methods. Eddie Bernays himself desperately craved fame and a place in history. During his lifetime he worked and schemed to be remembered as the founder of his profession and sometimes drew ridicule from his industry colleagues for his incessant self-promotions. These schemes notwithstanding, Bernays richly deserves the title that Boston Globe reporter Larry Tye has given him in his engagingly written new book, The Father of Spin..." http://www.prwatch.org/prwissues/1999Q2/bernays.html “In the words of Freddie Mac in response to notice of proposed rulemaking in 2001 (as published in the National Journal), such practices would encourage banks “…to structure securitizations that reduce their capital requirements to a fraction of what they would otherwise be required to hold, even though the risk exposure remains the same. The results could be a net reduction in the amount of capital in the banking system to protect against credit risk.” Fannie Mae said even more clearly back then, “There should be equal capital for equal credit risk, regardless of the form in which the risk is held.”
from post, above..

these ‘issues’, as the above is a singular point, have been Well Known for many Moon..

the whole: “Nobody saw it coming/expected it to happen” is one the Greatest lines of Hogwash/ PR BS seen in some time..

Bernays would be Proud.
“Today, few people outside the public relations profession recognize the name of Edward L. Bernays. As the year 2000 approaches, however, his name deserves to figure on historians’ lists of the most influential figures of the 20th century.

It is impossible to fundamentally grasp the social, political, economic and cultural developments of the past 100 years without some understanding of Bernays and his professional heirs in the public relations industry. PR is a 20th century phenomenon, and Bernays–widely eulogized as the “father of public relations” at the time of his death in 1995–played a major role in defining the industry’s philosophy and methods.

Eddie Bernays himself desperately craved fame and a place in history. During his lifetime he worked and schemed to be remembered as the founder of his profession and sometimes drew ridicule from his industry colleagues for his incessant self-promotions. These schemes notwithstanding, Bernays richly deserves the title that Boston Globe reporter Larry Tye has given him in his engagingly written new book, The Father of Spin…”
http://www.prwatch.org/prwissues/1999Q2/bernays.html

]]> By: leftback http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/comment-page-1/#comment-162370 leftback Wed, 15 Apr 2009 18:06:19 +0000 http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/#comment-162370 Tranche warfare? That's good. We like it. Expect to see it adopted by MSM in a few weeks, like Bailout Nation. Tranche warfare?

That’s good. We like it. Expect to see it adopted by MSM in a few weeks, like Bailout Nation.

]]> By: Chief Tomahawk http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/comment-page-1/#comment-162354 Chief Tomahawk Wed, 15 Apr 2009 17:11:16 +0000 http://www.ritholtz.com/blog/2009/04/regulatory-malfeasance-and-the-financial-system-collapse/#comment-162354 And how much more lovely does this problem become now that banks have ended their foreclosure moratorium? The housing inventory will rise along with folks with bad credit from filing bankruptcy, so I don't see a new pool of buyers anytime soon. Possibly vulture funds buying in bulk at 20% of the 2005 highs and becoming landlords. And the derivative paper associated with mortgage backed securities will be worth even less. Citi may be the least of our problems... Somehow I don't think Michael Moore will have to search very hard for another rabbit lady like he intoduced us to in "Roger & Me". And how much more lovely does this problem become now that banks have ended their foreclosure moratorium? The housing inventory will rise along with folks with bad credit from filing bankruptcy, so I don’t see a new pool of buyers anytime soon. Possibly vulture funds buying in bulk at 20% of the 2005 highs and becoming landlords. And the derivative paper associated with mortgage backed securities will be worth even less. Citi may be the least of our problems…

Somehow I don’t think Michael Moore will have to search very hard for another rabbit lady like he intoduced us to in “Roger & Me”.

]]>