Posts filed under “Bailout Nation”

Are the Rating Agencies About to Get Their Comeuppance?

This week in encouraging news, we learn that the Securities and Exchange Commission may finally be pursuing one of the prime enablers of the financial crisis — the ratings companies. Previously, it was reported that disclosure violations were on the SEC’s radar, but truth be told, those are minor offenses.

The SEC’s Office of Credit Ratings, a division whose sole purpose is essentially to oversee Moody’s and Standard & Poor’s, seems to be stirring. The Wall Street Journal reported that the “government’s top credit-rating watchdog has kept a low profile since taking the job two years ago to help prevent another financial crisis. That may be about to change…” Multiple cases have reportedly been referred to the SEC’s enforcement division, and new regulations are due.

And a welcome change it would be. Of all the players that helped cause the financial crisis, the ratings companies have gotten off scot-free. Banks have had massive fines while many mortgage and derivative underwriters have had their garbage securities put back to them at great cost. Since 2008, there have been 388 mortgage companies that have gone bankrupt. All of that junk paper found its way into AAA-rated securitized products and derivatives. The penalty for Moody’s and S&P has been essentially nil. Fear of so-called reputational damage — the theory that concerns about their good name keeps companies in line — is the latest economic nonsense to be thoroughly debunked by events. Continues here

Category: Analysts, Bailout Nation, Credit, Really, really bad calls, Regulation

How to Build a Better Bailout

“To avert panic, central banks should lend early and freely, to solvent firms, against good collateral, and at ‘high rates.’ ” -Walter Bagehot, Lombard Street   Former U.S. Treasury Secretary Timothy Geithner has been promoting his new book, “Stress Test: Reflections on Financial Crises.” I haven’t read it, and based on what I have heard…Read More

Category: Bailout Nation, Bailouts, Books, Really, really bad calls, Taxes and Policy

Five Books: on Causes of the Financial Crisis

Barry Ritholtz is a Wall Street money manager and Washington Post columnist who writes a popular investment-focused blog, The Big Picture. He is also the author of Bailout Nation, explaining for the general reader the finance behind the financial crisis -Five Books     The Wall Street money manager diagnoses the ills of America’s political…Read More

Category: Bailout Nation, Bailouts, Books

The Terrible Lessons of Bear Stearns, Lehman Edition

Five years ago today I was hard at work revising all of my prior efforts on Bailout Nation. Once Lehman hit the pavement after Bear was rescued, it was clear there were lessons to be learned. Here was my short list:   The Terrible Lessons of Bear Stearns • Go Big: Don’t just risk your…Read More

Category: Bailout Nation, Bailouts, Really, really bad calls

WSJ: What Did We Learn From the Financial Crisis?

“The Big Picture” blogger and Fusion IQ CEO Barry Ritholtz looks back at the events of 2008 and makes the case for the true legacy of the financial collapse.

Ritholtz: Did Anyone Learn From the Financial Crisis?

Running Time 4:26 9/10/2013 10:35:11 AM

Source: WSJ

Category: Bailout Nation, Bailouts, Video

Bankistan Vanquishes America

Is there a single doubt left in your mind? Are you still a believer in Rufus T. Firefly Jamie Dimon as the world’s smartest banker? Is there a scintilla of wonder left in your mind that the giant banks are legitimate? Have you come around to understanding — finally — what some of us have…Read More

Category: Bailout Nation, Bailouts, Corporate Management, Credit, Crony Capitalists, Legal, Really, really bad calls

Our Typical, Mediocre Post Credit Crisis Recovery…

Source: CNN Money   It is the silly political season, and while each side levels accusations at each other, neither wants to admit the simple truth: Both political parties helped to create the credit crisis (In Bailout Nation, I put it about 55/45). The Obama administration underestimated the depth of the recession, and failed to…Read More

Category: Bailout Nation, Bailouts, Federal Reserve, Really, really bad calls

What May Be in Store at Yahoo Finance

Now that its been announced, I can share some details with you about Aaron Task, Yahoo Finance‘s new and first Editor-in-Chief. I have known and worked with Aaron for over a decade, beginning with my early days as a contributor to Aaron was the Managing Editor — and one of those rare birds who…Read More

Category: Bailout Nation, Web/Tech

NYTimes Takes on “The Big Lie”

I am please to report that calling out the Big Lie has now gone fully mainstream. Recall last month, I had two Big Lie columns in the Washington Post: • What caused the financial crisis? The Big Lie goes viral. • Examining the big lie: How the facts of the economic crisis stack up The…Read More

Category: Bailout Nation, Bailouts, Really, really bad calls, UnGuru

I agree with Michele Bachmann

Well, at least about this one thing: She and I are quite sympatico — at least when it comes to criticizing the Bush troika (Bush/Paulson/Bernanke) for the absurd bailouts of failed banks: “The Bush administration … was embracing a kind of ‘bailout socialism,’ ” wrote the Minnesota congresswoman, who is running for the GOP presidential…Read More

Category: Bailout Nation, Bailouts, Politics