Last Man Standing…The Big Banks Got What Was Due Them
3 commentsApril 24th, 2009 | 03:19 pm
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“Chris has a wonderful personality. On the first call, he was very upbeat and positive. We had several options, but the fact that he was very attentive was very important to me.” - Max Clark |
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April 24th, 2009 | 03:19 pm
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So where will we be next?
May 1st, 2009 at 1:15 pm
So, the Big Banks got what they deserved - greed always seems to be rewarded sooner or later. My question is this: what structure do you see emerging? The Big Banks become government-controlled entities, at least for a while, and during that period they are forced to peddle federally-backed programs (like home loans for anyone who can fog a mirror as long as they are a minority, even if they have no chance of ever making a payment - "deja vu all over again", I guess) - so where do we (I am a real estate developer in the private sector - if that still exists) find debt and equity for our projects? Will the still-independent middle market sources fill the void? What is your prognosis for how the landscape will look and what changes will occur to the capital markets as we emerge from this period?
May 1st, 2009 at 7:17 pm
Ted makes a good point. One problem that I have had with the original TARP is that initially Mr. Paulson was not even going to give Congress an accounting of where the $$ was going. Big banks imho are NOT too big to fail, simply put they made themselves too complicated to fail.
As to the AIG "bonus" the amount of money was a distraction to take "heat" away from the real rouges in this disaster; underwriters. A excellent book "The End of Wall Street" (as we knew it) gives the reader a true understanding of the exotic financial instruments that AIG was underwriting along with CDO's and other non-plain vanilla banking products.
Ted, the Big Banks thusfar HAVE NOT gotten what they deserve. I believe that in the cases of underwiting on the CDO's a RICO case can be made against some of the white shoe firms on Wall Street.
May 18th, 2009 at 10:02 am
There is obviously a lot to know about this. I think you made some good points and I'll be back to read more.