Pay for pay?

You’ve heard of pay-for-play, right? How about pay-for-pay? Here’s an idea that seems to make some sense. Don’t limit Wall Street pay and bonuses, but require higher FDIC premium payments if a bank’s pay structure is deemed to be “risky”, such as incentive bonuses for writing more loans (which leads to bankers writing riskier loans). […]

Whoa … Citi going down?

Okay; I can honestly say that I didn’t see this happening. I figured that Citigroup, like Bank of America and JP Morgan Chase, would both be strong enough to weather almost anything the economy could throw at them, but their recent stock movements are highly precipitous. Citi Weighs Its Options, Including Firm’s Sale – […]

The aftermath …

Perhaps this plan will make Art a little happier … but I’d like to read the actual text of the bill before I make any judgments. Democrats offer alternative ‘no bailouts act’ – WASHINGTON (CNN) — A small group of Democratic House members put together an alternative to the $700 billion financial bailout measure […]

Bread and circuses

From this morning’s Wall Street Journal: ‘No’ Votes Came From All Directions The fatal “no” votes to the financial rescue package came from a strange-bedfellows coalition of lawmakers, from the most conservative to the most liberal members of the House, with a large number of representatives from low-income districts angry that Wall Street seems to […]

At what cost, “NO”?

Without a Bailout Plan, What Will the Cost Be? – TIME By voting down the proposed $700 billion financial bailout package — and causing a spectacular stock market rout — a majority of members in the House of Representatives made a clear statement that they didn’t want to put taxpayers on the hook for the […]

GS, MS to become banks

This is an interesting twist. Obviously, it means that Morgan Stanley will be subject to more stringent regulation, but I wonder what it fundamentally means for the business model. This will be really interesting to following over the next days/weeks/months. Goldman Sachs, Morgan Stanley To Be Bank Holding Companies – The Federal Reserve said […]