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“Snark…for example…today a private equity firm named Lone Star practically singlehandedly bailed out the Japanese REIT business and probably has succeeded in putting a floor under the real estate market there.”
See me in a year from now when that thang Implodes!
“Firms like Goldman are doing that as well.”
Yeah by getting “Pass Thru” money from AIG! The model of Investment Banking is begging and stealing from the Government!
“Goldman Sachs CEO Calls for New Pay Standards”
Very very Disingenuous! Maybe there is a new round of stealing coming up!
“Compensation should be determined by the owners of the business – full stop. If they choose to compensate employees in a way that is not in alignment with the interest of the company then that is their lookout.”
Not when you are taking Tax Slaves money! If you don’t like the Tax Slave telling you what to do, give back the money and work it out by yourselves.
“Thanks, Dave. You’re really the only hedge fund guy I have access to, so I like to pick your brain on such matters.”
Thanks, Dave. You’re really the only Asshole hedge fund guy I have access to, so I like to pick your brain with a Baseball Bat.
The What (It’s Baseball Season)
Someday this war is gonna end..
Goldman Sachs, Welfare Queen:
– http://www.slate.com/id/2214076/
“People sometimes refer to the firm as Government Sachs because so many of its former employees wind up in high positions in Washington (Robert Rubin, Henry Paulson, etc.). But the sobriquet sticks today because the company is heavily reliant on the government for support. Tally up the various forms of direct and indirect taxpayer assistance Goldman has received in the last several months, and it turns out that you and I are providing billions of dollars to bail out the proud firm. The former undisputed heavyweight champion of the financial services sector has become one of New York’s biggest welfare queens.”
Biff…I don’t know what you guys were wearing up in Canada but I’ve never seen one of those before. Looks kinda “Brooklyn” “Bronx” or “Queens” to me and I wasn’t living here back than!!!!!
> “…unregulated pools of capital that are big enough to
> potentially burden the financial system in a crisis should
> be put under “some degree” of government oversight.”
Yes, as Krugman said in his recent book, if it performs bank-like functions, and if it must be bailed out in tough times, then it must be regulated like a bank.
“The more they cry wolf about systemic failure, the less I believe it.”
Snark;
Now here is something to which we can agree!!
Feel good video of the day. DIBS, did you have one of those white and orange pant suits back in the day?
http://www.youtube.com/watch?v=diiL9bqvalo
“Have an opinion for us, Dave?
Goldman Sachs CEO Calls for New Pay Standards
WASHINGTON (AP) — The chief executive of Goldman Sachs is calling for new standards on how Wall Street executives are compensated and new regulation of large hedge funds and private equity funds.
In remarks prepared for an investor group, Lloyd Blankfein says lessons from the financial crisis include the need to “apply basic standards to how we compensate people in our industry” and to set forth specific guidelines on pay.
Blankfein also says the unregulated pools of capital that are big enough to potentially burden the financial system in a crisis should be put under “some degree” of government oversight.
Those would include large hedge and private equity funds.
Posted by: East New York at April 7, 2009 10:44 AM”
There’s two issues discussed there, compensation and regulation.
Compensation should be determined by the owners of the business – full stop. If they choose to compensate employees in a way that is not in alignment with the interest of the company then that is their lookout.
More regulation is not required, proper application of the existing regulations is.
That’s my two cents. Happy to discuss with anyone that disagrees.
Snark…for example…today a private equity firm named Lone Star practically singlehandedly bailed out the Japanese REIT business and probably has succeeded in putting a floor under the real estate market there. Yes, it was very opportunistic and they paid a price where they are likely to reap huge gains (maybe/maybe not) but someone other than the government has to step in or there will really be no confidence. Firms like Goldman are doing that as well.
ENY…we run a firm here that has a hedge fund where we do mostly long and short equity trades for the clients. It has an exceptional long term record. However most of the money we manage is “long only” money…like a normal investment management firm. There are many firms like ours that don’t get involved in things that are extremely risky or that we don’t understand and are somewhat plain vanilla, boring but stable return product offerings. Not so stable as Madoff’s were though!!!!
Thanks