Washington Mutual Wasn’t in Wall St Inner Circle According to Ex-CEO

April 13, 2010 by · Leave a Comment
Filed under: Industry News 

Well that was very apparent when they were left to fail and have JPMorgan come in and purchase the nation former largest deposit taking institution.  I actually go into the conference for JPMorgan when they announced this to their shareholders.  I have never and I mean never heard a more excited group of males, puts Super Bowl celebrations to shame.

They knew they got the deal of a century.   They were going over the numbers and they basically said no matter what the losses were from all their lending assets, it was a once in a lifetime opportunity.

You would think that the deposit institutions would be the banks we would bailout but it was not the case.  In is my feeling as well that because they didn’t have a direct line to the Fed or U.S. Treasury is why they were left to have WaMu’s financial position deteriorate to the point where they only got cents on the dollar for the largest base of deposits in the country.  Yes, they made bad choices like doing refinances and home equity lines of credit on inflated homes, but all banks did this but we decided to pick winners and losers and the winners seem to be the same old “boy club”.

Bloomberg – Kerry Killinger, the former chief executive officer of Washington Mutual Inc., said his company became the largest bank failure in U.S. history in part because it was excluded from a group of financial institutions favored by U.S. policy makers.

Washington Mutual wasn’t protected from short sellers and the U.S. Treasury Department excluded the company from information sessions it held with competitors, Killinger said today in testimony for the Senate Permanent Subcommittee on Investigations. Other former Washington Mutual executives at the hearing and subcommittee chairman Senator Carl Levin, a Michigan Democrat, blamed Killinger for ineffective management controls and lax lending standards.

Source

Nobel Laureate Joeseph Stiglitz Says Ties to Wall Street Doom Bank Rescue

April 20, 2009 by · Leave a Comment
Filed under: Opinion 

He is correct on this point, the bailout has been targeted to Wall Street on the assumption that if we give them good money and purchase their bad assets off their balance-sheet, it will get them to start lending in the middle of a soft-depression.  Not likely, in reality they are holding on to the cash until this passes then they will lend and make acquisitions are bargain basement prices which in the end will give them more wealth and power.    My question is how long it will take for people to wake-up and see this situation for what it is and start holding our elected representatives accountable to the biggest corporate subsidy in the history of modern civilization???????  Get on the phone and let your opinion be heard and vote accordingly.  That is the only way they will know that we are serious and paying attention.

News (Bloomberg):

The Obama administration’s bank- rescue efforts will probably fail because the programs have been designed to help Wall Street rather than create a viable financial system, Nobel Prize-winning economist Joseph Stiglitz said.

“All the ingredients they have so far are weak, and there are several missing ingredients,” Stiglitz said in an interview yesterday. The people who designed the plans are “either in the pocket of the banks or they’re incompetent.”

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Wall Street slides as Dow close marks 6 year low

February 19, 2009 by · Leave a Comment
Filed under: Stock Market News 

We are now at levels where techincal indicators could trigger and bring the market much lower.  I see us breaking 7,000 on the Dow over the next 2 weeks.  We should be lucky that with all the bad news coming out today that the Dow didn’t break much lower.

News:

U.S. stocks dropped, sending the Dow Jones Industrial Average to a six-year low, as Hewlett-Packard Co. cut its profit forecast and concern about rising credit-card defaults dragged financial shares to the lowest level since 1995.

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Wall Street closes out 2008 as worst year since Great Depression

January 2, 2009 by · Leave a Comment
Filed under: Stock Market News 

Interesting how during this year they kept pushing back the date to determine how bad this year was, 2000’s, early 1990s, early 1980’s, etc… until now we have reached the big enchilada.   Either 2009 will be the year of recovery or they will say 2009 was the worst year…..Ever.  I hope Obama comes in and shows real leadership and stops these bailouts and focuses on getting our market confidence back and getting jobs growing.  No amount of credit will matter if someone can’t pay the monthly bill.  Good luck and I am going to stay hopeful but realistic.

News:

Wall Street closed out its worst year since the Great Depression on Wednesday after an unstoppable credit crisis and a dreadful economic outlook left investors questioning their faith in stock markets.

A string of financial disasters culminating in the collapse of Lehman Brothers in the middle of the night in September precipitated the third biggest percentage loss ever for the Dow industrials and the broad S&P 500.

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The End of Wall Street’s Boom

November 13, 2008 by · Leave a Comment
Filed under: Opinion 

If you have read Liar’s Poker then you know who author, Michael Lewis is.  His original book was about the excesses of Wall Street in the 80’s and a insiders tale of what it was like in the investment firm, Salomon Brothers.  This article is very intriguing and sucked me into Lewis’s tale that covers our current events and even revisits some of Liar’s Poker to give some context.  

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