Business Cycle & Economics Blog of Caleb Lawrence
Chairman Frank, Ranking Member Bachus, and Members of the Committee:
Thank you for your invitation to discuss public policy issues arising from Lehman’s failure. I will address the six issues you asked that I comment on in your letter of invitation.
Lehman’s nominal corporate governance structure was a sham. Lehman was deliberately out of control with regard to “risk” in its dominant operation – making “liar’s loans.” Lehman did not “manage” the risk of making liar’s loans. It engaged in massive, fraudulent transactions that were “sure things”.
To date Goldman Sachs has not played it’s hand well, which is surprising. As they have apparently violated SEC Rule 10b-5 in a blatant manner with both the Abacus structure itself and worse their statements regarding it after the fact.
Ethics, honesty, morality and other pleasantries may be the concern of Main Street but Wall Street clearly believes that it is beyond such trivial matters.
Dylan Ratigan MSNBC SEC files civil lawsuit against Goldman Sachs – Part 2 Source: Dylan Ratigan | MSNBC
Dylan Ratigan MSNBC SEC files civil lawsuit against Goldman Sachs – Part 1 Source: MSNBC | Dylan Ratigan
The real news today is the SEC lawsuit against Goldman Sachs alleging Civil Fraud. Involving the sale of CDO and sub-prime RMBS, allowing hedge fund Paulson and Co, to manipulate the contents of a portfolio it then bet successfully against.
RealtyTrac reported that the 1st quarter of 2010 saw the highest foreclosure activity on record with a total of 932,234 actions taken. A 7% increase from the previous quarter and 16% higher than a year ago.
Jim’s a great guy with tons of experience, the economy bad luck and misfortune finds him in difficult times. If you could use his services give him a call. Caleb Lawrence After a serious brain injury from a hit and run bicycle accident, no insurance and then losing all of his consulting gig with Merrill [...]
Despite all of this the banks have the unmitigated bleeping gall to state that principal forgiveness is unfair, yet another shining example of their blatantly outrageous behavior that goes well beyond any sense of decency and or fairness.
Hi and welcome to The Profit Motive, I’m your host Caleb Lawrence. Once upon a time in America the media acted as the watchdog of the corporations and the state. In the modern era it’s all about ratings and profits, opinion has been substituted for news and frequently is presented as fact. 
