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Recent Articles
- Goldman Sachs-AIG: It's Likely Worse Than You Think - January 13, 2010
- The Goldman Sachs-AIG scandal may be worse than we think. Former New York Fed President and current Treasury Secretary Timothy Geithner is being castigated for paying...
- With Failed Banks, Bigger Might Be Better - November 9, 2009
- There seems to be a consensus that the severity of last fall's financial meltdown was exacerbated by the existence of big, interconnected banks. And so the hunt is on...
- Washington's Systemically Incompetent Regulators - October 26, 2009
- The Obama administration's New Foundation for financial regulatory reform aims to "provide the government with the tools it needs to manage financial crises." In framing...
- Game Theory Exposes PPIP As Fraudulent - April 9, 2009
- This is a microcosm of what the Public-Private Investment Program (PPIP) is intended to do: create an incentive for investors to pay $90 for a bet that is only worth...
- What Did Paulson Know, When Did Geithner Know It? - March 24, 2009
- Now, what is material to you and me might not be material to Goldman Sachs. But I would wager that if we were to define “material” as “more than the $165 million...
- Goldman Sachs's AIG Double Dip? - March 18, 2009
- On the surface, this bailout has always looked unseemly. As we dig deeper, it appears downright scandalous. First we must follow the money. Starting last September,...
- AIG's Demise Speaks to Mark-to-Market's Importance - March 11, 2009
- Or at least somebody knew. And the way they knew was by marking-to-market the assets AIG Financial Products had insured. AIG is now turning into a scandal of the...
- The Myth of Systemic Collapse - March 4, 2009
- The concept is straightforward. A large bank fails, and its counterparties, to whom it owes money, also fail and so on in a domino effect. Those who support this theory...
- Go With Bankruptcy Over Nationalization - February 27, 2009
- The complexity of big banks has been overemphasized. When we consider a large bank’s balance sheet, the parts that matter are not all that complicated. Imagine a big...
- Stress Testing Is What Got Us Here - February 20, 2009
- For the uninitiated, stress testing is a process whereby banks calculate their capital adequacy at statistically unlikely but possible extremes. It has been done for...
- Let Big Banks Fail, but Save Finance - February 11, 2009
- The populist view has a populist appeal, and this is perhaps why the government is struggling with all the different manifestations of socializing the risk. The “bad...
- Don't We Have Enough Bad Banks? - February 4, 2009
- At what price will the assets be hived off, sold to the Fed, or put into a “bad bank?” The SUPER-SIV idea, originally proposed in late 2007 by Citibank, J.P. Morgan...