Biggest insurer in the world and biggest bailout welfare recipient. NY Fed honored its dud CDS contracts as a covert rescue to counterparties like Goldman, Deutsche Banks, and Soc Gen. New management allowed to defy government plan to break up the company and sell pieces to pay off taxpayers.
The best managed firm on Wall Street. When it ceased being a partnership in 1999, it turned a well oiled machine towards more aggressive and systematic exploitation of customers.
Secretive Chicago hedge fund that used a large-scale CDO program to bet against the housing market. Conservative estimates indicate it drove demand for over 50% of subprime lending in 2006.
Goldman Sachs Co-chairman. Then, as Treasury Secretary recommended repeal of Glass-Steagall and keeping derivatives unregulated. Capped it off by helping to run Citigroup into the ground, for which he was paid millions.
Treasury Secretary,gave away farm to banks in bailouts during crisis and bumrushed Congress to do it- while keeping his buddies in the know
As Treasury Secretary, Larry Summers Pushed to deregulate CDS precrisis and during crisis wanted to sprinkle “magical liquidity dust” in bailouts to banks
Chair of SEC, Continued “neither confirm nor deny” settlements and refused meaningful prosecution.
Ina Drew, former CIO of JPMorgan Chase, oversaw the “hedge” that cost them $6 billion.
Deputy Chair of NY Fed Board of Directors. Shouted down 1st mortgage settlement.
CEO Bear Stearns. Played bridge high while his firm became first investment bank to fail since Drexel, thanks to bad subprime bets.
“CEO JPMorgan Chase and Chair of NY Fed. Conflict, what conflict?
Fights aggressively and successfully against bank regulation”
Deutsche Bank trader, Gleefully shorted your house as patient zero of massively unstable CDS and CDO market.
CEO Goldman Sachs, Vampire Squid King. Admitted Goldman did things that ‘were clearly wrong and we regret’ but hasn’t changed behavior. Claimed to be doing “god’s work”.
Former CEO of Merrill Lynch. Received $161 million in compensation when he left. Shareholders were not so lucky.
Congress, stuffed themselves at trough of Fannie and Freddie and created loophole ridden regulation to make system even more obscure
CEO of Citigroup,Said in July 2007 Citigroup was “still dancing”. Retired 4 months later from MBS and CDO losses, keeping a $38million pay package.
CEO Bank of America, cluelessly acquired failed firms leading to massive taxpayer expense.
AIG Exec, constructed 500b portfolio of CDS without any meaningful capital, destroying AIG and triggering crisis
CEO Lehman, Oversaw Lehman bankruptcy, was named Conde Nast worst American CEO of all time.
CEO of Countrywide, Ran biggest mortgage lender, writing billions of bad loans while dispensing special favors to members of Congress
Accounting gimmick used by Lehman to make balance sheet look $50 billion prettier than it really was.
Enron’s favorite technique, adopted by the banks. Move the bad where people aren’t looking.
The practice of allowing businesses (but not individuals) to renegotiate defaulted loans in order to avoid taking losses on the books.
Out and out lying about how much your instruments are worth in order to avoid looking insolvent.
Good for bankers, bad for people. Prevents judges from discharging private student loans and other debts.
Enabled high-stakes betting on company and country credit. Created interconnected web that helped bring down economy.
B.S. part is right. Does not create jobs. SEC commissioner Mary Schapiro said ‘it would eliminate important protections for investors’. Then Congress passed it overwhelmingly.
After blowing up the global economy in 2008 and requiring massive taxpayer-funded rescues, major banks saw fit to pay all time record bonuses in 2009 and 2010.
The people who “regulate” big banks are the same people who made millions off them: Robert Rubin, Hank Paulson, Mark Patterson
“I’ll be gone. You’ll be gone.” Wall Street’s short-term mantra. Bankers work for fees and bonuses, often against clients’ longterm interests
Big banks take big risks with others’ money. If risks pay off, their profits skyrocket. If not, government bails them out. Either way, 1% wins, 99% loses.
How to succeed by screwing up. Failing, taking severance and then a new plum job. Only available to elite few.
Strategy to extract as much as possible from the system of unconstrained government guarantees of Wall Street and banks.
Wall Street bets against its own clients, referring to some as “muppets” and “dumb money,” “ripping the face off” the people they’re supposed to serve
Steering the poor and others into the most costly loans they cannot afford, ultimately bankrupting many.
Unregulated insurance used by Wall Street to make huge speculative bets, creating a web of interlocking risks that led to the collapse of AIG and municipal insurers.
Increasingly elaborate financial engineering to earn fees and profits and shift risk and losses to the “dumb money”.
Most egregious form of mortgage-related predatory lending. Pushed on the most vulnerable to make it appear they could afford to borrow more., frequently resulting in foreclosure and bankruptcy.
Designed to allow investment banks to issue junk as AAA. Even when errors were found, no need to fix them.
An economic theory, with no empirical support, that was used as an argument to remove financial regulation
A movement which created short-termism and allowed corporate raiders to claim they were adding value
Risk measurement which assumes nothing ever changes. Led traders to say things like “once in a million years happened five days in a row”.
Weak regulator which routinely destroyed records of investigations, sometimes right before the investigator went to work for the regulated.
Stopped regulating primary dealers in 1992. Its Large Bank Supervision found nothing to worry about in the runup to the crisis. Head of NY Fed Tim Geithner not only bailed out US and foreign banks, but also failed to impose any pay restrictions in connection with bailouts.
Supposed to regulate banks but actually coddles them.
Government branch that works to
protect the banks from regulation or prosecution.
Argued that corporations, including banks, would act in their own best interest and therefore could be trusted
moved from spokesperson for private banks as head of NY Fed to enabler of private banks for US Government