so republicans don’t want new regulations for the finance industry

22Mar08

hmmm. i guess it pays if the secretary of the treasury is a former investment banker. well besides this, i think if tax payers are bailing out these large organizations then we (as tax payers and the people in power should be just our extended arm) should be able to ask for a bit more oversight in the future. especially since these guys are quite greedy.  the last couple of years that led to this big fuck up in the market made a ton of money for a lot of people in the finance industry. how much you wonder? 

New York City securities industry firms paid out a total of $137 billion in employee bonuses from 2002 to 2007, according to figures compiled by the New York State Office of the Comptroller. Let’s break that down: Wall Street honchos earned a bonus of $9.8 billion in 2002, $15.8 billion in 2003, $18.6 billion in 2004, $25.7 billion in 2005, $33.9 billion in 2006, and $33.2 billion in 2007.  

 this is from a business week article that actually asks for more oversight from washington. but bush and his cronies don’t really care if people fuck up (remember brownie and katrina? well or bush and 9/11?) actually most times those that fuck up the biggest get the biggest prices. and so it isn’t really surprising to see that now the republicans are not really interested in putting in place some safeguards that would prevent something like this current crisis in the future: 

But both President Bush and Mr. Paulson, a former chief executive of Goldman Sachs, remain philosophically opposed to restrictions and requirements that might hamper economic activity.  

 but to me, any industry that has such an impact and has as part of its risk management a classification like this one 

Level 3 values are based on “unobservable” inputs reflecting companies’ “own assumptions” about the way assets would be priced. That would be market talk for best guess, or in some cases SWAG (as in Simple Wild-***ed Guess.)  

 … need more regulations. 

Filed under: economy, mid to long term risk   |  Leave a Comment
Tags: bush, compliance, economy, fed, regulations, republicans