Posts Tagged ‘earnings’

“Doing Fraud’s Work: A Goldman Tradition”

A few months ago Goldman’s virtuous CEO, Lloyd Blankfein, was quoted in an interview with John Arlidge of The Sunday Times of London, saying that He was ‘doing God’s work.’

In the article, “I’m Doing God’s Work.’ Meet Mr. Goldman Sachs,” Blankfein went on to state that Goldman was part of a virtuous cycle allowing that “they have a social purpose.”

But many contend that they are socially challenged.

Goldman executives were on Capitol Hill yesterday to testify about their involvement in failed Abacus; the securitized investment that crumbled when the housing market crashed, shortly after being put together, leaving investors with millions of dollars in losses. Goldman failed to tell investors that the person who put the package together was taking a short position in the investment. John Paulson was betting on its failure even before it was completed.

The recent charges brought by the Securities and Exchange Commission charging Goldman with failure to disclose important details to investors in the Abacus deal could be only the first of many charges that the UnVirtuous Goldman will have to face.

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“False Positives”

The markets are still bullish almost 8 months after the March 9th bottom. The Dow closed above 10,000 on October 14th and the bulls have been fighting to stay above it since then. But it has been trending below the ten thousand mark for the last 24 or so days.

The hopes were that earnings for the quarter being reported would be decent. This would give the bulls the ammunition to push the Dow and S&P still higher, well above the 10,000 mark.

So, where is the market going?

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Posted in Economy, Markets, Uncategorized, Wall Street | Comments Off

“An Opinion on Mark to Market” (reposted)

In April the Financial Accounting Standards Board, FASB, changed Mark to Market. They are now considering reinstating the Mark to Market rules.

Some are opposed to FASB getting involved, claiming it will destroy our economic recovery. But the important aspect of reinstatement is a better accounting of toxic assets still on the books of many BIG banks.

In April I commented on how rescinding Mark to Market would allow banks to hide toxic assets and mask their earnings for a couple of quarters. Here is the actual article I posted on It’s Worth and Opinion:

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Originally posted – April 6, 2009

Was the new change in Mark to Market accounting a positive thing?

The move last week by FASB the Financial Accounting Standards Board was met with a positive reaction by the markets. On Wednesday markets advanced in anticipation of a change in the Mark to Market rule. On Thursday the markets advanced even further after the board’s announcement (Dow up 201, 2%; S&P up 18, 2.3%) driven by what traders thought would be good for the banks, even those that are still deeply troubled.

Was the decision by the FASB Board more beneficial to the banks? Does it adequately protect investors? Will it be good or bad for the economy?

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Posted in Banking, Economy, Opinion, Too Big to Bail | Comments Off