Commentaries
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from Rolfe Winkler:
Lunchtime Links 1-11
Shoddy tayloring (George Cooper) The author of my favorite book on the financial crisis now has a blog. His first post tears down Bernanke's recent speech absolving his/Greenspan's easy money policies for inflating housing bubble. It's a bit technical, but very good.
Venezuelan devaluation helps Chavez, for others it's unclear (Molinski/Crowe, DJN) Speaking to economist Steve Hanke last month about North Korea's devaluation, he predicted that Venezuela would be next. His thoughts today: "Venezuela is in a death spiral. There will be more bad news."
Hank Greenberg's self-serving, off-base salvo at Goldman (NakedCapitalism) Smith writes a great take-down of the Greenberg's "interview" in Saturday's WSJ.
Banks prepare for big bonuses, and public wrath (Story/Dash, NYT) The writers estimate that Goldman's pay will average $595k, and JP Morgan Chase investment bankers will average $463k.
Time to junk AIG
The federal government’s $180 billion effort to prop up American International Group has worked, averting an even bigger financial catastrophe. Now it’s time for the Obama administration to oversee the dismantling of the failed insurance giant with all due speed.
A report this week from the Government Accountability Office makes clear that AIG would crumble and likely reignite financial fears around the world without the government’s massive support.
AIG lunacy
American International Group is a $50 stock. Yeah. Sure. But that’s what the market says it is today so it must be.
Shares of AIG are soaring today in part because the insurer’s new CEO Robert Benmosche tells a Reuters reporter that he doesn’t intend to conduct a firesale of the company’s divisions. He also says he’s been seeking guidance from former AIG CEO Hank Greenberg–the former Wall Street titan who just doesn’t know when to go away.
Go away Hank
The Securities and Exchange Commission’s settlement with Hank Greenberg over allegations that he permitted the use of accounting tricks to manipulate earnings at American International Group comes way too late.
Oh sure, it’s great the SEC managed to squeeze $15 million out of Greenberg before agreeing to settle the more then four-year-old civil investigation. But if the SEC really had the goods on Greenberg, it should have gone after him years ago–settlement or not.
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The Wall
