Felix Salmon

When financiers align themselves against Wall Street

By Felix Salmon
January 13, 2014

It’s more than 18 months since Mortgage Resolution Partners (MRP) first came to general public attention, and since I wrote three substantial posts explaining exactly why, as the headline of the first post says, “using eminent domain for liens is a bad idea”. The idea is still a bad one, but it lives on — and now Shaila Dewan has delivered a 2,500-word piece in the NYT about its status in Richmond, California — the town where it is closest to being enacted.

10 Reasons Barry Ritholtz Is Wrong About Gold

By Felix Salmon
January 11, 2014

Barry Ritholtz has been receiving a lot of praise for his 2,500-word Bloomberg listicle “10 Reasons the Gold Bugs Lost Their Shirts”. Which is weird, because it’s deeply flawed. Here, then, are the top ten places he goes wrong:

The shame of Cooper Union

By Felix Salmon
January 11, 2014

The Cooper Union Board of Trustees today managed to snatch defeat from the jaws of victory. It was a depressing and yet entirely predictable vote, which resulted in a depressing and yet entirely predictable statement.

Under the weather

By Felix Salmon
January 10, 2014

13 months ago, the Hurricane Sandy jobs report was released — the one for November 2012. Analysts were bracing themselves: a lot of people hadn’t been able to work that month, due to bad weather. But in the end, the report was not that bad: 146,000 new jobs were created in the month, and the unemployment rate nudged down to 7.7%. Markets, which had been expecting a mere 80,000 new jobs, were positively surprised.

Blameless Blackrock

By Felix Salmon
January 10, 2014

If you want a good test of whether someone is an ideologue on the subject of bank prosecutions, just have them look at today’s agreement between Eric Schneiderman, the New York attorney general, and Blackrock. If they think it makes perfect sense, and that Schneiderman should have pursued this line of prosecution, and that Blackrock has been behaving badly, then they will never find a bank prosecution they don’t love. Because this thing is an utter farce.

Why Zions needs to bite the bullet and sell its CDOs

By Felix Salmon
January 9, 2014

It’s hardly news that in the run-up to the financial crisis, some banks created highly-toxic collateralized debt obligations, and other banks bought those highly toxic CDOs and put them on their balance sheets. The result was that when the crisis hit, and the CDOs plunged in value, a lot of banks needed to take a lot of write-downs.

The invincible JP Morgan

By Felix Salmon
January 8, 2014

When JP Morgan paid its record $13 billion fine for problems with its mortgage securitizations, the bank came out of the experience surprisingly unscathed, in large part because Wall Street reckoned that the real guilt lay mainly in the actions of companies that JP Morgan had bought (Bear Stearns and WaMu) rather than in any actions undertaken on its own watch. There was a feeling that the bank was being unfairly singled out for punishment — a feeling which, at least in part, was justified.

NYT vs Pirrong and Irwin: David Kocieniewski responds

By Felix Salmon
January 8, 2014

At the end of December, I wrote about the non-scandal of Scott Irwin and Craig Pirrong, a response to a hit-piece in the NYT by David Kocieniewski. Later that week, Kocieniewski offered to answer questions about his article, so I provided some. Here are my questions, along with Kocieniewski’s answer:

Why movie studios happily violate journalists’ copyright

By Felix Salmon
January 7, 2014

The white-goods queen of Eighth Avenue asks my opinion on @aoscott adgate. I take requests, over here, so: is it kosher for a movie producer to selectively quote from the Twitter feed of the NYT’s movie reviewer, in a print ad, even when the reviewer in question explicitly said he would not give permission?