Comments on: EU stress tests: who knows, who cares? Insights behind the investment headlines Wed, 16 Nov 2016 21:43:49 +0000 hourly 1 By: andreapsoras Sun, 25 Jul 2010 02:41:47 +0000 Thank you Chris. Most helpful to understand the European framework of its various financial ‘sub’ systems versus the States.

I could use this as a soapbox against 1. increasing amounts of Fair Value used in US financial reporting especially permitted to be used by agency at our Financial institutions, especially at the Big Financials and running their non cash, ‘market’ gains thru the income statement to give some sort of gravy train to serve as if management is doing a ‘great-job’ to warrant their way over board pay packages, and keep the dividends and/or engage in stock buybacks largely to support aside from capital adequacy concerns, but agency’s self interests because it now too thinks it’s like an ‘owner’ in a bank.

Now many ‘owners’ today don’t understand these financial institutions, or the financial system, let alone understand in spite of agency abuses via the trading of instruments they do not have the capital nor collateral to trade, let alone to write and trade against the resources of the enterprise, it’s our system and we do have to be on top of it, clean it up and not leave it compromised or able to collude with the European Financials so as to cause global financial problems and avoid or shed any consequences, feel a claw-back only of 2008 remuneration, etc.

I suggest we leave the Europeans to their own devices over there, require them to adequately capitalize to run here, which perhaps would encourage them to pack up their tents and call it a day, and stick to their own knitting at home rather than feel some compulsion to collapse the EU economy with more adds to the EU (while looking for us to give $500B to the IMF), with more commercial abuses in their own societies that we should avoid putting ourselves there and even agency avoiding wasting of the banks’ owners resources in places like the PRC.

That Chris reminded us that again, public companies there and the quality of disclosure about their financial status is significantly different enough with very few Americans skilled enough to parse their prose, fluently speak their languages to understand their commercial meanings, and ah, what and how they go about their business and the way we go about ours should be left be. Our heckling them to run or report or abide in the way ours do, puts us at risk for their self interests on us both there and here.

So they can have their Basel, they can have their reporting, they can have their fair value so that they can goose their earnings with their balance sheet management or what have you. It’s bad for us to adopt that, and here to laud or support it among our own, but it also would disserve us to erode to the manner in the way we’ve let the European reporters even to fail to reconcile with US GAAP if those foreign reporters trade over our exchanges. What did we do for the EU to think we’re their back yard and can feudalize us in their way? We weren’t fools to let the oceans and few shrewd men help us to withdraw from the self interests of Europe’s royalty, it’s cadre of high level agents and its bankers.

Our problem is we let our bankers control us and not suffer any consequences for problems of letting people who conceitedly think they’re expert about the money, when they’re not and they’re costing US voters between $10T to $16T in order for the markets to be flush for our bank players to trade and have higher mark to markets flushed by the voters’ wallet. Since that’s the way in Europe, that our money changers had the power to hijack our economy, pull of their enron and the voters risk that agency will have enriched in this plunder with impunity.

At least in Europe, agency there wasn’t paid anywhere near what it is paid here. Here however, we need to stop letting men at the top who have the insight of clerks while paying them huge amounts of money to slam their companies into the wall, like enron, running in negative cash-flow, and using liquidity mechanisms to given them liquidity when we need to fire many of those senior managers or as Chris has said at other times, bring in the parents. It certainly isn’t what Frank and Dodd passed, nor while Derivatives are trading OTC is the problem solved with the wallets of the voters of all the sovereigns are the final backstop in all ISDA agreements. Until this backstop is removed, there or here, nothing holds managements’ feet to the fire. Nothing unless it’s on their own dime. So if there isn’t bailout on the back end that up to this point has impuned agency in its recklessness when the voters’ wallet has been on the back stop in every or any ISDA agreement, removing this should enable agency to stand on its own 2 feet and their well healed shoes and figure out their own way instead of being about as swift and/or as principled as ah, Andy Fastow. or some other time serving miscreant who slammed their company into the wall and got sent to the ‘bighouse’.

By: takloo Sat, 24 Jul 2010 01:41:47 +0000 forget about reporting standards…they don’t even have the same language!

By: Gotthardbahn Fri, 23 Jul 2010 13:56:25 +0000 My my, what a well-argued piece. I’m sitting here watching the Euro trade sideways and equities do nothing, waiting for a report at noon EST that, prior to reading the above article, I honestly believed would settle this issue. Now I’m not so sure.