Consumerist
movies
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goldman sachs
Goldman Secretly Bet On Housing Crash
A 5-month investigation by McClatchy Newspapers has found that Goldman secretly bet on the housing crash, went out and pimped the dickens out of assets it knew were junk, and may have broken securities laws in doing so. McClatchy found that Goldman... More » -
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science says
Either Have The Temerity To Hold Stocks Or Get Out Of The Market
One of the first studies of the recent market splat found that the investors most likely to be crushed thought they were investing for the long haul, only to be forced into cashing out at the worst possible time. According to the study, cleverly titled "When Everyone Runs for the Exit," there are only two good ways to react to a liquidity crisis: hold onto your portfolio and trust that it will recover, or fold immediately to limit your losses. More » -
wall street meltdown
Malcolm Gladwell Deeply Offends Wall Street By Comparing Them To Overconfident Gamblers
If you're looking to see the collapse of Bear Stearns explained using the British defeat at Gallipoli as an example of disastrous overconfidence, you can do no better than Malcolm Gladwell's new piece in the New Yorker. Be forewarned, however, that Wall Street apparently thinks it's a load of crap. More » -
sec
New Consumer Agency May Steal SEC's Thunder
After the bang-up job the Security and Exchange Commission did to prevent Wall Street shenanigans from plunging the economy into the abyss, the White House is looking to form a new commission to step in and do the SEC's job. More » -
economy
Nation's Only State-Owned Bank Earns Record Profits, Wall Street Salivates
The Bank of North Dakota is the only state-owned bank in America. It also reaped record profits last year. [Mother Jones] (Photo: afiler) -
confederacy of dunces
AIG To Use Bailout Cash To Pay $165 Million In Bonuses. Yes, Seriously
So, those guys at AIG who underwrote trillions of dollars worth of credit default swaps backed by securitized mortgages? The ones the Times says were "at the very heart of A.I.G.'s worldwide conflagration?" They're taking $165 million of our bailout money for bonuses. Because if we don't pay them, these people—described by AIG's government-appointed Chairman Ed Liddy as the "best and brightest talent"—will apparently leave to go ruin some other country's financial system, and we can't have that. Liddy acknowledged that the bonuses were "distasteful and difficult" before saying that he had "grave concern about the long-term consequences" of not paying up. More » -
Career Options
Gray Lady To Wall Street Failures: Why Not Become A Clown?!
Hey, Wall Street failures, have you considered an exciting new career as a document shredder? How about working as a butler? Ok, ok. Would you work as a clown? Seriously! According to the Times, it's a perfectly valid "career option" for washed up investment bankers. "Even sad clowns are a hoot at a birthday party." And the Times is full of other helpful suggestions... More » -
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economy
NYC Mayor Wants To Spend $45 Million Retraining Investment Bankers
New York City Mayor Michael Bloomberg wants to spend $45 million in government money retraining investment bankers, brokers and others who have lost jobs on Wall Street, says the New York Times. More » -
bailouts
Gee, How Much Does A Bailed Out Executive Make, Anyway?
The New York Times is reporting that the Obama administration announced a $500,000 pay cap that prohibits bonuses for any companies that take additional taxpayer assistance. More » -
chump change
Government Imposes $500,000 Executive Pay Cap On Bailed-Out Companies
President Obama and Treasury Secretary Tim Geithner have announced a $500,000 maximum wage for employees of companies that receive taxpayer support. The rule will only apply to companies that receive future bailout funds. Oh, also, you're going to be bailing out more companies. More » -
wall street bailout
Despite Economic Disaster, Wall Street Collected $18.4 Billion In Bonuses
Bonuses are for a job well done, right? Well, despite the economic disaster, it seems that the folks on Wall Street rewarded themselves with $18.4 billion in bonuses in 2008, which is around the same amount as they received in 2004 — when the Dow was "flying above 10,000, on its way to a record high," says the New York Times. More » -
dick fuld
Lehman Brothers CEO "Sold" $14 Million House To His Wife For $100
Dick Fuld is in the news again — this time for selling a $14 million Florida house to his wife for $100. No one is quite sure why he felt he needed to do this, but some are speculating that he may be trying to hide assets from Lehman Brothers shareholders in case they are getting ready to sue to him. More » -
citibank
Citibank Will Split Into Two Companies, Promises To Lend To Consumers
Vikram Pandit, CEO of Citigroup, announced today that the company would be split after reporting a net loss for 2008 of $18.72 billion. He also promised to put the money from the $700 bailout to work by extending credit to consumers and businesses... responsibly. More » -
wall street bailout
Federal Reserve: Don't Get Excited, We're Not Done Bailing Out Banks Yet
Federal Reserve chairman Ben Bernanke said that the $800 billion stimulus plan being discussed by the new administration might "provide a significant boost to economic activity," but that it wouldn't work without more bank bailouts. More » -
money meltdown
Investors Willing To Pay The Treasury To Borrow Their Money
Here's a sad bit of news, investors are so shaken that they're willing to put their money into Treasury bills — even if it means losing money. More » -
money meltdown
WaMu Told Washington That Adjustable Rate Mortgages Were Safer Than Some Fixed Ones
The Associated Press says that a review of regulatory documents shows that years before the subprime mortgage crises developed into a full blown economic meltdown— the government ignored warnings and listened instead to lobbyists who represented some of the same banks that have now failed. More » -
money meltdown
Stock Market Pleased By New Phase Of Bailout
Today the Federal Reserve announced the creation of a new special purpose entity that will buy consumer and business debt. Under the new plan, the Treasury will provide $20 billion dollars in of credit protection (from the Troubled Asset Relief Program) — and will absorb most of the losses, should they occur. More »
