She has a real problem when taxpayer money was promised to be spent one way and it was not spent as promised. How can financial institutions still think life it still business as usual. Wall Street can’t see that is is business as usual.
Goldman, J.P. Morgan take heed please. What is the business model, gambling? This is what she is debating, is this the model we have today? I see a lot of this same business model creeping it’s way into health insurance too, as they are tied at the hip to Wall Street as well. Certainly sounds like it to me. Read a recent post of mine at the link below, it is gambling all driven by technology, robotic investment creating and carving money out of places where it should not be. Harvard University just took a 1.3 billion dollar hit.
“And so what do those big money makers use: Robotic Investing Software and you can buy some robots online, but you can bet it’s not all the proprietary code that Goldman uses.
One company said set your algos and go golf, the robot will do the rest, so that’s how they do it with the right hardware and connections. So this is how they live, set the algos and can spend the rest of the day leisurely or adjust the robot at any time. This is what makes big bonuses, basically wagering.”
You might also want to read about the Human Hedge Funds and get caught up on the latest scheme on Walls Street, betting against human life longevity with disease based groups of bonds. If you have a chronic condition, read up here relative to life insurance policies and the new game. BD
Elizabeth Warren, chair of the Congressional Oversight Panel, is the rare public official who doesn't mince words.
But Warren admits to being "speechless" at reports of record bonuses on Wall Street.
Comparing the situation today vs. a year ago, Warren observes:
- Even Too Bigger to Fail: A year ago the big concern was systemic risk and how to deal with 'too big to fail' firms, she recalls. Now "the big are bigger, we wiped out a lot of small folks and there's more concentration" in the banking system.
- Still Toxic: TARP was created explicitly to remove toxic assets from bank balance sheets. "They're still there by and large."
- Stress Test Failure: Unemployment has "blown through" the worst-case scenario in the stress test from February, Warren notes. But "we haven't repeated the stress test, or revealed any more information about what's going on inside these financial institutions."
In sum, "all the things going on [a year ago] that were serious, serious problems for the financial institutions seem to me are still serious, serious problems," she says.
Finally, Warren pulls no punches when it comes to her criticism of former Treasury Secretary Hank Paulson for his failure to put any restrictions on or monitoring of the initial TARP funds, and for using the money for something other than "toxic asset relief," as originally intended.
Hat Tip: Pharmagossip