What do you guys think of this? I think its a pile of horse sh*t personally. Its a bunch of politicians and government regulators scrambling to exhibit some semblances of competence. I really don't believe these guys misled anyone, last time I checked it wasn't illegal to have an ego(within reason), IMO they thought they could regain control and avoid catastrophe.
The government is a joke. They are consistently dropping the ball and scrambling to earn their keep by finding a scapegoat.
These two guys got screwed by Bear, The Street & the whol;e industry. The bought into the BS that you don't show weakness or in this case losses. If they had any balls whatsoever they would've been straight from the get go. They made stupid mistakes and tried to hide them. They forgot that "the markets always right." They should've unwound peacefully and quietly. But no! They had to dodge and weave. Well, all their shuck & jive didn't get them Sh*^ except for a oneway ticket to Federal Prison. I've read the indictment -- they're toast!
Cheers.
You're absolutely right, unwinding of 2 multi-billion dollar hedge funds could have single handedly prevented the credit crisis; especially since unwinding the funds could have been done in a vacuum with little to no impact on the broader market.
LOL @ picture!!
Well, nobody said a career on Wall Street is a safe option. If you want that, become a doctor. If those guys weren't arrogant no one would give them money, problem is if they lose it all they become the fall guys, and since they were the first, they are the big time fall guys.
Honestly, if anyone should be investigated by Congress, it should the American public. They signed up for sub-prime loans, bought houses they couldn't afford, drove cars with too big gas tanks, lived on credit, and most likely had/have overcharged bank accounts.
screwed themselves. Let's not for one second think they are blame free (whether or not they deserve prison is for someone smarter than me to decide).
No one seems to remember Everquest. Bear (and in particular Mr. Cioffi) tried to throw together an IPO of a shell company to take a bunch of crap off the books of the failing hedge funds and pass on the risk. (http://www.businessweek.com/bwdaily/dnflash/content/may2007/db20070511_…) If this doesn't prove exactly how much trouble they KNEW these funds were in, I don't know what does.
This is about accountability. There are "failed" hedge funds like Jeff Larson's Sowood that understood the peril and shut down quickly, thinking first of their investors' money. Funds like Amaranth and the Bear ones failed because they lied and kept going to the point of no return. Failed may go down in history as just that, but to investors, there is a HUGE difference between getting back 50 cents on the dollar vs. 10 cents.
And re: the American people, sometimes they need to be protected from guys like Cioffi. No need to rehash all the arguments, but these people weren't sold a home they couldn't afford, they were given a mortgage they couldn't afford, and those mortgages were sold to investors who were lied to about the risks, and when those with the power to do something about it realized, they were either too greedy or too scared to get in the way of those who were, so it got out of control and now we're seeing the effects.
I seem to be in the minority here. I did just read the indictment and it is compelling but lets see what type of evidence is presented and if it hold up.
we'll see what sticks. (FYI evidence not evident). Whatever happens to them, nothing will change. New tricks will replace the old ones. Boeski went to jail; Milken too. Their schemes went mostly by the wayside, being replaced be more sophisticated ones.
We'll see what -- if anything -- comes from these two sacrifical lambs' slaughter.
so, yes, what they did was wrong. But the issue is that it's so rampant and accepted on WS , or anywhere really, that why should only these two guys take the fall? It's pretty redic that this entire BS mess falls on the heads of these two guys.
They were screwed by everyone beside and above them. It's a dog-eat-dog world, and they were the ones that didn't cover their tracks well. Simple as that.
Rex Grossman is such a pussy...
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