Posts Tagged ‘CDOs’

A Fascinating Executive Compensation Story - Yahoo!

A Fascinating Executive Compensation Story – Yahoo!

By The Banker | Blog Posts, Wall Street

Every once in a while – ok, every couple of weeks – we get hit in the head with a new example of how “executive compensation” and “executive performance” have close to zero correlation in practice. The key to this disconnect is typically “incentive pay” through company stock or stock options. This week’s story about Yahoo’s [&hellip

Four Factors Favoring Fabulous Fab

Four Factors Favoring Fabulous Fab

By The Banker | Blog Posts, Wall Street

Below are my reactions to the US Securities and Exchange Commission fraud suit that began yesterday against “Fabulous Fab” Fabrice Tourre, a Vice President at Goldman Sachs for structured products. From what I gather in the press, the Feds are suing Fabulous Fab for the following reasons: He sent embarrassing emails to his girlfriend revealing [&hellip

Busting the Rating Agency

Busting the Rating Agency

By The Banker | Blog Posts, Wall Street

Yo everybody 5-0! 5-0!  The cops are here! The US Justice Department filed a lawsuit yesterday against Standard & Poors, for its role in over-rating mortgage bonds, CDOs, and other securities in the years 2004 to 2007, securities which later proved to be weapons of mass financial destruction – the initial catalysts of the Great [&hellip

Book Review: The Big Short, Inside the Doomsday Machine

Book Review: The Big Short, Inside the Doomsday Machine

By The Banker | Book Reviews, Wall Street

In one obvious respect, The Big Short follows Michael Lewis’s winning formula for a blockbuster book on sports or finance: character sketches so compelling, funny, and sympathetic that he makes an arcane industry understandable by the average reader. Less recognized, but even more impressive, however, Lewis bucks the dominant trend in media coverage of the [&hellip