Banks face "new world order," consolidation: report

Reuters on Yahoo ^ | 3/17/08 | Walden Siew

[NormsRevenge]

... and the band played on.

Moscow parade : A Russian policeman plays the trombone
during a St. Patrick's Day parade in central Moscow.
(AFP/Michael Eckels)

[RegulatorCountry]

Financial firms face a "new world order"

What, were people not paranoid enough yet about the financial system or something?

[SaxxonWoods]

Where are all the experts around here who predicted the market would have a disasterous crash today?

Oh well, there’s always tomorrow.

[kms61]

a lot of emails on CNBC today along the lines of ‘if the investment banks are too big to be allowed to fail, they’re going to have to accept more regulation.’ That won’t be a popular idea here, but neither is letting these guys take wild swings, and when they fail, letting them walk away with their bonuses. I’d at least like to see some liability—civil and criminal—on the part of top executives and board members.

[bmwcyle]

Here is comes just like the Bible told you.

[JackDanielsOldNo7]

That is what I am saying. ANd I am not even that religious.

[Catholic Canadian]

Here is comes just like the Bible told you.

You wouldn't have any relevant links, I'd like to read further about this mess, but can't make heads nor tails of it? Thx

[Afronaut]

$2 a share, a deep discount from the $30 price on Friday

That's pretty deep!

Two words... Merrill Lynch...

[Old Professer]

Looks like the bears have made a very stern market the order of the day.

[bmwcyle]

Start reading. The signs of Bible end time prophecy are speeding up.

[wolfcreek]

People involved in the mortage mess are asking, “What about us?”

[Centurion2000]

cute

[TopQuark]

I’d at least like to see some liability—civil and criminal—on the part of top executives and board members.

Liability? For what? You invest money that is at risk. Since you know little about the matter, you hire management of a corporation to do that for you. If the management acts in good faith, there is no liability for the consequences.

YOu are being revengeful and spiteful when, in the absence of any evidence, you assume that management acted in bad faith.

With anti-capitalist sentiment so high among conservatives, it's no wonder that only socialists are running for presidency.

[kms61]

If the management acts in good faith, there is no liability for the consequences.

---

well, the Chairman played in bridge tournaments while his company burned, and as recently as last week, the CEO said Bear Stearns ‘doesn’t have a have a liquidity problem.’ don’t know if that meets your standard for acting good faith. It doesn’t meet mine.

[Etoo]

1984 (The Party) meets Alien (The Company).

They should make a movie.

[TopQuark]

the Chairman played in bridge tournaments while his company burned,

He is not supposed to have any sleep or rest because his stock is going down? It's simple, really: the company made a bet of being a niche player in credit markets --- long ago. Accordingly, the company took huge positions in that market. Those positions were accumulated over the last few years. The bet did not pan out. So, he should kill himself? Stop eating? The truth is, over the last year there was little he could do.

If you take any course in organizational behavior/leadership/social psychology, you will be told that is is mandatory for a leader to inspire confidence under all circumstances. That's what presidents do, denying recessions until it is no longer possible; that's what CEOs do. The reason is simple: if you don't, demise becomes a self-fullfilling prophecy. Before you accuse people, Mr. Conservative, acqaint yourself with the duties and obligations of management. Defaming people is hardly conservative (you do subscribe to ten commandments, don't you?)

the CEO said Bear Stearns ‘doesn’t have a have a liquidity problem.’ don’t know if that meets your standard for acting good faith. It doesn’t meet mine.

He said that, at that point in time, the company was capable to meet its obligations. That appears to have been true: the company did function this week, did not it? A week later, he also said that the position deteriorated significantly "over the last 24 hours."

Now which part is not clear to you?

[kms61]

you clearly don’t have a problem with the management of BS. I wonder how many shareholders agree with that analysis. Damned few, I’ll wager.

[TopQuark]

I wonder how many shareholders agree with that analysis. Damned few, I’ll wager.

I completely agree with your assessment. We have now two generations of whiners, raised on the motto "It's not my fault," people for whom it is foreign to take responsibility for their own actions. Average Joe and Jane are trading stocks from work in 1990s and make a ton of money. Then they lose some in 2000 --- well, we have to hang the CEOs!

The same Jane and Joe are flipping condos in Florida and Nevada, and buy the biggest house a ZERO downpayment can buy. Then, when that house goes down in price, they simply walk out --- and the rest of us pay for that irresponsible behavior. But that's not enough -- hang the entire Wall Street!

I agree with your assessment: nowadays, people look outside of themselves for the guilty party -- and both the facts and reason be damned.

[Sirloin]

If you take any course in organizational behavior/leadership/social psychology, you will be told that is is mandatory for a leader to inspire confidence under all circumstances. That's what presidents do, denying recessions until it is no longer possible; that's what CEOs do.

I've got a fairly thick skin but your extreme lack of ethics is disturbing. You're basically advocating that a leader of a company lie about the the company's health until such time that mounting factual evidence exposes the lie. Am I correct on this?

For the markets to function correctly and efficiently, investors (potential and actual) must be able to assess risk. How can they evaluate that risk if the guys at the top of the company are BSing everyone?

You should examine the type of values you have.