March 15, 2010
– Comments (4)
Many of us have been discussing the Repo 105 scandal recently (for details see: http://caps.fool.com/Blogs/ViewPost.aspx?bpid=352908). But Macro Man has a hilarious take on it today :)
From Repo 105:
bummer won't let me embed
anyway this whole mess shows you one of the problems the IBs have. The upper managemnent has no idea how their derivatives even work. Most of the IB CEos aren't math people. So they push their math nerds to super juice them in the short term, which you know is of course bad
how can anyone reasonably expect these guys who are subconsciously pressured/rewarded by the wall street amchine's quarterly short termism to make smart decisions on these a-bombs?
Which should make you shudder when you hear Pandit's underlings at Citi are proposing creating a new one called the CLX.
Yup that will fix the problem
Perfect video :)
No kidding man. All of the BS transactions had have been know, and in fact most likely orchestrated, pretty high up. I mean companies have Cheif Technology Officers, Chief Lawyers, Cheif Risk Managers, Cheif QA. There is absolutely no excuse for a CEO to be out of the loop on some of these very big issues.
.... dear god. And yet we bail these crap institutions out over and over. ..
that was funny
Glad you liked it! MacroMan usually has a lot of wit in his posts, that's a big reason why I like reading him..