Use access key #2 to skip to page content.

The sky is blue!

Recs

26

May 05, 2010 – Comments (13)

And in the realm of other blindingly obvious statements:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1O0dY1lKM3M&pos=4

May 5 (Bloomberg) -- James “Jimmy” Cayne, the former chief executive officer of Bear Stearns Cos., said he believes leverage at the company was too high.

“In retrospect, in hindsight, I would say leverage was too high,” Cayne said today in testimony before a panel mandated by Congress to investigate the causes of the financial crisis.

In other news:

Water is wet.

13 Comments – Post Your Own

#1) On May 05, 2010 at 6:13 PM, ContraryDude (33.67) wrote:

If hindsight is 20/20 is it still blindingly obvious?  And what are some other synonyms for retrospect?

Past results are no guarantee of future returns...

Report this comment
#2) On May 05, 2010 at 6:27 PM, binve (< 20) wrote:

ContraryDude ,

>>If hindsight is 20/20 is it still blindingly obvious?

Because it didn't require hindsight to know that 30:1 leverage (which was effectively much higher than that) would lead to calamitous results. It was blindlingly obvious from the outset. The risks were simply ignored..

Report this comment
#3) On May 05, 2010 at 6:32 PM, DarkToast (41.89) wrote:

I think they misquoted him. I believe the real quote was:

“In retrospect, in hindsight, I would I was too high,” Cayne said

Report this comment
#4) On May 05, 2010 at 9:22 PM, binve (< 20) wrote:

DarkToast , LOL! nice one :)..

Report this comment
#5) On May 06, 2010 at 12:27 AM, Tastylunch (29.48) wrote:

I have to admit I love Jimmy Cayne the cariacture,

Dude worked hard  and played hard. Exactly the kind of simple dude that I think of old school Wall Street, before the nerds made it into a weapon mass destruction with their derivative contagion.

Seriously though anyone who think he was repsonsible for Bears' collapse is kidding themselves, All I ever heard was him getting wasted and playing poker into wee hours. I doubt he was really making many decisions on anything there.

I doubt he worked ten hours a week the four+ years he was  at Bear. which is probably good since he was pretty washed up at the end.

If the Fed had just let Bear go under in a controlled manner it would have been a funny story. Now it's a national tragedy.

 DarkToast

That was very nice. :)

Report this comment
#6) On May 06, 2010 at 12:50 AM, binve (< 20) wrote:

Tastylunch ,

Hey Tasty!

>>Seriously though anyone who think he was repsonsible for Bears' collapse is kidding themselves, All I ever heard was him getting wasted and playing poker into wee hours. I doubt he was really making many decisions on anything there.

Oh I totally agree. The fault lies with risk managers who were asleep at the wheel, and buyers basing decision on arcane pricing models. The problem is that (not only at Bear, but all over the industry) everybody ignored risk because shitty models gave them a false sense of security (or they ignored it out of pure greed): Of Modeling, Risk, Financial Innovation, and Liquidity Crises - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=344745.

Thanks man!..

Report this comment
#7) On May 06, 2010 at 1:13 AM, Tastylunch (29.48) wrote:

no doubt man

no doubt

btw was thinking about congress not you , if that wasn't clear. ;)

Report this comment
#8) On May 06, 2010 at 1:57 AM, binve (< 20) wrote:

LOL! Yes, I knew what you meant :). If it were me doing the interviewing, it would not be with an out of touch CEO :). But interviews with CEOs don't really solve much. It just makes for good political theater. Interviewing risk manangers and buyers would give a lot more insight into the risks that were taken (which were excessive). Thanks man!.

Report this comment
#9) On May 06, 2010 at 8:36 AM, lemoneater (71.39) wrote:

A pleasanter question is "Why is the sky blue?" I think God took great pleasure in making our world functional and beautiful at once. I like to ponder the blueness of skies and the wetness of water.

Sometimes I get so disgusted when I think about the ugliness and disorder of our financial/political world that I have to think about things that are right about my existence--the color of an iris, the taste of lemonade, the conversation with a friend. Well, enough beautiful thoughts. Sometimes my optimism is too much for my husband so I imagine I'm a little much for other people at times:)

Binve, have a great day!  

Report this comment
#10) On May 06, 2010 at 9:27 AM, binve (< 20) wrote:

lemoneater ,

I like your perspective! Have a great day!!..

Report this comment
#11) On May 06, 2010 at 11:19 AM, ocsurf (< 20) wrote:

What a Bear Stearns does in the woods----or on Wall Steet.

Report this comment
#12) On May 06, 2010 at 11:22 AM, binve (< 20) wrote:

LOL! Thanks ocsurf :)

Report this comment
#13) On May 06, 2010 at 12:43 PM, chk999 (99.97) wrote:

Seriously though anyone who think he was repsonsible for Bears' collapse is kidding themselves, All I ever heard was him getting wasted and playing poker into wee hours. I doubt he was really making many decisions on anything there.

I doubt he worked ten hours a week the four+ years he was  at Bear. which is probably good since he was pretty washed up at the end.

This is kind of the problem. The CEO has to be the chief risk officer (in reality, if not in title) and has to ensure that the company is not taking undue risks. If the CEO is not risk concious then the rank and file won't be either the and company is going to go under.

Report this comment

Featured Broker Partners


Advertisement