I always sort of liked Henry Paulson when he was President Bush’s Treasury Secretary. He was an appealing figure. Oh, the chrome-dome gave away his age, but his big frame still looked formidable, his athleticism underscored by the sports watch that peeked out from underneath his suit-coat sleeve. And even though Paulson was from Goldman Sachs ( GS ), a bank on the front lines of the Meltdown That Wall Street Built, he also had the know-how to fix it. Continue reading Books@DailyFinance: Henry Paulson’s Meltdown Memoir Books@DailyFinance: Henry Paulson’s Meltdown Memoir originally appeared on DailyFinance on Tue, 02 Feb 2010 16:15:00. Filed Under: Fannie Mae , Goldman Sachs , Bank of America , Citigroup , Freddie Mac Permalink | Tweet this! | Comments

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Books@DailyFinance: Henry Paulson’s Meltdown Memoir

Filed under: Economy , JP Morgan Chase A report by the Congressional Oversight Panel credits the $700 billion Troubled Asset Relief Program with keeping the financial system from collapsing in late 2008, according to The New York Times . But the panel also criticizes Treasury Secretary Tim Geithner for keeping TARP’s purpose vague — leading some in Washington to think that any extra TARP funds are free money they can spend as they chose. I disagree. TARP’s real purpose has been achieved, so we ought to declare TARP triumphant and put the program into liquidation mode. This means no more writing checks from the TARP account, and trying to maximize the amount that the government collects from selling warrants and getting funds back from the banks that were lent the money. Unfortunately, that’s not quite the way it’s going to play out. Today, Secretary Geithner announced that TARP would be extended until October 2010. Continue reading Financial meltdown averted: We ought to fold up the TARP Financial meltdown averted: We ought to fold up the TARP originally appeared on DailyFinance on Wed, 09 Dec 2009 13:45:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Financial meltdown averted: We ought to fold up the TARP

Filed under: Economy , Investing I have to hand it to FDIC Chairwoman Sheila Bair — the former UMass economics professor gets it right on key policy issues. She is right about ending the doctrine of too-big-to-fail , and now she is proposing an idea that I’ve been pushing with no effect for years. That idea is to align the interests of the banks that bundle assets and sell them as securities — so-called asset-backed securities — with those of ABS investors. Before getting into the details of her proposal, I should disclose that I am not entirely objective in analyzing it. I worked with the FDIC back in the early 1980s to help build a system to manage the liquidation of the assets the FDIC gets when it helps find partners to absorb failed banks. And I have posted repeatedly about the idea of putting bankers’ pay in escrow as a way to align the interests of those who create investments with those who buy them. Continue reading FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives originally appeared on DailyFinance on Sun, 22 Nov 2009 14:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives

Filed under: Economy , Investing , One Year Later Lehman Brothers’ bankruptcy filing on Sept. 15, 2008 set off a nuclear winter that’s still chilling the bones of global finance and commerce a year later. Of course, Lehman’s monumental collapse was just one in a series major financial and economic blows, and while the world may not have ended, it sure is different today. Informed with the perspective gained from time–and hard experience–Daily Finance writers and editors have put together a must-read multifaceted special report covering world’s new landscape. The topics we’ve examined range from how total catastrophe was averted to the still unreformed architecture of Wall Street, from the lessons investors have (and haven’t) learned to where things might go from here. In between, we’ve laid out the impacts on white collar workers, consumers and even celebrities. And don’t miss the gallery of art and design inspired by the meltdown. No matter what your particular interest, in the series of “One Year Later” articles listed below you’re sure to find information and insights you won’t get anywhere else. (Click here or the headline above to see the full list.) One Year Later: To hell and (almost) back? Lessons we (should have) learned from the crash Continue reading Special Report: The financial meltdown, one year later Special Report: The financial meltdown, one year later originally appeared on DailyFinance on Fri, 18 Sep 2009 18:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Special Report: The financial meltdown, one year later