In 2008, GE was desperately calling the US Finance secretary to say ‘we are about to default’ AiG was bailed out so that Goldman Sachs could be saved AiG was paying its traders (hold your breath 30% of Revenue) for bringing deals, mind you not a %age of profits, but gross revenue JP Morgan, Morgan […]
The US government is pouring out AID this week to a number of financial companies under several of its recently instituted ‘support’ programs. Citigroup, Goldman Sachs Group, JPMorgan Chase & Co., Wells Fargo, and GE Capital are now in various stages of selling bonds backed by the government, thus lowering the rates they would have […]
Many people have asked me what is the starting point of the “sub-prime” problem. This is really very difficult to answer. Relaxing of credit standards in US, over-leveraging by the Investment banks, spending far, far beyond one’s ability to repay..all of them can be taken to be the starting point. However, 2-3 events are remarkable […]