Goldman Sachs Congressional Hearing Video 1 [Tourre, Birnbaum, Sparks, Swenson]

This hearing was actually very boring. The Goldman Sachs employees (former) managed risk pretty well though during the hearing. Here is the video with CEO Lloyd Blankfein, CFO David Viniar and Chief Risk Officer Craig Broderick. Goldman should start a reality show.

Joshua Birnbaum: Former Goldman Sachs Managing Director, Structured Products Trading
Daniel Sparks: Former Goldman Sachs Department Head, Mortgages
Michael Swenson: Goldman Sachs Managing Director, Structured Products Trading
Fabrice Tourre: Goldman Sachs Executive Director, Structured Products Trading




I think these illiquid, over-the-counter debt deals with zero price transparency, that rely solely on credit ratings to price risk, need to go. Seriously a bank should originate debt securities just like an illiquid micro-cap stock, offer it to the public and make markets on a public exchange. Check out Secondmarket.com (a secondary market for illiquid assets), I think it's an interesting concept. The bigger the market gets, the more efficient it will be. It would be an avenue for banks, institutions, hedge funds and high net worth individuals to buy or unload illiquid assets with less marketability risk and better pricing.

Also mortgages should be traded like bonds, moving inversely with housing prices. Read this article by George Soros at WSJ.com in 2008 - Denmark Offers a Model Mortgage Market. Cut the BS!

Comments

  1. As Jimmy Paige once wrote - or was it Robert Plant? - "It makes me wonder". I wonder what defect it is in the psychological makeup of a group of human beings that would have them putting the health and well being of millions of other human beings behind the private profit of a very few. Most of these lawmakers who live in the pockets of the Plutocracy call themselves "Christians". Have they ever made a serious study of the books? You know! - Matthew, Mark, Luke and John? - Those guys! How do they justify their actions? How do they sleep at night? We're talkin' major hypocrisy here! That's what makes them so much fun to watch! I always get a certain twisted delight in watching their fake piety. Imagine Wendy O. Williams being cast as Bernadette of Lourdes; or Marilyn Manson as Mahatma Gandhi. It's kind of the same thing.

    Sooner or later our right wing friends, within the Congress and without, are going to be forced to admit that the era of anything goes deregulation was a really stupid idea. You can only sit calmly in a burning house, ignoring the flames all about you, for just so long. Sooner or later you'll be forced to flee for your life. After making your escape, if you still refuse to acknowledge that the house is indeed on fire, you're beyond the point where you can make rational decisions on your own. You've entered Librium Country, hombre!

    http://www.tomdegan.blogspot.com

    Tom Degan

    ReplyDelete

Post a Comment