Greed on Wall Street Prevents Good from Happening – Room for Debate – NYTimes.com

16 Mar

In this research we looked at the ethical conduct among society’s haves and have-nots. In one study we found that wealthier subjects cheated more. After five apparently random rolls of a computer die for a chance to win some cash, wealthier participants were more likely to report scores higher than 12 — even though the game was rigged so that scores higher than 12 were impossible. When we positioned assistants at four-way traffic stops and pedestrian zones, wealthy drivers in high-priced cars were more likely to cut off other drivers or ignore pedestrians. In still other studies, the wealthy were more likely to lie in negotiations and endorse unethical behavior at work, like deceiving clients for profit. Wealthier subjects even took more candy from a jar that was ostensibly for children.

via Greed on Wall Street Prevents Good from Happening – Room for Debate – NYTimes.com.

Tags: ,

Elizabeth Warren has asked Congress to stop the secret bailout of AIG, and so should you.

16 Mar

The issue is about something called “net operating loss,” which in normal circumstances allows corporations to use losses in one year to offset their future tax bills.

But when companies are taken over, as AIG was when the government spent over $100 billion to keep the company afloat, they are supposed to be barred from using their net operating loss in this way.

Here’s where things become suspect. In 2008 the Treasury issued a special waiver to a handful of companies, including AIG, that allows for their net operating losses to offset taxes owed to the government.

At a time of brutal budget cuts at all levels of government, it would be simply unconscionable for Congress to allow for a multi-billion dollar subsidy to AIG’s shareholders and executives.

Go to the link below and sign the peitition.

via Elizabeth Warren has asked Congress to stop the secret bailout of AIG, and so should you..

Tags: , ,

Wall Street’s Latest Campus Recruiting Crisis Sparked by Goldman Controversy – NYTimes.com

15 Mar

The best and the brightest don’t want to work on Wall Street anymore.

College students who were once attracted to prestigious banks like moths to bonfires are increasingly turning to other industries in search of success. Insiders say that pained testimonials of industry life can scare off would-be financiers from even applying for jobs at the most selective firms.

“This is a significant problem for Goldman,” said Adam Zoia, the chief executive of the placement firm Glocap Search, whose clients include many aspiring big-bank employees and hedge fund workers. “Their perch of being the investment bank to go to is definitely at risk.”

One former Goldman analyst recently decided to leave the firm after the rewards of a finance job no longer seemed to outweigh the costs. The former employee is now working at a small technology start-up for less money.

via Wall Street’s Latest Campus Recruiting Crisis Sparked by Goldman Controversy – NYTimes.com.

Tags: , ,

Op-Ed Cost Goldman Sachs $2.15 Billion Yesterday – Business – The Atlantic Wire

15 Mar

Greg Smith’s unflattering glimpse into Goldman Sachs’ corrupt culture triggered a financial blow to the firm Wednesday, as the company lost $2.15 billion of its market value, making Smith’s 1,283-word op-ed worth a whopping $1.675 million per word.

Goldman Sachs, as Bloomberg reports, saw it shares drop 3.4 percent in trading Wednesday

But they’ll make it up in volume.

via Op-Ed Cost Goldman Sachs $2.15 Billion Yesterday – Business – The Atlantic Wire.

Tags: ,

The Purpose of Occupy Wall Street Is to Occupy Wall Street | The Nation

15 Mar

Occupy Wall Street. What other political movement in modern times has won the sympathy and/or support of the majority of the American public—in less than two months? How did this happen? I think it was a revolt that has been percolating across the country since Reagan fired the first air traffic controller. Then, on September 17, 2011, a group of (mostly) young adults decided to take direct action. And this action struck a raw nerve, sending a shock wave throughout the United States, because what these kids were doing was what tens of millions of people wished they could do. The people who have lost their jobs, their homes, their “American dream”—they cathartically cheered on this ragtag bunch who got right in the face of Wall Street and said, “We’re not leaving until you give us our country back!”

By purposely not creating a formal, hierarchical organization with rules and dues and structure and charismatic leaders and spokespeople—all the things their parents told them they would need in order to get anything done—this new way allowed people from all over the country to feel like they were part of the rebellion by simply deciding that they were part of the rebellion. You want to occupy your local bank—do it! You want to occupy your college board of trustees—done! You want to occupy Oakland or Cincinnati or Grass Valley—be our guest! This is your movement, and you can make it what you want it to be.

via The Purpose of Occupy Wall Street Is to Occupy Wall Street | The Nation.

Tags: , ,

Bank of America: Too Crooked to Fail | Politics News | Rolling Stone

14 Mar

It’s been four years since the government, in the name of preventing a depression, saved this megabank from ruin by pumping $45 billion of taxpayer money into its arm. Since then, the Obama administration has looked the other way as the bank committed an astonishing variety of crimes – some elaborate and brilliant in their conception, some so crude that they’d be beneath your average street thug. Bank of America has systematically ripped off almost everyone with whom it has a significant business relationship, cheating investors, insurers, depositors, homeowners, shareholders, pensioners and taxpayers. It brought tens of thousands of Americans to foreclosure court using bogus, “robo-signed” evidence – a type of mass perjury that it helped pioneer. It hawked worthless mortgages to dozens of unions and state pension funds, draining them of hundreds of millions in value. And when it wasn’t ripping off workers and pensioners, it was helping to push insurance giants like AMBAC into bankruptcy by fraudulently inducing them to spend hundreds of millions insuring those same worthless mortgages.

But despite being the very definition of an unaccountable corporate villain, Bank of America is now bigger and more dangerous than ever. It controls more than 12 percent of America’s bank deposits (skirting a federal law designed to prohibit any firm from controlling more than 10 percent), as well as 17 percent of all American home mortgages. By looking the other way and rewarding the bank’s bad behavior with a massive government bailout, we actually allowed a huge financial company to not just grow so big that its collapse would imperil the whole economy, but to get away with any and all crimes it might commit. Too Big to Fail is one thing; it’s also far too corrupt to survive.

via Bank of America: Too Crooked to Fail | Politics News | Rolling Stone.

Tags: , , ,

What corporations don’t want you to know – U.S. Economy – Salon.com

14 Mar

In terms of full-on misleading, as the New York Times reported in a 2011 story about the proliferation of “functional food” labels, federal regulators are now concerned “that some packaged foods that scream healthy on their labels are in fact no healthier than many ordinary brands.” ..

Information, as the old saying goes, is power. And when we consider all of this in totality, it’s clear corporate America recognizes the truth in the aphorism. Companies, in other words, understand that for all the fact-free vitriol constantly thrown at the basic concept of regulation, government regulations that increase information simply expand consumer power over the market. That may threaten companies that want to continue poisoning us, but as a political goal, consumer empowerment shouldn’t be so controversial.

via What corporations don’t want you to know – U.S. Economy – Salon.com.

Tags: , ,

Live Blog: Reacting to Goldman Executive’s Resignation Letter – NYTimes.com

14 Mar

The Greg Smith resignation letter has gone viral. Here’s a live blog of responses.

In a frank opinion column for The New York Times, Greg Smith, a Goldman Sachs executive, explained on Wednesday why he was resigning from the firm.

Mr. Smith, who was head of Goldman’s United States equity derivatives business in Europe, the Middle East and Africa, said clients’ interests were sidelined in how the firm operated and thought about making money. Mr. Smith placed the blame for this cultural change on top management, including Goldman’s chief executive, Lloyd C. Blankfein, and its president, Gary D. Cohn.

via Live Blog: Reacting to Goldman Executive’s Resignation Letter – NYTimes.com.

Rising Sea Levels a Growing Risk to Coastal U.S., Study Says – NYTimes.com

14 Mar

Nonprofit Climate Central is releasing research on vulnerabililty to coastal flooding.

About 3.7 million Americans live within a few feet of high tide and risk being hit by more frequent coastal flooding in coming decades because of the sea level rise caused by global warming, according to new research.

If the pace of the rise accelerates as much as expected, researchers found, coastal flooding at levels that were once exceedingly rare could become an every-few-years occurrence by the middle of this century.

To check out your vulnerability, you can search this map by ZIP code.

via Rising Sea Levels a Growing Risk to Coastal U.S., Study Says – NYTimes.com.

The report is available online here. From the executive summary:

Global warming has raised sea level about 8 inches since 1880, and the rate of rise is accelerating. Scientists expect 20 to 80 more inches this century, a lot depending upon how much more heat-trapping pollution humanity puts into the sky. This study makes mid-range projections of 1-8 inches by 2030, and 4-19 inches by 2050, depending upon location across the contiguous 48 states.

Rising seas dramatically increase the odds of damaging floods from storm surges. For over two-thirds of the locations analyzed (and for 85% of sites outside the Gulf of Mexico), past and future global warming more than doubles the estimated odds of “century” or worse floods occurring within the next 18 years — meaning floods so high they would historically be expected just once per century. For over half the locations analyzed, warming at least triples the odds of century-plus floods over the same period. And for two-thirds the locations, sea level rise from warming has already more than doubled the odds of such a flood even this year.

These increases are likely to cause an enormous amount of damage. At three quarters of the 55 sites analyzed in this report, century levels are higher than 4 feet above the high tide line. Yet across the country, nearly 5 million people live in 2.6 million homes at less than 4 feet above high tide. In 285 cities and towns, more than half the population lives on land below this line, potential victims of increasingly likely climate-induced coastal flooding. 3.7 million live less than 1 meter above the tide.

About half of this exposed population, and eight of the top ten cities, are in the state of Florida. A preliminary independent analysis suggests about $30 billion in taxable property is vulnerable below the three-foot line in just three counties in southeast Florida, not including the county with the most homes at risk in the state and the nation, Miami-Dade. Small pockets or wide areas of vulnerability, however, exist in almost every other coastal state.

Tags: , , ,

Why I Am Leaving Goldman Sachs – NYTimes.com

14 Mar

Goldman Sachs is broken, and now takes a predatory view of its clients. Is current management just blowing it up to inflate the trust funds they’ll leave to their grandchildren in an environmental disaster?

For more than a decade I recruited and mentored candidates through our grueling interview process. I was selected as one of 10 people (out of a firm of more than 30,000) to appear on our recruiting video, which is played on every college campus we visit around the world. In 2006 I managed the summer intern program in sales and trading in New York for the 80 college students who made the cut, out of the thousands who applied.

I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work.

When the history books are written about Goldman Sachs, they may reflect that the current chief executive officer, Lloyd C. Blankfein, and the president, Gary D. Cohn, lost hold of the firm’s culture on their watch. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival.

via Why I Am Leaving Goldman Sachs – NYTimes.com.

Tags:

← Older Entries
Newer Entries →