In this column, co-published with New York Times’ DealBook, Jesse Eisinger monitors the financial markets to hold companies, executives and government officials accountable for their actions.
Under terms being negotiated with state attorneys general, banks would be allowed to treat second liens like first mortgages — and to avoid coming clean on the true extent of their losses.
Later this month, the Federal Reserve is going to let banks know how they did on its most <a href="http://www.nytimes.com/2010/11/18/business/18bank.html?_r=2">recent round</a> of “stress tests.”
Looking inward in the grand tradition of American self-improvement, the investment bank promises to be nicer and more transparent, but ignores the structural problems that helped ignite the financial crisis.
Two weeks ago, Standard & Poor’s put out a press release: The credit rating agency warned it was poised to <a href="http://www.bloomberg.com/news/2010-12-15/s-p-says-it-incorrectly-analyzed-re-remic-mortgage-bonds.html">downgrade</a> almost 1,200 complex mortgage securities.
You may have noticed that prosecutors in this country are in something of a white-collar slump lately.
The regulatory overhaul of the financial system that passed last summer scored a big victory: It barred investment banks’ wagering with their own capital. Many expect Wall Street will find a way around these rules.
Across the world, there are booms. Chinese Internet companies are flourishing. Energy companies are finding new sources of power. Commercial real estate is coming back.