Posts Tagged ‘Roddy Boyd’

A Reporter’s Notepad: My Almost Book On The Blame-Shifters

A Reporter’s Notepad: My Almost Book On The Blame-Shifters

Courtesy of Roddy Boyd, THE FINANCIAL INVESTIGATOR

Shadow Of Woman Writing

Editor’s Note: There is perhaps nothing so silly and attention-seeking as the reporter who willingly inserts him- or herself into a story for some narrative purpose or other, but I am going to make a (big) and one-time exception to this rule by posting this.

The backstory: Prior to committing to a book on AIG and its collapse, I had begun to pitch a book called “Shifting The Blame.”

The idea was simplicity itself: I’d take about eight or nine companies–from Overstock to Lehman, from Arthrocare to MBIA–who had hit the skids and who had, at some point, blamed some combination of reporters and short-sellers for their woes. As opposed to, say, embellishing their financials, lying, losing money, hiding losses, incompetence…you take the point. My goal was to fuse investigative reporting and the naturally dramatic arc of their sleazy behavior and comeuppances to make for an eye-opening read. I’d raise a few eyebrows, get some laughs, maybe make a deeper point about free speech, investigative reporting and the real scandals in the market.

My agent, summoning me to a breakfast one Saturday, said she loved the idea but, well, there was another book coming out by a fellow named Rick Sauer and it was going to hit on a few of the same themes. I lamely tried to suggest that Sauer’s book was an “Inside-the-SEC guy-turned-shortseller” type thing, where as my work was a series of inter-connected investigative essays.

No matter. The market is the market and the market didn’t, apparently, want two of these books. So I scrapped it.

This was the preface to the book, telling a story about an earnest PR guy who had the unenviable job of spinning a discredited yarn into gold for his revenge-hungry clients. I found it in a musty corner of the hard-drive and showed it to a few pretty smart former colleagues of mine who said they liked it.

I sort of do too. It’s dated, but like a hiss on an old record album, it gives it some gravity. Maybe.

The origin of this book lies with a series of phone conversations between myself and Jeffrey Lloyd, a partner at the public relations firm of Sitrick and Company, in the early autumn of 2008.

Lloyd, a courteous…
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AIG: Res Ipsa Loquitur

AIG: Res Ipsa Loquitur

Courtesy of Roddy Boyd, The Financial Investigator 

Scales

Editor’s Note: A graf was added describing the signal contribution of The Wall Street Journal’s Serena Ng and Liam Pleven in explaining the Securities Lending unit in a February 5, 2009 article. Rather than fold it into the graf where I describe how Miles Weiss and Andrew Ross Sorkin advanced the story, I chose to break it out seperately. Accountability and transparency, to say nothing of accuracy, is central to enterprise reporting and when I fall short, I seek to immediately remedy the situation.

The Financial Crisis Inquiry Commission’s document release last Wednesday doesn’t offer the curious an answer to a question that hasn’t received much play since AIG’s collapse in September 2008.

The question is: “How Did AIG really collapse?”

Not: “How did they get in trouble?” Or: “Who is to Blame?”

But rather, what led to a firm that had a AA- rating, around $160-billion in market cap and $14-billion in profits–with real cash generation capacity to boot– in fiscal 2006 effectively go out of business in September 2008?

The answer is not Goldman Sachs.

It would be exceptionally easy–for no one more so than me since as I am in the process of writing a book on the collapse of AIG called Fatal Risk–if it had though.

The picture painted of Goldman Sachs, especially from legislators in Washington D.C. and the media–nowhere more so than the business desk of the New York Times–centers largely on the now infamous series of swaps that one of Goldman’s proprietary trading desks entered into with AIG as central to its collapse. In this view, Goldman’s meticulous enforcement of so-called credit support agreements and the billions of dollars in collateral calls forced upon AIG’s Financial Products unit is seen as fatal.

Yet months of investigation into the matter suggest a different answer: What killed AIG was much more likely the financial and managerial collapse within AIG Global Investment Corporation’s securities lending program.

The management of the unit, under Win Neuger, took a portfolio that had been throwing off about four basis points of profit since inception in the 1990s and in 2005 began imposing a 30-basis point profit target. Outside of the sheer impossibility of improving margins 7.5 times, the practical hurdles to obtaining creditworthiness and liquidity were formidable. So daunting, in fact, that creditworthiness and liquidity were tossed out and a…
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Trump's 'all-out effort' on climate is derelict and risky

 

Trump's 'all-out effort' on climate is derelict and risky

Floodwaters surround farm equipment in the aftermath of Hurricane Florence near Trenton, N.C., on Sept. 16, 2018. (AP Photo/Steve Helber)

Courtesy of Sameer H. Shah, University of British Columbia; Devyani Singh, University of British Columbia, and Scott McKenzie, University of British Columbia

...

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Zero Hedge

India's NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments

Courtesy of ZeroHedge. View original post here.

IL&FS Investment Managers, a unit of India’s Infrastructure Leasing & Financial Services (IL&FS) - an Indian infrastructure development and finance company and one of the nation's largest "shadow banks" - which announced three debt defaults on Friday, said on Saturday morning its Managing Director Ramesh Bawa had resigned as managing director and chief executive officer as a management exodus begins. The company's independent directors - Renu Challu, Surinder Singh Kohli, Shubh...



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Chart School

Bitcoin Update - Bullish pressure present

Courtesy of Read the Ticker.

If Venezuela or Argentina conducted business in bitcoin then their savings and wealth would be a lot better off. Yes Bitcoin and Litecoin have been volatile over the last few years,  but nothing like Bolivar (Venezuela) or the Peso (Argentina). 

You say they could use the US dollar, yes maybe so, but those who use the US dollar have to the yield to the US Federal Reserve where as bitcoin is decentralized and those who use it yield to no one.

In the next 12 to 18 months the lightning network and atomic swaps logic will forge Bitcoin and Litecoin together as the go to crypto decentralized currency. Of course massive risk, so the investor should be warned you can lose all your funds.  

Time to review the demand ...

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ValueWalk

Blackstone President Jon Gray Talks About C Corp Status

By Jacob Wolinsky. Originally published at ValueWalk.

CNBC Transcript: Blackstone President Jon Gray Speaks with CNBC’s David Faber Today

WHEN: Today, Friday, September 21, 2018

WHERE: CNBC’s “Power Lunch

Image source: CNBC Video Screenshot

The following is the unofficial transcript of a FIRST ON CNBC interview with Blackstone President Jon Gray on CNBC’s “Power Lunch” (M-F 1PM – 3PM) today, Friday, September 21st. The following is a link to video of the interview on CNBC.com:

Blackstone president Jon Gray says company is open to, but still studying whether it should become a C-c...

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Members' Corner

Why obvious lies still make good propaganda

 

This is very good; it's about "firehosing", a type of propaganda, and how it works.

Why obvious lies still make good propaganda

A 2016 report described Russian propaganda as:
• high in volume
• rapid, continuous and repetitive
• having no commitment to objective reality
• lacking consistency

...

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Kimble Charting Solutions

Doc Copper breaking out after large decline, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Doc Copper over the past few months has been hit hard, as sellers drove it down nearly 25%.

This decline brought it to the price point (2), where four different support lines came into play, which looks like a support cluster. As the decline was taking place, momentum was hitting oversold levels.

Joe Friday Just The Facts Ma’am– This week Doc Copper is experiencing its strongest rally this year, as it breaks above steep falling resistance.

Should Doc Copper contin...



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Insider Scoop

Cantor Fitzgerald's 7 Buys For 7 Biotechs

Courtesy of Benzinga.

Cantor Fitzgerald has high hopes for patients with rare and orphan diseases. 

“We believe that biotech has entered a golden age of innovation and productivity across many therapeutic areas,” the firm said in a Friday note. Cantor expanded its portfolio with seven new neuro-innovator and platform-enabled therapeutics companies.

The ...

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Digital Currencies

Mania to Mania

 

Mania to Mania

Courtesy of 

“Russell rarely played the stock market and had little investing experience when he put around $120,000 into bitcoin in November 2017.”

This comes from a CNN money article, Bitcoin crash: This man lost his savings when cryptocurrencies plunged. From January 2017 through the peak in early 2018, Ethereum gained 16,915%.

Any time you have something go vertical, you just know that some peopl...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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