FARK.com: (6724140) What will Wall Street learn from a bunch of MFers? A) nothing B) nothing C) Absolutely farking nothing

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		What will Wall Street learn from a bunch of MFers? A) nothing B) nothing C) Absolutely farking nothing (foxbusiness.com)		19
		More: Obvious, MF Global, Wall Street, investment portfolio, Gary Gensler, bank runs, corporate governances, DeLorean, Commodity Futures Trading Commission

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1758 clicks; posted to Business » on 11 Nov 2011 at 12:17 PM | Favorite | share:

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19 Comments (+0 »)

thomps

2011-11-11 09:31:24 AM

if they didn't learn anything after lehman, there's no way in hell they'll learn anything from mf global.

Yomoxu

2011-11-11 12:18:40 PM

thomps: if they didn't learn anything after lehman, there's no way in hell they'll learn anything from mf global.

Done in one, folks. Someone hit the lights on the way out.

CPennypacker

2011-11-11 12:26:59 PM

MF Global was leveraged 80 to 1

EIGHTY TO ONE

Lehman was closer to 30

And they want OWS to propose solutions? Here's a solution: NO!

Fail in Human Form

2011-11-11 12:41:53 PM

Wall St learned their lesson very well. If you're big enough, you can force the government to bail you out and you must make sure to put your people in the right positions to ensure there will be no strings attached to the money. Seems to me that it's the citizens of this country who failed to learn their lesson.

Wireless Joe

2011-11-11 12:49:51 PM

There's not lesson to be learned; they've already figured out that you need to get your bonuses before you go bankrupt.

AcneVulgaris

2011-11-11 12:57:46 PM

Fail in Human Form: Wall St learned their lesson very well. If you're big enough, you can force the government to bail you out and you must make sure to put your people in the right positions to ensure there will be no strings attached to the money. Seems to me that it's the citizens of this country who failed to learn their lesson.

Economic terrorism is insanely profitable.

Debeo Summa Credo

2011-11-11 01:26:12 PM

Well, I don't know if anybody read TFA, but the lesson to be drawn is make sure you keep enough liquidity (I.e., cash on the balance sheet) so that you can weather unexpected storms.

Yet I hear people on fark complaining all the time that the banks are "hoarding" cash to the detriment of the economy.

Whom to believe?

thomps

2011-11-11 01:42:20 PM

Arkanaut

2011-11-11 01:56:47 PM

Debeo Summa Credo: Well, I don't know if anybody read TFA, but the lesson to be drawn is make sure you keep enough liquidity (I.e., cash on the balance sheet) so that you can weather unexpected storms.

Yet I hear people on fark complaining all the time that the banks are "hoarding" cash to the detriment of the economy.

Whom to believe?

I think the complaint is about corporations in general "hoarding" cash instead of hiring, not necessarily banks specifically. Although from what I've heard and read loan criteria have swung from absurdly loose before the financial crisis to absurdly tight now, and that's hurting.

Another thing -- as I understand it, bank capital ratios have to do with shareholders' equity vs liability, not cash to loans. You can lend cash without expanding the liability column of your balance sheet.

Debeo Summa Credo

2011-11-11 01:56:57 PM

thomps: Debeo Summa Credo: Well, I don't know if anybody read TFA, but the lesson to be drawn is make sure you keep enough liquidity (I.e., cash on the balance sheet) so that you can weather unexpected storms.

Yet I hear people on fark complaining all the time that the banks are "hoarding" cash to the detriment of the economy.

Whom to believe?

not sure how those are mutually exclusive. commercial banks should be lending their cash, investment firms shouldn't be levering themselves to the tune of 80 to 1.

FTA:

Thanks to more than $165 billion in cash sitting on its balance sheet, BofA successfully beat back an attack earlier this year by buying its own debt, Bove said. Similarly, Morgan Stanley's $182 billion in liquidity enabled it to thwart an attack in September and October.

"The lesson perhaps from MF to all financial companies is you better have a high level of liquidity the way banks do," said Bove. "If you're not liquid, you can be taken apart."

BoA is a 'commercial bank', wouldn't you say? "high level of liquidity the way banks do" implies that prudent banks keep a high level of liquidity, no?

So they are mutually exclusive. You can derisk and maintain a higher capital buffer, like Dodd-Frank, Basel III, and obvious post-crisis hindsight would have you do. Or you lend with reckess abandon, which would admittedly benefit the economy in the short run. You cannot have it both ways.

Debeo Summa Credo

2011-11-11 02:02:10 PM

Arkanaut: Debeo Summa Credo: Well, I don't know if anybody read TFA, but the lesson to be drawn is make sure you keep enough liquidity (I.e., cash on the balance sheet) so that you can weather unexpected storms.

Yet I hear people on fark complaining all the time that the banks are "hoarding" cash to the detriment of the economy.

Whom to believe?

I think the complaint is about corporations in general "hoarding" cash instead of hiring, not necessarily banks specifically. Although from what I've heard and read loan criteria have swung from absurdly loose before the financial crisis to absurdly tight now, and that's hurting.

Another thing -- as I understand it, bank capital ratios have to do with shareholders' equity vs liability, not cash to loans. You can lend cash without expanding the liability column of your balance sheet.

Capital ratios are capital to risk weighted assets. Cash is less 'risky' of an asset than loans, so you hurt this ratio if you lend excess cash.

And corporations are hoarding cash for somewhat of the same reasons banks are. Although regulators aren't forcing them to hold more cash, they have learned from the crisis that it is prudent to hold a cash buffer, and also recognize that the new more risk-averse banking business and regulatory model means they will have less access to bank funding if a crisis arises.

Cinaed

2011-11-11 02:03:27 PM

CPennypacker: MF Global was leveraged 80 to 1

EIGHTY TO ONE

Lehman was closer to 30

And they want OWS to propose solutions? Here's a solution: NO!

Um... your logic train either ran completely off the rails, or you skipped a few key tinfoil-hat-crazy steps.

SDRR

2011-11-11 03:57:51 PM

C, C, THE ANSWER IS C!!!!

1nsanilicious

2011-11-11 04:19:15 PM

Subby's headline is misleading. I thought the article was going to be about the Occupy Wallstreet derps. The answer is still c).

Clickscope

2011-11-11 07:13:26 PM

They will learn the art of the JUMP YOU MFers!!

Zombie Butler

2011-11-11 09:19:23 PM

thomps: if they didn't learn anything after the tulip bubble, after Barings, after Enron, after lehman, there's no way in hell they'll learn anything from mf global.

Yea they never learn or worse all of that Hubris they hold on to so dearly really plays havoc with the memory centers of the brain.

Ishkur

2011-11-12 12:26:49 AM

What is for them to learn? ....they're not affected by it.

The severe inequitable distribution of affluence for the past thirty years has given rise to a class of opportunistic plutocrats who have deliberately insulated themselves from the consequences of their decisions.

They don't care if the rest of the world goes hungry, because they won't. They are psychopaths.

We are trying to get these people to care when they clearly don't. The only reasonable solution, then, is to violently overthrow them. With extreme prejudice.

John Henry Eden

2011-11-12 10:47:28 AM

thomps: if they didn't learn anything after lehman, there's no way in hell they'll learn anything from mf global.

And when you see one cockroach in a house it means there's more. This was basically this year's version of Bear Stearns. The other proverbial shoes have yet to drop.

cefm

2011-11-14 03:12:55 PM

See, you want it to be one way, but it's the other way.
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