December 20, 2007

Sarbanes and Oxley must be wondering what's taking so long to raid the offices of MBIA (and all the other corrupt REIC)


Frog marches and seizures. We want frog marches and seizures!!!

But they better hurry. The paper shredders are probably working overtime today at places like MBIA, IndyMac, Countrywide, WaMu, Fannie Mae, Freddie Mac, Sallie Mae and oh so many more...

MBIA Bond Risk Soars on $8.1 Billion CDO Disclosure

"We are shocked management withheld this information for as long as it did,'' Ken Zerbe, an analyst with Morgan Stanley in New York, wrote in a report yesterday. ``MBIA simply did not disclose arguably the riskiest parts of its CDO portfolio to investors.''

32 comments:

Brian said...

I'm long paper shredders and handcuff manufacturers

Brian

Anonymous said...

SOX has done more damage to the economy than good.

Anonymous said...

I'm S-H-O-C-K-E-D, I tell you.

Just the tip of the iceberg. Look out below.

bank dick said...

"Sarbanes and Oxley must be wondering what's taking so long to raid the offices of MBIA (and all the other corrupt REIC)"

Remember the Gramm-Rudman spending caps that were supposed to stop deficit spending? Remember how Congress ignored them for ten years?

There's your answer Keith. Like FASB Rule # 157, SOX is irrelevant when the SHTF.

Believe me, that fan is laboring mightily right now.

borkafatty said...

Na they are not doing anything illegal or trying to hide anything, they are just making confetti for the up and coming New Years celebration.

Nothing to see here...go back to watching American Idol reruns.

stuckinthecity said...

cant last tooooo much longer can it??

randy said...

2003
Dear banker, I own an asset that is made of gold which I would like to use as collateral to borrow money against, so that I can finally get me that red Ford F250 crew cab 4x4 with a full size bed.
Sure thing Randy, but understand that if you miss a payment we’ll come and take that golden house.
Ha, no prob… It’s a House!! We’re talking about here; worse case I’ll just refinance who cares about ‘rates’, $100 bucks a month wont make a dent in my finances, RE broker said that in 5 years this golden house of mine will be worth triple what it is today.
Woo Hoo.. Life is good

2006
Dear wifey, uh oh..
What?
You know our golden house?
Yeah?
Well, how should I put it…. It’s not like pure gold.. its more like gold plated.
Oh!@#$%
But it’s still gold and pretty shiny.

2007
Dear wifey, uh oh..
Wifey, Wiiifey!! (oh damn I miss her. Ahem I mean her steady job)
Anyway, You know our gold plated house?
Well, it’s not really gold at all; our house was coated in high gloss spray paint
from Home Depot (made in china and is now peeling)
Oh shoot!! This reminds me; the 12 ‘no payment’ months are up on that snow blower and pressure washer, Home Depot will probably expect payments beginning next month.
Come to think of it I never really used the damn pressure washer, why in the world did I buy it,. Oh right, was suppose to clean the driveway.
Hey wait!!!! This is Home Depots fault they should have never lured me in with that 12 month free plan.

No No wait I get it!
It’s the damn FED, (Why are these guys always ugly can’t they ever have a pretty young lady running the FED?)
Well, who cares; I had nothing to do with this mess, The FED allowed home depot to carry high gloss gold colored spray paint. and now I owe each month about 4 times what I earn.
Matter of fact if it was not for the FED my wife would have joyfully stayed around, paid the bills, clean my clothing, cooked my food, sucked my smellies, and curled up next to my horn blowing snoring with love.

Ahh, I have a plan…
Put this house up for sale, by now it’s worth a mint, I’ll probably get rid of it in about a week.

Realtor! What do you mean it won’t sell for more then $250K?
But but but, you said when I paid $469k and then re-fi’d for $650k that it wont be a problem selling in 07 for $999k

Randy, the market has had a sudden change, because of the media.
Damn damn damn! The media, they are ruining everything.

Oh man I’m all confused I need to find a ‘single point of blame’ it can not be me!

ForWhomTheTollBuilds said...

One of the contributors on Swann's blog did a post called "The Perfect Real Estate Investment VS A Million Monkeys"

It's important to read if you want some validation of how you always knew these godammned "innovative finance" people would respond to the crash they always said was impossible.

Read the comments too...

Anonymous said...

don't forget the water and fire damage at Cheney's office!

Disgruntled said...

I am gonna take my GOLD, MAN, and put it in a SACK.

Anonymous said...

http://tinyurl.com/2ybfyf

CNn Money's take on all of this. BLUF (Bottom Line Up Front):

"Wall Street is a big wheel that is moving the same losses in a circle and only postpones the ultimate reckoning and makes it much worse."

Andrew Hac said...

American = Greed, Immoral.

It is a shame that this once-great-nation is coming down to this Enron gutter level. And the individual Americano is responsible for this decline. Most Americanos are immoral and greedy without regard to other people's live or environment. Look at McMansion and SUV.

I hope all who drive SUV die a horrible death !

Anonymous said...

The problem with SOX rules and anything else that relates to accounting is that it is all estimates. So everybody put garbage into the financial models and garbage came out. They used foreclosure rates from 2002-2005 in their lending models and thought that foreclosure rates on subprime would stay at 1% forever. The people who knew better and spoke up were routinely fired for getting in the way of revenues. Look at what happened at Merrill Lynch. Anyone who opposed their headfirst dive into the CDO pool was fired by Stan O'Neal. New Century had goons walking about with baseball bats threatening the fraud and risk management departments. Yes, management at these companies are guilty of fraud etc. However, they can always get around the laws by saying they had these PhD eggheads from Harvard and MIT who created these financial models that predicted everything would be ok.

Anonymous said...

Frog marches? Forget that. Make them all Ron Paul food testers. Replace every one after each CFR hit.

Gavin said...

Anon @ 3:43

Let's see your evidence. I've seen plenty of off-the-cuff annoyed CFO's who don't like the fact that they're being held PERSONALLY liable for their statements - but no data to support those claims.

It costs money, yes.. but its only value is in preventing incidents like this one from occurring.

What did you expect - an inherently positive benefit to regulation? Nope - its sole benefit is to prevent things like this from occurring.

Frankly, because bankers clearly cannot be trusted, I am more convinced than ever that SarbOx is the only possible correct move.

Edgar said...

Nobody rich goes to jail keith. Michael milken? A few months at a country club. Ken Lay? deceased. Keating? A few months at a country club. If anyone goes to jail it will be for complaining about all the corruption, and that would be you.

Anonymous said...

Keith,

You want frog marches? The way the US has been run for the past several years and averaging out the median American IQ, dont you think the only march we'll be seeing is Angelo Mozilo marching all the way up to the White House as our next President and Commander in Chief?

Come to think of it, I'll bet he'll even get elected twice, right after he sends us all into World War Three!

P.S. Do you think China will give Mozillo a Cash Out Refi when he's at the White House (Or has BUSHY BOY already done that?)
(and if that happens, can the White House be foreclosed upon?)

Yoski said...

Management witholding bad news, in corporate America!? I am shocked!

Anonymous said...

To all of the HP'ers out there. You folks keep dreaming and believing that our economy is going to collapse. Keep dreaming and thinking that. You folks have done that for the past thirty years. The economy will continue to grow and move forward while you folks who are wishing for the worst will lose even more money. So keep renting, buy gold and silver, stay in your mom or dad's basement and stock away lots of water and canned goods and keep preparing yourself for the impending financial disaster you keep dreaming off. You guys are a bunch of losers.

Anonymous said...

Andrew Hac said...
'American = Greed, Immoral. blah blah blah.'

Europeans = maggots

fraud101 said...

SOX is a joke. One of the biggest lessons of Enron was ignored. Off balance sheet bull$hit.

dougr100 said...

Ok, you cropped the photo. To see why Kenny Boy was really smiling, see:
http://www.stopdubya.com/images/ken-lay.jpg
On a positive note, Hollinger scam artist Conrad Black (Connie to his new close, personal friends) is getting 6 and a half years of Federal Time!
:)

satan said...

Just an interesting question (or series of questions)

Have any of you considered the true nature of the effect of this monetary crisis on the world.

Many people think that the US will be the worst affected.. I counter that and say that it is Europe and China that will be the worst hit.

Europe has demographic problems, which will ensure that it will continue to sink. It's commitments to it's aging citizens combined with their xenophobia will condem them a slow descent into obscurity. The worst thing is, they have got immigrants from the wrong part of the world for their future. and the asset bubble is worser there than in the US

Many people think that China will do Ok. But much of the statistics from China is based on data manipulation that would make Enron and the Federal reserve look like choirboys. Their forex reserves and T-bills would not cover half their bad loans. At the moment no one is saying anything, because of consistent growth and more people entering the workforce, profits etc.

But think for a moment, who would they sell stuff to if there was a severe recession in the US and W. Europe. Their economy is geared towards export and jobs created from manufacturing stuff, which others will buy. No that different from homebuilders *S*

They do not and cannot consume most of what they produce

The moment the growth stops or stalls, they are screwed and all the tensions that the government has kept a lid on will slowly bubble up. People are on their best behavior only when they feel that things will be better in the future, so far the economic growth has kept them occupied. and yes they have a bad hosuing bubble too..

India is a peculiar country in that unlike china it's growth is fuelled mainly by internal growth. While many here might think that outsourced jobs are behind india's economic growth, they form only a minority of the growth. However india has a horrible government and bureaucracy (still). Hard to predict.. and they have a bad housing bubble too

Russia had the rest of europe by it's balls now (energy).. and though it has a declining population, I would not rule them out (europe will be more energy dependant on russia in the future).. but they have a bad hosuing bubble too..

Any thoughts?

miner_tom said...

Read this incredibly scary article concerning the "bond underwiters" or bond insurers. Probably lots of folks that read this blog are now aware of the plight of MBIA and its ilk. This one could make the housing/subprime fiasco look mild by comparison....and it is unfolding as we speak.

http://www.financialsense.com/
fsu/editorials/willie/2007/1220.html

TM said...

Gavin,

SOX is a joke. It is a real pain in the arse for those of us who are honest and so have to follow it and be in real compliance. But for liars, it's just as easy as it ever was: they just lie on their SOX packets. What's one more lie added to the pile?

Remember also that all these shenanigans are going down in with SOX in full effect. See for yourself how effective it is.

Anonymous said...

Nobody rich goes to jail keith.

How about the WorldCom executives and all the Enron crooks? The Adelphia execs.

Anonymous said...

Satan said:
The worst thing is, they (Europe)have got immigrants from the wrong part of the world for their future
--------------------
Really? So Putos we have from south of the border are better?

Peahippo said...

Speaking of shredding, this link:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_A/threadview?m=te&bn=607&tid=40087&mid=40087&tof=4&frt=2#40087
OR
http://tinyurl.com/yp6sa7

... by Yahoo poster "beallsy" alleges that in the AHM bankruptcy (AHMIQ.PK; about 2 cents per share, and still falling), the court is being blatantly petitioned to allow them to shred the original loan docs (you know, the ones full of MORTGAGE FRAUD, like overstated income, overlooked debts, and added charges that the so-called borrower was not told about (but signed for anyway, since nobody reads the documents at closing anymore -- what?)):

"Last week they had their attorneys petition the bankruptcy court to 'destroy, shred or burn" all of the originial loan files. They want to save the $45,000- a month to maintain storage. The files with all the dirt. The cutting and pasting of documents will be covered up."

Peahippo said...

forWhomTheTollBuilds, here's the link to "The Perfect Real Estate Investment VS A Million Monkeys":

http://www.bloodhoundrealty.com/BloodhoundBlog/?p=2395
OR
http://tinyurl.com/2gja6o

Predictably, the conclusion is buy, Buy, BUY ... since "times are tough" is a good reason! How strange, since when times were good, the REIC said the same thing. Is there EVER a BAD time to buy real estate? Apparently not! Yet the foreclosures continue to increase.

Just in case my response to Mr Brown doesn't make it past his moderation, I said this in response to his article:

"Jeff, Robert Kerr's statement is correct, and your response doesn't address it. Successful investors don't become successful by catching falling knives. In order to understand what a falling knife looks like, I cordially invite you to read the Housing Panic and Housing Bubble blogs for a week or two ... with all due respect, of course.

A housing crash happens with sticky prices that stairstep downward, as people who observed the peak fail to understand the nature of the crash and buy in ... only to hold, then take a loss when they sell out in disgust. Prices climb more steeply, and people take more of a price differential as profit in the same way. But the collapse happens by loading up losers with incremental losses. In effect, they "flip that loss". The spectre of falling prices does spook people into unloading faster ... certainly faster than rising prices compel people to sell to take the profit.

Of course, the outright stupidity of the recent credit environment alters that picture from the previous housing bubbles and busts. People are more likely to just walk away from a paper loss, since at high LTVs, they have little investment in the matter in the first place (i.e. "skin in the game"). So, we're going to see more people hold for longer times, before just walking out and leaving the lenders with a larger loss per property. The stairsteps will be either longer or steeper, in comparison to historical norms."

Anonymous said...

The Republicans won't enforce the existing laws and the Democrats keep passing new laws that punish the law-abiding citizens.

Anonymous said...

‘Anonymous said...
Satan said:
The worst thing is, they (Europe)have got immigrants from the wrong part of the world for their future
--------------------
Really? So Putos we have from south of the border are better?’

Satan, right on!

Anon: YES, Putos we have from south of the border are much better.
Overwhelming majority of Putos, risk very much to just have a better life for themselves and their children.
The Arab invasion into Europe is planned and funded by their origin countries to Islametise the west. (as always, religion is used to organize the sheeple, but ultimately they are in Europe to expand their influence).
It’s all being done with no resistance (no war).
In the very near future when times get tuff, and all the people need to share the local resources, Europeans will find themselves competing with an angry, full of resentment people, that are already established deep into every area of society.
Things are gonna get ugly.

Princess Mononoke said...

December 20, 2007 9:28 PM

Very true Edgar! It's either get pardoned by our Commander & Thief or country club for a few months...

Now that's real justice! Our leaders at every level are fine role models for this new generation. [\sarcasm off]