Joshua M Brown

Hot Links: AIG Hearings, Class of '09 and Fed Open Thread

Hot Links for Weekend Reading The big happening in Bailoutland this week was, without a doubt, the Senate hearing on the Notorious A.I.G. bonus scandal.  Whenever a disgraced Wall Street executive is called onto the Congressional Carpet, you can be sure that Dealbreaker‘s Bess and EP are going to Liveblog it for your reading pleasure….

TGIF: Definition

This week was all about Definition.  Defining what contracts really allow for was at the center of the debate over the AIG bonuses. Congress did the right thing and defined its power by approving a 90% tax on the bonus money, essentially negating the BS contracts anyway. I also tweaked the definitions of certain finance terms the…

Modern Day Gomorrah: Goodbye Greenwich Culture

If NYC’s Meatpacking District was Sodom, with it’s teeming masses of 20-something investment bankers running across cobblestone streets waving Amex Black Cards and puking off the side of luxury hotel rooftop bars, then surely, Greenwich, Connecticut was the modern-day equivalent of Gomorrah. One of the particularly offensive attributes of the 2003-2007 bull market was the rise…

The Career Politician Who Sucks at Politics

I’ve really only heard Christopher Dodd‘s name peripherally over the years.  The Career Democratic Senator from Connecticut’s name has been popping up more and more now that his constituents are starting to learn about how much he loves rogue financial corporations. From the New York Times: Across Connecticut, anger is erupting against Mr. Dodd, the…

The Rambo Fed

From Bloomberg: U.S. central bankers decided yesterday to buy as much as $300 billion of long-term Treasuries and more than double mortgage-debt purchases to $1.45 trillion, aiming to lower home- loan and other interest rates. The Fed kept its main rate at almost zero and may keep it there for an “extended” time. The moves…

David Friehling: Madoff Henchman #1

So, they got the accountant yesterday.  His name is David Friehling and he inherited an accounting business in New City from his father-in-law which he proceeded to turn into a gristmill for the Madoff fraud, falsifying SEC filings and auditing statements for $186,000 in fees a year. Nice guy, wonder what’ll happen to him in…

FOR SALE: AIG World Headquarters at 70 Pine Street

    FOR SALE:  Charming 2-bed, 2-bath 66 story office tower in scenic downtown New York.  Built in 1932, previous occupant was quaint insurance company, very neat.  Property includes 5 star chef-staffed “breakfast nook”, on-site vault for holding bonus cash, and super computers to calculate CDS risks, available for new tenant purchase, please inquire.  Breathtaking…

The New Glossary of Finance Terms

The New Glossary of Finance Terms Bonus:  A form of extortion whereby employees of a company extract either shareholder or taxpayer money for their own pleasure regardless of the success or failure of said company. Derivatives:  Trading vehicles created by over-educated  finance professionals for whom speculating in stocks and bonds was not quite risky or volatile enough. Bulge…

Kidz Korner: Where Do Bonuses Come From?

Kidz Korner is a new feature here on The Reformed Broker where I explain complex financial issues to kids from the neighborhood in a simple, straightforward way. _______________________________________________________________________________________ Little Timmy Johnson: Gee Mister, I sure do hear a lot on TV about all these bonuses people are getting…am I going to get one? The Reformed…