Andrew Ross Sorkin, The New York Times

with Andrew Ross Sorkin
in Business, Current Affairs, Books
on Monday, September 13, 2010 * * * * *

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Andrew Ross Sorkin of 'The New York Times' on financial regulation

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Keywords:
Lehman Brothers
economy
Obama

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    5. cys12141  10/24/2010 02:14 PM Report

      Sorkin needs to be in a grad school rather than at this table. His arguments are so flawed it's embarassing.

    6. Petros  10/15/2010 11:50 PM Report

      No it's called crony capitalism...

      http://www.kccllc.net/documents/0812229/0812229100907000000000002.pdf

      ...start reading from page 10, what a shame this country's become.

    7. forrestgump79  10/13/2010 04:31 PM Report

      At 08:50 in this interview Mr. Sorkin says smth like: "Ultimately, this whole thing goes down to the word DEBT".

      But hasn't debt been always in the system? Financial institutions, businesses, individuals are dealing with debt on a regular basis. Debt is the nature of things and is nothing new.

      We should ask a question: what new has happened that allowed debt to get out of control? Reasonable answer could be SPECULATION. Speculation caused high leverage and exploding debt.

      But if you think about it, speculation is also nothing new. It's been there since the beginning of time.

      So, another question should be asked: what new has happened that allowed speculation and debt to get out of control? And the answer to that is DEREGULATION. Deregulation that started in 1999 allowed for speculation and accumulation of debt.

      It is that simple - deregulation. No one likes this answer, because it's boring and evident and because this nation has been through the same mistake already right before the great depression.

      Explaining everything with debt, on the other hand, sounds more appealing: systemic failure, no one's fault.

      Debt is a very political answer and, as such, is good for another populist book!

    8. NeilMacCallister  09/27/2010 03:16 AM Report

      NOW IN PAPERBACK: 'How Washington and Wall Street Fought to Save Themselves'.

      ***

      CHARLIE ROSE: At a time when rising unemployment and the threat of a double dip recession might have taken precedence, President Obama signed into law comprehensive financial regulations to prevent the next economic crisis.

      (APPLAUSE)

      CHARLIE ROSE: To stimulate the economy President Obama has proposed raising the taxes on individuals making more than $250,000.

      (APPLAUSE)

      ***

      CHARLIE ROSE: We can never appreciate how close this was, ..how scary it was.

      ANDREW ROSS SORKIN: You have no idea, ..there was true fear.

      CHARLIE ROSE: Terrible things would have happened, ..am I right?

      ANDREW ROSS SORKIN: Yes. I know that Hank Paulson was physically vomiting. I will truly never forget it. And I hope that the public never forgets it either.

      (APPLAUSE)

      ***

      CHARLIE ROSE: Thank you for coming.

      ANDREW ROSS SORKIN: Thank you for having me.

      CHARLIE ROSE: It’s great to have you.

      ANDREW ROSS SORKIN: It’s great to see you.

    9. doodah  09/17/2010 08:00 AM Report

      No! Not the Dashing Dimon Millionaire?! .. wasn't he supposed to be the exception?! .. 'earning' <his> >money< (and honey) the old fashioned way. ..I'm very disappointed in him. .

      I LOOKED UP TO HIM!!! :(

      (now weeping profusely)

    10. Petros  09/16/2010 12:44 PM Report

      rob, btw the examiners report I posted, that's the prelim, the final is due Nov 1st and should be quite an eye opener when his findings are released, if we're lucky Charlie will be doing an interview with Dimon from his jail cell, that would be a hoot!

    11. Petros  09/16/2010 12:42 PM Report

      Thanks rob, I'm just amazed at how Dimon being a guest of this very show can be so convincing as a moral individual when in fact he's simply not. Our media is part of the problem as most just want to remain at the stature they created for themselves and not rock the boat...very Orwellian I'm afraid to say with no bravery amongst the media or politicians to hold the line and speak the truth.

    12. doodah  09/15/2010 10:02 AM Report

      All this talk about debt. blah blah blah. The other side of the hand of debt is credit, which is money (currency) (ALL, one in the same). If you want money, you're going to have to have debt. No Debt, NO Money. No Money, No 'Capitalism' (for those who like to 'earn' it). The FINANCIAL INDUSTRY is betting they can squeeze our balls longer than we can stand it. It's our own fault, we shouldn't have second guessed them. They're way too smart for us common folk. So now they won't be happy until they take ALL our assets and render us back down to borderline slave status.

    13. doodah  09/15/2010 09:33 AM Report

      Me being an ignoraMus (like 99% of 'financial experts'),am using 'Volcker' as the barometer. I have to put my trust in him, because who else is there? This guy.?. I don't think so. Too shallow. .. So I wonder what part of Glass-Stiegel was left out (undone, to the way side), what part was deemed, NOT GOOD, by the financial gurus. (Assuming this guy is telling the truth).

      I thank Mr. Rose for bringing that up.

    14. doodah  09/15/2010 09:05 AM Report

      Wow. The first couple minutes of this interview, some juicy gossip; wonder who specifically he was referring to.?. Sounds like some major-league DORKS. LOL

      Who knew that "NOT KNOWING" your own business, could be SO Profitable!??! .. sounds like 'people' I could respect..yeah, I could that. They have the money, and they didn't break the law. They just didn't know HOW they were GETTING all that money. It just happened. Like their professors told them it would. :) .. :( and now they're being 'demonized', by the President!, Of all people?! (who 'many' of them voted for!!) .. HOW UNFAIR!!!!!!!!!!!!!!!!!!

    15. robdverity  09/14/2010 10:05 PM Report

      Couldn't agree more Petros. Throw in Robert Rubin et al.

    16. Petros  09/14/2010 06:28 PM Report

      It's not clear to me how you can have financial regulation in the midst of crony capitalism...reading the following (note the date of document, very recent) ...

      http://www.kccllc.net/documents/0812229/0812229100907000000000002.pdf

      ...from page 10 details of how Jamie Dimon and his bank are being investigated. These are serious allegations and most likely true I have no doubt. So how can we have meaningful regulation when corrupt individuals like this are able to act with impunity.

      DOJ needs to expedite a case against Dimon for the betterment of our Country so we can move on otherwise confidence will never be restored.

    17. REMant  09/14/2010 04:46 PM Report

      I was going to say I didn't hear anything new in this until he said his bit about debt. It IS the debt that mattered, and that is why the bailout couldn't have been right even in the short term. As with the Hoover admin, the Bush admin deserves whatever credit there is for it. I mentioned in response to Rep Ryan, that the only uncertainty I see in the financial world is whether they are going to be allowed to go back to business as usual. I applaud GM too, but I'm not ready to buy a GM car until they show me several years of steady improvement and support for the new Chevy Cruze for example, which looks pretty good. The Volt tho is both overpriced and under-performing and I think it will be a flop.

    18. robdverity  09/14/2010 04:06 PM Report

      Ben - 15% - 25% reserves prob too low when there's no adults around.

    19. robdverity  09/14/2010 04:01 PM Report

      The extremis of this will doubtless discount it as it too contrary to the media, Sorkin's and the desired message from (and for) Wall Street. TOO BIG TO FAIL is patent BS. Too repugnant to exist is more accurate. The distorted rewards and egregious greed offers proof of its civil misalignment, its inherent lopsided maldistribution of wealth. Sorkin's book cites Hank and Wendy Paulson's rewards for the biggest treasury heist in history to shore up the malfeasance and lack of adult behavior in the nation's biggest banks - starting with his alma mater Goldman Sacs.

      We're supposed to believe that was a "sacrifice" for the common taxpayer? When all it really did was keep some of the most rapacious, exploitive and greedy institutions afloat (a la Citibank, GS, et al).

      What a wonderful world it could have been without those rapacious bastards. Their survival still isn't overcoming the credit contraction their childish greed created. So they didn't fail but the country has (the world).

      So tell me again how good the too-big guys (and their obscene bonuses) are good for our economic well being. And no one has or will be imprisoned. Moral hazard a slam dunk.

      Since my grandkids taxes will be paying for the Paulson's $30+ million island, I wonder if he would invite us down for the weekend. INHALING! IIINNNNNHHHHHAAALLLLIIINNNGGG!!!!

    20. BENEZRAA  09/14/2010 03:45 PM Report

      HOW DOES THE ISSUE OF BANK FINANCIAL RESERVES REQUIREMENTS FIT INTO THE SCHEME SUSTAINABLE CONFIDENCE WITH RESPECT TO BANKING?

      The conversation was interesting and informative and touched on the three presidential administrations with respect to economic issues, policies, and to whom credit may or may not be assigned. But, one potential "elephant in the room" not talked about is the matter of financial reserves with respect to how much cash must always be on hand in each bank in real time so that necessary and sufficient reserves are available in the event of financial crises. Depending on type of funds and amounts, reserves may be as low as 10% for all "demand accounts" and as low as 3% for all "transaction deposits" of $9.3-Million to 43.9-Million. During the Clinton Administration, the banking, finance, and insurance industries were allowed to integrate and therefore to essentially intermingle funds. It should therefore be no wonder and no mystery, that these industries (and most corporate and private users of these industries) over-leveraged themselves and our nation into financial crises. The recent economic summit, at which it has been proposed that there be a 7% required reserve internationally of all banks, has set an extremely low reserve floor, mostly of consequence to Europe, and is perhaps appropriate only as an intermediate step, analogous to step-therapy for groups of addicts, who are being weaned off of terrible addictions. I believe I did hear Mr. Sorkin mention the significance of debt in the overall economics equation. I wonder what his opinion is of a possible correlation between sustained, very low federal interest rates and very low, sustained cash reserve requirements.

    21. anne4444  09/14/2010 01:27 PM Report

      If you travel around the country, you will see:

      Many Local governments raise their TAX for their own salaries and benefits. Business can’t survive by fair competition without corruption or bribery. Employees sell their souls for their jobs.

      My question to you is how to help...