Heidi Moore argues that the Goldman Sachs fraud is another egregious example of how far Wall Street is willing to go for its top clients. And she includes this doozy of irony: Bear Stearns declined this deal from Paulson on ethical grounds. "Readers of Gregory Zuckerman's immaculately reported book, The Greatest Trade Ever, won't be surprised: on page 179, Zuckerman describes Paulson's extens
Over at the Big Money, Heidi Moore worries about the power lost by regional Federal Reserve presidents. "As conceived by the creators of the Fed, the regional presidents are its populist conscience-and owe nothing to headquarters, Congress, or big banks-although they can't make much policy in their five-year terms. And these officials are commanding more attention following
Heidi Moore examines the new phenomenon of small banks being rescued by small banks. "Stearns' enthusiastic acquisitions of failed community banks is no anomaly. As the continuing real-estate crisis pushes more tiny banks into failure, the most common saviors have been other small banks: community banks, small thrifts, and modestly sized lenders. These burgeoning banks include Ohio's First Fi
The Big Money looks at the winners and losers in movie financing this year, one list Goldman Sachs is absent from. "But what you don't see, even if you scan the credits, are the ties between Wall Street and Hollywood. Studios need financial help to keep making flashy films, and in the past five years a crop of investment firms have popped up to help them. While these firms are power pla
"Let's try to sort the narratives from the facts," The Big Money reports. "Rogue trading, or even dumb trading, did not bring down American financial banks, just as it did not bring down Société. A common perception about the financial crash is that it was set in motion by bad bets on the roulette wheel of the mortgage-bond market at the now-defunct Lehman Bros.
"To look at the results of Prosper's loan marketplace, though, is to see not a solution to the credit crisis, but a microcosm of it. Loans to unqualified borrowers; reliance on mathematical models that turn out to be a lot less useful than they seemed; failed hopes that high interest rates could make subprime loans profitable; sky high default rates-Prosper has it all. Prosper's Web sit