On the stock market, the news is decidedly downbeat, particularly for the securities industry that makes money from trading volume.
Federal Reserve officials have hinted in recent days that they may resume large-scale purchases of mortgage-backed securities, paid for with newly printed money.
Fannie and Freddie also purchased hundreds of billions of subprime securities for their own portfolios to make money and to help satisfy HUD affordable housing goals.
If you take for example Mark Dreier, former New York-based multi-millionaire attorney who is currently serving a 20-year sentence for securities fraud, wire fraud and money laundering, he spent this time filming the documentary Unraveled directed by Marc H.
The latest ugly news for Bank of America is actually coming from Europe, where big institutional money managers and other mortgage securities buyers are now beginning to organize for an assault.
These include the stockmarket, the bond market (government and corporate) and the money market for short-term securities, such as commercial paper.
In theory, this helps the banks to reduce risk, makes money for intermediaries who trade the securities, and allows the investors to pick tranches of debt that match their risk appetite.
Examine the logic: The SEC regularly inspects money managers for compliance with the federal securities laws.
FORBES: No Freedom of Information When It Comes to Money Managers (November 1, 2000)
The Securities and Exchange Commission (SEC) has proposed numerous changes to this end, covering securities registration, money-market funds and capital standards for brokers.
For the record, when the Fed buys government securities in the market (yes, through dealers, of which Goldman Sachs is one), the ultimate seller gives up a highly liquid asset (government securities), which are not classified as money, for bank deposits, only slightly more liquid, which are classified as money.
FORBES: The Cartoon View Of Quantitative Easing: Too Dumb Is Clever
When the Fed engages in open market purchases of government securities (or anything else for that matter), it creates new money whether interest rates are high or low.
FORBES: 'Quantitative Easing' Is A Toxic Phrase for a Routine Policy
Recreating its backstops for money-market funds, commercial paper and asset-backed securities might require such stringent conditions that no one would participate.
Grades assigned by these firms can affect a company's ability to raise or borrow money as well as how much investors will pay for their securities.
BBC: Standard & Poor's expects lawsuit over subprime ratings
The SEC, NASD, NYSE, FBI, state securities regulators and an inept judiciary all are responsible for the current deplorable state of the money management industry.
He is calling for a temporary guarantee with taxpayers' money of new mortgage-backed securities - the bundles of home loans sold on by banks to investors to fund fresh lending.
The general rule under the federal and state securities laws is that a fiduciary, the money manager, cannot use client assets for his own benefit or the benefit of other clients.
FORBES: Pensions and Brokerage: The Brokerage Battlefield Revisited (October 1, 2000)
In our opinion, all records and documents money managers and mutual funds are required to keep under the federal securities laws for review by the SEC, should be made available to the public.
In the very short run it might even sell government securities, but open market sales and money shrinkage would be too harsh a medicine to go on for very long.
FORBES: 'Quantitative Easing' Is A Toxic Phrase for a Routine Policy
So much for the DOL. The Securities and Exchange Commission, on the other hand, is highly knowledgeable about money management and securities but is subject to political pressures and has seldom ventured into pension matters.
In other words, if private banks are game, we have the potential for an explosion in the money supply, even if that is affected simply through the purchase of securities.
应用推荐