Barofsky on LinkedIn and Banks in Politicsin Daily Scrounge
Neil Barofsky somehow showed up with a post on LinkedIn. It’s not as if he doesn’t have enough blogs willing to publish his stuff. Martin Andelman even managed to rope him into a podcast over on his site. in any case, he’s got a shorty called “Banks Rule While The Rest Of Us Drool*”. It’s, for the most part, a tame rant about the TBTF still being TBTF and their lobbying efforts to get bigger and less apt to be held accountable.
In it he writes:
The banks argued, and the Fed apparently agreed, that providing data about what's going on in the banks is simply too "confusing for any CFO to be able to be sure his bank had gotten it right." In other words, rather than demand personal accountability, the Fed seems to be content with relying on unverified and potentially inaccurate data. If this does not prove both the inherent unreliability of these tests and that the banks are still so hopelessly complex that their executives do not know what’s going on inside of them (See Whale, London), I’m not sure what would.
The WSJ article alludes to stricter regulation and oversight, but that the math might be a complicated. I don’t quite know how you can work for the WSJ and construct a paragraph like this one, but here it is:
Fed officials say they have worked hard to help bankers better understand the math, convening the Boston symposium and multiple conference calls. But they don't want to hand over their models to the banks, in part because they don't want the banks to game the numbers, officials say.
And Politico has the stones to insinuate that the banks don’t normally dabble in politics:
It's unusual for some of the most well-known CEOs to come out so publicly on a political issue, a sign that Wall Street believes the business of Washington has bled into the business of America — dragging down the economy to the point where they need to weigh in personally.
At the very least, since both parties have, for the most part been co-opted, maybe it’s time for the masters of the universe to strong arm Congress into getting some work done before the budget issue leaves all wondering what the hell happened.
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