Last year Investment banks like Lehman Brothers and Goldman Sachs reported record earnings and executive bonuses that were off the charts.
Today Goldman and Lehman are history (and Merrill Lynch is tottering on the brink).
Much of this is, obviously, driven by the mortgage/ banking (scam) crisis.
This is going to go down in history as one of the biggest jaw-dropping shennanigans in our country’s ironic history.
The “Feds” have signaled to corporate insiders/1 (especially in banking) that they get one opportunity to REALLY come clean over balance sheets.
All the press we are seeing is a signal that Boards will soon be enforcing the practice of nuking 10-K’s and 10-Q’s around massive write downs. In fact, they will over compensate and make the balance sheets worse than they need to be. This will, in turn, enable Wall Street to take banking stocks to new lows. Then of course, traders will take positions in those stocks during after hours trading – and, drive them back up with nonsensical news on (for example) MSNBC.
This makes as much sense as Apple stock derailing on Mortgage industry news – right?
I am not angry or bitter. I am insightful.
Its what you don’t see that will kill you. But, if you are prepared, you can make informed decisions.
Peace be to my Brothers and Sisters.
Brian Patrick Cork
1/ This means selected people they went to school with.