News from the Financial Times

1. Who knew that the CEO of StanChart , Sir John Peace, sat on many outside Boards, including Experian..They say he might have been distracted by the enormity of his outside responsibilities. One can only wonder, when sitting on Experian’s Board, did he exercise the same “lack” of fiduciary responsibility as exhibited in StanChart? How many individuals rely upon these rating agencies for availability of credit? Makes you continue wondering, what “real” criteria are used to determine a persons credit worthiness?

2. Just read an article about Fannie and Freddie Mac. Who knew that the preferred 10% dividend they had to pay back to the taxpayers was borrowed from the US Treasury. Well we can rest easier now, the government is now going to take back all of their “profits”. Effective date, 2013. Watchfully waiting.

3. Lehman Bros revisited by 60 Min. 8/19/12 Lehman played a shell game with their money. They shipped money overseas and then took it back after Bank audits and quarterly filings, in order to give the appearance that their balance sheet was solvent. Ernst and Young , their auditor , knew about the unethical and illegal activities. 4 years later, what’s happened? Nothing. The SEC had access to all of Lehman’s transactions and said nothing and found nothing wrong. According to the conclusions reached by those interviewed, the financial instruments were deliberately complex to escape understanding and prosecution. Makes sense for Lehman, but why give up, fraud was committed. The economy tanked, real money was lost by millions, why should those responsible go free?

4. LOL I was going to recommend seeing a 1911 play at The Mint Theater entitled Mary Broome. The main character, Leonard, is not so different from real life self important, feeling entitled people. However, today’s NY Times full page Ad on page 5 , illustrates the type of personality best. Thank you , Norman Lizt, for personifying the modern day “entitled personality “. “Your hand written note” , states, and I paraphrase, ” if taxes go up for the wealthy, you will shutter your “productive venture capital” business and buy Treasuries instead? So?

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