James Cayne, former CEO at Bear Stearns, started his testimony before the Financial Crisis Inquiry Commission with a somewhat surprising statement. “In retrospect, in hindsight, I would say leverage was too high,” he said. Cayne avoided taking blame for the leverage issue or others that led to the company’s failure.
Posts Tagged ‘Bear Stearns’
Ex-CEO Cayne acknowledges “leverage was too high” at Bear Stearns
May 7th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Bear Stearns, Ceo, Collapse, Decisions, Failure, Financial Crisis, Hindsight, Independent Investment, Inquiry Commission, Investment Banks, James Cayne, Leverage, Retrospect, Testimony, Wsj 
Comments OffSEC voiced concern about CDOs as early as 2006, records show
May 6th, 2010 Before You Invest he Securities and Exchange Commission started questioning Wall Street’s practice of packaging mortgages into bonds as early as 2006, according to recently released documents. SEC officials wrote that collateralized debt obligations linked to mortgages exposed financial institutions to possible write-downs. “This risk is hard to measure and hence to manage,” according to a memo dated Feb.
Posted in Finance Fraud Tags: Amp, Bear Stearns, Bonds, Collapse, Collateralized Debt Obligations, Early Show, Financial Crisis, Financial Institutions, Inquiry Commission, Mortgages, Pid, Risk, Sec Officials, Securities And Exchange, Securities And Exchange Commission, Sid, Wall Street Comments OffEx-CEO Cayne blames market for Bear Stearns’ demise
May 5th, 2010 Before You Invest James Cayne, former head of Bear Stearns, said the company’s collapse was because of market forces and a loss of confidence in the bank, according to his prepared testimony to be given before the Financial Crisis Inquiry Commission. “The market’s loss of confidence, even though it was unjustified and irrational, became a self-fulfilling prophecy,” Cayne said in the testimony, according to a source.
Posted in Finance Fraud Tags: Alan Schwartz, Amp, Bear Stearns, Ceo, Collapse, Confidence, Demise, Financial Crisis, Former President, Inquiry Commission, James Cayne, Pid, Self Fulfilling Prophecy, Sid, Spector, Testimony Comments OffEx-CEO Cayne blames market for Bear Stearns’ demise
May 5th, 2010 Before You Invest James Cayne, former head of Bear Stearns, said the company’s collapse was because of market forces and a loss of confidence in the bank, according to his prepared testimony to be given before the Financial Crisis Inquiry Commission. “The market’s loss of confidence, even though it was unjustified and irrational, became a self-fulfilling prophecy,” Cayne said in the testimony, according to a source.
Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs
February 24th, 2010 Before You Invest (Bloomberg) — When a congressional panel convened a hearing on the government rescue of American International Group Inc. in January, the public scolding of Treasury Secretary Timothy F. Geithner got the most attention.Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup.
Posted in Finance Fraud Tags: American International Group, American International Group Inc, Bear Stearns, Bear Stearns Cos, Collateralized Debt Obligations, Committee On Oversight And Government Reform, Congressional Panel, Credit Default Swaps, Darrell Issa, Federal Reserve Bank, Geithner, Goldman Sachs, Goldman Sachs Group, Goldman Sachs Group Inc, House Committee On Oversight And Government Reform, International Group Inc, Mortgage Securities, New York Fed, Sachs Group Inc, Specific Securities Comments OffFed Generates $46.1 Billion Profit in 2009
January 15th, 2010 Before You Invest The Federal Reserve had its largest bottom line ever in 2009, generating record profits as its holdings of Treasury, mortgaged-backed securities and agency debt grew.The Fed last year generated a net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury, the Fed said Tuesday.
Posted in Finance Fraud Tags: 1 Billion, Aig, American International Group, Asset Purchase, Balance Sheet, Bear Stearns, Federal Reserve, Government Debt, J P Morgan, J P Morgan Chase, Low Interest Rates, Mortgage Agencies, Mortgage Backed Securities, Net Income, Open Market Operations, Record Profits, Rescue Operations, Trillion, U S Treasury, Windfall No Comments »Lachlan Murdoch quits consortium buying US trade magazines
December 11th, 2009 Before You Invest Tycoon pulls out of group buying Nielsen Business Media, publisher of titles including Billboard and AdweekLachlan Murdoch has dropped out of a consortium buying the publisher of US trade magazines including the Hollywood Reporter, Billboard and Adweek in a $70m (£43m) deal, according to reports.Murdoch, Rupert Murdoch’s eldest son, had been linked with a consortium intent on buying the group Nielsen Business Media magazines through his investment vehicle Illyria.Adweek reported that a casualty of the deal is Editor & Publisher, the US newspaper industry magazine founded in 1884, which will close.Murdoch’s company has been replaced by a team that includes former Bear Stearns boss Alan Schwartz, according to the New York Post, which is owned by Rupert Murdoch’s News Corporation.Guggenheim Partners, where Schwartz works, has the lead role in the consortium, while Pluribus Capital Management, which includes Matthew Doull, a step-nephew of Conrad Black, has a minority role, Nielsen Business Media confirmed today.The joint venture, e5 Global Media, is also buying Mediaweek, Brandweek, Backstage, The Clio Awards and Film Journal International from Nielsen.Last month Murdoch bought 50% of Daily Mail & General Trust’s Australian radio network, selling shares in News Corporation worth $28m to fund the buy.Murdoch, News Corporation’s former deputy chief operating officer, quit executive duties at the family firm in 2005 and went back to Australia to develop his own business interests. He remains a director on the News Corporation board.The deal is expected to complete on 31 December.
Posted in Finance Fraud Tags: Alan Schwartz, Australian Radio, Bear Stearns, Conrad Black, Daily Mail, Executive Duties, General Trust, Guggenheim Partners, Hollywood Reporter, Investment Vehicle, Lachlan Murdoch, Media Magazines, Media Publisher, Mediaweek, Murdoch Rupert, New York Post, News Corporation, Rupert Murdoch, Selling Shares, Trade Magazines No Comments »Bear Managers’ Acquittal May Hamper U.S. Fraud Prosecutions
November 11th, 2009 Before You Invest A federal jury acquitted two former Bear Stearns hedge fund managers of defrauding investors. Ralph Cioffi and Matthew Tannin were found not guilty on all charges of conspiracy, securities fraud and wire fraud. They were accused of deliberately misleading investors before the financial crisis. “There wasn’t enough evidence …
Posted in Finance Fraud Tags: Acquittal, Bear Stearns, Bear Stearns Hedge Fund, Federal Jury, Financial Crisis, Fraud Charges, Hedge Fund Manager, Hedge Fund Managers, Legal Experts, Mccaughey, Misleading Investors, Newsone, Prosecutions, Prosecutors, Ralph Cioffi, Reuters, Securities Fraud, Smiles, Street Managers, Tannin, Wire Fraud No Comments »Raj Rajaratnam of Galleon Group, ex-Bear Sterns directors, others charged in insider trading
October 17th, 2009 Before You Invest In a case echoing the scandals of the 1980s, federal authorities exposed what they claim is the largest insider-trading ring in a generation — a conspiracy in which a hedge-fund kingpin and executives at blue-chip firms including IBM and Intel allegedly connived to profit on Google and other huge-name stocks.At the center was Raj Rajaratnam, founder of Galleon Group, a New York-based fund firm that manages $3.7 billion.
Posted in Finance Fraud Tags: Bear Stearns, Bear Sterns, Chiesi, Chip Firms, Corp Executive, Federal Authorities, Federal Sentencing Guidelines, Galleon, Galleon Group, Google, Insider Trading, Intel Capital, Josh Klein, Kurland, Maximum Sentences, Menlo Park, Menlo Park California, Rajaratnam, Strategic Investments, Technology Stocks No Comments »Prosecution begins Opening Statements in Case Against Former Bear Sterns Hedge Fund Managers
October 15th, 2009 Before You Invest Opening statements by the prosecution started today in the trial of one time Bear Stern employees Ralph Cioffi and Matthew Tannin. The former hedge fund managers are the first to be tried in connection with a federal probe into the subprime market collapse.The men are charged with misleading clients who invested into two separate hedge funds that collapsed.
Posted in Finance Fraud Tags: Actuality, Bear Stearns, Bear Stern, Bear Sterns Hedge Fund, Collateralized Debt Obligations, Credit Strategies, Federal Probe, Fund Managers, Hedge Funds, Insider Trading, Investment Policy, Market Collapse, Opening Statements, Personal Money, Ralph Cioffi, Securities Fraud, Strategies Master, Subprime Market, Tannin, Wire Fraud No Comments »
