When you can’t lend or trade – and you can’t invest with the leverage that juiced returns to support seven- and eight-figure bonuses – how exactly are you going to make money? Andrew Ross Sorkin Read Quote
Let’s start with a basic question: Do we, as a country, want our most highly qualified employees from the private sector to pursue public service? The answer, I would imagine, should be yes. Andrew Ross Sorkin Read Quote
TARP became so politicized that having money from it was almost like a scarlet letter. There were debates over compensation, worry that the rules were going to get changed. All the banks were desperately rushing to get that money back as soon as possible – in part, so they could pay themselves bonuses without any government restrictions. Andrew Ross Sorkin Read Quote
There’s something called, ‘resolution authority,’ which gives the government the power to takeover a failing bank – something they didn’t have pre-Lehman Brothers. Andrew Ross Sorkin Read Quote
The rating agencies historically actually did a pretty good job rating regular bonds. Andrew Ross Sorkin Read Quote
The lesson of 2008 is that ultimately our markets are driven by confidence. Andrew Ross Sorkin Read Quote
One of Obama’s first major acts as president was to sign the American Recovery and Reinvestment Act, and some of the money in that bill went to Saft. Andrew Ross Sorkin Read Quote
Several companies have explicit policies against cronyism, with good reason. Hiring a family member simply for a relationship can be troubling and may not necessarily serve a company’s interests. But by and large, financial firms in particular commonly hire people who have certain connections, whether through family or a business relationship. Andrew Ross Sorkin Read Quote
Under the Foreign Corrupt Practices Act, a company is not allowed to provide a personal benefit to a decision maker in return for business. But hiring the sons and daughters of powerful executives and politicians is hardly just the province of banks doing business in China: it has been a time-tested practice here in the United States. Andrew Ross Sorkin Read Quote
The failure of Lehman may have allowed the government to do more to prop up the economy than it otherwise could. Andrew Ross Sorkin Read Quote
