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"Bankers, especially investment bankers, aren't interested particularly in long-term shareholder returns or even in providing capital to businesses. They're int
by Maro 17y ago
"Bankers, especially investment bankers, aren't interested particularly in long-term shareholder returns or even in providing capital to businesses. They're interested making money and getting paid. If you want to do God's work, you don't work at a bank.."
vs.
"Bank of America ... raised $20 billion from the public"
and
"Citi raised $20.5 billion of capital..."
How do they raise so much capital if the investors know that it's just to change their TARP structure to enable the execs to get high bonuses?
- djcapelis 17y agoProbably because investors aren't that rational after all and don't really care why the offering came out.
- jswinghammer 17y agoI think the issue is that the Federal Reserve and Congress has allowed the banks to remove bad assets from their balance sheets which makes the companies look better off than they actually are. The banks are pretty much insolvent right now and they know it. The problem is that Congress doesn't really know it. I think that Bernanke knows its though and that's why he's paying interest on reserves held at the Fed right now. The money supply is still contracting and while that's happening all this nonsense about the recession being over is just that-nonsense. No one wants to lend and no one wants to borrow and for good reasons.
- iamelgringo 17y agoInvestors aren't really interested in doing God's work, either. They are interested in getting paid. They are able to raise funds because investors think that they might be able to buy BofA and Citi stock cheap.