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Waiting for the Big Reboot

A review of Contagion: The Financial Epidemic That Is Sweeping the Global Economy…And How To Protect Yourself From It, by John R. Talbott John Talbott has established a well-deserved reputation as a financial soothsayer, enjoying an incredible run of spot-on predictions. He called the imminent bust of the dot-com bubble in 1999, and in 2003 ... Read more

Posted in Bailout, Credit Crisis | 1 Comment

Stop Making Nonsense

“If everybody is playing by the same set of rules, whether you are talking about loan origination or securitization, then it becomes very hard to game the system. The lack of definitions is a huge problem… If the Congress, the SEC and the FASB, and the financial regulators only do one thing this year when ... Read more

Posted in CRAs, Credit Crisis, Risk/Value, Valuation | Tagged , , , , , , | Leave a comment

Shadow Banking System Needs Stick, Not Carrot: Rutledge on Bloomberg

Bloomberg commentator David Reilly quotes R&R’s Ann Rutledge on the next target for regulators in mending the financial crisis: the “shadow banking system” of non-bank lending markets. Rutledge calls for “an exchange-like setting to provide the sort of standardization and rules that help trading of stocks and options,” and operational revamps to produce more accurate ... Read more

Posted in Ann Rutledge, Consequences, Cybernetics, Financial System, R&R, Reform, Structured Finance/Securitization | Leave a comment

Felix Salmon Tags Rutledge for ‘Chart of the Day’

The revealing and esthetically pleasing chart that R&R’s Ann Rutledge produced to illustrate asset-backed bond default rates is featured by Felix Salmon in his Reuters blog. Reflecting the value of analyzing the past in dealing with the future, Ann’s presentation on the development of the credit crisis is also recommended on the Zero Hedge blog. ... Read more

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Black Holes in the Securitization System: Rutledge in National Journal Magazine

R&R’s Ann Rutledge discusses how flawed securitization set off the economic crisis in the cover story of the current issue of National Journal Magazine: “Until the early part of this decade, Rutledge says, most of the blueprints for building structured securities were imperfect but honest. Sometime around 2002, however, fraudulent crews invaded the market by ... Read more

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How AIG Bailout Offset Losses at Five Banks: Raynes on Bloomberg

“‘Banks can pay bonuses without eroding capital if they were funded from profitable trades that were settled through financing provided by the government to AIG,’ said Sylvain Raynes, a derivative consultant in New York and author of The Analysis of Structured Securities.” Read the full article: “Treasury Preserves Bank Payday with AIG Rescue Cash,” by ... Read more

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Bailout Requires Reform for Rating Agencies: Ann Rutledge in WSJ

The March 20 edition of The Wall Street Journal quotes R&R’s Ann Rutledge calling for rating agencies to develop new ways to rate debt as they benefit from the government’s bailout program: “[Rating agencies] are still paid for their ratings by the companies whose bonds they rate, a potential conflict of interest. And much-anticipated competition ... Read more

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Raynes on AIG Bailout: "There is no need to spend even one more dollar to bail anyone out"

R&R’s Sylvain Raynes was interviewed by Joe Soucheray on station KSTP in St. Paul, Minnesota, on March 18, for his views on the AIG bailout. Listen to the podcast on KSTP’s Web site. Sylvain Raynes’s part of the discussion comes about three-quarters of the way through the program.

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Sylvain Raynes Criticizes AIG Bailout in New York Times

“The system was undermined by asking the American people, under the veil of secrecy, to bail out one company when in fact they wanted to bail out someone else,” said Sylvain R. Raynes, an authority in structured finance and a founder of R & R Consulting, a firm that helps investors gauge debt risks. “The ... Read more

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Ann Rutledge on CNBC’s "House of Cards"

R&R’s Ann Rutledge contributes to “House of Cards,” David Faber’s definitive report on how a subprime credit crunch turned into what may be the most severe worldwide economic crisis in a century. The program, initially aired on CNBC on February 12, will be repeated over the next few days. For show times and other information, ... Read more

Posted in Ann Rutledge, Credit Crisis | Leave a comment
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