Posts Tagged ‘Bailout’

8 items.

The C.E.O. Job

by Seraphine Khorana on December 17th, 2009
Posted In: Comics
The C.E.O. Job

Congratulations to Brian Moynihan, who will replace Ken Lewis as CEO of Bank of America on January 1st. BAC was unsuccessful in hiring a “star industry executive” for the top job because of pay restrictions imposed by the U.S. government.

The move draws to a close what is probably the executive search from hell. They needed to find someone to end the drama so that the bank can get back to regular business, but at the same time I am surprised by their choice. You will have a young and untested CEO running a major commercial bank in the U.S.
Quotation from Tony Plath, UNC/Charlotte

What you have is a payoff when there’s poor performance. But that’s the nature of contracts. There’s such a tremendous risk these days with being a CEO of a major corporation.
Quotation from Charles Peck

[It's surreal, however, when taxpayer monies are needed to complete the contract. Best Wishes, Mr. Moynihan ~Sera]

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California Is Currently Available For Adoption

by Seraphine Khorana on May 20th, 2009
Posted In: Comics
California Is Currently Available For Adoption

Instead of closing prisons, California is closing schools. Rather than adjusting over-compensation and trimming bureaucracy, California is cutting essential services and raising taxes. Instead of trimming fat, the economic muscle of California is being removed. Don’t be surprised when California registers itself as a bank and applies for federal assistance.

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Dad, You HAVE To Help Me Out

by Seraphine Khorana on May 14th, 2009
Posted In: Comics
Dad, You HAVE To Help Me Out

Domestic auto sales are expected to drop another 24 percent this year, after an 18 percent decrease in 2008. General Motor’s restructuring plan involves building cars in China and shipping them to America. No recovery in demand for U.S. vehicles is expected before 2010 or 2011.

General Motors Reportedly To Bring China-Built Vehicles to U.S. by 2011 (Edmunds.com)

Executive vice president, F. Alan Smith, outlined a gloomy picture. From 1980 through 1985, GM spent $45 billion in capital investment, yet increased its worldwide market share by only 1 percentage point, to 22 percent. Until mid-1986, the capital-spending plan called for an additional $35 billion through 1989, but that had been reduced. “For the same amount of money,” he told the GM managers, “we could buy Toyota and Nissan outright,” instantly increasing the market share to 40 percent.”
Quotation from Maryann Keller, Rude Awakening. GM has been losing market share since 1962.

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Tough Love/Dose of a Necessary Habit

by Seraphine Khorana on April 13th, 2009
Posted In: Comics
Tough Love/Dose of a Necessary Habit

Major banks are buying more of the toxic assets that have gotten them in trouble. Normally, I don’t care how other people invest their money, but it’s frightening that these banks are using taxpayers money to “double down” on losing bets while raising the interest rates and fees charged to their customers.

Bailed-Out Banks Eye Toxic Asset Buys (Financial Times)
Bailed-Out Banks Face Probe Over Fee Hikes (The Australian News) “Unhappy customers can cancel their accounts.”

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T.A.R.P. Troubled Assets Relief Program

by Seraphine Khorana on March 16th, 2009
Posted In: Comics
T.A.R.P. Troubled Assets Relief Program

Punishment should fit the crime. I’m offended when I read that Bernard Madoff, the crook who pled guilty to defrauding $65 Billion from investors, schools and charities, might be eligible for release or parole in 20 years.

Video: Bernard Madoff Jailed (Zibb.com, “Strictly Business”)

I’m gonna lock my heart
And throw away the key
I’m wise to all those tricks you played on me
I’m gonna turn my back on love
Gonna snub the moon above and
Seal all my windows up with tin.
Lyrics from Billie Holiday, I’m Gonna Lock My Heart And Throw Away The Key

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Shoveling Pay Dirt

by Seraphine Khorana on December 23rd, 2008
Posted In: Comics
Shoveling Pay Dirt

There’s nowhere to put the dirt. We open gifts on Christmas eve but they’re not wrapped and the tree is only half decorated. I was with Dell support today for two precious hours troubleshooting a computer problem. I need to bake bread and zucchini cake. I want to feel Christmassy, but I’m in a deep, deep hole right now.

Farm Program Pays $1.3 Billion to People Who Don’t Farm (Washington Post)
Debate Topic: The US should abolish agricultural subsidies (International Debate Education Association)

He asked if I would sell my Christmas trees;
My woods the young fir balsams like a place
Where houses all are churches and have spires.
I hadn’t thought of them as Christmas trees.
Poem by Robert Frost, Christmas Trees

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Hey, Where’s MY Bailout?

by Seraphine Khorana on September 17th, 2008
Posted In: Comics
Hey, Where’s MY Bailout?

Oh oh.

“How do you know that the sky is falling?” asked Turkey Lurkey.
“I saw it with my eyes, I heard it with my ears, and a bit of it fell on my head,”
said Chicken Little.
Children’s fairy tale, The Sky Is Falling, adapted by Rick Walton.

Fed nears a deal to take over ailing AIG (MSNBC) Extraordinary move would give central bank 80% stake in insurance giant.
U.S. to Take Over AIG in $85 Billion Bailout; Central Banks Inject Cash as Credit Dries Up (Wall Street Journal)

Between the Hedges (Portfolio Manager’s commentary on investing and trading in the U.S. financial markets)

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Insolvent But Too Big to Fail

by Seraphine Khorana on July 12th, 2008
Posted In: Comics
Insolvent But Too Big to Fail

The Ancient Greeks had a word for it: Akrasia. It means lack of
self control. Acting against one’s sense of good judgement. What
do we do when our parents, or our government, can no longer
bail us out? Growing up is a bitch, but being insolvent is worse.

“A worst-case taxpayer bailout of mortgage-market giants Fannie Mae and
Freddie Mac, whose plummeting stock prices caused consternation in early
June, could cost as much as $1.1 trillion, according to Standard & Poor’s.”
Time Magazine, The Not-Quite Bailout

“To avoid taking responsibility, I become unresponsive
but hang on until the other person leaves me.
Quotation from Mason Cooley, City Aphorisms

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