BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Can I claim AIG as a dependent?]]>http://www.bloggingstocks.com/2009/03/30/can-i-claim-aig-as-a-dependent/http://www.bloggingstocks.com/2009/03/30/can-i-claim-aig-as-a-dependent/http://www.bloggingstocks.com/2009/03/30/can-i-claim-aig-as-a-dependent/#commentsFiled under: ,

As people work on their taxes, they always look for creative ways to cut their tax bills. Some of our readers think they've got a perfect new write-off -- claiming American International Group, Inc. (NYSE:AIG) as a dependent.

One reader, Rick, wrote, "I hope to keep my job, I still have to provide for my family and AIG. I wonder if I can claim them on this years tax return?"

Continue reading Can I claim AIG as a dependent?

Can I claim AIG as a dependent? originally appeared on BloggingStocks on Mon, 30 Mar 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGbailoutstaxesMon, 30 Mar 2009 17:00:00 EST<![CDATA[More than 250,000 homes face foreclosure filings for 10th straight month]]>http://www.bloggingstocks.com/2009/02/12/more-than-250-000-homes-face-foreclosure-filings-for-10th-straig/http://www.bloggingstocks.com/2009/02/12/more-than-250-000-homes-face-foreclosure-filings-for-10th-straig/http://www.bloggingstocks.com/2009/02/12/more-than-250-000-homes-face-foreclosure-filings-for-10th-straig/#commentsFiled under: , , ,

More owners are walking away from homes with mortgages underwater, as foreclosure filings totaled 274,399, the 10th month in a row that the number topped a quarter million, according to RealtyTrac, which sells default data. This is the 37th year-on-year increase in foreclosure filings.

"Until debt goes down or prices go up, this is going to be a mess," Bruce Norris, president of the Norris Group, a California-based investment firm, told Bloomberg. That turnaround isn't likely any time soon as home prices have fallen every month since January 2007. The biggest drop was in November when prices fell 18.2%, according to the S&P/Case Shiller index of 20 U.S. cities.

Continue reading More than 250,000 homes face foreclosure filings for 10th straight month

More than 250,000 homes face foreclosure filings for 10th straight month originally appeared on BloggingStocks on Thu, 12 Feb 2009 08:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredforeclosuresmortgagesThu, 12 Feb 2009 08:45:00 EST<![CDATA[Mortgage applications drop to eight-year low as buyers wait for government incentives]]>http://www.bloggingstocks.com/2009/02/11/mortgage-applications-drop-to-8-year-low-as-buyers-wait-for-gove/http://www.bloggingstocks.com/2009/02/11/mortgage-applications-drop-to-8-year-low-as-buyers-wait-for-gove/http://www.bloggingstocks.com/2009/02/11/mortgage-applications-drop-to-8-year-low-as-buyers-wait-for-gove/#commentsFiled under: , , ,

Mortgage applications fell almost 25% last week with new loan applications for home purchases hitting an eight-year low, according to the Mortgage Bankers Association. People continue to sit on the sidelines, waiting for prices to drop. Who wants to buy a home today if the price for that home might be lower soon after the deal closes?

Adding to that wait-and-see attitude are some major incentives that could be part of the stimulus package making its way through Congress. The biggest incentive of them all is a Senate provision that would give all home buyers a $15,000 tax credit. Who wouldn't wait to see if that provision survives the House/Senate negotiations?

Continue reading Mortgage applications drop to eight-year low as buyers wait for government incentives

Mortgage applications drop to eight-year low as buyers wait for government incentives originally appeared on BloggingStocks on Wed, 11 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bank bailoutBankBailouthome pricesHomePricesinthenewsmortgagesstimulus packageStimulusPackageWed, 11 Feb 2009 11:30:00 EST<![CDATA[President to name new panel of economic advisors ]]>http://www.bloggingstocks.com/2009/02/06/president-to-name-new-panel-of-economic-advisors-today/http://www.bloggingstocks.com/2009/02/06/president-to-name-new-panel-of-economic-advisors-today/http://www.bloggingstocks.com/2009/02/06/president-to-name-new-panel-of-economic-advisors-today/#commentsFiled under: , ,

President Obama wants to get advice from outside the regular Washington circles, so he'll be announcing today a new team of outside economic advisers headed by former Federal Reserve Chairman Paul Volcker.

Dubbed the White House Economic Recovery Advisory Board, the group will include GE Chairman Jeffrey Immelt, Caterpillar Chairman Jim Owens, Former SEC Chairman William Donaldson, TIAA-CREF President Roger Ferguson, Yale University Chief Investment Officer David Swenson, President of Oracle Corp. Charles Phillips, Harvard University Professor Martin Feldstein and University of California, Berkeley Professor Laura Tyson.

Labor will also be represented by Richard Trumpka of the AFL-CIO and Anna Burger of the Service Employees International Union. Others members include Mark Gallogly, founder and managing partner of Centerbridge Partners, Penny Pritzker, chairman of Pritzker Realty Group, John Doerr of Kleiner, Perkins, Caufield & Byers, and Monica Loranzo, publisher and CEO of La Opinion.

The board will meet for two years and be modeled after the foreign intelligence board created by President Dwight D. Eisenhower. In setting up this board the White House said, "The board will bring a diverse set of perspectives and voices from different parts of the country and different sectors of the economy to bear in the formulation and evaluation of economic policy."

Continue reading President to name new panel of economic advisors

President to name new panel of economic advisors originally appeared on BloggingStocks on Fri, 06 Feb 2009 15:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economic crisiseconomic recoveryEconomicCrisisEconomicRecoveryobamavolckerFri, 06 Feb 2009 15:30:00 EST<![CDATA[Goldman Sachs wants to give back TARP money, but can it?]]>http://www.bloggingstocks.com/2009/02/06/goldman-sachs-wants-to-give-back-tarp-money-but-can-it/http://www.bloggingstocks.com/2009/02/06/goldman-sachs-wants-to-give-back-tarp-money-but-can-it/http://www.bloggingstocks.com/2009/02/06/goldman-sachs-wants-to-give-back-tarp-money-but-can-it/#commentsFiled under: , , , ,

Goldman Sachs (NYSE: GS) doesn't like to be told what it can or cannot do by the President of the United States, so it now wants out of the TARP program. David Viniar, Goldman's chief financial officer told attendees at a Credit Suisse conference on Wednesday that he would like to pay back the government. However, the big question is: Can Goldman raise the funds to pay back the $10 billion in capital the company took from the government last fall?

The money looked very good to financial companies. Goldman and the other banks saw it as a cheap way to raise capital and steady the ship. There's a huge catch, though. In order to pay back those funds, the company must raise new equity capital to buy out the government's stake in the bank.

Continue reading Goldman Sachs wants to give back TARP money, but can it?

Goldman Sachs wants to give back TARP money, but can it? originally appeared on BloggingStocks on Fri, 06 Feb 2009 10:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>aiggoldman sachsGoldmanSachsinthenewstarpwells fargoWellsFargoFri, 06 Feb 2009 10:25:00 EST<![CDATA[Reading between the lines: Home Depot gave financial report readers hints of more closings]]>http://www.bloggingstocks.com/2009/02/04/reading-between-the-lines-home-depot-gave-financial-report-read/http://www.bloggingstocks.com/2009/02/04/reading-between-the-lines-home-depot-gave-financial-report-read/http://www.bloggingstocks.com/2009/02/04/reading-between-the-lines-home-depot-gave-financial-report-read/#commentsFiled under: , ,

Many were surprised when they heard that Home Depot was closing all 34 of its Expo Home Design Centers, but if you are a regular reader of its financial reports, you certainly would have seen signs of major financial stress. Home Depot (NYSE: HD) first discussed a "store rationalization plan" in its first quarter of 2008 report. At that point, it closed 15 stores and removed about 50 stores from the future growth pipeline.

In the third quarter report (December 2008), Home Depot said, "We recognized $564 million in total pretax charges for the first nine months of fiscal 2008 related to the store rationalization plan, including $3 million in the third quarter of fiscal 2008." Clearly, the store rationalization plan was not complete and more cuts were to come.

Continue reading Reading between the lines: Home Depot gave financial report readers hints of more closings

Reading between the lines: Home Depot gave financial report readers hints of more closings originally appeared on BloggingStocks on Wed, 04 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>expo deexpo design center storesExpoDeExpoDesignCenterStoreshome depotHomeDepotinthenewsWed, 04 Feb 2009 15:00:00 EST<![CDATA[New home sales fall by 37.8% from 2007 levels to lowest level on record]]>http://www.bloggingstocks.com/2009/01/29/new-home-sales-fall-by-37-8-percent-from-2007-levels-to-lowest-l/http://www.bloggingstocks.com/2009/01/29/new-home-sales-fall-by-37-8-percent-from-2007-levels-to-lowest-l/http://www.bloggingstocks.com/2009/01/29/new-home-sales-fall-by-37-8-percent-from-2007-levels-to-lowest-l/#commentsFiled under: , , , ,

Sales of new homes fell by 37.8 percent from 2007 sales. Total sales in 2008 were 482,000 compared to 776,000 (the total sold in 2007), according to Mission Residential. The median new home price dropped by 9.3 on a a year-over-year basis.

These numbers may actually be skewed higher because the monthly sales data does not reflect cancellations, which means sales are probably lower and actual inventories higher. Because of these adjustments the actual supply on the market jumped to 12.9 months in December. Don't expect home builder stocks to recover any time soon.


Continue reading New home sales fall by 37.8% from 2007 levels to lowest level on record

New home sales fall by 37.8% from 2007 levels to lowest level on record originally appeared on BloggingStocks on Thu, 29 Jan 2009 13:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buildershousinginthenewsnew homenew home salesNewHomeNewHomeSalesThu, 29 Jan 2009 13:51:00 EST<![CDATA[Repossessions double; 2.3 million Americans faced foreclosure in 2008]]>http://www.bloggingstocks.com/2009/01/15/reposessions-double-2-3-million-americans-faced-foreclosure-in/http://www.bloggingstocks.com/2009/01/15/reposessions-double-2-3-million-americans-faced-foreclosure-in/http://www.bloggingstocks.com/2009/01/15/reposessions-double-2-3-million-americans-faced-foreclosure-in/#commentsFiled under: , , ,

While Congress is expected to vote on the future of TARP funds today, a report from RealtyTrac that the number of repossessions doubled from 2007 to more than 860,000 will likely sway a number of votes in favor of Obama's push for the release of the second half of TARP. More than 2.3 million American faced the possibility of foreclosure in 2008, which is an 81 percent increase over 2007.

Moody's Economy.com predicts the foreclosure parade is not over yet. The research firm believes that the number of people who lose their homes will increase by another 18 percent in 2009 and then start tapering off through 2011. In trying to stem this onslaught of foreclosures, Obama promises to use the last half of TARP to help consumers, small businesses and municipalities, as well as reduce the rising rate of foreclosures. But will Congress give him the chance?

Stories today indicate that bipartisan opposition to the release of the second half of TARP funds continues to grow. The Congress could vote to stop the next release of TARP and one of Obama's first acts as president could be to veto that bill. Today's vote in Congress will send some signal as to what chance Obama has for getting the rest of the rescue funds.

Continue reading Repossessions double; 2.3 million Americans faced foreclosure in 2008

Repossessions double; 2.3 million Americans faced foreclosure in 2008 originally appeared on BloggingStocks on Thu, 15 Jan 2009 10:19:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredforeclosuresobamatarpThu, 15 Jan 2009 10:19:00 EST<![CDATA[GAO develops framework for modernization of U.S. financial regulatory system]]>http://www.bloggingstocks.com/2009/01/09/gao-develops-framework-for-modernization-of-u-s-financial-regul/http://www.bloggingstocks.com/2009/01/09/gao-develops-framework-for-modernization-of-u-s-financial-regul/http://www.bloggingstocks.com/2009/01/09/gao-develops-framework-for-modernization-of-u-s-financial-regul/#commentsFiled under: , , ,

Everybody's talking about the need for changes in the U.S. financial regulatory system. This week the U.S. GAO released its framework for crafting and assessing modernization proposals. First the report highlights the major problems with our current system:

  • Regulators have often failed to mitigate systemic risks posed by large and interconnected financial conglomerates and to ensure they adequately manage their risks.
  • Regulators have had problems addressing financial market problems resulting from activities of less regulated markets -- non-bank mortgage lenders, hedge funds, and credit rating agencies.
  • New and complex investment products have not been adequately monitored or even understood.
  • Standards set by accounting and financial regulators have not kept up with financial market developments.
  • Attempts to coordinate internationally with other regulators have been difficult because of the fragmented U.S. regulatory structure.

Actually it's this fragmented structure that is at the root of all our problems. Today, we have almost a dozen federal banking, securities, futures and other regulatory agencies. The Federal Reserve System was created in 1913 and most of the remaining agencies were created in response to the Great Depression. Now that we seem to be nearing that same type of financial devastation, we need to reconsider that entire regulatory structure.

Continue reading GAO develops framework for modernization of U.S. financial regulatory system

GAO develops framework for modernization of U.S. financial regulatory system originally appeared on BloggingStocks on Fri, 09 Jan 2009 11:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financial crfinancial crisisfinancial regulationsFinancialCrFinancialCrisisFinancialRegulationsGAOinthenewsFri, 09 Jan 2009 11:15:00 EST<![CDATA[New report blasts Treasury's implementation of TARP]]>http://www.bloggingstocks.com/2009/01/09/new-report-blasts-treasurys-implemenation-of-tarp/http://www.bloggingstocks.com/2009/01/09/new-report-blasts-treasurys-implemenation-of-tarp/http://www.bloggingstocks.com/2009/01/09/new-report-blasts-treasurys-implemenation-of-tarp/#commentsFiled under: , , , ,

A bipartisan Congressional panel headed by Harvard Law School professor Elizabeth Warren released a report today blasting the U.S. Treasury department for its failures related to the $700 billion Troubled Asset Relief Program (TARP). The report indicates that:

* The Treasury Department has no way to ensure that banks actually lend the money they have received from the government. In fact press reports indicate that banks appear to be hoarding the cash with the excuse that there are no worthy candidates out there.

* The Treasury Department has not yet developed standards for measuring the success of the program. Treasury has given out all but about $75 billion of the first $350 billion. It's outrageous that the Treasury Department didn't develop some way of measuring success before dolling out almost $300 billion of taxpayers' money.

* The Treasury Department has ignored requests for more information or has given incomplete answers to questions raised by the five-member Congressional panel.

Continue reading New report blasts Treasury's implementation of TARP

New report blasts Treasury's implementation of TARP originally appeared on BloggingStocks on Fri, 09 Jan 2009 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>inthenewsTARPtreasuryFri, 09 Jan 2009 10:30:00 EST<![CDATA[Citigroup backs change to bankruptcy law, more people could save homes]]>http://www.bloggingstocks.com/2009/01/09/citigroup-backs-change-to-bankruptcy-law-more-people-could-save/http://www.bloggingstocks.com/2009/01/09/citigroup-backs-change-to-bankruptcy-law-more-people-could-save/http://www.bloggingstocks.com/2009/01/09/citigroup-backs-change-to-bankruptcy-law-more-people-could-save/#commentsFiled under: , , , ,

Homeowners may have a better chance of saving their homes using the bankruptcy code thanks to Citigroup's (NYSE: C) turnaround on a process called cram-down. If cram-down becomes an option for bankruptcy judges, they can alter the terms of mortgages (often reducing the amount of principal due) to make it affordable for someone to stay in their home. Other changes could include reducing a loan's interest rate or extending its length.

Democrats have called for adding cram-downs to the bankruptcy code since 2007, but the banking industry has fought it. Now with banks taking so much bailout money, it's time to pay the piper. Senators Dick Durbin (D-Ill), Chris Dodd (D-Conn) and Charles Schumer (D-NY) have led the fight for change in the bankruptcy code. Since Citigroup agreed to the bankruptcy law change with certain conditions other banks have called Schumer promising to jump on board.

Now that there appears to be an agreement with the banks, the Democrats plan to add a cram-down provision to the economic stimulus plan moving through Congress. There will be some limits though. If the law passes, only mortgages entered into prior to the date of enactment of the bill will be eligible for cram-down. Homeowners also will need the show that they tried to negotiate with their mortgage holder. They must contact their banker at least 10 days before filing for bankruptcy to give the bank an opportunity to negotiate.

Continue reading Citigroup backs change to bankruptcy law, more people could save homes

Citigroup backs change to bankruptcy law, more people could save homes originally appeared on BloggingStocks on Fri, 09 Jan 2009 08:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Ccitigroupcram-downsfeaturedhousing marketHousingMarketmortgagesreal elstateRealElstateFri, 09 Jan 2009 08:35:00 EST<![CDATA[Fed expects unemployment rise into 2010; GDP to fall in 2009]]>http://www.bloggingstocks.com/2009/01/07/fed-expects-unemployment-rise-into-2010-gdp-to-fall-in-2009/http://www.bloggingstocks.com/2009/01/07/fed-expects-unemployment-rise-into-2010-gdp-to-fall-in-2009/http://www.bloggingstocks.com/2009/01/07/fed-expects-unemployment-rise-into-2010-gdp-to-fall-in-2009/#commentsFiled under: , , , ,

Media outlets all over the Internet are screaming this morning about the minutes from last month's Federal Reserve meeting, which were released yesterday. The discussion from that meeting shows that the Federal Reserve Board members expect unemployment to rise "significantly" into 2010 and that they believe the gross domestic product (GDP) will fall in 2009.

While most of us hope these dire predictions somehow prove not to be true, deep down we know that the Fed is probably right. No one has called this another Great Depression, but it certainly looks more and more like what happened in the 1930s. Our financial institutions need bailouts to survive. Job losses continue to mount. At least the banks did get those bailouts so we're not seeing lines of people trying to get money out of banks that can't (as was a common scene during the last depression).

Continue reading Fed expects unemployment rise into 2010; GDP to fall in 2009

Fed expects unemployment rise into 2010; GDP to fall in 2009 originally appeared on BloggingStocks on Wed, 07 Jan 2009 14:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredfederal reserveFederalReservegdpunemploymentWed, 07 Jan 2009 14:15:00 EST<![CDATA[Did Madoff act alone?]]>http://www.bloggingstocks.com/2009/01/07/did-madoff-act-alone/http://www.bloggingstocks.com/2009/01/07/did-madoff-act-alone/http://www.bloggingstocks.com/2009/01/07/did-madoff-act-alone/#commentsFiled under: , ,

Bernard Madoff tried to raise millions in the last few weeks [subscription required] before he finally confessed to his $50 billion Ponzi scheme, according to a report in the Wall Street Journal today. This story lends even more credence to my suspicion that Madoff may have acted alone in building what will likely be the world's largest Ponzi scheme. When I said that on Fox Business News on Monday, I was definitely in the minority. In fact at the end of the show, a poll taken during the hour long show indicated that 95 percent of the people watching did not believe he had acted alone.

The Wall Street Journal details all the people he contacted in what appears to be a last minute, desperate attempt to raise cash and keep his dirty little secret. Carl Shapiro, a 95-year-old philanthropist and entrepreneur, which the WSJ states was one of Madoff's oldest friends and biggest financial backers, gave Madoff $250 million sometime around December 1, 2008 - just days before he confessed to the $50 billion scheme. Some believe it was a loan, others an additional investment. Either way Shapiro's friends say he was promised a quick payback with interest or gains. Shapiro did not comment for the story.

Continue reading Did Madoff act alone?

Did Madoff act alone? originally appeared on BloggingStocks on Wed, 07 Jan 2009 08:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>FeaturedMadoffponzi schemePonziSchemeSECWed, 07 Jan 2009 08:35:00 EST<![CDATA[Money losers of 2008: The many investors with Bernard Madoff]]>http://www.bloggingstocks.com/2008/12/28/money-losers-of-2008-the-many-investors-with-bernard-madoff/http://www.bloggingstocks.com/2008/12/28/money-losers-of-2008-the-many-investors-with-bernard-madoff/http://www.bloggingstocks.com/2008/12/28/money-losers-of-2008-the-many-investors-with-bernard-madoff/#commentsFiled under:

This post is part of our feature on Money Losers of 2008. See all 20.

As we learn more about the scandal involving the investment businesses managed by Wall Street power broker Bernard Madoff, it's a tale of failure by government regulators and investors alike. Madoff saw a weakness in the system and took advantage of people and institutions for about $50 billion (we don't know the final tally yet because Madoff kept several sets of books and the courts need to sort out what's left).

Regulators got too cozy with a man whom they trusted so much that he served on a advisory committee for the SEC on investor information involving scams, while the entire time he was building a business that will probably hold a record for being Wall Street's largest Ponzi scheme. He also served as chairman of the NASDAQ Stock Market.

Investors, including investment advisers and large institutions, were taken in by his charms and overlooked the fact that steady returns, like the ones Madoff promised, were suspect. Indications are that some investment advisers who did their due diligence advised against investing money through Madoff.

Continue reading Money losers of 2008: The many investors with Bernard Madoff

Money losers of 2008: The many investors with Bernard Madoff originally appeared on BloggingStocks on Sun, 28 Dec 2008 11:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bernard MadoffElie WeiselfeaturedFrank LautenbergMoney Losers 2008Mort ZuckermanNASDAQPalm Beach Country ClubPonziSECSteven SpielbergSun, 28 Dec 2008 11:10:00 EST<![CDATA[Money losers of 2008: The American homeowner, still sinking after the bubble burst]]>http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-the-american-homeowner/http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-the-american-homeowner/http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-the-american-homeowner/#commentsFiled under: ,

This post is part of our feature on Money Losers of 2008. See all 20.

For a second year in a row, American homeowners are among the biggest losers of 2008. In 2007, predictions were that American homeowners would lose over $103 billion. Now at the end of 2008 the number jumped to losses of $2 trillion as the value of homes continue to fall with no end in sight. As job losses increase, even more families will be forced into foreclosure.

Homeowners who bought at the top of the housing bubble between 2005 and 2006, could wait decades for the prices to reach that level again. People who must move for a new job or family crisis find they either have to come up with cash for closing (if they find a willing buyer) or they must walk away from the loan and give the house back to the bank either through foreclosure or through a deed-in-lieu of foreclosure.

The housing bubble that started to inflate in 2002 and burst in 2007 drove housing prices way out of the normal range. The normal ranges for housing prices track these measures:

  • Income: The house price should not exceed three times your average household income, which was true from 1950 to 2000. In 2006 the average household income was $66,600, so the average home price should have been about $200,000. But during that year the average home price was about $300,000.

Continue reading Money losers of 2008: The American homeowner, still sinking after the bubble burst

Money losers of 2008: The American homeowner, still sinking after the bubble burst originally appeared on BloggingStocks on Tue, 23 Dec 2008 15:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>down paymentsfeaturedforeclosureshousinghousing bubblehousing pricesliar loansMoney Losers 2008mortgagesNew Dealunderwater mortgageTue, 23 Dec 2008 15:15:00 EST<![CDATA[Money losers of 2008: Eliot Spitzer, from Crusader of the Year to Client 9]]>http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-eliot-spitzer-from-crusader-of-the-year/http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-eliot-spitzer-from-crusader-of-the-year/http://www.bloggingstocks.com/2008/12/23/money-losers-of-2008-eliot-spitzer-from-crusader-of-the-year/#commentsFiled under: ,

This post is part of our feature on Money Losers of 2008. See all 20.

Back in the early 2000s, Spitzer was the champion of investors battling evil on Wall Street, and he was much more aggressive than the SEC. The SEC finally got mad and asked that Spitzer coordinate his efforts with them. I doubt many of the investigations that Spitzer led in the early 2000s would ever have happened if he waited around for the SEC to act. He was even named "Crusader of the Year" in 2002 by Time magazine.

Spitzer used the points he won as a popular New York State Attorney General to win the governor's race, but things quickly went downhill. First there was the scandal involving his aides who attempted to embarrass Republican state Senate Majority Leader Joseph Bruno because of the use of state aircraft. Then Spitzer lost more popularity when he made it easier for illegal immigrants to get driver's licenses.

But being named as Client 9 in a prostitution ring took him down. Investigators found out about the ring when they followed the money after seeing funds moving from his accounts in a suspicious manner. In the end it was reported that Spitzer spent $80,000 on prostitutes. A measly sum when you consider the other money losers in this year's nominations. But for Spitzer it's more about losing power than losing money.

Sadly, he proved his own words to the BBC is 2006, "Everyone is susceptible to the notion that when you begin to do well, you begin to see no boundary lines and forget the rules apply."

Be sure to check out more Money Losers of 2008.

Money losers of 2008: Eliot Spitzer, from Crusader of the Year to Client 9 originally appeared on BloggingStocks on Tue, 23 Dec 2008 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Client 9Eliot SpitzerfeaturedJoseph BrunoMoney Losers 2008New YorkscandalsSECTue, 23 Dec 2008 10:10:00 EST<![CDATA[Polaroid files chapter 11]]>http://www.bloggingstocks.com/2008/12/19/polaroid-files-chapter-11/http://www.bloggingstocks.com/2008/12/19/polaroid-files-chapter-11/http://www.bloggingstocks.com/2008/12/19/polaroid-files-chapter-11/#commentsFiled under:

The digital age finally took down Polaroid. Polaroid filed for bankruptcy to restructure its debt. Yet Polaroid's CEO Mary Jeffries says the company will continue operations.

She told CNN, "Our operations are strong and during this process Polaroid will ship products to our retail partners, work with our suppliers and contract manufacturers to fulfill retailer demand." She promised employees would receive their pay without interruption and said there would be new product launches in 2009.

The bankruptcy filing was necessary because of an investigation of its parent company, Petters Group Worldwide, which has owned Polaroid since 2005, according to a statement by Polaroid when the bankruptcy was announced. Polaroid went on to say the Petters Group founder and other employees are under investigation for fraud and that the investigation does not involve its leadership team.

While I know Polaroid is remaking itself in the new digital age, it's still hard to imagine this former leader in the world of photography being forced into bankruptcy. I'm rooting for it to survive bankruptcy and come back strong. I still remember the excitement of using my Polaroid when I was younger.

Lita Epstein has written more than 25 books including the "Complete Idiot's Guide to Value Investing" due out in January."

Polaroid files chapter 11 originally appeared on BloggingStocks on Fri, 19 Dec 2008 10:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcyinthenewspolaroidFri, 19 Dec 2008 10:25:00 EST<![CDATA[Madoff winners may have to pay back gains]]>http://www.bloggingstocks.com/2008/12/19/madoff-winners-may-have-to-pay-back-gains/http://www.bloggingstocks.com/2008/12/19/madoff-winners-may-have-to-pay-back-gains/http://www.bloggingstocks.com/2008/12/19/madoff-winners-may-have-to-pay-back-gains/#commentsFiled under: ,

As the story unfolds, winning investors find that even though they took their funds out, they may have to repay some of their gains. That's because of something called "clawbacks." A court could rule that anyone who gained money from Madoff's Ponzi scheme must repay some of the gains even if the person had no idea the gains were fraudulent.

When it comes to a Ponzi scheme, unknowing early investors make their profits because the money from later investors is used to pay those profits. In the New York Times story this morning, the Times reviews the records of one investor who made millions with Madoff, even though he still had several million dollars in his account when the fund collapsed last week. The Times did not reveal his name because he is afraid he could be sought out to repay some of his gains.

Based on previous court rulings involving other frauds, winners have reason to worry. In past scandals they have had to give up some of their gains to even up the losses. Losers are likely to receive just 20 to 40 percent of their original investment. Clawbacks will help in an attempt to repay some of the losses.

Clawbacks could impact investors who received gains over the last six years, but how far back the courts will decide to go will be determined in the future when all the facts are known. Some believe investors could also sue other investors who drew them into this fraud. Whatever happens Madoff-related lawsuits will probably fill the courts for years.

Right now the Times reports only $20 billion of the possible $50 billion in losses have been identified, but more losers are expected to come forward. The $50 billion estimate is the number suggested by Madoff when he confessed to the fraud.

Lita Epstein has written more than 25 books including "Reading Financial Reports for Dummies."

Madoff winners may have to pay back gains originally appeared on BloggingStocks on Fri, 19 Dec 2008 09:20:00 EST. Please see our terms for use of feeds.

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Christopher Cox, trying to protect his own reputation, is now calling for an internal investigation of the SEC to find out how the Madoff Ponzi scheme went undetected for 10 years. Was Cox asleep at the wheel or was he just oblivious to what was going on in his own agency. Did a personal relationship between one an SEC attorney and a Madoff compliance lawyer hamper investigation, as Blogging Stocks Peter Cohen questions?

Cox, feeling the heat, ordered a full and immediate review of past allegations against Madoff and his firm. He wants to know why staff didn't act upon them. This investigation will include all staff contact with Madoff family members.

Well maybe we'll find out some of these answers, but even if we do the damage is done to all the individuals and institutions that took a beating while the SEC slept. The SEC admitted as this investigation started that Bernard Madoff and his securities firm had "repeatedly" been under question by the SEC staff since 1999, but staff never recommended action to the commission.

Continue reading Cox admits failure - calls for internal investigation of Madoff dealings

Cox admits failure - calls for internal investigation of Madoff dealings originally appeared on BloggingStocks on Wed, 17 Dec 2008 12:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>coxinthenewsmadoffsecWed, 17 Dec 2008 12:02:00 EST<![CDATA[Dismantling of a once-proud agency: The S.E.C.]]>http://www.bloggingstocks.com/2008/12/16/dismantaling-of-a-once-proud-agency-the-s-e-c/http://www.bloggingstocks.com/2008/12/16/dismantaling-of-a-once-proud-agency-the-s-e-c/http://www.bloggingstocks.com/2008/12/16/dismantaling-of-a-once-proud-agency-the-s-e-c/#commentsFiled under: , ,

When Christopher Cox was appointed by President George Bush to head the U.S. Securities and Exchange Commission, some people compared it to putting the fox in charge of the hen house -- certain he would destroy all that had been built by one of the SEC's most effective leaders, Arthur Levitt. Wall Street wanted someone who it knew would reduce regulation and enforcement. They got what they wished for -- but are they pleased with the results? Probably not. Arthur Levitt was tough to deal with but I doubt any of this Wall Street mess would have happened if he were still in control of the SEC.

The Bernard Madoff scandal is just another in a long string of missteps from the agency Christopher Cox helped to dismantle. Cox's budget cuts and the regulation changes he encouraged removed the SEC's enforcement division's teeth, making it harder for the agency to impose penalties on corporations.

Christopher Cox rarely took a stance against anything Wall Street could dream up. When Bear Stearns was in trouble, he was like Nero declaring there wasn't a problem as Rome burned. Just three days after Cox assured investors all was well, Bear Stearns collapsed.



Continue reading Dismantling of a once-proud agency: The S.E.C.

Dismantling of a once-proud agency: The S.E.C. originally appeared on BloggingStocks on Tue, 16 Dec 2008 13:20:00 EST. Please see our terms for use of feeds.

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