Power And Dollar

Is New Japanese Ambassador To China Sinking Your 401k?

Japan just named its new ambassador to China without much notice in the States.  But do you own Japanese companies’ stocks?  How much does China affect Japanese manufacturers who have factories in China?  Current ambassador Uichirou Niwa (丹羽宇一郎) will be replaced by Masato Kitera (木寺昌人).  Shortly after the announcement of the appointment, Euro started appreciating against Japanese Yen from 102 to 102.50 similar to US’ appreciation against Yen from 74.40 to 74.85 in 30 minutes. Although US’s currency strength maybe explained by the better than expected unemployment data.  However, USD was actually depreciating against EUR at the same time when JPY was depreciating against all currencies.

So, if Kitera’s appointment has anything to do with the JPY depreciation, what was the rationale in the market at the time?

Kitera has no diplomatic experience in China.  Neither can he speak the language.  It is certainly not an advantage for a diplomat.  However, this is also a reverse to the earlier policy of Japanese Prime Minister Noda (野田 佳彦) to use civilian (current ambassador Niwa is not a civil servant) instead of foreign ministry’s bureaucrats for Japan’s ambassador to China.  Is this a signal interpreted by the market that Prime Minister Noda influence is waning?

Kitera’s career has been mainly related to international organizations, such as foreign aid (Grant Aid Division of Foreign Ministry), Minister to UN and WTO etc.  What does say about the intent of Japan in its relations to China amid the recent controversies over the island dispute?

His skills of cooperation with many different entities are certainly valuable.  Are there no suitable candidates who have host country knowledge and diplomatic skills to smoothen the relationship?  Is this appointment part of the upcoming lower house election calculation? 

If former, then it may show some distrust of the political elite over the close relationship between the bureaucrats with China.  If latter, then this is a clear signal that Japan may become more aggressive against China over the island dispute, despite the US public announcements toward a more peaceful environment during the US election season.  As a stretch, this appointment may enlarge the diplomatic battle field since Kitera may be able to draw his knowledge in the international institution areas.

If Japan actually cannot feel confident about the diplomatic abilities among the China experienced bureaucrats, then this appointment further shows the talent shortage of Japan, now reaching a higher level of the civil servants than previously thought. 

Since 1995, Japan ambassador to China has been around 60 years old, compared to US to China around 57 and China to Japan around 54.  Japan’s labor force has aged tremendously over the two decades without back fill.  The death of Nishimiya (西宮 伸一), the Japan to China ambassador to be, certainly was an accident, although indicative of Japan’s talent pool.  This appointment may serve as an additional indication that Japan is running out of candidates to manage its complicated affairs against a rising power.

This may further affect its trading strength in its future trade negotiation against China in the China, Korea and Japan trilateral relationships.  Export heavy companies in Japan will be further negatively impact, such as auto manufacturers.

October 5, 2012 Posted by | China, finance, Investment, Japan, opinion, politics, stock, trading | Leave a comment

The Danger Of The Merrill Purchase To You

Thank God, they bailed out AIG”?  Can we say “Thank God, Bank of America bought Merrill”?

Do you think the Merrill (NYSE:MER) take-over by Bank of America (NYSE:BAC) is better than the bankruptcy of Lehman (NYSE:LEH)?  Because at least the company is saved?  Not really, unless you are an employee of Lehman.  In fact, the Merrill take-over by Bank of America is worse to all tax payers and to anyone who is a depositor of Bank of America (Bank of America has overseas operations).  

 

Investment banks take high leverages.  Investment banks have a different nature in their business from retail or commercial banks (or wholesale banks).  That is why investment banks have a much more volatile nature than other banks.  For instance, take the year 2000 instead of 2008.  The market capitalization variation of Citi (NYSE:C) is only 29% while Goldman (NYSE: GS) is 62%.

 

The danger of this merger is that since investment banks are a lot more volatile, having a deposit bank and an investment in the same balance sheet puts the retail depositors’ money in danger.  It comes down to one question: what if the hole of investment bank is big enough to suck out all the depositors’ money?  Exactly for this reason, America got a thing called Glass-Steagall: separating investment banks and deposit banks.  This requirement is removed by another law Gramm-Leach-Bliley during Clinton Administration.

 

Glass-Steagall was created to contain the risks from the investment banking industry, preventing their risks to spread out to all over the place.  Investment banks make loads of money during the good time, i.e. high M&A seasons.  During the bad times, like we have now, investment banks sink harder than Titanic. 

 

This merger means more of FDIC’s money is now exposed to a greater risk, the hole of Merrill.  Bank of America’s Tier 1 capital is now at best 7.4% Once we see formal filing, we will probably see that the Tier 1 will be even lower than 7.4%.  What is the cost to the depositors?  What can be done about it?  The fed can actually give Bank of America a greater pressure on the Tier 1 capital requirement.  It cannot fix everything, but something. 

 

Bank of America already swallowed LaSalle and Countrywide.  However, Countrywide is more about swallowing client list.  LaSalle is more about geographic expansion.  Merrill is about a new business line and new clientele.  This will be a great test of Bank of America’s management.  It’s just that Bank of America is not known for management integration.

 

Certainly Bank of America got the biggest brand in the investment bank.  What is the price in addition to the stock swap?  What is the management cost of this merger?  This will take years or even a decade to work out the integration.  How long will it take to get a divorce out of this one?

 

September 17, 2008 Posted by | banking, Barack Obama, business, Current Events, Democrats, economics, finance, Investment, John McCain, market, mccain, Money, obama, opinion, politics, Regulation, Republican, Sarah Palin, wordpress-political-blogs | Leave a comment

Obama vs McCain Platform (Part 3): Your Taxes

Obama made his tax announcement on 2008.08.12.  This probably the most valuable plank in any election.  Yet so little attention is paid by the mainstream media.  Is the Olympics Game drowning out all the media space?  This post summarizes the most important points out of the 2 candidates studied by TaxPolicyCenter.org’s research based on IRS data.

Under Obama’s tax plan, 99% of tax units will generate more tax refund (by cash income, see Table 1 of the link).  Only the top 1% of tax units will have to pay more taxes.  

 

How much do these top 1% earn?

Well, $2,871,682. 

 

Let’s look at McCain’s tax proposal.  This is the Table 6 of the same link.  Great news!  Everyone gets to pay less taxes!  Even the top 1% pay less.  The lowest 20% of tax units pay $21 less in taxes while the top 0.1% pay $290,708 less!  One may argue that since the lowest 20% have a smaller taxable income, their smaller tax refund increase is justifiable.  That is a very sound argument.  So, let’s see if the tax refund were proportional across income groups.  

 

The lowest 20% of tax units will see an increase in after-tax income of 0.2% while the top 0.1% see an increase in after tax-income of 4.7%.  This is also McCain’s.  Even Arizona’s newspaper cries fool.

 

For Obama, the lowest 20% tax units see a 5.5% after-tax income increase while 1.9% for the highest 5% tax units, 0% for the highest 1% tax units.  The top 1% see 8.7% decrease in after- tax income and the top 0.1% see -11.4% decrease in after-tax income. 

 

People have been wondering about capital gain.  Obama’s announcement also clarified some clouds as well.  TaxPolicyCenter.org checked the numbers on this capital gain issue as well.  

 

Although 80% of the tax returns claim capital gains in 2006, they take up only 6.2% of capital gains.  These filers are all below $75k in Adjusted Gross Income.  However, 0.3% of all returns take up 60% of capital gains and they are all >$1M Adjust Gross Income filers. 

 

Obama’s tax plan was absolutely unclear prior to this announcement.  But then it is the voters who can force the candidates to be clear and accountable to their promises.  

August 15, 2008 Posted by | Barack Obama, Current Events, 美國, Democrats, economics, election, Election 2008, finance, Investment, John McCain, mccain, Money, obama, opinion, politics, Republican, wordpress-political-blogs | 3 Comments

China Earthquake And Your Money

CNN continues to report the newest death toll caused by China’s earthquake.  What stocks are affected by this earthquake?  This natural disaster in China is a lot closer to America than Myanmar’s simply because China is a lot more involved in the global economy.

 

More than 2 dozens of Chinese public traded companies can be found in the States either as stocks or as ADR.  The PetroChina (NYSE: PTR) is the first one to be affected because it has fields in Sichuan, the province where the quake occurred.  Those oil wells are now shut.  This company is the largest oil company in China.  Nippon Oil (TSE only) has a joint venture with PetroChina.  

 

China Telecom (NYSE: CHA) may get the worst hit since it has 10% of all land lines in the region.

Sinopec (NYSE: SNP), which is developing a field in Sichuan may see decrease in revenue.  Damage to this gas field is unknown.

 

China Life (NYSE: LFC) is also dropping since it is expected to have a lot more life insurance claims.  This life insurance company is the largest in China.  The selling pressure is short term since the life insurance penetration in that area is low.  In fact, the price has come back up after the initial drop.  This selling pressure only lasted for 1 day.

 

PICC Property & Casualty (other-otc: PPCCF) may actually get a bigger hit than the life insurance companies.

 

Negative impact on HSBC will be minimal since this bank has very exposure to this geographic area.

 

Qingling Motors (OTC: QGLHF) will get negative impact.  This area has some exposure to auto factories and circuit design.  However, the foreign trade is not concentrated here. 

 

Huaxin Cement’s price is going up already, in anticipation of more infrastructure projects.  Huaxin is traded in Shanghai only.  Lafarge SA (OTC: LFRGY), of France, is the parent company of Huaxin.  Cement company Anhui Cement is other-otc: AHCHF.

 

Construction equipment companies that have a presence in China will do well.  Check Caterpillar’s (NYSE CAT) exposure in China or Hong Kong.  Its competitors are Deere, Gehl.  Astec builds road construction equipements and components (NASDAQ ASTE).  Check its exposure in China or Hong Kong.  A strong exposure will be a good sign.   

All medical supplies companies are going up in China and Hong Kong.

 

Foreign companies such as IBM, Intel, Wipro (NYSE: WIT) have sites here.  Japanese Toyota and Hitachit also have sites here. 

This earthquake will drive up inflation in China.  Given the tourism brought by Olympics, Chinese yuan is expected to appreciate until the end of the games.

 

If your desired company cannot be found in the States, find a proxy company in Hong Kong stock exchange, or ADR in the states.  If you are interested at funds, then get an Asian (or Far East) fund that has a heavier emphasis of infrastructure and medical supplies industries, a heavier emphasis in Hong Kong.  A lot of companies in China may get suspended if it has a big swing in price.  Hong Kong does not have such restriction.  This gives your mutual fund manager a greater flexibility.

May 13, 2008 Posted by | banking, business, China, Current Events, economics, 香港, finance, Investment, market, opinion, politics, stock, Thoughts, trading, wordpress-political-blogs, 国事, 中國 | 2 Comments

From Zimbabwe, Kenya, To Madagascar Oil, China and India

Zimbabwe got a new twist.  CNN reports Mugabe decides not to atten the submit to be held in Zambia, its neighbour.  However, the opposition (Tsvangirai) is attending.  This will give the Tsvangiraia great opportunity to sell his plan of stabilization and strengthens Tsvangirai’s edge both internationally as well as domestically. 

The instability in Zimbabwe affects copper’s prices.  However, the copper price has been receding from its historical high.  This Zimbabwe episode will provide a support price level to copper.  So, this price will probably slow down.

Further down, Sino Union Petro & Chemical secured an oil field with Madagascar, expected to be worth 2B barrels.  China will own 50% of the venture. 

Chinese oil exploration firms have been trying to secure sites overseas with little success.  This is a firt major break not only for them, but also to Madagascar as well.  Madagascar has not produced oil for 60 years, reports Reuters! 

This company is not traded in LSE nor NY.  It is traded in HK only. 

This will also strench India’s resources as well.  Although India is not in as an urgent need as China in terms of resources.  Over the years, China is slowly moving in East Africa (more so than Africa in general), the traditinoally perceived sphere of influence by India.  Not that India has navy bases all over the place, but it has a lot of migrants and control a big portion of trade in East Africa.  It will only be a matter of time for India to express its security concern not only about the Himalaya border and Parkistan, but also about pan India Ocean security issues with China.  These oil exploration companies will have to learn that getting listed in London and NY helps them mitigate political risks.

For India, issues such as Kenya and Zimbabwe will have to become the leverage points for it to enter the stage.  It is probably too late for this episode.  But next time.

April 11, 2008 Posted by | business, China, chinese, Current Events, economics, finance, market, Money, opinion, politics, stock, Thoughts, trading, wordpress-political-blogs | 5 Comments

Kenya, Zimbabwe and Your $$

Wall Street reports (print version) that Zambia President and SADC Chairman Levy Mwanawasa invited 15 South African countries for a submit on the Zimbabwean crisis.  How does Zimbabwe affect your $$?  Kenya is having their problems too.  Zimbabwe itself does not cause that much of a problem.  When the political instability gets Zimbabwe’s neighbour Zambia nervous, then it will affect your $$.  And how does Kenya play into this?  Well, most of the copper from central Africa are mined from land locked countries.  And they, just happen so, export through Kenya.

 

http://edition.cnn.com/2008/WORLD/africa/04/10/zimbabwe.election/index.html

 

 

Zambia and Zimbabwe shares a long border.  Zambia and Kenya also share a long border.  Zambia would get nervous because it sees a refugee crisis down the road.  And that is where the problem begins.  Zambia is still a major producer of copper.  This Zimbabwean political instability may create political instability in Zambia as well.  This will drive up the prices of copper.  Kenya may not create a refugee problem.  However, the seaports may not be working and we will get a real back log on copper.  That can be the same story as oil having its backlog created by Katrina, just a copper version of it.  And from there goes into your alloy producers, manufacturing, construction tools, …

 

 

Copper prices have been falling lately (as in days).  However, copper is around the historical highs (2008.04.09’s LMX cash ~8650/MT vs. 2006.05’s LMX cash ~8800/MT).

 

 

Who is the biggest buyer of copper right now? You got it right: China and India.  And they are importing for their infrastructure needs.

 

 

In addition, this Zimbabwe will increase pressure to push up inflation.  And the inflation effect may not be a cascading effect by imports.  If the Chicago market recognizes this risk quickly, the price level may get worked into it fairly quickly.  That affects the bonds market right away.  And any movement in bonds affects stocks of FIs.  

 

 

This may lead people to think about the exchange rate of US dollars.  The exchange rate of US is not affected much by this crisis.  The US exchange may be experiencing some psychological sell off due to US’ recent fall against Chinese Yuan.  US has fallen across the psychological barrier of 1US vs. 7Yuan, read Forbes’ story here.  

April 10, 2008 Posted by | business, Current Events, economics, finance, Money, opinion, politics, stock, Thoughts, trading, wordpress-political-blogs | 2 Comments

Zimbabwe and your $$

Wall Street reports (print version) that Zambia President and SADC Chairman Levy Mwanawasa invited 15 South African countries for a submit on the Zimbabwean crisis.  How does Zimbabwe affect your $$?  Zimbabwe itself does not cause that much of a problem.  When the political instability gets Zimbabwe’s neighbour Zambia nervous, then it will affect your $$.  

 

http://inthefield.blogs.cnn.com/2008/04/10/a-crisis-measured-in-hunger/

http://edition.cnn.com/2008/WORLD/africa/04/10/zimbabwe.election/index.html

 

Zambia and Zimbabwe shares a long border.  Zambia would get nervous because it sees a refugee crisis down the road.  And that is where the problem begins.  Zambia is still a major producer of copper.  This Zimbabwean political instability may create political instability in Zambia as well.  This will drive up the prices of copper.  And from there goes into your alloy producers, manufacturing, construction tools, …

 

Copper prices have been falling lately (as in days).  However, copper is around the historical highs (2008.04.09’s LMX cash ~8650/MT vs. 2006.05’s LMX cash ~8800/MT).

 

In addition, this Zimbabwe will increase pressure to push up inflation.  And the inflation effect may not be a cascading effect by imports.  If the Chicago market recognizes this risk quickly, the price level may get worked into it fairly quickly.  That affects the bonds market right away.  And any movement in bonds affects stocks of FIs.  

 

This may lead people to think about the exchange rate of US dollars.  The exchange rate of US is not affected much by this crisis.  The US exchange may be experiencing some psychological sell off due to US’ recent fall against Chinese Yuan.  US has fallen across the psychological barrier of 1US vs. 7Yuan, read Forbes’ story here.  

 

 

AP reports the political story as follows:

 

The opposition party said Thursday it will not participate in a presidential runoff, while spokesmen for President Robert Mugabe and his chief rival said both will attend an emergency summit of southern African leaders this weekend.

The Movement for Democratic Change says its candidate, Morgan Tsvangirai, won the March 29 vote outright, and has accused Mugabe of delaying the results to give ruling party militants time to intimidate voters and ensure he wins a second round.

On Thursday, the opposition leadership met and resolved not to participate in any runoff presidential vote.

“We won the presidential election hands down, without the need for a runoff,” MDC Secretary-General Tendai Biti told reporters at a news conference in neighboring South Africa. Party leaders had previously said they would not accept a second round, but the party had not taken a formal stance.

Deputy Information Minister Bright Matonga told CNN he believed opposition politicians would be “cowards” if they did not contest a runoff.

“They should come, they should face the music,” he said.

Twelve days after the vote, the results from the presidential race have not been released. The High Court will decide Monday whether to grant an opposition request for release of the election results.

Zambian President Levy Mwanawasa has called an emergency summit of the Southern African Development Community for Saturday to discuss the crisis.

“Such meetings are usually very healthy so heads of state can brief each other, not only us in Zimbabwe,” Zimbabwean Information Minister Sikhanyiso Ndlovu told The Associated Press.

But he insisted the meeting wasn’t necessary. “There is no crisis in Zimbabwe that warrants a special meeting on Zimbabwe,” he said.

Mwanawasa originally planned to send a delegation of former heads of state to Zimbabwe but decided to hold an urgent summit instead, Zambian state radio reported.

Matonga confirmed that Mugabe would attend. “If there is a SADC meeting of heads of state, then obviously he will attend,” he told the AP.

Tsvangirai also will attend the summit, MDC spokesman Nqobizitha Mlilo said, calling him a “head of state.” Biti said the party would press SADC to urge Mugabe to step down.

Tsvangirai, who was traveling throughout the region to ask Mugabe’s peers to push him to end the standoff, was headed Thursday to South Africa to meet with President Thabo Mbeki, Mlilo said.

“If Mr. Tsvangirai is in town and before the president leaves for the next meeting and his program allows it, it is important to hear what Mr. Tsvangirai has to say,” said Aziz Pahad, South Africa’s deputy foreign affairs minister.

African leaders previously deferred to Mbeki and his strategy of “quiet diplomacy” on dealing with Zimbabwe. Mwanawasa has stood out as the only southern African leader to publicly criticize Mugabe’s policies, last year likening the country’s economy to “a sinking Titanic.”

Mugabe has virtually conceded he did not win the election and appears to be campaigning for a runoff by intimidating his foes and fanning racial tensions.

Desmond Mufunde, a newly elected MDC councilman from the rural Gweru district, said soldiers attacked some people in his district last weekend.

Zimbabwe’s Commercial Farmers’ Union accused ruling party supporters of forcing dozens of white farmers off their land and ransacking their homes. Farmers warned that continued chaos could endanger the wheat crop, vital to a nation that has grown deeply dependent on food aid during the worsening economic crisis.

April 10, 2008 Posted by | business, Current Events, economics, finance, market, Money, opinion, stock, Thoughts, trading, wordpress-political-blogs | 1 Comment

Taiwan’s Bank buys Mainland China’s

Fubon has been approved to buy approximately 20% of Xiamen City Commercial Bank at a price of US$34 M.  The biggest shareholder of Xiamen City Commercial Bank is the Xiamen City government’s Commerce Bureau, approximately 24%.  Fubon is traded in international exchanges.  Fubon is expected to name members to the board.

Xiamen City Commercial Bank is a local bank.  Xiamen (Amoy) has the heavies concentration of Taiwan businesses.  This local bank is not a troubled bank.  The significance is not who bought whom, but the approval by Taiwan’s authorities.  This will be considered a plus for Fubon. 

Taiwan’s government bureaucrats are quick to recognize the president elect Ma and quickly steering to approvals that would be considered as consistent with his platform.  There probably will be other approvals before May that are considered favourable to businesses/industries building ties to Mainland China. 

April 3, 2008 Posted by | banking, business, China, Current Events, economics, finance, market, Money, stock, Taiwan, trading, wordpress-political-blogs, 台灣, 中國 | Leave a comment

Paulson’s Big Bang: For Who And What Do You Care?

Paulson made this long expected announcement about residential mortgage regulation.  What is relevant? To Who?  Irrelevant or indifferent to McCain, this plan is not adding points to McCain.  It does not do anything to elevate the pains a lot of people are suffering right now.  What is going on?Below is the news from Reuters: http://www.reuters.com/article/bankingFinancial/idUSN3142489220080331

This kind of regulation is not something Democrats are good at.  However, putting something like this up front can reduce a lot of fire in this election from the Democrats.  So, it does not add points to McCain, it can take a few hits from Democrats.  However, after reading the pdf file from Paulson, one may protecting McCain is only a collateral benefit.  This piece of work is more about pay back time, paying back to a core constituence.

This overhaul is to take the initiative of repair from the Democrats to the Republicans, in particular, someone who knows the financial industry well.  Paulson is not a retail banker.  He comes fromt he capital markets.  His placed a great emphasis on capital markets, like merging SEC and futures trade commission.   

The change regarding exchange traded funds is a good call.  But then, how is it related to the purpose of residential mortgage overhaul?  Fixing the approval process is needed. And couldn’t this be done in legislation maintenance?  Why packaged in such a big fix?  It serves the industry more than the purpose of residential mortgage regulation, similarly for expanding the Investment Company Act to permit a new global investment company.  

It is probably a good idea to have oversight of broker-dealers and investment advisers offering similar services to retail investors.  What about the practice of licenses being licensed to the companies rather than the individuals who actually do the work?  That has been the cause of a lot of discrimination lawsuits.  Since the licenses are licensed to the companies, this looks more like territorial fighting than “oversight”.  Of course, some kind of retail investor protection will be part of the deal.  

Of the whole 7 pages of summary, only 0.5 page of it is focused on residential mortgage origination.  Another 0.5 page about state banks, payment systems and thrift charter, the real retail customers related issues.  Once insurance is added on top, there is 1.5 page of material!  

It is true there are other issues involved, such as the new powers to the Fed that has indirect positive consequences to the retail customers as well.  However, the meat is in the regulation reduction.  And for all fairness, it is about redundancy.  But don’t do it in the name of preventing similar mistakes like this mortgage crisis!

Who cares? Of course anyone who has a heavy position in FIs.  However, the benefit is more on the bigger guys.  The bigger institutions are the ones who have cross jurisdiction issues.  The retail level gets affected the most looks like the mortgage brokerages.  More details regarding the mortgage origination is needed to see if Home Depot and the like would get affected.

April 1, 2008 Posted by | banking, business, Current Events, economics, finance, market, Money, opinion, Regulation, stock, trading, wordpress-political-blogs | 4 Comments

What Is Next In Residential Mortgage Regulation? It’s Election Year!

Nothing looks good.  Today’s data are weak.  US dollar falls against yen, reports CNN.  In real time, US is bouncing up against Yen and Euro.  GDP grew very little.  Durable orders are down.   

http://edition.cnn.com/2008/BUSINESS/03/27/asia.dollar.ap/index.html

Essentially, everything depends on this mortgage crisis.  And politicians are offering all kinds of things.  What for? To occupy your TV box so that you forget about the other ones. 

Depending on your time horizon, all the political fuss about the mortgage crisis may or may not have an impact on you.  This is the newest round of talk, from Wall Street Journal:

http://online.wsj.com/article/SB120658212569867477.html?mod=hpp_us_whats_news

The most visible talks related to mortgage crisis come from the presidential candidates.  They make get you excited.  However, you need to start align this temporal emotional development to TIME.  It’s election year!  All bets off!

The new president will take office next January.  It takes a month of 2 to transition the administration.  So, any work for such an important topic will be some time in Feb, almost a year for anything to be put on the table.  So, don’t let Clinton’s auction talk, Obama’s credit card solution or McCain’s inaction be a factor on your today’s decision.  If your horizon spans > 18 months, then I would say you need to pay attention to their talks.  For instance, you are about to buy an existing internet foreclosure auction site, due diligence is about to complete and on to develop a term sheet.

What is really relevant is about what Treasury Secretary Paulson says.  Below is not exactly news any more since it is almost 2 weeks old.  However, it is relevant:

http://www.nytimes.com/2008/03/13/business/13cnd-paulson.html?em&ex=1205553600&en=5ceef68e75d21e48&ei=5087%0A

It may look inconsistent to this:

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24037412.htm

They are not inconsistent of each other.  Paulson does not want a quick fix.  He wants a “solution”.  That translates to regulatory risk (not compliance risk.  A lot of people mistake regulatory risk as compliance risk.).  And if one looks at the Feb 7 press release of the Undersecretary Robert Steel, Paulson will definite create new regulations in a very short term.  

 Related industries will not only be FIs or mortgage insurance companies, but from suppliers to appraisal firms to ABC Papers packaging shops.  Paulson seems to be undeterred by the election politics.  Or Bush is not? Paulson is the real deal.

March 27, 2008 Posted by | banking, business, Current Affairs, Current Events, economics, election, finance, Money, politics, Regulation, US politics, wordpress-political-blogs | 2 Comments