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Economist
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Latest Headlines
Economist proposes Goldman Sachs Amendment
Is bank charter arbitrage a problem? A novel laureate economist wants the government to pass a law that he has dubbed the Goldman Sachs Amendment, which would force banks "to choose whether they want to be regulated banks, with all the government protections and restrictions, or unregulated invest
Wall Street and the cap-and-trade business
Will financial firms--the likes of Goldman Sachs and Morgan Stanley--inevitably come to dominate any market for carbon emissions? A lot of people in Congress seem to be weighing the argument seriously. The Economist notes the words of one Senator: "It won't be very long before we have derivati
And the best banks are...
Banking industry awards, as of late, have taken on an unwittingly humorous dimension. Bank of America CEO Ken Lewis was named banker of the year last year, just as his bank was starting to tank. Angel Mozilo, of Countrywide infamy, was honored with a lifetime achievement award as the ship started
How big is the looming commercial crisis?
The bankruptcy of General Growth Properties is being seen as a harbinger of what's to come. It was a generally strong operating company, with properties like the South Street Seaport in New York and the Tysons Corner mall in McLean, Va. The problem was a heavy debt load that stemmed from a big acq
What does private equity see in IndyMac?
IndyMac made headlines when it collapsed, and then some more when it was announced that a private equity firm consortium led by Dune Capital will buy what remains of it. A good vulture move? The Economist says this: "What remains of IndyMac's franchise is of questionable value, to put it chari
Private equity industry's fair-value problem
Private equity firms must value their portfolio at something representing fair value, but there's a lot of room for interpretation. That's where the International Private Equity Valuations Board, which provides standards, comes into play.
Unsurprisingly, the conventions have strained the credi
Plenty of bonuses on Wall Street still
While Goldman Sachs, UBS, Deutsche Bank and Barclays have all announced that their top executives will forego bonuses in 2008, there will still be lots of bonus money handed out. You're lucky if you never made it into the C-suite at Goldman because you can still share the bonus pool. At Goldman, $
When diversification is a bad thing
Nobel prizes have been won in pursuit of the simple fact that diversification is a good idea. But there are times when it seems like an awful idea. For big pensions, now may be one of those times. The Economist takes a look at the movement for institutions to be "more like Yale," that is more,
