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*1986-87 advice to Reagan Admin ends Contra attacks on Reagan esp pointing out no "scienter"/i.e. no criminal intent
*1986-87 advice to Reagan Admin ends Contra attacks on Reagan esp pointing out no "scienter"/i.e. no criminal intent


*1986-87 repeated advice to Japan to allow financial futures to allow hedinging are finally followed and such markets opened but warnings to Japan of Japan bubble and crash ignored and no one hedges
*1986-87 repeated advice to Japan to allow financial futures to allow hedging are finally followed and such markets opened but warnings to Japan of Japan bubble and crash ignored and no one hedges


*1991 advice to US Government (to Congress, SEC, White House, Fed Res) saves Salomon Brothers (Soly) from indictment and collapse;
*1991 advice to US Government (to Congress, SEC, White House, Fed Res) saves Salomon Brothers (Soly) from indictment and collapse;
**(Salomon Brothers had admitted rigging US Government Bond auctions to hog & receive most of the bonds in all these auctions and that admission caused both Congress and Wall Street to call for Salomon Brothers indictment)
**(Salomon Brothers had admitted rigging US Government Bond auctions to hog & receive most of the bonds in all these auctions and that admission caused both Congress and Wall Street to call for Salomon Brothers indictment)
**so saving Salomon Brothers also saved all global markets from collapse and 50 years of global depression (see further explanation in note below) & saved an estimated 20-30 trillion dollars in market losses following info in note taught to US Govt, and no one - not Soly executives, nor US Treasury, nor Fed Res nor White house nor Congress realized or knew any of this info and after learning it they did not indict Saloman Bros ... and not a Single question was asked of Warren Buffett, new interim Chairman for Salomon Brothers by Congressional committees where only 30-4 days before ALL of these committees and all of Wall Street were calling for indictment of Salomon Brothers
**so saving Salomon Brothers also saved all global markets from collapse and 50 years of global depression (see further explanation in note below) & saved an estimated 20-30 trillion dollars in market losses following info in note taught to US Govt, and no one - not Soly executives, nor US Treasury, nor Fed Res nor White house nor Congress realized or knew any of this info and after learning it they did not indict Saloman Bros ... and not a Single question was asked of Warren Buffett, new interim Chairman for Salomon Brothers by Congressional committees where only 3-4 days before, ALL of these committees and all of Wall Street were calling for indictment of Salomon Brothers
***note-at this time Soly was the financier for 75% of US Govt financing and had no replacement - that is, the entire rest of Wall St could not have replaced Soly govt financing because if indicted, Soly would have been shutdown...and its traders out of work and you could not move its large trading floor elsewhere (except in 1-2 years to wire up that capability) and the rest of Wall St did NOT have this (Soly) ability at all... and so saving the US Govt financing saved the US Govt from default (US then borrowing 30 billion week x 52 weeks or 1.5 trillion/yr more than any bank lending group could possibly provide but for few months) and if the US Govt had defaulted, global markets would have melted down causing that global depression...
***note-at this time Soly was the financier for 75% of US Govt financing and had no replacement - that is, the entire rest of Wall St could not have replaced Soly govt financing because if indicted, Soly would have been shutdown...and its traders out of work and you could not move its large trading floor elsewhere (except in 1-2 years to wire up that capability) and all the rest of Wall St did NOT have this (Soly) ability at all... and so saving the US Govt financing saved the US Govt from default (US then borrowing 30 billion week x 52 weeks or 1.5 trillion/yr more than any bank lending group could possibly provide but for few months) and if the US Govt had defaulted, global markets would have melted down causing that global depression...


*1992-93>99 advice to US government ends US Federal Reserve jawboning markets down permitting and causing the 1990s US & global stock market bull rally to new highs & creating increase of global markets value from 30 to 70 trillion
*1992-93>99 advice to US government ends US Federal Reserve jawboning markets down permitting and causing the 1990s US & global stock market bull rally to new highs & creating increase of global markets value from 30 to 70 trillion
**for previous 40 years the Fed Reserve practice was to jawbone down
**for previous 40 years the Fed Reserve practice was to jawbone down
any increase in the US Stock markets above 6-7% / year due to the theory an increase of any larger amount would cause inflation; this flawed reasoning (proven flawed as the larger bull market rally of the 1990s from DJIA of 2000 to 12,000 did NOT cause inflation) was explained to Congress (House banking and Senate Financing & Banking) Committtees by LEC and those committees then sledge hammered Greenspan at his testimony resulting in Greenspan stopping entirely jawboning for most of the 1990s (note the versatile Greenspan then claimed in huge PR campaign that his fine tuning caused the bull mnarket rally of the 1990s - all BS, as this stopping his jawboning the rally down is what allowed that bull market rally to occurr & that done by LEC; (and his preferred jawboning would have prevented
any increase in the US Stock markets above 6-7% / year due to the theory an increase of any larger amount would cause inflation; this flawed reasoning (proven flawed as the larger bull market rally of the 1990s from DJIA of 2000 to 12,000 did NOT cause inflation) was explained to Congress (House banking and Senate Financing & Banking) Committtees by this note writer-LEC and those committees then sledge hammered Greenspan at his testimony resulting in Greenspan stopping entirely jawboning for most of the 1990s (note the versatile Greenspan then claimed in huge PR campaign that his fine tuning caused the bull market rally of the 1990s - all BS, as this stopping his jawboning the rally down is what allowed that bull market rally to occurr & that done by LEC; (and his preferred jawboning would have prevented any such bull market rally he claimed credit for)
any such bull market rally he claimed credit for)


*1995 advice to China to finance 500 of million of credit cards
*1995 advice to China to finance 500 of million of credit cards

Revision as of 12:06, 22 August 2007

What is an Investment Banker

A person representing a financial institution that is in the business of

raising capital for corporations and governments-as municipalities and state authorities. Investment bankers are the people who put together

the financing ideas and then the paperwork for IPOs, regular corporate

financings as equity and bond issues; and financings for governments. An investment bank or investment banker does not accept deposits or make

commercial loans.

Leading Investment Bankers 1900-1950

(In earlier years of Wall Street (1800-1935), commercial banks as JP Morgan functioned then as Investment Banks; but, after Glass Steagall Act (c.

1933) this function was required to be split off from those commercial banks.

This requirement blurred in 1980s to the present, as commercial banks

again sought and obtained permission to enter arena of Wall Street business

and the Glass Steagall Act was repealed.

Prominent Investment Bankers

Synopsizing major Wall Street firms and their founders and leading bankers ...

Allen & Company

  • Founded 1922 by brothers Herbert & Charles Allen
  • Leading investment banker to media
  • Herbert Allen, Jr.

A. G. Becker & Co.

  • founded 1880 - Chicago, NYC
  • 1980-83 b'ot by SG Warburg & Co. Ltd & Banque Paribas
  • Warburg sold to Paribas > Becker Paribas
  • 1985 Paribas sold Becker Paribas to Merrill Lynch
  • Daniel Good (CEO, 1982-1984)

Bache & Co.

Barings Bank

  • 1762 founded by Francis Baring
  • 1802 bought Louisiana purchase, resold to USA
  • 1830s saves Bank of England
  • 1840s-1880s financed RRs across USA
  • 1995 larger trading losses cause sale
  • 1995 no help by Bank of England
  • 1995 Bought by ING
  • Part Sold to ABN Amro in 2004 & Barings Asset Management (BAM) split and sold to MassMutual and Northern Trust
  • Maurice Baring

Bear Stearns

Blyth & Co.

  • Blyth Witter & Co founded 1914 San Francisco
  • Name changed to Blyth & Co. 1928
  • Charles Blyth
  • Charles Mitchell - from National City Bank
  • 1954 Brings Ford motor public with largest IPO ever
  • Bill Morgan heads no. 1 public finance group
  • 1972 Merged with Eastman Dillon Union Securities & Co. with

new name Blyth Eastman Dillon & Co.- see next listing

  • Frank Mansell (CEO, 1965-1972)

Blyth Eastman Dillon & Co.

  • (names-Blyth Eastman, BEDCo, later Blyth Eastman Paine Webber)
  • Blyth & Co merged with Eastman Dillon in 1972
  • BEDCo no. 1 in public finance (as Blyth was) 1972-1982
  • Bought by the insurance company INA 1977
  • 1979/80 INA sells to Paine Webber
  • Joe H King
  • James F Miller
  • Bill Boothy CEO, 1972-1979
  • Al Shoemaker(Alvin V)CEO, 1979-1981
  • James F Cleary Pres,1977-1982
  • Don Maron CEO, 1981-1985
  • William E Simon VCh, Soly 2 SecUSTreas 2 Blyth 2 Wesray
  • Minos A Zombanakis Ch BEDCo Int'l
  • John T Booth EVP
  • Jack Kelsey EVP, 1975-?1985
  • Jim Lopp (to EF Hutton)(& founder of MBIA)
    • Lopp founds IDBs,Poll'n Bonds BEDCO does 50%(1960-80)50 billion
  • Dick Locke (to EF Hutton)
  • Scott Pierce (to EF Hutton, then to Pru-ceo PAMCo)
  • H Tommy Kilburn 1974-?1994
  • Howard L Clark Jr 1970-1981, to Am Exp, Lehman (VCh)
  • Paul Kelly to found Peers & Co
  • Benj V Lambert founds EastDil Realty
  • Harold Tanner to head banking Salomon Bros

Brown Brothers Harriman & Co.

  • created 1931 from Merger of Brown Bros & Co & WA Harriman
  • W.A. Harriman
  • Averill Harriman Gov of NY, Amb to Russia & UK
  • George Herbert Walker ceo grandfather of Pres Bush41
  • Prescott Bush sr partner, father of Pres Bush41

Cowen Group/Cowen & Co LLC

  • US Subsid SG Cowen-arm of SocGen (Societe Generale-French bank)
  • Arthur Cowen 1918-
  • Henry Cowen 1918-

Dillon, Read & Co.

Donaldson, Lufkin & Jenrette / "DLJ"

Jenrette]](from Brown Brothers Harriman & Co. )

  • 1970 first Wall Street firm to go public
  • Bought by [[The Equitable Life Assurance Society of the United

States|Equitable Life]] and then purchased by First Boston. Currently part of Credit Suisse.

Drexel Burhnam Lambert

  • Founded 1830s by Francis Drexel
  • Anthony Drexel ceo 1863-?
  • Drexel partnered with J.P. Morgan to form Drexel Morgan
  • Merged with Burnham
  • Investment by Groupe Bruxelles Lambert& changed name to

Drexel Burnham Lambert

Eastman Dillon

  • Merged with Union Securities
  • 1972 Merged with Blyth & Co merging aggressive deal makers with 'blue blood' firm.
  • Joe H. King
  • James F. Miller

A.G. Edwards / Wachovia Securities

  • founded 1887 by Gen A.G. Edwards in St Louis
  • Benjamin F. Edwards III - Ch/CEO 1965 - 2001
  • deal announced 5/31/07 to be bought by Wachovia Securities
  • Robert L. Bagby CEO 2001 -September 2007, > Ch/CEO of AG Edwards (will be chairman of Wachovia Securities after merger)
  • Daniel J. Ludeman - Current CEO of Wachovia Securities, will be CEO of combined firm after merger.
  • The merger will close on October 1, 2007. The investment banking lines of business will be consolidated into one unit.

Evercore Partners

  • founded 1996 by Robert Altman from Lehman Bros
  • 2006 acquired Braveheart
  • Bernard Taylor V Ch from Robt Fleming / Chase

First Boston

  • Spinoff of First of Boston Bank, so nickname "FOB"
  • Replaced White Weld as Euro partner with Credit Suisse (1979)
  • Later bought entirely by Credit Suisse c. 1984.
  • Al Shoemaker 1981-1985-FOB to Blyth Eastman & back
  • Peter T Buchanan 1981-1985 co-ceo with Shoemaker
  • John Hennessey 1985-1996 ceo
  • Alan Wheat 1996-2001 ceo
  • John J. Mack 2001-2004 ceo
  • Brady W Dougan 2004-2007 ceo
  • Paul Lallelo 2007-present ceo
  • Joe Perella 1972-1988 to Wasserstein Perella
  • Roger Mehle 1970-79 to Dean Witter,AsstSec US Treas
    • V Ch-Paine Webber, Exec Dir Fed Retir Thrift Inv Board
    • Blue Hill Trp, Knickerbocker Club, son Adm Roger Mehle
    • & "Suzi"(Aileen)Knickerbocker Mehle, NYC gossip columnist
    • US Navy Academy, Adm Rickover trained sub officer

Robert Fleming & Co.

Goldman Sachs

    • Some fear Goldmans giant, multiple hedge funds and large internal trading (see Global Alpha Fund, "alpha" meaning fund to obtain growth that is down 45% so far in 2007, unusual "growth fund" - negative growth) may wipe out the firm.
      • GS 8 13 07 adding $3 billion to Global Equity Fund to replace losses and explains it / GS "sees opportunities at this time" (? opportunities to lose more money as it just did?)... this fund lost billions in only 6 days in a time frame when the overall market

was up... so if the best, better traders at Goldman Sachs lose their shirts in this overall market when it is up, are you better ? and what business should you give Goldman Sachs (clue-zero); so what do their best traders truly know and if that is apparently zero, what did Rubin former ceo of Goldman and Secretary of US Treasury know and what does present Secretary of US Treasury Paulson, also former ceo of Goldman know ... thats right, zero - read about Rubin and Paulson's patterns below; so, if Goldman traders and key executives are clueless, what does rest of Wall Street firms know and the managers of all the hedge funds know? you are correct, about nothing

    • Ping Pong by past GS key execs, on moving to the US Treasury to then ping pong global market by extreme incompetent behaviors that GS (and perhaps other firms if clued in) could massively capitalize upon; e.g. Robt Rubin 5 times as Sec of US treasury torpedoed, major global currencies in this pattern - currencies would be down somewhat and would be massively further torpedoed by Rubin's statement that the USA would never aid that currency , this pattern statement would crash the currency further , THEN, RUBIN would wade in to be a hero to boost the currency by finally saying, ok the US will bail that currency out; such massive manipulations were repeatedly done in the same pattern & indicate unprecedented fraud upon the markets (see 1990s Rubin manipulations of Mexican peso, Russian rubble, Thai baht, Indonesian rupee, Argentine peso)
      • In similar present fashion, Sec Paulson has repeatedly attempted to hammer China about its currency the yuan and surely hopes to generate more earnings for GS in any resulting yo yoing of the yuan the same as the "Rubin currency patten"
      • Using the office of Secretary of US Treasury for such in your face

manipulations is of course, unprecedented & ? treason, fraud, or both OR persons knowing the sweet Rubin would surely counter argue, NOT possible ... but then if not done intentionally, he was a major, mega Incompetent for those manipulations he surely did on the record, and Paulson is presently doing similar manipulations... and Pauslon is also known as upstanding young man, so what is it we learn in Paulson patterns - the same patterns as Rubin , both were and are massively incompetent...OR, cr*** ? to feather former firms nest when Secretary of US Treasury?

Hayden Stone & Co.

  • Founded 1892
  • Merged with Shearson

Hornblower Weeks Hemphill & Noyes

EF Hutton

  • Founded 1904 by Edward Francis Hutton, his brother Franklyn Laws Hutton, and Gerald M. Loeb
  • Bought by Shearson in 1987 which had earlier in 1981 been bought by American Express. Later Lehman Brothers (already merged with Kuhn Loeb) was added and all spun off 1994 in an IPO. And Shearson & EF Hutton branches sold to Citibank/Citigroup-now a part of Citigroup's - Smith Barney.
  • John Shad ?1960-?1980
  • Scott Pierce 1982-1987
  • Jim Lopp 1977-?1985
  • Dick Locke 1977-?1985

Jardine Matheson

Edward Jones Investments

  • private brokerage firm in US,Canada & UK-approx 10,000 branches
  • founded by Edward D. Jones, Sr in 1922-1982
  • private satellite network completed 1990
  • Boone Nat'l S&L bought 1995
  • Edward D. Jones, Jr ceo -1990
  • John W. Buchmann ceo/man partner > Ch - SIA
  • Douglas E. Hill coo/man partner 1998-2003; ceo 2003-2005
  • Jim Weddle ceo 2005-present

Kidder, Peabody & Co.

Kuhn, Loeb & Co.

Lazard Freres & Co. LLC

Lehman Brothers

Evercore Partners

Loeb Rhoades

Merrill Lynch ceo's

Morgan Grenfell

  • founded 1854 by George Peabody
  • 1904 Grenfell becomes a partner
  • 1990 sold to Deutsch Bank
  • Michael Dobson ceo 1989-2000 , now ceo Schroders
  • John Craven ceo 2000-2006
    • moved 2 Fleming Family & Partners (asset mgt)

Morgan Stanley

Paine Webber

Paine Webber]] to UBS Warburg to UBS.

Perella Weinberg Partners

N M Rothschild & Sons

  • Mayer Rothschild family founds Rothschild banks across Europe
  • Founded 1811, London
  • Evelyn Rothschild
  • David de Rothschild - present

Salomon Brothers/Citigroup Capital Markets/[[Smith

Barney]]-See also Citigroup

  • Founded 1910
  • Merged with Phibro (commodities trading firm) c. 1982
  • Bought by Citigroup/Travelers mid 1990s.
  • Billy Salomon 1970-1982
  • Harry Brown (Chicago) 1970-1982
  • John Gutfreund ceo 1982-1991
  • Thomas Straus pres 1984-1991
  • David Tendler co ceo 1983/1984
  • Warren Buffet ch ceo 1991-1992
  • Deryck Maughn ch ceo 1992-1997
  • Mike Carpenter ceo 1997-2003
  • William E. Simon ?1965-1973, Sec US Treasury, Blyth, Westray
  • Jay Perry ?1965-1982,Dean Witter(dec prematurely)
  • Harold Tanner 1982-?1992,New Court to Blyth to Soly
  • Michael Bloomberg to Bloomberg to Mayor of NYC

Schroders

Schroders website]

Shearson Hammill & Co.

Citibank

  • ...
  • Sandy Weill ?1970-1981, ceo, VCh-Am Exp, ceo spinoff
    • ceo Travelers/Citigroup
  • Peter Cohen 1982-198?, ceo
  • Jeffrey B Lane 198?-198?, coo , v ch
      • American Express
      • founded 1950s as credit card company
      • Howard L Clark Sr ceo 1960s-?1980
      • James Robinson ceo 1980-?1992
      • Louis V Gerstner ceo ?1993-?1998 from ceo IBM,to ceo-Carlyle

Smith Barney

S.G. Warburg & Co.

Wasserstein Perella & Co.

White Weld & Co.

  • founded in Boston
  • partnered with CS in Credit Suisse et de White Weld
  • Purchased by Merrill Lynch in 1978/9.
  • Weld Family
  • Francis Minot Weld Jr. - founder

Dean Witter

  • merged with Reynolds & Co.
  • bought by Sears
  • Merged in 1995 with Morgan Stanley
  • William Witter 1930-1975
  • Andy Melton Jr 1975-1980
  • Philip J. Purcell 1981-1995
  • Brad Freeman 1970-1982 >Freeman Spogli & Co (lbo firm)
  • Ron Spogli 1974-1982 >Freeman Spogli & Co >Amb Italy
  • Thomas J Healey 1973-1977 >Asst Sec US Treas >Goldman>Prof Kennedy Sch of Govt

Electronic Firms

An automated trading system submits stock trades to exchanges automatically. And firms using this are "electronic firms". (Also, now all larger firms also have this capability today.)

And as exchanges have turned to electronic trading, new firms which use especially provide electronic trading at reduced fees have risen to mid level prominence as the following:

TD Ameritrade

  • founded 1983
  • Joe Moglia ceo

The Charles Schwab Corporation

  • Charles R. "Chuck" Schwabb ceo & founder
  • $1.2 trillion in assets
  • Jul 07 analyst predicts greater than Merrill in size & assets in 4 yrs

Etrade

  • founded 1982
  • Mitchell H. Caplan ceo
  • 2005 bought Harris
  • 2005 bought Brown Co

Scottrade

  • founded 1980 in Scotsdale, Arizona
  • Rodger O. Riney ceo
  • 2005 rolled out its Scottrade Chinese (electronic) platform available to

Hong Kong, China & Taiwan

Electronic trading was esp pioneered by Archipelago Holdings which was acquired by NYSE in 2005...; and Instinet which was acquired by NASDAQ two days after NYSE bought Archipelago See also CQG providing an electronic platform for stocks and futures via the internet.

Largest Commercial Banks in Investment Banking

Bank of America

regional bank) and moved to Charlotte.

Bank One

Merged with JP Morgan in 2004

Barclays Bank / Barclays PLC

  • founded 1685 London, UK
  • John Varley ceo at Canary Wharf London Headquarters
  • 2007 bid to buy ABN AMRO
  • July 07 China Dev Bank (CDB) invests $3 billion Barclays

From staid, UK bank has emerged with signficiant footprint in capital markets via asset management arm (Barclays Global Investors) and roll out of its "ishares" ETF sector funds; now has substantial assets under direct management (est $? 1 trillion) for institutions and $500 B for Indiv investors via ishares.

Chase Manhattan Bank

Merged with the combined Chemical Bank & Manufacturers Hanover. Then these triple 'giants' finally merged with JP Morgan, adding Bank One in 2005.

Chemical Bank

CIBC World Markets

Citibank / Citigroup

  • Founded in 1812.

(no.1 today due to going national and then global in esp credit cards but also in overseas branch banking; esp strongly positioned by Wriston and today's no. 1 - 145 million in credit cards due to core biz Reed built (tho that also fded by Wriston))

  • Samuel Osgood pres 1812-1813
  • Isaac Wright pres 1827-1832
  • Moses Taylor pres 1856-1882
  • Percy Pyne pres 1882–1891
  • James Stillman pres 1891–1909
  • James Stillman chairman 1909-1918
  • (William Rockefeller 1920-40?)
  • Frank Vanderlip 1909-1919
  • James Stillman Jr 1919-1921
  • Charles Mitchell pres 1921–1929
  • Gordon Rentschler pres 1929-1940
  • William G Brady pres 1940–1948
  • Howard Shepard CEO 1948-1952
  • Stillman Rockefeller 1952-1959
  • George Moore 1959-1967
  • Walter Wriston CEO 1967-1984
  • Bill Spencer Pres 1970-1982
  • John Reed CEO 1984-1998
  • Rick Braddock Pres
  • Sandy Weill CEO 1998-2004
  • Charles Prince CEO 2004-present
  • Robert Rubin V Ch 2000-present (former Sec of US Treas)

Citibank history source: http://www.citigroup.com/citigroup/corporate/history/citibank.htm

(Citibank bought Salomon Bros ?1997 and Smith Barney ?1998; was bought by Travelers Insurance circa 1995)

Credit Suisse

  • strong core of insurance and Swiss banking and US leading capital market position can't seem to be mushroomed due to weaker mgt
  • Gp Ch Walter B. Kielholz
  • Gp CEO Lukas Muhlmann 2000-2003
  • Gp CEO Oswald J. Grubell ?2003-present
  • CS CEO Walter Berchtold ?2003-present
  • CS 1st Boston Brady W *Dougan 2004-Present
    • Dougan now to be ceo of CS Gp 2007-present

(see above, bought CS First Boston 1988; which then later bought DLJ- Donaldson Lufkin deJennerette circa 1995)

Deutsche Bank

  • the powerhouse for always in Euro leader Germany but has not grown much from this leading position
  • Josef Ackerman CEO, ?2002-Present
  • Alan Greenspan Aug 07 - Present, Advisor
    • Former US Fed Res Ch hired to consult including meetings, conference calls to "G" word markets to Deutcshe Bk advantage

Manufacturers Hanover

  • 1991 bought by Chemical Bank

(nice guy McGillicuddy stranglehold mgt style strangled his bank)

  • ?1985 moved to former Union Carbide bldg 270 Park Avenue, NYC
  • John McGillicuddy ceo 1975-1991

JP Morgan Chase

  • founded by famous financier/banker J.P. Morgan
  • Guaranty Trust Co of NY established 1864 and merged with JP Morgan & Co Inc to form Morgan Guaranty Trust - now JP Morgan (strongly attempting to merge its way to remain at top of USA banking)
  • J.P. Morgan ? 1890-1930
  • ?Benjamin Strong ?1910-1920?
  • ...
  • ?Charlie Stetson ?1960-1975?
  • ...
  • Sandy Warner 1985-1995
  • William Harrison ceo 1999-2005
  • Jamie Dimon ceo 2005-present
  • Don Layton cap mkts 1990-2001
  • Geoffrey Boisi inv bkg 2001-2002
  • Jimmy Lee LBO, M&A lending ?1995-present

(JP Morgan represents merged Chemical Bank, Manufacturers Hanover Bank, Chase Manhattan Bank, Texas Commerce, JP Morgan (surviving name) and Bank One) (and represents several purchases in Investment banking/ Capital Markets as Hambrecht & Quist (venture capital) and Beacon Hill Mgt Group)(circa 2000 merged with Chase Manhattan Bank - which had already merged with Chemical & Manufacturers Hanover; c. 2004 JP Morgan(Chase) merged with Bank One)

Wachovia

(merger rampage under retired CEO Crutchfield aka "Fast Eddy" for those rapid mergers : at first, caution under present CEO Thompson & Speed up now

- see below purchase of AG Edwards)

  • Edward Crutchfield  ? 1985-2001
  • Ken Thompson  ? 2002-present

Wachovia includes past independent banks First Union (also a NC bank as Wachovia) and SouthTrust (headquartered in Birmingham, Ala) and the Wachovia of Charlotte , NC. Ken Thompson of First Union took over the combined bank after retirement of Wachovi'a Edward Crutchfield.

  • 2003 Wachovia bought 63% of Pru's brokerage arm-the former Bache & Co or Prudential Securities
  • 2004 Wachovia bought Southtrust
  • 2005 Wachovia bought Westcorp/Western Financial
  • 5/31/2007 announced Wachovia to buy St Louis based AG Edwards

WAMU (Washington Mutual(Savings & Loan)

Has now completed a national rollout of esp its mortgage dept and is noted for its highly successful sales of securities / wall street products via its branch network - about the ONLY bank to have ever had any success with that.

Wells Fargo

  • Richard Kovacevich ceo  ? - June 07
  • John Stumpf ceo June 07 - present
  • 1996 Wells Fargo acquires First Interstate for $17.3 billion.
  • 1998 Norwest buys Wells Fargo for $31.7 billion & adopts Wells Fargo name
  • 2000 Acquired First Security ?

Esp Wells Fargo results from merger of Wells Fargo and Norwest (Bank) amnong scores of other mergers. Heavy in asset backed lending esp and mortgages.


UBS / UBS AG

(strong position , slow follow through)

  • Marcel Ospel (ch-UBS Group) ?2000-present
  • Peter Wuffli (pres-UBS Gp) ?2000-July,2007-resigned
  • Marcel Rohner (pres-UBS Gp) July,2007-present
  • Markus Granziol (UBS Warburg) ?2002-present
  • John Costas (UBS Warburg) ?1992-June/2005
  • Kenneth Moelis (UBS Warburg)pres 2005-Mar 2007
  • Huw Jenkin (UBS Warburg)ceo July/05-Present
  • Joseph Granno (UBS Paine Webber) ?2000-present

(UBS represents surviving name of SBC-Swiss Bank Corp and UBS- Union Bank of Switzerland)(UBS and predecessors bought Paine Webber & Warburg and then bought Dillon Read)(UBS largest bank in Europe with $1.5 trillion in assets on books, so at very top with Citibank)(buying AMRO commodities unit, former Barings, well positioned esp across Asia and larger in commodities financial futures brokerage- target growth area for UBS with now 10-15% of that market).

Note

The above is addressing larger players and while the largest bank in a smaller country is surely important for that country , it is no global player ....

The same holds true for Canadian or US regional banks.

Other Overseas Banks

  • European Banks- We list above Deustche Bank; UBS (plus former SBC/Union Bank of Switzerland)and Credit Suisse ... and mention others next below.
    • Barings (Brit merchange bank - see above)wiped out by $1 billion in trading losses by rogue trader after 200 yr solid history with remains bought by AMRO now being sold to UBS.

are all there but not larger players either...

  • Germany and the other leading German banks have not been able to progress to be players in global financial markets.
  • Spain - Banco Santander has emerged a larger merger player expanding into Caribbean and Mexico and steadily moving up...
  • Asian Banks-- While the massive ballooning of financial assets in 1970s and 1980s made the Japanese banks the leading global banks on paper- the bursting of this bubble 1991-1992 deflated that ranking; and today even with mega mergers that have consolidated the former mega sized Japanese banks into 3-4 main banks, the ongoing uncertain size of any underpinning assets leaves clout - but perhaps no substance...though still an amazing no. of Japanese banks are ranked in top 50 (like 20-30) on wisps of underpinnings.

(Japanese securities firms came to Wall St mid 1970s, bloomed, then mostly have downsized though still there - as Daiwa, Nikko, Nomura, Yamaguchi; & Sanyo went out of business)

Similarly the ballooning of assets in China's boom, leaves a banking system with unknown strength with massive reported corruption .... with perhaps facing a similar collapse in values as Japanese banks in the future. A potential contra tend to the present general euphoria predicted for China's future.

  • China

Note: in China the People's Bank of China is the government central bank not to be confused with larger bank Bank of China (no Peoples in title) In the summer of 2005, many US firms scrambled to invest (1/2 to 3 billion sized investments) in China's largest banks. see

    • Bank of China
    • Industrial and Commercial Bank of China (ICBC)
      • $19.1 billion IPO Oct, 2006
      • Investment of $3.78 billion by a group including Goldman's GS Capital Partners V fund, Allianz AG and American Express Co.
      • Investment by Citibank/Citigroup
    • China Construction Bank
      • $9.1 billion IPO 2005
    • China Development Bank (CDB)
    • CITIC Group
      • ?Buying stake in Bear Stearns ?
    • China Everbright Bank
      • Investment by Asian Dev Bank
      • Bought China Investment Bank

All assuming the Chinese government would not let any of these largest Chinese banks fail - as fail they may, having no real assets with all their loans concentrated in corporate lending to a constantly shifting company base that changes before repayment.

    • China investment banks

China investment banks selling securities have mushroomed as esp the Shanghai stock exchange has grown dramatically to several 100 million participants and 80% retail business and that continues to grow rapidly - esp noting its up and down, balloon like quality that makes millionaires rapidly and also ruins individuals rapidly. (beginning listing)

      • SIC (China)State Investment Company - State merchant bank -250B US
        • bought (March 2007) 8 % of Blackstone Group (US Merch Bnk/LBO firm)
      • BOCI Bank of China International (Inv Bkg arm of Bk of China)
        • BOCI China - BOCI mainland investment banking arm
    • China 2008 Olympics

While most know of the rapid construction in China, they have not realized that construction esp has a focus for the 2008 Olympics where the Chinese hope to showcase their rapidly built Olympics venues (many stadiums and buildings incluidng Olympic village)(see "new bird's" nest stadium holding 90,000) to prove China emergence in the Olympics, large TV coverage to the whole world. This larger media coverage is esp ALSO an economic event with its visual proof to all of China modern capability in these city balloons while contrasted to the countryside which remains archaic.

    • China Pace

The key feature (esp vs. India) is China speed in developing whether developing chip industry, Olympic stadiums, or car mfg plants. And this icludes China Govt / State Council speed in decision making that appears opaque to the West and esp to slow moving Western governments. This CHICOM embracing of market economics and esp speedy development is an Asian hybrid that was kept slow on purpose by the State Council until recent Hu Admin. The main thrust or force of this new hybrid is the Emperor like / similar use of fear to cause that speed.

    • Sons of Heaven

One missing cultural feature in modern China is leaving out China's past heavy religious connection esp via its Emperor to heaven (called Son of Heaven in past); with modern China in essence giving the finger to God/Heaven, esp to the Son of Heaven. Such a stance can provoke the heavy consequences of e.g. earthquake, floods and typhoons, a form of rapid natural construction or natural pruning as Heaven teaches the Chinese to count.

    • Gioro/Henry Puyi / Harry Ling, the son of the last Empress of China and the last emperor of China died in 1967; present son of Heaven not recognized by Pres Hu Admin / State Council.

So will especially the limiting factor in China development be this hollow China core of no spirit/ no heavenly connection. The signs and size of Son of Heaven "lessons to China" are key information to follow in following China news. (Will China leaders become religious ? )

In Australia , Macquarie Bank is the major local merchant bank. It recently considered buying the London stock exchange in a consortium bid, however the proposed deal fell through. Macquarie has also focused on buying infrastructure related investments esp in the USA as airports, toll road & toll bridges. See larger / largest Aussie commercial bank - WestPac.

Capital Raising

The overwhelming importance of the Capital Raising function to energizing future growth seems to pale by the huge size of today's Venture Capital and LBO Funds... that work globally to fuel that growth.

There is a weak USA understanding of state involvement in this process

versus for example China targeting and funding e.g. 19 chip plants (costing

$1-2 billion each) to plan for dominance in PCs and chips.

Will huge US venture capital funds and other funds pouring money into a huge future competitor as China (& India) leave the US work force

unemployed... and the USA with a thin layer of "rich" investors in a land of poverty.

(No US Govt executives of any position address such issues while e.g. China

appears to have genius's at work on them. ... And the lore of free markets working best always to bail out human free

market misstarts seems to miss the extreme pace of China's advance. ... There are clear implied results important to investing that are embedded in

these issues, that are unknown and discussed.)

LBO Funds

Other larger funds today bring billions to invest as LBO funds pouring billions into corporate purchases, restructurings.

This LBO Fund activity is the same as practiced for 100s of years by "merchant banks" - those investment banks that besides raising capital always many times invested their own capital in companys. See above Barings, Jardine Matheson, Robert Fleming & co. and Morgan Grenfell.

And while today there are 100s of these funds, mention is made of the earlier funds & recognized leaders as :

  • Blackstone Group (BX)
    • ipo June 07 , 31>37>30>23>25>27>25
    • Pete Peterson founder 1985, Sr Ch
    • Stephen A. Schwarzman founder 1985, CEO
    • Hamilton E. Tony James COO
    • J Tomilson Hill V Ch
    • Carrie McCabe 1985-present
      • Investment (March 07) by SIC of $4 billion for 8% of BX
      • New LBO Fund (Aug 07) $21 billion
      • 8 13 07 BX announces tripling of earnings and closes up 45 cents

for the day (who can figure out what dept earns what in the extreme complex and convoluted structure of BX and what any of it means; meaning also overall, the earnings in such a structure are subject to extreme manipulations and fabrications

  • Carlyle - Wm Conway/Carlucci 1989-present
    • China turns down Carlyle bid for small SW China bank
  • KKR (Kolberg, Kravis & Roberts)
    • Henry Kravis 1975-present
    • ipo planned for 07, revs claimed 1/2 of Blackstone
  • Thos H Lee Co - Tommy Lee 1986-present
  • JP Morgan Partners ?1998-present
  • Providence Equity Capital - Jonathan Nelson - ceo (esp media)

Hedge Funds

Main article: Hedge fund

Also today there are thousands of hedge funds. They attempt more active trading in markets to obtain investment returns touted to be higher than normal. (Estimates are that today there are 8,000 hedge funds with $1.3 trillion to invest.)

The overwhelming majority i.e. 98+ % struggle to merely make returns equal to the DJIA or LESS.

Recent market volatility (larger up and down moves) has led to hedge funds using heavy quant (quantitative analysis) to lose substantial funds as their market models dont work. See Quant Quake Shakes Hedge Fund Giants

A small handful are noteworthy for far exceeding those returns - a handful having returns 25%-75% as:

Other Larger Hedge Funds

  • Hedge Fund Manager Salaries

These larger salaries have become famous or infamous depending on your view and in 2004 the top 10 ranked from 100 million to 1 billion and in 2005 top 10 ranked from 300 million to 1.5 billion with returns single digit to 62 % - huge disparities with a seeming disconnect between performance and the salary paid.

  • Hedge funds that wiped out

Notorious hedge funds for larger size and famous managements that went out of business are :

  • LTCM (Long Term Capital Mgt) (shut down)
    • (LTCM-John Meriwether & Nobel Laureates lose shirts and go out of

business)

  • Amaranth (shut down)
    • Loses $5 billion of its $7 billion on natural gas spread that depended on severe hurricane to increase the spread and when that

damage did not occur, the spread became a huge loss.

    • Brian Hunter, gas trader to fd Solengo Capital ?
  • Goldman Sachs Alpha (Hedge) Fund & Global Equity Fund

Billions of losses in past 6 days of trading, capital infusion may save funds.

External Hedge Fund Info Source Alpha Magazine

Venture Capital Funds

See also Venture Capital There are 1000s of these funds in varying sizes that provide seed capital to 1000s of startup companies, esp startup high tech

companies.

decades.

  • Hamburg Quist-Leader in silicon valley venture capital
    • bought by Chase/JP Morgan c. 2003?
  • Kleiner Perkins-Also Silicon Valley venture capital leader
    • Tom Perkins-founder, recently built 300 foot long, 400 Ton,200 foot high

sails,$130 million yacht named Maltese Falcon of newest materials with

automated sails

For further listing of venture capital funds See List of venture capital firms

Sovereign wealth funds

Several countries have accumulated larger pools of funds that instead of just being invested in only government treasury notes, bills and bonds, have instead also been invested in corporate

stocks, bonds, real estate and economic development.

These funds today have an estimated $2.5 trillion.

Some of the larger Sovereign wealth funds:

  • Country Fund Size
    • UAE Abu Dhabu Inv Auth $875 billion
    • China SIC/SAFE $250 billion of $1.3 trillion
    • Dubai Istithmar  ?$60 billion
      • boght Barney's of NYC
    • Kuwait Kuwait Inv Authority $ 70 billion
    • Norway Govt Pension Fund $300 billion
    • Saudi Arabia Various $300 billion
    • Singapore Govt of Sing Inv Corp $330 billion
    • Singapore Temasek Holdings $100 billion

Markets Sizes

There is an extreme weak understanding of today's market sizes - both lack of understanding the US market sizes and the lack of understanding global market sizes.

In general, the USA markets are 1/3 of global totals with Europe another such 1/3 and Asia another third; and that Asian third was until recently almost entirely Japan but is now shifting to include both China & India.

Various talking heads and commentators and investment managers will expound esp on financial news channels endlessly , e.g. US debt for consumer has exploded now to x trillion etc

  • Chicken littles-Chicken little commentators who almost invariably have

two badly flawed gaps in their thinking.

    • No offset comparison

E.g. in trumpeting increased debt,they never offset the increases e.g. in US debt - whether increases in US mortgages, increases in US credit card debt by the massive increases in US assets values.

E.g. the DJIA went from 1,000/2,000 to now 13,000-14,000 an increase of 12,000 - 13,000 and increase in value of from $ 3 trillion to $ 15 trillion. So attempting to spook markets and make money on their

short positions , they will warble , the US Consumer debt is at an all time high, it is x trillion (and always add, that debt is up ?? e.g. ? 1x - 3x what it was in 1970 or so), so using the trillion

no.s for shock effect.

But they never offset that debt no. by the overwhelming much, much larger increases in financial asset values...

As past 20 years

    • US stock market values - up 15x (1,400 % !!) (DJIA 1,000- 14,000
    • US real estate - up ? 100-400 % (100 % - 400 %)

(average US home price up from 60,000 to 180,000 ? + 300 %)

So the point is, the increased in US asset values so dwarfs the increase in US debt that almost any debt issue is meaningless.

Note esp that US Corporate debt is way down from where it was at a high of ? 40-45% of balance that 40--45% is now down to ? 15-20% ? and larger corporation are sitting on hoardes of cash \ and endlessly doing stock buybacks.

    • Future shock / lack of understanding

And the same commentator chicken littles will use for shock effect the high sounding numbers of billinos or even trillions, again with no comparisons to spook markets when in the proper context and with the needed offsetting comparisons, the numbers sounding so large to the average, are not large at all.

Recent Market News, Comments

  • Federal Reserve News

The US Federal Reserve has been strongly encouraged (via US Govt exec jawboning) to raise liquidity immediately instead of not noticing massive market downturns (as recent sharp downturns). ...

8 7 2007, Fed Res ignores all experts and decides to attempt global deflation and depression via its refusal to ease. Bernanke & full board to look for resignations and shake up of Fed Res board after intense questioning by Congress coming up ? Predicted resignation of Bernanke by mid Sept.

8 10 07 Fed Res does $30 billion of repo's to add liquidity temporarily to markets (after sledge hammer jawboning organzied by this writer to WAKE up the Fed Res and wake up gad about US Treasury secretary)

8 13 07 Goldman Sachs announces putting $3 billion into one of its funds which lost billions in only past 6 trading days- see above under Goldman Sachs for more info.

Repricing of Risk

This phrase (repricing of risk) are code words and were used even by Sec of US Treasury Paulson recently ... They (these code words) MASK the true events in the markets They / those code words repricing of risk in detail mean this ...

The markets are sledge hammered DOWN by options sellers to then claim higher premiums for selling their options whether either selling calls OR puts...

But this procedure , extreme market manipulation to generate those higher premiums needs to be put INTO perspective...

Prices for options either puts or calls were recently already at record highs

- meaning the premium prices for options were very expensive ALREADY

e.g. for a non volatile stock an option at or near the money [meaning at a strike nearby to the "money" ("at the money" that is where the stock's price currently is)] would be like 1.00-1.50.

BUT, ALREADY options for more volatile stocks were NOT at this 1.00- 1.50 range but at 3.00-10.00 - massive, hugely high prices ALREADY

BEFORE this engineered sledge hammering down of the markets by OPTIONS manipulators (these options manipulators are the largest pools of money whether either largest hedge funds OR largest pension funds)

SO follow through this thread ...

With option premium prices for heavily traded stocks ALREADY at hugely inflated prices ... this recently slam down of the markets attempts to inflate those premiums to even higher stratospheric levels beyond belief...

ALL with support by Sec of US Treasury Paulson and NO action e.g. by SEC enforcement and all with support of Bloomberg and CNBC financial news.


note- the above outstanding market analysis & review were removed at 14:36, 2 August 2007 Stwalkerster a non market person claiming vandalism but not comprehending any of the remarks - LEC

Market Rotation

Many follow views & timing of "market rotation"- a term used for 30-40 years to esp. mean the rotation through different market sectors to match the economic cycle with performance of companies in those different market sectors.

That boils down to attempting to follow and surf or piggy back ride on the investment by larger investors whose "big" money or larger investments in a stock will make it move (upward).

Rapid Rotation

Today, instead of such sector rotation, rotation can amount to larger pools of funds running up the price of any stock esp for no reason, to then rapidly dump the stock. This is a form of "pump and dump" to stripmine those follow on investors as there was no reason for the runup and so then no reason for the dump / or downturn but stripmining. A special feature of such rapid rotation is its non logical, random nature as for any given day, a relative few stocks from 5-50 are "chosen" to so run up and down.

"Apparent DJIA" / Dow Jones Industrial Average

The Dow Jones Industrial Average is the most widely followed investment tool used by smaller investors to watch as a market barometer or market measure during the day ...

In further financial engineering, the DJIA is used for "sleight of hand" trickery in this way; the entire market may be heading down in a gradual increasing volume to even a nosedive; BUT, the DJIA will hold rock steady SO FAKING OUT those investors using that as a primary market barometer. And so making the DJIA actually, then, an "APPARENT DJIA" meaning its value is NOT REAL (as it would normally be) but kept propped up to fake out investors using it as a primary market barometer.

"Apparent charts"

In more detailed monitoring, investors will use charts of a specific key market data as the chart for US Treasury 10 year bond or charts for the S&P500 or NASDAQ100.

"Apparent charts" are when the values for such key charts are steadily disrupted / delayed so that strong selloffs are muted, so in viewing the apparent chart on your screen, that abrupt downturn and selloff DOES NOT SHOW... this of course, requires manipulation of data feeds and esp has been done via manipulation of satellite signal feeds. (Who can do such area wide/ nation wide disruptions ? One would immediately suspect e.g. the military but that is surely not likely and not the case; who then ?)

This is esp noticed by investors, traders who watched their charts intently all day long and did notice a slight, very slow , down trickle of prices, and, on viewing that chart later (as it was only THEN accurately showing) the price downturn will look like dropping off a cliff versus the slow long slide that was very slight that they observed all day long. So that they were not clued to be alert at all to that selloff and sat watching it they thought but they were watching an apparent chart that was entirely "Masked" to NOT show that rapid selloff.

"Power trading"

Many will recall that during key critical times in the past (esp when they had larger positions and were carefully watching for market events to gauge what to do with their larger market position, and especially at "Fed time" that time at 10:30-11:45 AM when the US Fed Res can make market moves that cause markets to move up or down), the power went out for 30-45 minutes across areas e.g. of NYC where larger numbers of traders are located AND in key NYC suburbs where also many traders are located. Who can turn off such power grids to mask their own market e.g. selloffs ? Unlikely at all that that is being done by US Govt !! Who then ?

Note- Fed Res Chairman Paul Volker once during a US Treasury bond auction, had the Fed Res act in the markets to raise US interest rates including for the Treasury Bonds being auctioned ! So slamming the very US Bond dealers supporting the US Govt financings by that increase in interest rates RIGHT IN THE MIDDLE OF A US TREASURY BOND AUCTION. Such thoughtful market fine tuning resulted in heavy losses for the market supporting US Treasury bills & notes and resulted in the "Volker premium"-approximately 2-3 % extra yield required from then on for US T Bonds during the Volker term due to this market thoughtfulness by Volker.

Further note- If these notes show you that no one is minding the store (or the market) that is an accurate conclusion for much of the time and while this writer nor about anyone, would like to see market controls that hindered the market; most would like to see at least such major manipulations and clear frauds eliminated, esp those stripmining the little guys / smaller investors.

Broken Markets

The global capital markets are today, most feel, interdependent and the US Fed Res refusing to aid larger sectors of US economy as subprime housing mortgage issue and credit crunch issue then cause spill over to other markets even globally. (See US Fed Res moves 8 9 & 10 07 to add liquidity to US Markets, some say way late)

So having light weights in charge at both US Federal Reserve and US Treasury ends up threatening the global economy's stronger recent growth as these two individuals duke it out to see who can cause global market meltdown as:

Bernanke tilting v. non existing inflation in a heavily deflating world; ... and Paulson giving the finger repeatedly to the Chinese as his PR machine from Goldman claims he is a market expert when clueless.

Look for Goldman Sachs' upcoming heavy losses to point out how little any "expert" from Goldman Sachs knows about markets q.v. Goldman Sachs...and understand the 200 China deals Paulson claims to have done , didn't teach the "Goldman sage" not to give China leaders the finger in public.

(note the Bush43 team was AT THE BEGINNING was strongly advised to put an experienced person at the US Treasury as the MOST IMPORTANT cabinet post but has yet to do so, itself being ALSO clueless most of the time)

Esp indicating BROKEN markets are the larger swings and volatility that occur in markets today OVER almost NOTHING today; and indicating that, the HUGE TURN TO COMPUTER TRADING run by weak SOFTWARE, kicks in to cause huge "program selling" based on almost no news item but a WHIM; and also, the $1.8 trillion in hedge funds is run by managers with poor experience.

And esp noting that the name "hedge fund" means none of them should EVER lose anything - i.e. IF they were actually HEDGED, but most of them are not hedged and none seem to understand how to "drag a trail" i.e. be hedged.

We expect the Real BIG MONEY, the real big boys - see above POWER TRADING - to squeeze most of the $ 1.8 million in hedge fund money out shortly ...no matter how many 100s of stooges the hedge funds send up to argue in favor of their investment positions on the talking head shows on Bloomberg and CNBC. And at that same time, that "big money" to squeeze out money in the Wall Street firms and banks trading desks causing even larger losses.

These extremes and extreme losses will be ONLY made possible by the wise sages (tongue in cheek) at US Fed Res and US Treasury.

See Market pro Jim Cramer attempting to wake up the US Fed Res to today's bad market situation(s)... [http://video.msn.com/v/us/msnbc.htm?g=b6ed3b9d-f469-4d2d-8725- 817104712377&f=00&fg= Cramer attack on Federal Reserve]

Markets Oversight

The critical function of providing capital to US Capital markets and also to the Globe is supposedly overseen in general in the USA by two arms of Government - US Treasury (Dept) and US Federal Reserve Bank; [and also by the SEC (Securities Exchange Commission) who esp monitors data for individual companies and CFTC (Commodities Futures Trading Commission) who esp monitors commodities markets].

Most countries have a central bank that acts as the US Federal Reserve and in Europe with consolidation of the Euro Common Market this function is handled by the European Central Bank led by Jean-Claude Trichet.

US Treasury

First, the US Treasury esp via its Secretary of the US Treasury which

historically has been neglectful and merely opining occasionally & rarely

as about any unusual market condition. See US Treasury

Sec Paulson has attempted recently to wade into a full agenda of global capital market issues; some feel his China postures are too shrill and involve inaccurate views.

By agreement with US Federal Reserve, the US Treasury Dept esp. focuses on US Currency issues including value of the Dollar, while the US Federal Reserve focuses on the US Domestic market. But since both of these areas so broadly overlap, there is overall weak management esp with many applauding as value of US dollar has declined dramatically (so increasing US exports) while, in general, the

resulting management is mainly neglect and weak implementation of overall

successful economic "management" for the USA (management in sense of

boosting overall results, vs esp neglect).

Secretaries of US Treasury

  • Henry Paulson May 2006-present
    • Anticipate the Snake ("nickname") may resign by mid Sept.
    • Noted recently for lecturing any one who will listen to his unclear

speaking style and esp giving high sign to China; all calculated, with

planned backup by heavy GS ongoing PR campaign, to boost HP upward to ? no

matter cost to ?; daily comforted by lifelong habit of fondling snakes (aka

as the "Handler" / "snake handler" / "snake eyes" for blank stare of his

yellow, snaked colored eyes) often carrying a pocket pet.

    • Latest ploy - trumpet deregulating US markets by ongoing diffuse, vague

discussions, designed to manipulate Wall Street for whose benefit while

undermining those markets at critical time.

    • Clueless about needed strengthening of US economy (esp via growth)

vs headline grabbling attacks on China, market deregulation discussion that instead disrupts markets all while neglecting substantial market

decline along with US Fed Res.

    • Stammering style with slow forming thoughts.
    • Waterbug, gadabout style by Paulson taking trips to China every couple

days as he has no clue otherwise what to do? and in China, no one knows who

Paulson is working for - USA, US Citizens, or his firm Goldman Sachs which

will be soon on the ropes with heavy loses (its hedge fund Global Alpha is

down 40%).

    • O'Neill & Snow with no market experience, now Paulson with apparent

market expertise, but no understanding. 0 for 3 by Bush43 who ignored

advice.

US Federal Reserve

Second-And more often US capital markets have been indirectly overseen by the Chairman of the US Federal Reserve Bank, which purports to manage the US economy (esp via controlling money supply and also via 'jawboning'- making statements intended to affect markets). While this purported function is its claimed goal, the past Chairman have, for the most part, not had the slightest clue about markets and have done nothing helpful over decades.

See US Federal Reserve / Federal Reserve System

One exception was William McChesney Martin Chairman in the 1950s, who was called the Savior of the Federal Reserve system for his outstanding work.

(And another noteworthy chairman was Marriner Eccles who set up the federal system at the beginning.)

Recent US Federal Reserve Chairman:

Alan Greenspan - widely touted as a solid performer in the Chairman position - was, in actuality, best at media PR for obtaining that reputation based on a weak performance. (Widely known as the 'Mexican Hairless' (Chihuahua) or 'slick' for his personal appearance.) (More recently Greenspan has been known as the "G man" due to his sudden statements that seem intended to rock capital markets with phrases as the recent prediction the China Bubble would collapse (hence, the phrase "G words" meaning these short phrases seemingly designed by Greenspan to rock markets; his "G words" have had significant but temporary clout). G man Greenspan is reportedly now working for Deutsche Bank as an advisor to clue in Deutsche bankers and clients before G Word proclamations.

Ben Bernanke, who has been generally given wide spread, high marks for his first year, has lately been judged to be not such a great maestro for not cutting rates to aid the sub prime mortgage and housing disasters. As this issue widened to damage the overall markets (Feb-July, 2007), Bernanke seemed to remain asleep (aka as "San Francisco treat"), neglecting the US economy, & obsessed with inflation in a broadly deflating world. Snoozing for certain, Bernanke and youngsters leave rates unchanged 8 7 2007 tilting endlessly Don Quixote style v. non existent inflation causing further deflation. With global markets dropping due to the US Fed Res's sleeping, Bernanke may resign by mid Sept. (see above, along with the Handler). Check out Congress's questions coming up of this "economist" who hasn't so far recognized massive deflation. General conclusion 8 13 07 is that hte Fed Reserve is "behind the curve" in reducing US interest rates not reacting in timely fashion to the Sub prime issue and credit tightening issue.

    • US Federal Reserve and Growth

For a good part of the past 57 years (1950 to the present), US Federal Reserve chairman have erred badly in fighting inflation as a monster out of control that needed to be squelched and so in fighting inflation (esp in 1980s), they kept US interest rates so high very slow growth occurred in the USA.

Others see that such tight controls have injured badly the US economy and so also with its dominance, the global economy -- all needlessly as many times there was NO inflation or lower inflation (2- 2 1/2% a low level actually needed for normal functioning). (see under Bernanke, remarks about Fed being obtuse past 6 months)

Some see such efforts as laudable and needed to "fine tune" the US economy and keep the US business (and so also the global business) cycle ongoing , eliminating the sharp downturns that "used to occur".

But that view errs in not seeing that ALSO it would have been easy to not only not have the downturns but to also have instead of US economic grow 2-4 % , instead 5-? 10%, thereby solving many issues of lower wages for working poor, funding social security, etc

Fed ignores requests to ease (8/7/ 07) and decides to attempt to collapse US economy's modest growth.

See also copycat wiki article Chairman of the Federal Reserve

Stock Markets

Included in capital markets to raise capital are the USA stock markets as the New York Stock Exchange (NYSE), American Stock Exchange (ASE) and Nasdaq (National Assoc of Security Dealers). See

  • NYSE ceo John Thain
    • NYSE merged 2006 with Euronext which had combined Amsterdam, Paris Bourse and LIFE in 2001-2003
  • ASE
  • NASDAQ

Note- Only a few years ago , "specialists" on the NYSE handled all stock transactions. Then 1-2 years ago , 15% of stock transactions were handled by computers; and now, today, 85% of stock transactions are handled by computers with only 15 % still being handled by floor specialists.... This shift to nearing 100 % computer trading greatly speeds up markets in a sea change perhaps also bringing great vulnerability.

Commodities exchanges

Commodities exchanges trade commodities and allow also raising capital / funds.

Commodities traded are metals (gold, silver, platinum,aluminum) agriculture / "ag" (corn, wheat, pork bellies, orange juice) lumber, energy (crude oil, natural gas, heating oil), stock indices (DJIA, S&P500, Russell), interest rates (TBond,TBill,TNote, CD, ED, LIBO, Gilt...), currencies (yen, Euro, Swissie...).

Among these Exchanges are the Chicago Board of Trade, COMEX, NYFE & MERC.

See

  • CBOT
    • 7 11 07 accepted bid by CME vs failing bid by ICE
  • CME
  • COMEX - merged with NYMEX
  • ICE
  • NYFE
  • NYMEX expected to be target in 2007
    • Ch/Ceo Richard Schaeffer

Media, Internet & Wall Street

Today , there is far heavier Media coverage of investing and Wall Street

esp via the TV channels bloomberg and cnbc.

  • TV Media-And there are Wall Street media stars as the following:

Larry Kudlow-a shill or stooge mainly for Republicans, tries hard , esp to bring growth stories to viewers attention to aid market uptrends; but esp seems to waste too much time as a stooge for Republican views which he so overdoes as to ruin his general credibility; & flawed? by not comprehending, that real, "free" markets include heavy upward mobility to expand the rich class instead of eternally slamming wage earners to suppress them...

    • Dylan Ratigan and crew, of Fast Money, CNBC
      • Guy Adami - industrial & materials sector expert
      • Eric Bolling-the Admiral-gas trader, energy sector expert;heavy salon, hot oil treatments for hair before each show.
      • Jeff Macke-the Wolfe-retail sector expert
      • Pete Najarian-founder of optionmonster.com
    • Dozens of global regional & sector commentators on Bloomberg LP / Bloomberg.com - largest global financial news, TV network founded by Michael Bloomberg, now Mayor of NYC

And available to the investing public then is really a new thing- experts who explain worthwhile key investing ideas and tips that can be used to increase one's portfolio value over a life time by not just 100s of 1000s but likely by millions of dollars.

And so, thereby increasing the USA wealth from the past situation where only the top 1% were millionaires to where that number can and will rapidly expand. A very large new factor of recent years.

In recent days and true also for decades, media talking heads can severely impact, almost destroy the market esp stock markets with overemphasis on minor issues. Recently that endless overfocus was on the Bear Stearns hedge funds that were always a minor issue. To investors slammed losing 100s, 1000s even 10s of 1000s of dollars due to abrupt market disruptions caused by such lack of knowledge, such appear to many times be manipulations of novice commentators by bears intent on e.g. making worthless 10s of 1000s of options they sold.

  • Internet & Wall Street

The internet brings 1000s if not 10s of 1000s of investment related websites to the public for use in analyzing companies , market patterns and best stocks and other assets to buy.

Including:

This Wall Street Review

Above article by LEC (L E (Leon E) (Leon Earl)(Butch) Cooper (Jr)(Ens)

  • Note by LEC-While movers and shakers for their time on Wall Street,

investment bankers fade to not be remembered by anyone, though they worked long and hard hours to raise the capital that made America what it is the past 150 years.

  • Partners at top 10 firms in the 1970s numbered a few 100s who worked

together with many knowing most others; then, partners grew to the 1,000s today with most not knowing but a handful of other firm partners in their specialties.

  • Add your info to memoralize those who spent their Christmas eves working to raise capital for American (and other) companies.
    • LEC - CMP ...
    • First VP, Sr VP (Partner, Sr Partner)-Blyth Eastman (now UBS);
    • Managing Director (Sr Partner)-Dean Witter (now Morgan Stanley)
      • Capital market expert creating "size" on wall Street and saving markets in 1991 and causing bull market of 1990s--see timeline below
    • Advisor to Governments-US-Presidents-Reagan, Bush41, Bush43 Admins, Fed Res, US Treas; UK - Prime Ministers-Thacher, Major, Blair, Brown, ; Saudi-Oil Minister Sheik Yemini; Japan-Prime Ministers,  ; China-Various(Zhou Enlai/Chou En-lai thru Hu) ;
    • Author-US Pres 5 book series details genetic & religious history of all mankind - including 6,000 year timeline of economic development

Time Line

  • Some Highlights
  • 1973-85 Wall Street- in charge of 200 deals for 7 billion
  • 1977-created ”size” on Wall Street-creating Valdez, Alaska deals for Exxon, Sohio/BP & ARCO - $2 billion for Valdez, Alaska marine terminal-largest deals ever done at that point
    • before this, largest deals even by e.g. AAA ATT was only $100 million
    • 1984 capital market studies-size (stock, debt, futures) and daily volume
  • 1984-largest deal again $360 million Forsyth, Mont, Colstrip financing for 4 NW utilities with Citibank & JP Morgan LC backing
  • 1984-85 advice to Saudi Arabia Oil Minister Sheik Yemini to reduce & stabilize price of crude oil was adopted
  • 1987-US Secrtary of State Shultz visits China on LEC rec to Reagan Admin esp pointing out that China did not fire on Tianamin Square rebels even though son of Pres Zemin thrown out window and killed
  • 1987-Advice to US & China on Nuclear Fuel provided to China
  • 1986 repeated warnings of the crash that came in October 1987
  • 1986-87 advice to Reagan Admin ends Contra attacks on Reagan esp pointing out no "scienter"/i.e. no criminal intent
  • 1986-87 repeated advice to Japan to allow financial futures to allow hedging are finally followed and such markets opened but warnings to Japan of Japan bubble and crash ignored and no one hedges
  • 1991 advice to US Government (to Congress, SEC, White House, Fed Res) saves Salomon Brothers (Soly) from indictment and collapse;
    • (Salomon Brothers had admitted rigging US Government Bond auctions to hog & receive most of the bonds in all these auctions and that admission caused both Congress and Wall Street to call for Salomon Brothers indictment)
    • so saving Salomon Brothers also saved all global markets from collapse and 50 years of global depression (see further explanation in note below) & saved an estimated 20-30 trillion dollars in market losses following info in note taught to US Govt, and no one - not Soly executives, nor US Treasury, nor Fed Res nor White house nor Congress realized or knew any of this info and after learning it they did not indict Saloman Bros ... and not a Single question was asked of Warren Buffett, new interim Chairman for Salomon Brothers by Congressional committees where only 3-4 days before, ALL of these committees and all of Wall Street were calling for indictment of Salomon Brothers
      • note-at this time Soly was the financier for 75% of US Govt financing and had no replacement - that is, the entire rest of Wall St could not have replaced Soly govt financing because if indicted, Soly would have been shutdown...and its traders out of work and you could not move its large trading floor elsewhere (except in 1-2 years to wire up that capability) and all the rest of Wall St did NOT have this (Soly) ability at all... and so saving the US Govt financing saved the US Govt from default (US then borrowing 30 billion week x 52 weeks or 1.5 trillion/yr more than any bank lending group could possibly provide but for few months) and if the US Govt had defaulted, global markets would have melted down causing that global depression...
  • 1992-93>99 advice to US government ends US Federal Reserve jawboning markets down permitting and causing the 1990s US & global stock market bull rally to new highs & creating increase of global markets value from 30 to 70 trillion
    • for previous 40 years the Fed Reserve practice was to jawbone down

any increase in the US Stock markets above 6-7% / year due to the theory an increase of any larger amount would cause inflation; this flawed reasoning (proven flawed as the larger bull market rally of the 1990s from DJIA of 2000 to 12,000 did NOT cause inflation) was explained to Congress (House banking and Senate Financing & Banking) Committtees by this note writer-LEC and those committees then sledge hammered Greenspan at his testimony resulting in Greenspan stopping entirely jawboning for most of the 1990s (note the versatile Greenspan then claimed in huge PR campaign that his fine tuning caused the bull market rally of the 1990s - all BS, as this stopping his jawboning the rally down is what allowed that bull market rally to occurr & that done by LEC; (and his preferred jawboning would have prevented any such bull market rally he claimed credit for)

  • 1995 advice to China to finance 500 of million of credit cards
  • 2001-present advice 2 US - numerous topics including defense v. terrorists and esp capital markets - 2000+ plus memo's
  • 2001-02-advice 2 US 2 include India-Sec of State Powell then visits & begins new relations leading to today's good relations and ending

ignoring of India due to its arms deals with Russia , etc

  • 2004-06 5 books on ancestors of all 43 US presidents & 6000 history of global family including China leaders 2000 BC to today and including economic milestones globally for 6000 yrs
  • 2005 advice to China (when Petrochina turned down in bid for UNOCAL)

to instead buy such targets via investing in LBO structure and then only about 8-10% - this advice exactly followed in China / SIC purchase of 8% of (BX) Blackstone in March 2007

  • 2007 summary outline of all global capital markets/ markets, banks , investment banking firms to China - Hu, Wen, Min of Fin Jin, SAFE, SIC
  • 2007 repeated heavy Advice to Bush43 to jawbone US Fed Res into aiding markets finally and too late (markets broken/ wounded?) Fed Res finally acts 8/11/07
  • UK 1985-present, advice to UK Prime Ministers Thacher thru todays' Brown esp cementing the "special relationship"

Links

Sources

Most all of above from work experience;

Sources for others:

  • 'Bond Buyer Directory', American Banker , NY
  • 'F.I.A.S.C.O.'
    • by Frank Partnoy ISBN 0-14-027879-6
    • Penguin, NY, 1997 1999
  • 'Greed and Glory on Wall Street-The Fall of the House of Lehman'
    • by Ken Auletta ISBN 1-58567-088-X
    • The Overlook Press -Woodstock & New York
  • 'Infectious Greed'
    • by Frank Partnoy ISBN 0805070982
    • Times Books/Henry Holt, NY , 2003
  • 'Investment Banking in the US'
    • by Vincent Caruso ISBN:
    • , 1970
  • 'Nightmare on Wall Street'
    • by Martin Mayer ISBN 0-671-78187-1
    • Simon & Schuster, NY, 1993
  • 'Our Crowd'
    • by Stephen Birmingham ISBN 0-8156-0411-4
    • Syracuse University Press, Syracuse, NY, 1996
  • 'The Last Tycoons: The Secret History of Lazard Freres & Co.' by William

D. Cohan ISBN 0385514514

  • 'Wall Street A History'
    • by Charles R. Geisst ISBN 0-19-511512-0
    • Oxford University Press, New York, Oxford
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