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Archive for the 'scams and scandals' Category

Bank of America’s Shotgun Marriage to Merrill Lynch

Friday, November 13th, 2009, by

You can’t blame Ken Lewis, the beleaguered CEO of Bank of America, for wanting to quit early. It’s tough enough trying to manage a universal mega bank, without getting sniped at by the feds and the newly installed board of directors. The proximate cause of his departure is the hasty decision to acquire Merrill Lynch. […]

The Pay Czar Got It Right

Tuesday, October 27th, 2009, by

Longtime readers know that the Blue Jeans Millionaire has a healthy fear of overly zealous government intervention and regulation. So it may come as a shock when we endorse the actions of Kenneth Feinberg, the so-called Pay Czar in forcing rollbacks of executive compensation for the mendicant companies that still have their hand in the […]

McKinsey Partner Does the Perp Walk

Monday, October 26th, 2009, by

Unless you live in a cave, you’ve heard by now about the breaking scandal de jour, centering on the Galleon Hedge Fund. From Wealth-Bulletin: Galleon chief held as insider-trading scandal rocks hedge fund Raj Rajaratnam, founder of the $7bn (€4.7bn) hedge fund Galleon Group, was on Friday arrested alongside five others on charges of having […]

Credit Rating Cartel

Friday, October 2nd, 2009, by

Just when you think we’ve begun to turn the corner…. Along comes whistle blower Eric Kolchinsky, a managing director who left credit rating agency Moody’s in mid-September. See the Wall Street Journal’s “Moody’s Says Review Sees No Wrongdoing“(10/1/09, page C4). Kolchinsky volunteered that Moody’s continued to give inflated ratings to complex securities as recently as […]

Identity Theft

Thursday, October 1st, 2009, by

For readers who are new to BlueJeansMillionaire…let me introduce once again the absolutely best business model.  Ever. The product or service must have a raw material cost of zero. It must be relentlessly promoted and hyped.   And potential customers must be scared witless of the calamities that will befall them if they don’t belly […]

Who Says Crime Does Not Pay?

Monday, September 14th, 2009, by

You might be surprised to learn that the money sent to Stanford Financial by its hapless and clueless investors has been looted twice. First, of course, when the funds were allegedly diverted to the lavish expenses and overhead of the firm and the purchase of wildly inflated raw Caribbean land.  A classic Ponzi scheme, with […]

Conflict Resolution, Part I

Wednesday, August 19th, 2009, by

As a result of the public revulsion over the financial meltdown, the Feds are going to come down heavy with regulatory overkill. As if that would make the slightest difference. One idea under discussion is that even brokers would be held to the fiduciary standard (i.e. the client’s interests comes first) now applied to fee-only […]

The Name Game

Friday, August 14th, 2009, by

“A rose by any other name would smell as sweet” (William Shakespeare, Romeo and Juliet) Just as, no doubt, a skunk by any other name would continue to assault the senses. Case in point: Ally Bank. A nifty spin on the word “allies”—those people, groups or nations that have joined together in an association for […]