AS PREDICTED

The WSJ had as its lead story today the fall-out from the thug Lawsky's actions against Standard Chartered and it wasn't pretty reading.  The Brits are screaming mad as well they should be and talks of retaliation are in the air.  I would rather not be the CEO of a non-American bank these days as I would have no idea to whom to listen and in what manner the game is being played.  There are far too many regulators and many are not professionals but rather political thugs looking to score quick points.  In the not-too-distant-future look for legislation placing the regulation of all foreign banks in the hands of the Feds or the Federal Reserve.  This being an election year and Cuomo and Lawsky being Democrats the Administration will give this one a pass but no matter which party wins in November, international pressures--and not just from Europe--will bring about the change in governance of which I am speaking.  The State of New York, having been run for years by political hacks may have just killed the goose with the bright, shiny egg.

Now remember my writing at one point that if you wish to learn the intentions of this Administration simply read the New York Times on a daily basis where you will find in addition to "All the News That's Fit To Print' (in accordance with our political philosophy) what to expect from Washington.  This morning, once again shilling for the Administration, the NYT let it be known that Mr. Corzine will probably skate on any criminal prosecution for his role in the MF Global disaster.  No kidding.  After having this thing slow-walked by his former partner, now regulator, Gary Gensler, treated to the astonishing--or so it would appear--actions of the Federal prosecutors who did not grant immunity to the company's treasury official who authorized the transfers without even asking for a proffer and not even being questioned in regard to his 10-K statements, Johnny-boy is happily trading his family money seemingly without a care in the world.

To say this stinks is an understatement but let us remember that Corzine was the no.1 fund raiser for The Leader and was the odds-on favorite to succeed The Suit in the second Obama administration if there is to be one.  Probably the only good thing to come out of this may be the realization that the piece of garbage known as Sarbanes/Oxley isn't worth the paper on which it is printed.  Keep in mind that if one signs a 10-K it makes no difference if a material misstatement of fact is deliberate or accidental; sign it and you're toast.  It's a joke, can it and while one is at it perhaps the repeal of Dodd/Frank can be accomplished as well.  This dual act of contrition may mark the finest moment in financial regulation since...hold on, I'll have to back to you tomorrow on that.  Then again, the research may take a long time.