Another View: Unintended Consequences on Wall St.

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http://dealbook.blogs.nytimes.com/2009/11/19/another-view-unintended-consequences-on-wall-st/?ref=business
November 19, 2009, 10:23 am
Another View: Unintended Consequences on Wall St.
Peter J. Solomon, the chairman of the Peter J. Solomon Company, looks at Wall Street’s compensation and the unintended consequences of the banking bailout.
Excessive Wall Street compensation illustrates the law of unintended consequences. To stabilize the global financial system, the Federal Reserve, the Treasury Department, independent agencies and Congress acted to bail out banks and securities firms, guarantee deposits and commercial paper, and allow institutions still standing to convert to bank holding company status, thus opening the Fed window and flooding the world with liquidity lowering interest rates.

Published in The New York Times November 19, 2009 by Peter Solomon

Peter J. Solomon, the chairman of the Peter J. Solomon Company, looks at Wall Street’s compensation and the unintended consequences of the banking bailout.

Excessive Wall Street compensation illustrates the law of unintended consequences. To stabilize the global financial system, the Federal Reserve, the Treasury Department, independent agencies and Congress acted to bail out banks and securities firms, guarantee deposits and commercial paper, and allow institutions still standing to convert to bank holding company status, thus opening the Fed window and flooding the world with liquidity lowering interest rates.

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