Larry McGinity: The Business Model

References

‘The biggest problem here is that it's still more rewarding to game the system, buying into the culture of corruption is still more financially rewarding for you whether you're a regulator or whether you are a politician, or an executive in an oil company or a Wall Street trader.’ Leah McGrath Goodman, is an investigative financial reporter and author of The Asylum, an expose of the oil markets. Her brief, exposing "institutionalised cultures of corruption".

‘Within continental Europe there are those that do think that financial speculators are sort of terrorists. In their lexicon it is economic terrorism, so they may view this as more serious than the US or UK.’ Vanessa Rossi of the Chatham House international affairs think-tank.

‘What we’ve experienced can be summed up in one fact: the widely followed S&P 500 U.S. stock market index has recently experienced one-day movements so dramatic that historical models would tell you they were 6 sigma events, meaning that they were only projected to happen once every 2 million years. In fact, that’s happened 22 times since June 2008.’ Cathy Bessant, Global Technology and Operations Executive,

‘Hedge Fund manager Bill Laggner: Why We Are Still Short Goldman. He states "We are short and we will stay short on Goldman. We are in the very early stages of tearing down the greatest fraud ever perpetrated on the American people.’ This quote is taken from the highly influential businessinsider.com an online source of financial news and debate. One of their key journalists is Joe Wiesenthal, quoted a number of times in this series.

Hay Hill Gallery, 35 Baker Street, London W1U 8EN Tel: 020 7486 6006, 020 7935 5315, Fax: 070 5362 1735 [email protected], www.hayhillgallery.com The Business Model: Full Acknowledgments

‘What is leadership? Many say it is all about people.’ Deloitte Corporate Statement Video

‘Bank of America Getting Smashed, As AIG Jumps Into The Lawsuit Fray In A Big Way’ businessinsider.com

‘Pay of Hedge Fund Managers Roared Back Last Year The Lazarus-like recovery of the nation's big banks did not just benefit the bankers - it also created huge pay days for hedge fund managers, including a record 4 billion dollar gain in 2009 for one bold investor who bet big on the financial sector.’ NYT article quoted on cnbc.com

‘Bill Gross: 'The People are going to get squished'’

‘No-one ever got fired for hiring ’ Famous market mantra

‘The biggest problem here is that it's still more rewarding to game the system, buying into the culture of corruption is still more financially rewarding for you whether you're a regulator or whether you are a politician, or an executive in an oil company or a Wall Street trader.’ Leah McGrath Goodman, investigative financial reporter, oil markets specialist

‘Within continental Europe there are those that do think that financial speculators are sort of terrorists. In their lexicon it is economic terrorism, so they may view this as more serious than the US or UK.’ Vanessa Rossi, Chatham House

‘They say a leader's job is to develop people's sense of belonging to their group, so they have a strong shared identity.’ Deloitte - ibid

‘If you engage in this culture on the level it's now playing you're going to do better than if you don't. And it's very sad’ Leah McGrath Goodman - ibid

‘Can a monkey pick a hedge fund?’ Brett Arends, marketwatch.com

‘Financial innovation is a complete waste of time and energy; it has not reduced risk. It has added risk. Look at what it's done to the global economy; it's created the worst crisis in history because of derivatives, that's because there is more risk’ Max Keiser

‘Morgan Stanley Code of Ethics: Our reputation for integrity depends upon you.’

‘Bank of America shareholders meeting: The meeting was packed to capacity, too. Some shareholders who showed up as it began were turned away, a bank spokesman said.’ Bank of America Shareholders' Meeting June 2012, reported in huffingtonpost.com

‘Let me give you some hard numbers here. Four hundred of the richest Americans control more wealth and have more net worth than 150 million Americans combined.’ David DeGraw, author of The Economic Elites versus The People of The United States of America

‘A key question is whether this is an isolated incident or part of a pattern of banks colluding with hedge funds to purposely tank securities they created and sold to unwitting investors’ Richard Blumenthal, Attorney General of Connecticut

‘Others say leadership is all about productivity; they say a leader's job is to get the people to have a common interpretation of how they are going to work together.’ Deloitte - ibid

‘But inside, bank officials tried to set a calmer tone.’ huffingtonpost.com

‘New Canaan Boss Who Claims Sex Assistant Stole Money has Illegal Forex Trading past’ terribuhl.com

‘What we’ve experienced can be summed up in one fact: the widely followed S&P 500 U.S. stock market index has recently experienced one-day movements so dramatic that historical models would tell you they were 6 sigma events, meaning that they were only projected to happen once every 2 million years. In fact, that’s happened 22 times since June 2008.’ Cathy Bessant, Global Technology and Operations Executive, Bank of America

‘Six hundred Italian municipalities were sold 35.5 billion euros in toxic derivatives’ Stacy Herbert

‘The auditorium in the sleek office tower was quiet in the minutes before the meeting, with classical music piping through the speakers.’ huffingtonpost.com - ibid

‘Ex Goldman Employee Seeks Leniency for Insider Scheme.’ Bloomberg Business Week

‘The whole building is about to collapse...only potential survivor, the fabulous Fab, standing in the middle of all these complex, highly leveraged, exotic trades he created without understanding all of the implications of these monstrosities!’ email from Fabrice Tourré, when Goldman Sachs Vice President

‘We are not talking about redistributing wealth, why are people who are taking all these risks not the ones who suffer when the risks go bad? What about redistribution of risk, is this ever going to happen?’ Max Keiser

‘Hedge Fund manager Bill Laggner: Why We Are Still Short Goldman. He states "We are short and we will stay short on Goldman. We are in the very early stages of tearing down the greatest fraud ever perpetrated on the American people."’ businessinsider.com

‘Shareholders who wanted to ask questions were given two minutes, enforced by a timer blinking on flat-screen televisions and a bell that chimed when time was up.’ huffingtonpost.com - ibid

Madoff Whistleblower Tells KWN Banks Stealing From Pension Harry Markopols in KWN video interview

Some others say leadership is all about purpose; they feel a leader's job is to drive people's commitment to the goals of the organization: In other words high directional intensity. Deloitte - ibid

‘Revealed: Goldman Sachs Made Fortune Betting Against Clients’

‘Economic conspiracy theories are often based on the false, but popular idea, that powerful individuals are motivated overwhelmingly by their desire for wealth, rather than the wide variety of human motivations we all experience.’ U.S. Department of State Bureau of International Information Programs

‘Welfare aid cards valid at casinos’ Los Angeles Times

‘Huge raucous crowds converged outside bank employees' houses on Sunday afternoon to demand banks stop lobbying against Wall Street reform. 'Bank of America, bad for America', shouted community leaders’ Huffington Post

‘JP Morgan Chase's Jamie Dimon Strikes Back at Populist Anger’ Paul Rivlin, thedailybeast.com

‘Let's go ahead bring it all down, and in the process have Nuremburg Trials for these criminals and bring them to justice, and then rebuild our republics as the people see fit, as the Declaration of Independence states.’ Alex Jones, broadcaster

‘I have a confession: I go to bed every night, I dream of another recession, I dream of another moment like this.’ Alessio Rastanni, trader, self-confessed attention seeker on BBC news

‘We believe that real leadership involves all three of these things: We call it Working As One.’ Deloitte - ibid

‘Everyone is wasting their time talking about bank earnings - they're not a hedge fund - they're not mark to market. They don't mark the loans - they don't mark Greece at what she should be marked at. The only information you get from bank earnings is compensation. The only valuable information is what they pay themselves.’ Nassim Taleb, academic, author of The Black Swan

‘Big Bank CEOs Walk Away With Big Bucks in 2011’ Dick Bove, Rochdale Securities Analyst quoted in wallstreetpit.com

‘"We all have a job to do today,” Moynihan said as the meeting began, from a stage at the front of the auditorium. “We need to get through an orderly meeting.”’ huffingtonpost - ibid

‘Mitch's (Vazquez) ex-assistant, from what we understand, besides clearing the fish tank and walking the dog and doing his Girl Friday errands, are also allegedly paid to have sex with his guest, his girlfriend Pamela Chiesi - it's amazing’ terribuhl.com

‘"From bringing the homeless a cup of coffee in the morning and sharing time with them to handing them hundreds of dollars at a time" Mr Shankar has always been unable to walk past those in the most distress.’ Bloomberg Business Week

‘As says, 'If you're making more than two times the rate of inflation, you're stealing.'’ Max Keiser

‘When I met with Jamie he looked like he was falling apart, he was just a basket-case; he kept repeating himself several times during that meeting.’ Janet Tavakoli, derivatives expert

‘Rising maize prices could force the price of tortillas up by 50%.’ The Economist

‘He was worried about the survival of his bank. He was very distraught, at the end of the meeting he said, "I think I'll go home and have two Martinis tonight instead of one."’ Janet Tavakoli

‘Ernst & Young charged with Lehman fraud.’ thedailystar.net

‘Forbes Wealthiest List Reflects Changes in Global Economy’ Voice of America News

‘Citi's Top Economist Says The Water Market Will Soon Eclipse Oil’ Willem Buiter, quoted in businessinsider.com

‘And I thought, if I were you I wouldn't even be having any Martinis, I'd be hitting the gin.’ Janet Tavakoli -ibid

‘Why The New Fetish For Black Swan Insurance Means Markets Are BEGGING For Another Crisis’ businessinsider.com

‘It's insane, but they're going to sell it to these portfolio managers who are passive - that is to say brain dead.’ Max Keiser

‘When you hear people talk about economics, or economics models, all the time you'll hear discussion of equilibrium. That's hard wired into mainstream economics. If you assume that the system is going to be stable, you assume if there's any disruption things are going to eventually go back to 'normal' - however you define normal.’ Yves Smith, Management Consultant, blogger at nakedcapitalism.com

‘These are creators; they are not plutocrats. These are doers, making things happen and when they do well, we all do well.’ Steve Forbes, Forbes Magazine, quoted on voanews.com

‘You know this is the kind of thing where you worry about people going home and putting a bullet in their heads.’ Janet Tavakoli - ibid

Hay Hill Gallery, 35 Baker Street, London W1U 8EN Tel: 020 7486 6006, 020 7935 5315, Fax: 070 5362 1735 [email protected], www.hayhillgallery.com