I thought of putting the Sahara case today vis-a vis the famous Bernard Madoff ponzi scheme scandal case … well the study is on, need more data collection and actual reporting but Kudos to RBI and SEBI as they finally nailed out the Sahara Scandal case with the help of Supreme court.
Recollecting some of the scandals in the Investment banking space from The Barclays Saga and Libor , LIBOR Manipulation : any thing for you Big Boyz , JP Morgan : Jamie Dimon Testimony and the series is endless ..I believe the quotes of the maverick author holds true :
- The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
- The difference between banks and Mafia: banks have better legal regulatory expertise,but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world” Continue reading “Financial Scandals”
Reading between the lines from the Bank of Italy , Back to 2012 in the month of July Mario Draghi, on the verge of yet another Eurozone collapse, promised the world that he would do literally “whatever it takes” to defend the Euro, banks in the insolvent continent took his promise seriously, and ramped up their participation in the most epic Ponzi scheme conceived in Europe to a whole new level. The scheme, of course, was one where banks would buy sovereign bonds issued by their host country (most notably Spain and Italy), and subsequently repo them back to the ECB for near full cash (net of a minuscule haircut) collateral.
The IMF also published a crucial paragraph doing the spillover analysis indicates that a shock from Italy could have a marked impact on the Europe and beyond through trade and financials channels. Continue reading “Italy all over the Europe – It’s a Déjà vu Feeling for Mario Draghi”
It is a provocative paper arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that “companies bec[o]me public, with required periodic disclosures to a secondary market, before they [a]re allowed to make public offerings”.
“No one believes that IPOs reflect an efficient capital market. In fact the evidence is Continue reading “Initial Public Offerings (IPOs) must simply be abolished”