Weil on Finance: Credit Suisse’s Tough Day
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The Senate Permanent Subcommittee on Investigations will hold hearings tomorrow on offshore tax evasion and financial institutions that enable it. And it's shaping up to be a rough day for Credit Suisse AG. The first panel of witnesses consists entirely of Credit Suisse executives, including Chief Executive Officer Brady Dougan. The second panel will have two Justice Department officials. Judging by previous hearings on JPMorgan Chase & Co., Goldman Sachs Group Inc. and other big banks, they should expect the usual beating from U.S. Senator Carl Levin.
Andrew Ross Sorkin answers this question for good: He never did. Rather, he's a 34-year-old former bond executive from Texas who used to work at Citigroup Inc. And think about it. If the stuff he wrote actually had come from conversations he overheard at Goldman Sachs, wouldn't there have been lots of Goldman Sachs people by now who remembered who was with them when they said all this crazy, hilarious stuff? Things like: "1,000 credit card numbers stolen from Niemen Marcus are worth more than the 40 million stolen from Target." Oh well. It's still one of my favorite reads anyway. The guy is seriously funny.
The Bitcoin exchange Mt. Gox is on the verge of collapse.
It seems a major theft occurred over a long period of time without anyone noticing, which may account for as much as 6 percent of all Bitcoins in existence. And given what we know about Bitcoin, this doesn't seem all that surprising, does it?
What makes a bank stable ?
That's the question of the day at the New York Fed's Liberty Street Economics blog. And hopefully the regulators there already knew the answer without having to read this paper.
I guess some of them needed to be told this. But now it's official. The Girl Scouts of Colorado have spoken.
(Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter.)
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