Has Anyone Seen Dick?

[chops_]

As many of us all know, Lehman Brothers collapsed on September 15, 2008. In which, would become the largest bankruptcy filing in U.S. history, with Lehman holding over US$600,000,000,000 in assets.

Now, let's fast-forward to 2018. Where's Richard Fuld (aka "Dick" Fuld), the former CEO of the now bankrupted Lehman Brothers?

Last summer the former chairman and chief executive of Lehman joined forces with a couple of old associates to launch Matrix Wealth Partners, a New York-based firm focused on providing corporate finance advice to wealthy families. On Monday the firm rebranded as Matrix Private Capital Group, announcing a broader array of wealth and asset management services and a push into new markets in Florida and California. The Park Avenue-based firm, which now manages liquid assets of more than $100m for 18 families, is offering private equity-style investments as well as a new fund which will buy public equities, focusing on a few “high-conviction” long and short ideas, according to Matt Rubin, one of four senior partners. The firm is also opening new offices in Palm Beach and Los Angeles, seeking to attract new clients with what Mr Rubin called “a holistic approach to [their] entire balance-sheet, versus the traditional wealth management approach, which focuses only on the liquidity in the portfolio”.

Some are saying we are in the process of another Financial Collapse. And it will "rattle" the Global markets - yet again.

What say you?

 

[ABikerSailor]

The possibility of a global meltdown was one of the pocket stories on my Firefox this morning. And, experts are saying that it is coming.

World economy at risk of another financial crash, says IMF

The world economy is at risk of another financial meltdown, following the failure of governments and regulators to push through all the reforms needed to protect the system from reckless behaviour, the International Monetary Fund has warned.


With global debt levels well above those at the time of the last crash in 2008, the risk remains that unregulated parts of the financial system could trigger a global panic, the Washington-based lender of last resort said.


Much has been done to shore up the reserves of banks in the last 10 years and to put in place more rigorous oversight of the financial sector, but “risks tend to rise during good times, such as the current period of low interest rates and subdued volatility, and those risks can always migrate to new areas”, the IMF said, adding, “supervisors must remain vigilant to these unfolding events”.

 

[MarathonMike]

It amazes me that ultra wealthy people turn their money over to private investment companies. When you have that kind of money all you have to do is not lose to inflation. Why be risky? I don't get it. However I don't see a risk to global markets in what is described in your post. I would hope Wall Street learned their lesson with the Long Term Capital Management failure.

 

[chops_]

It amazes me that ultra wealthy people turn their money over to private investment companies. When you have that kind of money all you have to do is not lose to inflation. Why be risky? I don't get it. However I don't see a risk to global markets in what is described in your post. I would hope Wall Street learned their lesson with the Long Term Capital Management failure.

I am sure there are banks that are still too "huge to fail".

 

[william the wie]

But this time ground zero will be in Shang Hai and Hong Kong.

 

[bodecea]

It amazes me that ultra wealthy people turn their money over to private investment companies. When you have that kind of money all you have to do is not lose to inflation. Why be risky? I don't get it. However I don't see a risk to global markets in what is described in your post. I would hope Wall Street learned their lesson with the Long Term Capital Management failure.

Greed.

 

[Picaro]

I don't recall Fuld being the cause of the bankruptcy, and in fact recall he was roundly criticized for slamming the bubble before it collapsed. My memory could easily be faulty, though; I'll have to look it up again.

As for Asia, they're ahead of the game, at least in Hong Kong and especially Singapore in striving for soundness, given the corruption in Red China and its distortions of markets. The 'collapse' will come from the same place as most of the others did, us. We have a major corruption problem, and we can't govern ourselves any more.

 

[Picaro]

It amazes me that ultra wealthy people turn their money over to private investment companies. When you have that kind of money all you have to do is not lose to inflation. Why be risky? I don't get it. However I don't see a risk to global markets in what is described in your post. I would hope Wall Street learned their lesson with the Long Term Capital Management failure.

The LTCM failure was a prelude to to the big one. No one learned a thing from it. Nobel Prize winning Economists and math wizards proved to be bigger idiots than the street hustlers that rose to run big firms were. Somebody said 'The Smarter the guys in charge, the bigger the disaster' was pretty close to the mark on that observation. The LCTM collapse was handled by the 'private' interests, more as a cover up than anything else; they all went on to do nearly the same thing on a much bigger scale, one they couldn't handle on their own or cover up.

 

[william the wie]

high and growing dividend yield issues get hurt the least in all crashes so writing puts on them with cheap XSP hedges minimize losses in even the deepest crash and the sell off is over for now. China is edging up to 5 GDPs of debt so the trade war will die one way or the other long before 2020.

 

[Picaro]

high and growing dividend yield issues get hurt the least in all crashes so writing puts on them with cheap XSP hedges minimize losses in even the deepest crash and the sell off is over for now. China is edging up to 5 GDPs of debt so the trade war will die one way or the other long before 2020.

You're probably right about the Chinese. Plus there is no way to verify their constant claims of 'growth', and their financial system is a total wreck. they aren't going to win any 'trade war'; they can't even build a pipeline overland between them and Russia. They had to hire Exxon/Mobil to build it.

 

[BlackFlag]

‘Subprime’ mortgages staging a comeback

No doubt Trump is hoping to cash in on the next collapse, as he bragged about doing during the last one.