Category Archives: Media watch

“Summer” Rerun: MBIA Lies in Attack on New York Times

This post first appeared on June 19, 2008

Let’s start with some admissions: Gretchen Morgenson, one of two authors (the other is Vikas Bajaj) of a takedown piece on MBIA yesterday, has some detractors in the blogsphere because, frankly, her understanding of credit instruments leaves something to be desired. Her critics overlook her solid work on executive comp and corporate malfeasance. When she has access to court documents and SEC filings. she is specific and accurate.

Based on watching months of the slugfest between MBIA and Bill Ackman, where MBIA would make vitriolic charges against Ackman which (aside from the obvious fact that he was short) often deliberately misconsrued what he had written (written, mind you, so it was possible to track things back), I’d take Morgenson over MBIA in general, and in particular, since the first two items (the most important ones by far) in its salvo against the piece are a bald-faced lie followed by an attempt at obfuscation that actually confirms the NYT’s position.

Google Rates Website Wonkiness

This post’s headline misrepresents the apparent intent of a new Google filter in its advanced search function. Per the SearchEngineLand report, “Google Lets You Dumb Down Your Search Results With “Reading Level” Filter,” the aim is apparently to allow web surfers to steer clear of pages that might be too taxing.

Lender Processing Services Makes False Statements About Pending Litigation in SEC Filing

Shortly after Lender Processing Services became the target of class action lawsuits for alleged illegal legal fee-splititing in early October, an investor commented that he had never seen a company do such a poor job of crisis management. The company halted trading at 3:45 PM for the not legitimate reason that they didn’t like how […]

“So You Want to Be a Journalist”

Some comic relief, hat tip reader Scott:

Paul Jackson’s Largely Irrelevant Responses to Mortgage Securitization Critics’ Case

When I worked for Goldman, and later McKinsey, professionals at each firm would joke about presentations that passed the weight test. That tag line referred to documents heavy enough to land on a client desk with an impressive “thunk” so as to seem intimidating even before opening them. The implication was that length could and […]

Is It Verboten to Talk About the Securitization Buyers’ Strike?

There is a perfectly fine article up at the Wall Street Journal on the current, probably weakening, state of the housing market, save that it fails to discuss the elephant in the room, that of the continuing moribund conditions in the so-called private label securitization market.

Bill Black: No, Mr. President, you did not negotiate a winning tax deal

By Bill Black, Associate Professor of Economics and Law at the University of Missouri-Kansas City and a former senior financial regulator

This column analyses Obama’s claim that he got the better of the Republicans in the negotiations.

The administration (implicitly) argues that its claim of extraordinary negotiating success represents a miraculous accomplishment given the facts that the Republicans were holding all legislation hostage to their non-negotiable demand that the Bush tax cuts for the wealthiest of Americans be extended and the administration’s irrevocable decision that it could not call the Republican’s bluff because the economy would likely sink back into recession unless tax cuts for the middle class were immediately passed…..

The third problem is that no element of the claimed miracle is true….

Wikileaks Disses Chinese GDP Stats

We’ve harrumphed more than occasionally on the dubious quality of Chinese official releases (see discussions on GDP, inflation, and other drive-by-data-shootings for a selection of past grumblings).

So we are delighted to see that Wikileaks is on this beat too. From a March 2007 cable on a discussion between Clark T. Randt and “Fifth Generation Star Li Kequiang”:

Lender Processing Services Produced More Bogus Foreclosure Documents Than It ‘Fessed To

Readers may recall that this site broke the story of litigation against Lender Processing Services, the biggest player in foreclosure management on behalf of mortgage servicers. These cases, launched earlier in the fall, accused the company of taking impermissible legal fees. These class action lawsuits were joined by the US bankruptcy trustee for the Northern District of Mississippi, both for herself and on behalf of all US bankruptcy fees, which meant she felt the issues set forth in the case had merit and were serious. In November, an additional class action case was filed against LPS, this time securities litigation, charging the company with making false and misleading statements to investors from July 29, 2009 to October 4, 2010, including “deceptive and improper document execution and preparation related to foreclosure proceedings.”

Subsequently, as our Richard Smith detailed earlier today, Housing Wire’s Paul Jackson attacked critics of LPS, including this blogger, of going off half baked in accusing the company of engaging in document fabrication. A Reuters investigation published today supports the critics’s case, revealing that document creation was far more extensive that the company has suggested.

Collateral damage – more than Paul Jackson’s reputation at risk

Events during this financial crisis have repeatedly displayed a degree of disrespect for various pundits’ authority; every so often another pulpit is toppled. So spare a thought for the pundits, the most unmourned of crisis casualties. One skips through the roll of slight miscues (“Lehman repo looks solid”, April ’08), shame (“believe Fuld, Lehman bears […]

Bloggergoof

I claimed the other day, from memory, that the Landesbanken plus Deutsche had dumped EUR35Bn in the Iceland crash. That’s a spectacular claim, but unfortunately not at all true. A bit of polite throatclearing from commenter Hubert got me to dig through the bankruptcy wind-ups of Kaupthing, Glitnir and Landsbanki. Based on a wikileak of […]

“Waiting for Godot”, or “Endgame”?

No formal announcement yet, but some presumably well-sourced rumours about the size of the Irish bailout (EUR 85Bn), and the rate (7%, via the redoubtable Twitterer on all matters Irish @LorcanRK). While we await the budget statement, there are reasons to suspect, or hope, that the bailout, like Godot, will never come, because it’s failing […]

Ring a Ring o’ Roses

Some geographical and economic clarifications from politicians, officials and commentators: 1. Spain is not Greece – Elena Salgado, Spanish Finance Minister, ~February, 2010. 2. Portugal is not Greece – The Economist, 22nd April, 2010. 3. Greece is not Ireland – George Papaconstantinou, Greek Finance Minister, 8th November 2010. 4. Spain is neither Ireland nor Portugal […]

Stockman Savages Buffett Op-Ed, Bailout Canards

One of the annoying and persistent Big Lies of the financial crisis is that the rescues were a really good thing because they saved the world as we know it. That argument is dubious for a host of reasons: the world as we know it is the very same one that went off a cliff, […]