Tuesday, November 16, 2010

The Geithner Gang rides again?

In the bad old days when emerging markets were really, really emerging, there were stories out of places like Russia where property rights were blatantly ignored. Share registers were routinely changed, or shareholders would be physically barred from shareholders' meetings by thugs, where existing shareholders' interests were diluted to nothing, sometimes without disclosure or warning.

These bad old days seem to coming to the developed world, where the likes of Tim Geithner et al have decided that it's ok to bail out financial institutions without either bondholders or shareholders taking a hit, as per capitalist principles. The latest rumor comes from Neil Garfield, who comments on the MERS mortgage registration mess (via FT Alphaville):
The legislation is already being drafted under the interstate commerce clause to ratify MERS and everything it did retroactively. It appears that the Obama administration is ready to pardon all the securitization deviants by signing this bill into law.
If this rumor is true, then the Geithner Gang is ready to ride again. Where is the outrage?

No comments: