Ritholtz: Why Does UBS Still Employ Phil Gramm?

The Big Picture:

Last week, UBS announced a 2nd Quarter loss "due to restructuring charges." The banking giant is raising $3.45 billion in a stock sale.

Partly owned by the Swiss government (for years prior to the crisis, if memory serves), UBS was one of the biggest losers in the financial crisis. After a huge expansion into riskiest businesses at the peak of the market, they have had steep losses and enormous write-downs. Since then, they have laid off tens of thousands of workers. (Aside from UBS' tax problems).

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Comments

[dolphy]

I hope he will share a "room" with Bernie in the near future and get latrine duty for the rest of their lives.

[vandegrasse]

THis man is the one primarily responsible for pushing deregulation legislation which led to the current crisis. He is a CROOK!

[vippy]

Let us audit Phil and his wife, Wendy. I am sure he has much money deposited in Switzerland.
He still has the gall to show his face!

[KarateKid]

Because Phil and Wendy have insatiable greed. They think they can take it with them when they go.

[rogerthat21]

Take back the trillions of $$$ given to the banks, who just sit on it and make it totally ineffective then start government incentive to create realistic industries that give employment and generate real productive income, some of which would hopefully be from exports.

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.

hat tip to: http://investmintideas.blogspot.com for the good articles

[rogerthat21]

barry thebigpicture ritholtz is a donkey's @$$

[exoevolution]

Why does UBS still employ Phil Gramm?

Because he is a financial genius????

[KarateKid]

What have you been smoking? Do you have a doctors' prescription for that?

[vandegrasse]

financial genius, my aunt tootie!!! He's a right-wing nut who crafted the legislation which about through deregulation the destabilization of the current economy.

[mjtaylor22]

The Gramm Leach Biley Act of 1999, SIGNED ON NOV 12 1999
Repealed Galss Stegall Act of 1933
SOME ECONOMIST HAVE CRITICIZED THIS REPEAL AS A MJOR CONTRIBUTOR TOT HE 2007 -2008 AND STEADILY CONTINUEING SUBPRIME MORTGAGE FINANCIAL CRISIS

yes and i do too.
Imagine, Mccain wanted this guy over Treasury..­.........
out nation dodge a super major catastrophie there.

[mjtaylor22]

he is employed there to help them properly exploit the now infamous Enron loop hole, it is the same gap in regulation of derivatives, regardless if they are call cmo's or cdo's, or what ever.
It is the same regulatory loophole moving from market to market,
Watch out for the commodities and futures markets next.
You see the spike in oil, due to speculative trading, IT HAPPENED LAST YEAR, AND HERE IT GOES AGAIN

[KennyFox]

Why? So he can teach them all about teh loopholes to breaking US intl tax treaties and local SEC investmetn laws. WHy else? Its surely not cuz they both love JEsus with all their heart and soul.

[loki]

He is still there because like any good politician, he can not rely on his intelligence or skills to make his career, but he relies on his knowledge of where the bodies are buried, so to speak. Its just blackmail that keeps any good politician employed. And Gramm is very good at getting real dirt on anyone and everyone that can make him wealthy.

[platanoman]

I guess they think they are going through a "mental recession"

[judiNJ]

....all of us whiners! This is a hideous man and he could have been SOT.

[jalowe1957]

Why would ANYONE in their right mind want to employ Phil Gramm?

Just another K Street insider on the take...

[vandegrasse]

Business people aren't in their right minds anymore.

[dolphy]

This is another guy who deserves way more than 150 years.

[PhilipTaylor]

Because USB is a CR00KED as a snake, just like Gramm!

They belong together!