Things we're reading today include …
Black Rock buys Barclays Global Investors:
Sovereign wealth funds back BlackRock move to acquire Barclays Global Investors (Telegraph)
Epic deal that crowns Larry Fink as Wall Street's new king (Telegraph)
Barclays' market-based solution leaves bailed-out banks trailing (Telegraph)
Barclays’ reliance on investment banking ‘to rise’ (Financial Times)
The financial crisis and the response of the ECB, speech by Jean-Claude Trichet, President of the ECB
ECB Governor Warns Bulgaria against Speedy Euro Adoption (Novinite)
Europe Lags as U.S. Economy Shows Signs of Recovery (New York Times)
US moves to spur bank buy-outs (Financial Times)
Chinese rise in industrial output raises hopes of end to global recession (Telegraph)
A great interview on CNBC took place on Thursday with Barney Frank.
He's the guy who heads up the Senate's Financial Services Committee and would be the equivalent of the UK's John McFall.
Barney is being interviewed about executive compensation. He's answered several questions in a calm manner, including one that asked whether he really expected linking pay and bonuses to shareholder's decisions would avert the risk-taking we've seen in the banking system.
Then, after 4 minutes and 50 seconds of the news item, CNBC anchorman David Haines asks this question: "it seems to me that you
are dealing with a model that no longer works because we don't have mom
and pop at home holding these shares. These shares are primarily in
mutual funds and the ownership is a derivative instrument and I just
don't see how you get the shareholders …"
Mr. Frank goes nuts and, after a little verbal spat, storms off the interview.
Well worth watching, although I do wonder why the question about shareholder's lack of governance should have made Mr. Frank so angry …
And quote of the day?
Quote of the Day:
"You want to interrupt because you don't like what I'm saying, then you can go find someone else to interview."
Barney Frank, Chairman of the US House Financial Services Committee
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