A Quote by Eliot Spitzer
Imagine if the pension funds and endowments that own much of the equity in our financial services companies demanded that those companies revisit the way mortgages were marketed to those without adequate skills to understand the products they were being sold. Management would have to change the way things were done.
Related Quotes
After World War II, there were a lot of pension funds in Europe that were fully funded, but they were pressured to hold a lot of government debt. There was a lot of inflation, and the value of all those assets fell. Those pension funds couldn't honor their promises to the people.
It used to be that American and European companies built their products in low-wage countries, separated by great distances from the innovators who developed the products and the markets where they were sold. But companies increasingly find that is an outmoded way of doing business.
The 1920s and 1930s were a period of sensational productivity growth: new products were springing up all over the place, and most of those new products and new methods were developed by people who started their own companies.
Many financial and industrial companies have been bailed out with the public's money, but very few of those who had run those companies have been punished for their failures. Yes, the top managers of those companies have lost their jobs - but with a fat pension and mostly with a handsome severance payment.
If you were at Lehman, the same thing happened. If you were at AIG, the shareholders are getting creamed on these things. And those shareholders are not just a bunch of big shots in Wall Street. Those are pension funds, and those are investors all over the country. I wouldn't worry too much about that. Justice won't be perfect on it.
If you think about companies that were built in Silicon Valley, a lot of them early on were chip companies. And now the companies that are there, like Apple, are much more successful than any of the chip companies were.
The best way to look at any business is from the standpoint of the clients. So there are these certain basic things that aren't going to change. Companies are going to have needs for equity, debt, advice, FX, and derivatives. Individuals are going to have needs for auto loans, mortgages, something that looks like a deposit account, and the ability to send money to people. Those things aren't going to change.
The financial capital is being concentrated by corporations, institutional investors, and even our pension funds, and being reinvested in companies that repeat this process because it provides the highest return on that financial capital.
The financial collapse of 2008 got its start with predatory mortgages, that weren’t sold by community banks and credit unions, they were sold by fly by night mortgage brokers who had almost zero federal oversight and then the big banks looked over, saw the profit potential and they wanted it bad. So they jumped in and sold millions of these terrible mortgages while the bank regulators just looked the other way.
In our early days, being recognized on any list of great companies was hard to imagine. There were times when we sold the office furniture to make payroll.
All these companies that grew to any sizable proportions were all founded with a belief or a cause bigger than their products or services. It was their products or services that helped them bring that cause to life.
For most Indians in America, wealth is not inherited. Neither do we make it as heads of large hedge funds and private equity funds. For us to make it to the top, we have to use our knowhow to create great new technology products and build high-tech companies.
I'm amazed by the potential of more companies employing integrated philanthropic initiatives at earlier stages in their life cycle. What if this were done on an even more massive scale? Consider what would happen if a top-tier venture-capital firm required the companies in which it invested to place 1% of their equity into a foundation serving the communities in which they do business.
If Canadian companies want to sell products to the E.U., they have to prove those products conform with E.U. product safety, health and environmental rules. This involves extra bureaucracy, controls and paperwork. If the U.K. had a Canada-style deal with the E.U., U.K. companies would have to do the same.
Tech stocks were the cubic zirconium of the market. They looked good and were sexy, but they just were a way for the company selling them to make money. That's always going to be transient in terms of the stock market. What's real is that companies have to compete. Technology used well is a great tool to enable that if only because most companies dont use technologies well.
You look back at the '95 season, and a lot of those guys were getting mega minutes. Michael Jordan was out playing baseball. We were still winning, won 55 games I think, so those guys were all very content and happy with the way that things were going that year.
Related Authors
Alan Dershowitz Quotes
American
Lawyer
Cass Sunstein Quotes
American
Lawyer
Cenk Uygur Quotes
Turkish
Lawyer
Clarence Darrow Quotes
American
Lawyer
Elizabeth Edwards Quotes
American
Lawyer
Elliott Abrams Quotes
American
Lawyer
James Carville Quotes
American
Lawyer
Judy Sheindlin Quotes
American
Lawyer
Prashant Bhushan Quotes
Indian
Lawyer
Ralph Nader Quotes
American
Lawyer
Robert Green Ingersoll Quotes
American
Lawyer
Robin S. Sharma Quotes
Canadian
Lawyer
Robin Sharma Quotes
Canadian
Lawyer
Valerie Jarrett Quotes
American
Lawyer
William Jennings Bryan Quotes
American
Lawyer
Zephyr Teachout Quotes
American
Lawyer