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Forum Post: Mike Mayo: Angry Financial Analyst

Posted 12 years ago on Nov. 1, 2011, 3:32 p.m. EST by daffyff (104) from Redwood City, CA
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Mike Mayo predicted the impending failure of banks, and pointed out its impending doom to anyone who would listen. He spoke before Congress, wrote 10,000s pages worth of research and several tv interviews to try to stop the madness taking place on wall street. He wrote a book titled "Exile on Wall Street: One Analyst's Fight to Save the Big Banks From Themselves." Here is a link to the article that describes his take on what needs to be fixed:

http://finance.yahoo.com/blogs/breakout/analyst-predicted-financial-meltdown-outraged-nothing-changed-180003183.html?sec=topStories&pos=8&asset=&ccode=

An excerpt of the above article:

" Mayo has three quick recommendations to strengthen the financial market:

  1. Enforce or simplify corporate accounting standards. Get the numbers right by making the "bean counters" who prepare the financial statements do their jobs better. Mayo says the financial data being released by corporate America is flawed, if not bogus or outright fraudulent. The distinction doesn't much matter: The numbers are wrong, making informed investments impossible.

  2. Put an end to 'too big to fail.' Let the banks fail, no matter how big the are. If failure isn't a realistic threat there's nothing to prevent banks from taking unreasonable risks. If crazy bets go well it's a boon to executives. If the bets go bust... well, there is no bust under the Too Big to Fail school of thought.

  3. Increase shareholder power. Mayo says simply "give the clout to the shareholders." CEOs are acting as if they were appointed by God, when in reality they serve at the discretion of the shareholders. Same thing for boards of directors. Running a huge financial company should be more like real life, says Mayo. "If I don't do my job well, I'm going to be fired. Why aren't more bank CEOs fired when they do a bad job?" "

I propose Occupy should reach out to him and take up his demands as our own.

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