12 May, 2008 | by

 

Yesterday I read a very well written Fortune magazine article titled “what’s wrong with Wall Street and how to Fix It”. I’m sure by now you’ve read countless press releases on the sub prime debacle which don’t always provide a concise view of the situation we now found ourselves in. Rarely do you find articulation of such a complex topic, in written format, that provides just the right blend of depth to go with simplicity, to ensure it resonates with a broad audience. I believe this article fits that mold and wanted to summarize some of its key points and chime in with some personal commentary of my own.

The author, Shawn Tully, encapsulates Wall Street’s issues into three distinct categories. The first is their unyielding appetite for risky trading as opposed to more traditional and reliable fee based business that commercial banks tend to gravitate towards. The second is the dangerous levels of leverage these firms work with. continue reading »

21 Aug, 2007 | by

The recent news of New York base Cerberus, a private equity firm, buying and 80.1 percent stake in Chrysler from Daimler Chrysler AG for $7.4 billion has been major news to say the least. Business enthusiasts and investors have been speculating tirelessly in recent weeks as to how effective former Home Depot CEO, Robert Nardelli, will really be. I figured I’d throw my humble opinion into the speculative arena as well.

Robert Nardelli:
Robert Nardelli, a product of GE during the Neutron Jack years, is mainly known as a methodical cost cutter during his six years while at Home Depot. He was credited for doubling sales and the number of store operations while expanding into Mexico and China as well as delivering more than 20 percent earnings-per-share growth for four consecutive years and more than quintupling its dividend to 90 cents a share. continue reading »