Discussing whether Fed chief Bernanke was too honest with the markets, with Lawrence McDonald, Pangea Capital Management.

Despite my testimony last May and repeated warnings from Moody’s, S&P et al that the U.S. could lose its top credit rating with ongoing fiscal deficits and heavy debts, the platinum-plated AAA rating of the United States seemed all but untouchable…

In the debate that produced a surprising amount of general agreement Jan Hommen, CEO of ING, said that the financial crisis “has put financial institutions into the forefront of a global debate. “The world of finance can only work if we have trust in the institutions and in the system.”

This Thursday, the-beginning-of-the-end of Wall Street as we know it will kick off. Congressional Democrats and Republican leaders will begin the “Conference” process on combining the House and Senate finance reform bills.

For there, in that sun-drenched Caribbean paradise,
set 170 miles south of the western end of Castro’s Cuba,
Lehman, in company with several other investment banks,
held a controlling hand over a succession of hidden
Trusts.

Anton Valukas’s 2,200 page report on the demise of Lehman Brothers has provoked outrage among many investors and politicians.

BROTHERS GRIM — Larry McDonald, who worked for the ill-fated Lehman Brothers investment bank, speaks at a KPU event about the company’s bankruptcy filing in September 2008. McDonald blamed the Board of Directors for the …

It’s pretty clear the most disgruntled man in Washington 15 days ago was Paul Volker. He had been pounding the table to bring back Glass Steagall since Thanksgiving, and had been consistently ignored by …

Major Theme: Healthy Corporate Debt Markets vs. Weaker Sovereign Debt Markets - There was a risk transfer from Governments to Corporates, signaling more confidence in corporations than nations!

The Pangea strategy recorded another positive month in November. The fund was up 6.21% (net of expenses and commissions but before management and performance fees) as it was positioned opportunistically across assets throughout the month.