This entry was posted on Friday, September 5th, 2008 at 4:27 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
By Andrew B Vaughey
As of today, August 5, 2008 stocks are down more than 60% since February, destroying more than $80 billion in shareholder value. Top Execs ignored alerts that might have softened the blow in the housing & banking crisis. “Both firms are guilty of greed, plain and simple,” stated Nick B Vaughey of Diamond Consulting & Investments. “The firms were financing more and more questionable loans that threatened its financial health. And, as the nations largest home lenders and buyer of mortgages, this caused a tremendous backlash,” Andrew Barrett, President of Diamond Consulting & Investments.
In a recent interview, Freddie Mac’s former chief risk officer, David Andrukonis, stated telling Syron in mid-2004 that the company was buying to many bad loans that “would likely pose an enormous financial & reputational risk to the company and the country.” By ignoring this, it added fuel to the fire, and helped add to the “worst housing crisis in US history,” commented Nick B Vaughey. What’s the cost of this debacle, “well, the bailout could cost US Taxpayers billions of dollars,” said Andrew B Vaughey.
Because of this, many companies and business owners are having to go to the private markets for debt and equity financing, because the big banks are still reeling from this problem. And, the hang-over isn’t likely to abate anytime soon. For this reason, we continue to shift our business toward consulting businesses to find the best possible options and structure for financing growth in the private markets.
Posted By: Andrew B Vaughey, Nicholas B Vaughey, and Drew Barrett of Diamond Investments. Diamond Investments & its blog, is a privately held Consulting Group, based in Seattle Washington.
