Let’s start off July with one of my favorite interviewees – Howard Davidowtiz.
“Accountants signing off on everything…smiling…who did nothing, checked on nothing, and approved everything!”
“This is the most incompetent administration in my lifetime and it’s getting worse every day.”
Howard Davidowitz blasts financial regulation saying it totally misses the mark in this Yahoo Finance interview. He states that there is no accountability from the auditors because assets were valued on financial firms at 100 cents on the dollar when they were really worth 20 cents – pointing out that financial firms would have never been able to borrow and leverage up if their assets were CORRECTLY VALUED.
When asked about if the new regulators would help, he said “Regulators work for the bank…they can’t regulate anything!” When asked why the new regulations being proposed don’t cover the auditors and the mis-valued assets, he recommended we ask “Countrywide Chris” Dodd and Barney Frank.
Davidowitz does make great points – similar to Sarbanes-Oxley and other knee-jerk, way-after-it’s-too-late regulations, this bill misses the mark, increases costs, and gives more power to the same inept people who missed all the problems in the first place (e.g. The Federal Reserve).