May 20, 2012

Game Theory in Polifinance

Is the financial services industry a zero-sum game?

“Can’t Get Enough: Goldman’s Profit is Citi’s Pain?”

By Thomas Adams, at Paykin Krieg and Adams, LLP, and a former managing director at Ambac and FGIC.

Many thanks for the thoughtful comments on my earlier post. If you can take a little more on the subject, I thought I would add some clarification to some of the issues raised.

First, on the merits of a monoline vs. AIG bailout, consider a case of counterparty compare and contrast, using Goldman Sachs and Citigroup as examples.

More Compelling Than a “Vampire Squid”

I’m not all that into the vampire squid meme, but well supported arguments deserve attention in the arena of government influence. Clearly, evidence supports that Goldman is very good to their shareholders and employees. In my mind, this means they’re upholding their side of fiduciary responsibility.

If there is a problem embedded here (and likely there is), then responsibility should ultimately rest with our elected leaders.

Goldman/AIG Conspiracy Theories: There’s a Reason They Won’t Go Away

Note: this post is by Thomas Adams, at Paykin Krieg and Adams, LLP, and a former managing director at Ambac and FGIC, with some minor additions by yours truly. This is a significant piece of some puzzles he, some other experts who prefer to remain anonymous, and I have been pushing on for several months.