Via Cosmo Catalano

Pitt’s Plan B productions is going full steam ahead on an adaptation of Lewis’ latest, “The Big Short,” about the events that led up to the current financial fiasco. They’re set offer Charles Randolph (”The Interpreter,” “The Life of David Gale”) $750G to write a script, reported New York mag’s Vulture.

Every couple months or so, I do a little Googling to see if Liar’s Poker has been optioned yet. Turns out it was optioned 20 years ago. Make the fucking movie already.

A few more Michael Lewis links to round out the day:
Complete Guide To Who’s Who In The CDO Scandal
Goldman Sachs Is Doomed

On Oaths

We pledge to meet and even get to know ordinary people who do not work for Goldman Sachs, so that we might better understand their irrational behavior, and exploit it only when necessary.

In the quarter ended March 31, Goldman made money on every single trading day. The firm did not record a loss of even $0.01 on even one day in the last quarter. That’s 63 days profitable out of 63 trading days. The statistic probability of this event is itself statistically undefined. Goldman is now the market – or, in keeping with modern market reality, Goldman is the house, it controls the casino, and always wins. Congratulations America: you now have far, far better odds in Las Vegas that you have making money with your E-Trade account.

When they’ve gotten so brazen they don’t even care about the optics of something like this, you know we’re all in trouble.

Plan B Entertainment, is closing on a deal to option Lewis’s next book, The Big Short: Inside the Doomsday Machine, a chronicle of Wall Street greed and the swollen U.S. housing market. Pitt is also considering starring.

I swear if someone doesn’t start making a movie about Liar’s Poker soon, I’m going to start typing in all caps. And I’ll mean it, too. The fact that it’s not a movie yet makes me itchy.

8. Notice that the amount of your pay withheld to pay for your health insurance is a lot more than it was last year.
I won’t ask you to dig up old paychecks from 2008 and 2007, but this has been going on for a long time. Every year, the amount of your paycheck withheld to pay for your health insurance goes up. A lot.

Withdrawing Money
Switching to Smaller, Local Banks
Heightened Interest in Online Banks
Outright Refusal to Pay

If this continues to happen at a higher rate, it will eventually have an impact. Or maybe that’s naive.

Recently, Airan-Pace secured a modification for a Miami Beach client that shrank his monthly payment from $3,700 to $1,600. But it was only a reduction in interest rate — allowed by the Home Affordable Modification Program to go as low as 2 percent.
“I called him in and he said, ‘I’m not signing this,’ ” Airan-Pace recalled.
He owed $470,000 on a property worth less than half that.

Life might be simpler and more efficient if retailers could levy a surcharge that covers their costs to accept cards and let consumers figure out whether to pay it. But the card companies don’t allow that, and Congress hasn’t yet forced their hand, though this is now how things work in Australia (where some retailers charge excessive fees, alas).

And from a few days earlier, here is the Times talking about why the fees are so high.

The banks have used interchange fees as a growing profit center and to pay for cardholder perks like rewards programs. Interchange revenue has increased to $45 billion today, from $20 billion in 2002, driven in part by the surge in debit card use.

Think of private-equity firms that close a factory — essentially deciding that the company is worth more dead than alive. Or the New York Yankees and their World Series M.V.P. Hideki Matsui, who parted company as soon as the cheering stopped. Or money-losing hedge-fund managers: rather than try to earn back their investors’ lost capital, they start new funds so they can rake in fresh incentives. Sam Zell, a billionaire, let the Tribune Company, which he had previously acquired, file for bankruptcy. Indeed, the owners of any company that defaults on bonds and chooses to let the company fail rather than invest more capital in it are practicing “strategic default.” Banks signal their complicity with this ethos when they send new credit cards to people who failed to stay current on old ones.

I had a fantasy in which the Fed and the TSA (Transportation Security Administration) switched roles.

If a bank failed at 9 a.m. one morning and shut its doors, the TSA would announce that all banks henceforth begin their business day at 10 a.m.

And, if a terrorist managed to get on board a plane between Stockholm and Washington, the Fed would increase the number of flights between the cities.

Via Felix Salmon

The big guns on Wall Street increased their political donations last month after increasing their lobbying muscle. Morgan Stanley’s Political Action Committee donated $110,000 in September, for example, of which Democrats got $43,000.

It’s going to be so awesome when this happens again and it’s worse!

The Yes Men sent out a hoax press release from the US Chamber of Commerce saying they had changed their position on climate change. Obviously the media was interested in this so the Yes Men rented a room at the DC Press Club and gave a fake press conference. Then it gets really awesome when a representative of the Chamber shows up and shuts down the presser. And now, they’re getting sued for it

Via TPM.

If you saw the profits made by the big banks last quarter and wondered how they were doing it, Philip Greenspun has an answer:

Because of the Collapse of 2008 financial reforms, the big investment banks are able to borrow money from the U.S. government at 0 percent interest. Then they can turn around and buy short-term bonds that pay 2 or 3 percent annual interest. Now they’re making 2 percent on whatever they borrowed. They can use leverage to increase this number, by pledging some of the bonds that they’ve already bought as collateral on additional bonds.

It’s all so awesome, isn’t it?

As a trader inside a big Wall Street firm…you would face a decision: Do I exercise my independent judgment and bet against this market, or do I just keep going along with what my firm is doing? If you exercise your independent judgment and bet against sub-prime mortgage bonds, you not only probably run into some political conflict within your firm, but you’d never make the big score for yourself… The minute you make a bunch of money from your bet, your firm is doomed. They couldn’t pay you. So the smart thing was just to go along and hope it lasted long enough for you to get rich.

America stands at a crossroads, and Goldman Sachs now owns both of them. In choosing which road to take, ordinary Americans must not be distracted by unproductive resentment toward the toll-takers. To that end we at Goldman Sachs would like to dispel several false and insidious rumors.

Thanks, Mike.

Felix Salmon has a refutation by a Goldman flack.
Taibbi responds to the flack and notes why Goldman’s POV is not represented in the article. They didn’t want to talk.
Time Magazine steps into it in a somewhat ham handed way. Not making many points or adding much substance to the discussion.
Taibbi responds to Time, taking most issue with Time’s ‘everyone was doing it‘ defense of Goldman.
Megan McArdle somehow connects Taibbi’s writing to Sarah Palin, which doesn’t make much sense. Then she hangs out in the comments section saying, “I’m just not down with the idea that there’s some sort of elusive “central point” to stories that permits you to write a bunch of total nonsense as long as the “central point” is good.” Which, as a commenter points out, will probably be posted as a comment on every McArdle piece for the rest of time.
Here’s Obsidian Wings saying the article isn’t as bad as Kevin Drum said it was (though Drum then recanted his statement based on the fact that Rolling Stone confusingly posted excerpts of the article online instead of the full text).

More as it comes in.

How A.I.G. F.P. became the first stop for Wall Street banks looking to insure the massive amounts of debt they were buying, packaging, and selling: “We were doing every single [credit-default swap] deal with every single Wall Street firm, except Citigroup,” says one A.I.G. F.P. trader. “Citigroup decided it liked the risk and kept it on their books. We took all the rest,”

click above for the full article.

In other Michael Lewis news, you probably knew that the Siderbergh/Pitt vehicle, ‘Moneyball’, got axed last week. Here’s an insider’s version of events that doesn’t make anyone at Sony look very good. Sandra Bullock’s ‘The Blindside’ continues to truck, and still, for some reason, no one has made any moves to make ‘Liar’s Poker’.

Popovich’s first rule of firearms is pretty simple: The man who tells you he’s going to shoot you will not shoot you. So without so much as looking back, he got on the plane and flew it right to Chicago. “My job is to grab that plane,” Popovich says. “And if you haven’t paid for it, then it’s mine. And I don’t like to lose.” Nick Popovich is a repo man, but not the kind that spirits away Hyundais from suburban driveways. Popovich is a super repo man, one of a handful of specialists who get the call when a bank wants back its Gulfstream II jet from, say, a small army of neo-Nazi freaks.

As does this story I remember reading a couple years ago about a cargo ship repo man:

Meanwhile, an oceangoing tugboat also hired by Hardberger slipped into port and backed up to the Aztec Express. Under a full moon, the crew began cutting the anchor chains with blowtorches. In case harbor officials noticed and tried to call for help on their cellphone, Hardberger had paid a witch doctor $100 to cast spells on the port’s soccer field. The witch doctor marked the field with gray powder, a clear warning to believers in voodoo, the nation’s dominant religion. No call ever went out.

However, this story about another boat repo man, not so much.

“The people who created the problem are so powerful in deciding in what the solution to the problem will be.”

I’ll say it again. No one wants to make Liar’s Poker into a movie? How can this be?