Question: Who owns the credit card companies? Once upon a time, Bank of America owned Visa, but I’m not sure if it’s been spun off. So, if the stress tests have shown that the banks are not as healthy as…

Question: How do we supervise and regulate the credit rating agencies which, so poorly and perhaps illegally overrated so many derivatives? Paul Solman: I don’t know. One proposed reform has been that the investors pay the ratings agencies for…

Mar 23

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After the Treasury Department released its plan today to rid banks of so-called “toxic assets” by enticing private investors to partner with the government, Paul Solman answered questions on the basics of the plan. What exactly are…

Question: Why were pension funds allowed to “invest” in a hedge fund? Hedge funds are nothing more than gambling. Paul Solman: Because pension funds are supposedly big enough and therefore sophisticated enough to know what they’re doing and take considered…

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