The Dbottino Weblog

Chairman and CEO of Lazard, Bruce Wasserstein, warns national banks of his prediction of billions of losses as the economy continues to deteriorate. On October 30, 2008, he explained at Fortune’s “Wall Street’s New Deal” conference why America’s largest banks are not willing to loan. And this is because they are currently caught in the economic turmoil.

According to investment banker Bruce Wasserstein, mortgaged-related investments are not the only reasons why the banking industry is hobbling. Problems will soon appear as borrowers have not been able to pay their debts in commercial real estate loans, credit card debts, and other assets. The economy will still continue to stagger. Banks have also been unwilling to let of their assets because they will get prices that are far below the amount that they paid for them. This would force banks to take additional records.

Aside from Wasserstein, the CEO and co-founder of Blackstone group, Steven Schwarzman, was also there. Both CEOs talked about the Lehman Brothers bankruptcy. This reportedly triggered panic and alarmed the government to discard the nation’s banks. Thus, banks are holding onto some of the unstable assets, expecting the values to recover. But some asset values may never pull through, declared Bruce Wasserstein. He said that accounting today “has become a creative exercise in creative fiction” because nobody knows the true value of many securities.

As the US economy continues to decline, credit card defaults have also increased. Its biggest reduction in five years, the GDP growth purportedly dropped at an annual rate of 0.3%. Assets coupled to credit cards and commercial real estate loans may become the next crisis to strike Wall Street.

Identity theft has become an increasing trend and a lot of people are getting victimized, even former soldiers and other military personnel. When news broke out that the identity and vital private information of retired US military personnel were vulnerable to identity theft, information commerce leader Intellius, together with its CEO Naveen Jain, set out to provide adequate protection for less than half the price. Around 26.5 million veterans of the United States Armed Forces were affected by the threat, but with the entry of Intelius to alleviate the situation, a lot of the US military retirees were relieved. Known for providing clients with reliable access to information vital to business growth, Intelius has dedicated significant time, effort, and financial means to a technology that would counter the threat of identity theft long before it happens. The product, IDWatch, alerts customers of possible fraudulent activities that involve their identities in real time through email. IDWatch has proven to be successful in deterring instances of identity theft, and for the veterans of the US Armed Forces, this service is made available for $19.95 a year, a far cry from the original price of an annual rate of $100. For Naveen Jain, this step is his and the company’s way of saluting the brave men and women who have served the country and risked their lives in the process. He added in an interview that upon hearing the news of veterans’ identities being fully exposed to any attacks from identity fraudsters, his immediate reaction was to find a way to help. For his quick action on the matter, Naveen Jain received several commendations from a lot of organizations and people, most of whom were former men and women in uniform.