A useful link within the NVCA website.
Monthly Archives: March 2013
State of the venture capital industry
There are probably about as many different takes on this as there are VCs. But I’ll post a series of them for you to review.
Here’s one that has good things to say about Chicago as a location for early-stage investment.
SOX’s chilling effect?
This article is a few years old (which means we can review some of its predictions with a more skeptical – and realistic – eye), but it provides some perspective on Sarbanes-Oxley and its impact on IPOs.
And the report that launched it all …
Armando Falcon’s 2004 report to Congress about Fannie Mae’s failure to comply with GAAP (Generally Accepted Accounting Principles). All 198 pages of it. Here is a blurb from the opening summary:
“The matters detailed in this report are serious and raise concerns regarding the validity of previously reported financial results, the adequacy of regulatory capital, the quality of management supervision, and the overall safety and soundness of the Enterprise.”
Warnings to Congress in 2004 – the entire hearing
For diehards, here is the entire 7+ hours of testimony before Congress about OFHEO Director Armando Falcon’s report in 2004, and the reactions of congressional representatives who refused to believe the dire warnings contained within it.
Professor Thomas Sowell on the housing boom and bust
Stanford economics professor Thomas Sowell explains the housing bubble in this video produced by the Hoover Institution.
Believe it or not, we were warned about the financial crisis …
… years before it happened. Here is a news spot from 2008 showing clips from Congressional hearings in 2004 — fully four years before the housing bubble burst and the financial meltdown took place — in which lawmakers were warned that there were serious problems with Fannie Mae and Freddie Mac.
These hearings were prompted by a report from OFHEO (Office of Federal Housing Enterprise Oversight). Armando Falcon, Jr. was the Director of OFHEO at the time, and he was eviscerated by a number of congressmen and women, who claimed that Fannie Mae and Freddie Mac were “sound,” and that Mr. Falcon was out to undermine affordable housing. This was untrue, as this article from The Nation magazine points out.
Those attempting to push for stronger oversight of the GSE were ignored. Mr. Falcon was asked to resign. But his concerns were vindicated by the events four years later.
The present – and the future? – for Fannie Mae and Freddie Mac
A story from the NYT — just last week.
A very simple and straightforward must-read about Fannie Mae and Freddie Mac
And how they got into the mess that was WAYYYYY undercapitalized mortgages ….
Sarbanes-Oxley’s reach lengthens …
And this writer thinks that is a very good thing, indeed.