There’s a severe shortage of finance honchos in Davos this year. They probably thought that turning up for the schmooztastic gabfest would send the wrong signal to their new lords and masters making $191,300 a year. On the other hand, they’re leaving something of a vacuum, and Steve Schwarzman abhors a vacuum:
Mr. Schwarzman is already making a splash. At a discussion panel on Wednesday, hopped off his stool during a debate moderated by CNBC’s Maria Bartiromo, grabbed the microphone, and boldly called for what private equity loves: More leverage!
Mr. Schwarzman argued that banks should be allowed lower capital ratios, freeing money normally laid away against losses for new lending. He also called for the end of accounting rules that forced lower and lower asset valuations. And, oh yes, the government should guarantee securitizations to help the market get moving.
And a pony, Steve. Don’t forget the pony.