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  • Fri, Oct 3 2008
  • 9:04 AM » Schwarzenegger Asks Paulson for Cash: Report
    Published Fri, Oct 03 2008 9:04 AM by CNBC
    Shared by Matthew no kidding... If half the residents of CA exercised their right to recalculate property taxes based on current home values, the state would be bankrupt
  • 9:04 AM » BoE in dramatic bank lending increase
    Published Fri, Oct 03 2008 9:04 AM by www.ft.com
    The central bank announced a dramatic increase in its three-month lending to British banks, saying it was willing to offer cash against an even wider range of collateral in an effort to ease strains in wholesale money markets
  • 9:04 AM » Greece Guarantees All Deposits
    Published Fri, Oct 03 2008 9:04 AM by Calculated Risk Blog
    From the Guardian: Greece's deposit guarantee deepens EU financial rift (hat tip Yal) Greece joined Ireland in offering to guarantee savings in domestic banks. George Alogoskoufis, the Greek finance minister, said deposits "in all banks that operate in Greece" would be "absolutely guaranteed", amid signs that savers were becoming restless. The move by a second eurozone country presented a big
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 8:53 AM » Wells Fargo in a Deal to Buy All of Wachovia
    Published Fri, Oct 03 2008 8:53 AM by www.nytimes.com
    Wachovia has apparently rejected a deal made just four days ago to sell its banking business to Citigroup, in favor of being acquired for stock valued at $15.1 billion.
    Click Here to Read the Full Article

    Source: www.nytimes.com
  • 8:52 AM » JP Morgan won't keep WaMu CEO
    Published Fri, Oct 03 2008 8:52 AM by Reuters
    NEW YORK (Reuters) - JPMorgan Chase & Co will not offer a job to Alan Fishman, chief executive of Washington Mutual, the struggling regional bank it bought a week ago, according to an internal memo obtained by Reuters.
  • 8:51 AM » Thain to head investment banking, wealth at BofA
    Published Fri, Oct 03 2008 8:51 AM by Reuters
    NEW YORK (Reuters) - John Thain, the Merrill Lynch & Co Inc chief executive who engineered the firm's sale to Bank of America Corp, will head investment banking, securities and wealth management at the new company -- at least for now.
  • 8:50 AM » U.K. raises deposit guarantee to 50,000 pounds
    Published Fri, Oct 03 2008 8:50 AM by Market Watch
    LONDON (MarketWatch) -- The Financial Services Authority said Friday it will raise the guarantee on U.K. bank deposits to 50,000 pounds ($88,000) and could increase it further still in an attempt to boost confidence in the troubled banking sector.
  • 8:49 AM » Currencies: Dollar weakens ahead of payrolls, House vote
    Published Fri, Oct 03 2008 8:49 AM by Market Watch
    The U.S. dollar loses ground Friday, succumbing to position-squaring ahead of the release of September labor data and a vote by the House of Representatives on the $700 billion bank bailout plan, analysts say.
  • 8:49 AM » MUFG in talks with Morgan on securities unit
    Published Fri, Oct 03 2008 8:49 AM by Market Watch
    Mitsubishi UFJ Financial Group Inc. is considering merging its Japanese securities business with Morgan Stanley's Japanese unit in a deal which could see the formation of Japan's third-largest securities house, according to media reports Friday.
  • 8:49 AM » House to Vote on Rescue Proposal
    Published Fri, Oct 03 2008 8:49 AM by dealbook.blogs.nytimes.com
    House Democrats said late Thursday night that they would bring the $700 billion economic bailout package to the floor for a vote on Friday, signaling confidence that they had enough support to pass the bill, The New York Times’s David M. Herszenhorn and Robert Pear write. The move came after Republican leaders struggled on Thursday to [...]
    Click Here to Read the Full Article

    Source: dealbook.blogs.nytimes.com
  • Thu, Oct 2 2008
  • 4:09 PM » WaMu’s assets could be worth less than originally disclosed
    Published Thu, Oct 02 2008 4:09 PM by feeds.bizjournals.com
    The $32.9 billion in total assets Washington Mutual Inc. listed in its Chapter 11 bankruptcy filing could be much lower than originally disclosed because at least part of the assets are company stock that is now worth next to nothing.
    Click Here to Read the Full Article

    Source: feeds.bizjournals.com
  • 3:54 PM » Why did the housing meltdown happen in the United States?
    Published Thu, Oct 02 2008 3:54 PM by The Big Picture
    Interesting discussion -- not too wonky -- on "Why did the housing meltdown happen in the United States?" via this BIS working paper. Abstract: The crisis enveloping global financial markets since August 2007 was triggered by actual and prospective credit losses on US mortgages. Was the United States just unlucky to have been the first to experience a housing crisis? Or was it inherently more susceptible to one? I examine the limited international evidence available, to ask how the boom-bust cycle in the US housing market differed from elsewhere and what the underlying institutional drivers of these differences were. Compared with other countries, the United States seems to have: built up a larger overhang of excess housing supply; experienced a greater easing in mortgage lending standards; and ended up with a household sector more vulnerable to falling housing prices. Some of these outcomes seem to have been driven by tax, legal and regulatory systems that encouraged households to increase their leverage and permitted lenders to enable that development. Given the institutional background, it may have been that the US housing boom was always more likely to end badly than the booms elsewhere. Housing construction and vacant homes US MBS issuance and subprime lending standards Source: Luci Ellis BIS Working Papers: No 259 Monetary and Economic Department, September 2008 http://www.bis.org/publ/work259.htm
    Click Here to Read the Full Article

    Source: The Big Picture
  • 3:54 PM » Warren Buffet on Charlie Rose
    Published Thu, Oct 02 2008 3:54 PM by The Big Picture
    Here is last night's , with WB speaking for an hour.
    Click Here to Read the Full Article

    Source: The Big Picture
  • 3:38 PM » BofA: Fed May Lose $6 Billion on Bear Assets
    Published Thu, Oct 02 2008 3:38 PM by Calculated Risk Blog
    From Bloomberg: Fed May Lose Out on Bear Assets, Bank of America Says The Fed will announce its quarterly estimate of the fair value of Maiden Lane LLC's $30 billion of holdings that JPMorgan Chase & Co. considered too risky when it acquired Bear Stearns in March, Bank of America analysts Jeffrey Rosenberg and Hans Mikkelsen wrote in a client note. The central bank valued the assets at $29
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 3:38 PM » Understanding the TED spread
    Published Thu, Oct 02 2008 3:38 PM by www.econbrowser.com
    One measure that is being used to summarize the strain in financial markets is the TED spread. This is calculated as the gap between (an average of interest rates offered in the London interbank market for 3-month dollar-denominated loans) and the 3-month Treasury bill rate. The size of this gap presumably reflects some sort of risk or liquidity premium. I was interested to break the TED spread down into identifiable components to try to get a better understanding of what may be responsible for its recent behavior. The TED spread over the last 5 years is plotted below; for a longer time series see . Historically the spread typically stayed under 50 basis points. However, it's usually been above 100 basis points since the of August 2007, and reached 300 several times during the last two weeks. Ted spread, as obtained from on Sept 28. The overnight interest rate on loans between banks in the U.S. money market is the fed funds rate, whose average value is set as the . There is also an overnight LIBOR rate, whose borrowers and lenders include some of the same banks that participate in the U.S. federal funds market, albeit a little earlier in the day. As a first step to understanding the LIBOR-TBILL spread, I was curious to look at the difference between the overnight LIBOR rate and the fed funds target. This had a rather impressive spike September 16-17. Purple line: overnight LIBOR rate. Historical values from , most recent from various news sources. Black line: fed funds target, from . Why would a bank want to borrow overnight dollars for 5-6% in London when it could be assured of obtaining those same funds for 2% later that day in New York? For one thing, the situation was sufficiently chaotic two weeks ago that many banks in fact were unable to borrow in New York at 2%. The effective fed funds rate (a volume-weighted average of all the known U.S. trades on a given day) was 2.64% on Sept 15 and 2.80% on Sept 17, despite the Fed's intention to keep these numbers...
    Click Here to Read the Full Article

    Source: www.econbrowser.com
  • 3:22 PM » Investors pull out of US commercial paper
    Published Thu, Oct 02 2008 3:22 PM by www.ft.com
    The amount invested in US commercial paper fell by $95bn during the past week, increasing fears about the availability of money for banks and companies from this source
  • 3:22 PM » Everyone Gets Mortgage Rate Of 5.25 Percent? I Don't Think So
    Published Thu, Oct 02 2008 3:22 PM by CNBC
    Posted By: Two very well-respected Columbia University business types are floating a plan today in the op-ed pages of the Wall Street Journal that they claim will fix the housing market and the greater economy. Topics: | | Sectors: | MEDIA:
  • 2:04 PM » Major Insurance Company On Verge Of Bankruptcy: Senator Reid
    Published Thu, Oct 02 2008 2:04 PM by feeds.feedburner.com
    Bloomberg is reporting . The cost to protect against a default by Hartford Financial Services Group Inc., Prudential Financial Inc. and MetLife Inc. rose to record levels on speculation that the turmoil in financial markets may be spreading to insurers. Credit-default swaps on Hartford jumped 165 basis points to a mid-price of 675 basis points, according to broker Phoenix Partners Group. Contracts on Prudential rose 125 basis points to 617 basis points, while MetLife climbed 97 basis points to 583 basis points, CMA Datavision prices show. An increase in the contracts, used to hedge against losses or to speculate on creditworthiness, represents a decline in investor confidence. Senate Majority Leader Harry Reid, in pressing for passage of a $700 billion financial system rescue plan, said yesterday that a "major" insurance company was about to go bankrupt if financial markets weren't calmed. "We don't have a lot of leeway on time," Reid told reporters after a luncheon in Washington. "One of the individuals in the caucus today talked about a major insurance company -- a major insurance company -- one with a name that everyone knows that's on the verge of going bankrupt. That's what this is all about." A spokesman for the senator later said Reid wasn't referring to anything specific, ABC News reported on its Web site. A Hartford spokeswoman, Shannon Lapierre, reiterated comments the company made yesterday in a statement. The company said it's "confident" in its financial strength and its ability to meet commitments to customers and is "living through a period of unprecedented market conditions." The market is going to go where the market is going to go, but if Senate Majority Leader Harry Reid was looking to induce short term volatility for the sake of political gain, he just may have done so. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike Shedlock / Mish is a registered...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 2:03 PM » Real Estate Lending Growth, 2003-2008
    Published Thu, Oct 02 2008 2:03 PM by Seeking Alpha
    submits: Nice Bloomberg chart of growth in U.S. real estate lending among major U.S. banks. You get a pretty clear idea of how badly timed Wachovia's buy of lender Golden West turned out to be, and how big of an inflection point the event was in Wachovia's declining fortunes.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 2:02 PM » The $700 Billion Bailout of the Secret Shadow Banking System
    Published Thu, Oct 02 2008 2:02 PM by loanworkout.org
    By Moe Bedard There are over 8,000 US Banks insured by the FDIC operating across the country and the reports coming from these banks are actually good. Most of the 8,000 banking institutions are doing fine because they do not have huge problems with toxic mortgage portfolios. Nor do they have loan portfolios full of cancerous pay option mortgages. The sector that [...]
    Click Here to Read the Full Article

    Source: loanworkout.org
  • 2:02 PM » Bailout bill faces next test in House on Friday
    Published Thu, Oct 02 2008 2:02 PM by Market Watch
    WASHINGTON (MarketWatch) -- The $700 billion rescue plan for the financial markets approved by the Senate Wednesday night faces its next test in the House on Friday, where the revised measure may have a better chance of passage than it did on Monday, when lawmakers there shot it down.
  • 9:34 AM » Ten ideas for the US government to stop this economic crisis in its tracks right now
    Published Thu, Oct 02 2008 9:34 AM by feeds.feedburner.com
    1) Ban all stock sales. Only purchases are to be allowed from here on out 2) Offer to buy every home in the country for what last sucker paid, regardless of market value 3) Send everyone $10,000 4) Cancel income taxes for 2008 and 2009 5) Announce a default on the US debt held by foreigners 6) Ban gold ownership 7) Declare all opposition as enemy combatants 8) Nationalize Wal-Mart and cut prices another 50% 9) Mandate that all employers must raise wages 100% immediately 10) the official language is now Swedish, and that underwear can only be worn on the outside (yes, this is a joke. and so is our out-of-control, incompetent, corrupt and panicked government, who after doing NOTHING on the way up, now refuses to let the free market wash away its own excess on the way down)
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:18 AM » Edmund Phelps Advocates Anglicized Swedish Approach for Fixing Financial System
    Published Thu, Oct 02 2008 9:18 AM by feeds.feedburner.com
    Columbia professor and Nobel prize winner Edmund Phelps writes in a Wall Street Journal op-ed, "," an article appears not to have garnered the attention it warrants in the blogosphere. Phelps comments approvingly on Sweden's approach to handling its financial crisis, which had as its cornerstone reducing the size of the financial system and nationalizing banks which were cleaned up and later privatized at a profit. Phelps serves up an Americanized, meaning watered-down, version of the Swedish model, highlighting the need to inject public funds into banks, a pet theme of ours. Because the bulk of the article explains why this course of action is necessary, his recommendation of how to proceed remains at an Olympian level of abstraction. For instance, he calls for considerable reform to the industry, but does not advocate throwing out current top management (note that might not be inconsistent with what Phelps would like to see, but the Wall Street Journal is not exactly the ideal forum for advocating senior management defenestration). Nevertheless, for an economist of Phelps' stature and not-easily-pigeonholed views to focus on the need to recapitalize banks and stress the need for tougher oversight is an important step forward. Note we also have some commentary further down from the Financial Times' John Dizard on why the powers that be so far have taken little interest in this idea. From the Wall Street Journal: When the speculative fever finally broke in America's housing industry and house prices began falling in search of equilibrium levels, banks everywhere suffered defaults and subsequent losses on a range of assets. In short order, the housing contraction morphed into a banking crisis. Among most economists, it came as a surprise that the banking industry and, indeed, most of the financial sector, was so devoted to houses... The banks' losses might seem poetic justice after their abominable performance....Among banks that had excessively...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:18 AM » Hedge Fund Implosions Starting
    Published Thu, Oct 02 2008 9:18 AM by feeds.feedburner.com
    We have noted several times in the last few weeks that hedge fund redemptions were likely to produce another ratchet-up of intensity of the financial crisis. Nouriel Roubini has also called it as the next domino to fall. Hedge fund have had not-so-hot returns so far this year, on average delivering losses despite promises to be able to deliver positive returns in markets good and bac. Short-selling strategies were a lone bright spot , and the powers that be put the keebosh on that. August was bad, September certain to be worse. And a separate impulse for investors to pull money out is loss aversion. Just as investors are running to cash and gold, they are seeking to exit risky strategies and assets. Hedge fund redemptions are particularly damaging because, if they rise beyond a modest level, they force manager to sell positions at a time not of their choosing. Worse, at this juncture, they are forced to liquidate in weak markets, depressing prices further, If redemptions go beyond a certain threshold, funds can go into a death spiral. And the price-lowering effects of hedge fund sales force others carrying similar paper to mark them at lower values increasing the likekihood that they in short order will face investor withdrawals. Plus, as a result of falling prices, if a fund used leverage, they may be required, independent of investor action, to sell assets to meet margin calls. Reader Saboor provided a list of sightings this evening. The fact that so many papers are running pieces on the same topic says conditions are getting acute. One thing to keep in mind: just like any sort of new business, a lot of new hedge funds fail. But the discussion here focuses on established, larger funds that are hitting the wall. This is another example of unintended consequences of regulatory intervention. As we have discussed, one of the features of our financial system, per Richard Bookstaber in his book , is that the financial system is tightly coupled, that new information or inputs...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:02 AM » Despite crisis, ECB should hold steady
    Published Thu, Oct 02 2008 9:02 AM by Washington Post
    FRANKFURT, Germany -- The European Central Bank met Thursday amid calls for an interest rate cut in the face of the growing financial crisis, but analysts said the bank likely would hold its benchmark interest rate steady as inflation outweighs worries about the meltdown.
    Click Here to Read the Full Article

    Source: Washington Post
  • 8:55 AM » Ken Lewis Announces John Thain Role With BofA, Redefined Business Model
    Published Thu, Oct 02 2008 8:55 AM by Market Watch
    Bank of America Chairman and Chief Executive Officer Ken Lewis today announced that John Thain, current chairman and chief executive officer of Merrill Lynch, will have a major role in the combined companies.
  • Wed, Oct 1 2008
  • 10:06 PM » CEO’s beg: “Protect our commercial paper”
    Published Wed, Oct 01 2008 10:06 PM by feeds.feedburner.com
    Valleywag has the story on . Why you ask? Because Honeywell, like many other large firms, leverage the short-term commercial paper market to manage cash flow and operation expenses. This market has effectively stopped working and CEO’s like Cote (and GE’s Immelt) are hoping that they don’t have to tap credit lines to fund ops while the commercial paper market is frozen. Tapping credit lines would make investors nervous, putting pressure on their stock prices and increasing borrowing costs (a nice, little vicious cycle). Of course you wouldn’t want to come right out with your ulterior motive, so instead make it a play for Main Street and hope your butt gets saved by the folks that are going to get screwed the most. From Valleywag: Why is Dave Cote telling Honeywell’s 122,000 employees to call Congress and ask them to vote for the $700 billion Wall Street bailout? The high-tech manufacturing giant makes its money far from Wall Street, on building electronics and airplane parts. But where the credit crisis hits the heartland the hardest is a market for what’s called commercial paper — short-term loans made to large corporations to fund their daily operations. It provides the cash that smoothes over the gaps between when supplies get bought and employees get paid and when customers pony up.
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:18 PM » SEC says extends short sale ban on financial stocks
    Published Wed, Oct 01 2008 9:18 PM by Reuters
    (Reuters) - The U.S. Securities and Exchange Commission on Wednesday said it would extend its existing short sale ban on financial stocks while Congress completes work on financial bailout legislation. The ban had been scheduled to expire on Thursday night.
  • 8:33 PM » Wachovia-Golden West Transaction: A Disaster Without Peer
    Published Wed, Oct 01 2008 8:33 PM by Seeking Alpha
    submits: The financial crisis has finally proved (if anyone needed more evidence) the sheer value-destroying power of large-scale M&A in financial services. The past ten years have seen one disastrous deal after another. You will have your own favorite: Travelers-Citigroup (C)? HSBC (HBC)-Household? Anything WaMu (WM) ever bought? Those are all great candidates. Each ended up costing shareholders billions foregone and diluted earnings, not to mention reputational damage on a grand scale. The credit crackup has only served to highlight how misbegotten those deals were. But for unleashing pure, massive value evaporation, nothing compares to the champ: Wachovia’s (WB) $24 billion acquisition of Golden West Financial in 2006. That one didn’t just cost shareholders a large portion of their stake in the company, it evaporated it altogether.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:32 PM » Talk Me Down From the Wells Fargo Ledge
    Published Wed, Oct 01 2008 8:32 PM by Seeking Alpha
    submits: Will someone please talk me down off the ledge with respect to Wells Fargo (WFC)? I don't understand why the bank is being treated with kid gloves through the current credit crisis. Yes, it is better capitalized than its failed mortgage drug-dealers, and yes, it didn't have as much exposure to some of the more deranged crap, like Option ARMs. And that's good. But consider the issues. I have been spending an inordinate amount of time examining Wells' origination geographies, the $24-billion in mortgage-related Level 3 assets, the historically low loan loss provisions, the construction loan portfolio, the exposure to a weakening consumer economy, etc. I just don't understand why so many people are seemingly so sanguine about WFC. Granted, issues there will happen in a different way and at a different speed, but that's not the same thing as saying that the company is adequately provisioned for problems ahead.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:31 PM » Hank Paulson: Smartest Man in the Room
    Published Wed, Oct 01 2008 8:31 PM by Seeking Alpha
    submits: This bill can only get passed in between quarters and Hank Paulson knows it. US markets have been dominated by panic at the end of each quarter this year. In March, the S&P 500 went down 5.6%, in June it went down 8.6%, and now in September the index is down 14.1%. Within these earnings/economic report dead zones, investors forget about the fundamentals and assume worst case scenarios. Do you think Hank Paulson factored this cycle of fear into his plan to get this $700 billion bill passed? Absolutely. Will a bill still get passed? Absolutely. Hank has known that we needed a trillion dollar Superfund since October of 2007 when he tried bringing the three largest banks Bank of America (BAC), Citigroup (C), and JP Morgan Chase (JPM) together to form an SIV Superfund to stimulate the frozen mortgage market. He initially tried to raise $75 billion but quickly realized a much larger pool of money was needed to bring stability to the $14 trillion mortgage security market. The only alternative was to orchestrate a dramatic yet contained unwind of the financial system to spook Congress into passing a Superfund bill.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:30 PM » Wachovia Deal: A Home Run for Citi
    Published Wed, Oct 01 2008 8:30 PM by Seeking Alpha
    submits: People have been so transfixed by the implosion of Wachovia (WB), they’re overlooking the fact that the buyer in the transaction, Citigroup (C), is getting a spectacularly good deal. The FDIC has basically gift-wrapped Wachovia’s national deposit base and handed it over for free. Citi gets Wachovia’s retail bank, its commercial and investment bank, and its private banking unit, including assumption of debt. In all, that adds up to $700 billion in assets and related liabilities, including $448 million in deposits.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:29 PM » The U.S. Economy After the Bailout
    Published Wed, Oct 01 2008 8:29 PM by Seeking Alpha
    submits: The bailout reminds me of a Hail Mary pass thrown to the 5th wide receiver who is being covered by three defenders and is currently on the 5-yard line, whilst the team's future hall of famer is standing wide open in the middle of the end zone. Sure the 5th wide receiver may catch the ball and yes it would set you up for the field goal that could send the game into OT, but throwing the ball to a triple covered 5th WR instead of your wide open hall of famer is a recipe for disaster. Ignoring my football analogy for a moment, perhaps the biggest problem with the bailout (aside from my usual gripes) is that the plan's proponents are setting improper expectations around the plan's benefits, by assigning benefits to it that the plan simply isn't capable of delivering upon. The problem with this is two-fold: one it suggests that the framers of the plan haven't a bloody clue as to the true dynamics of the economic malaise affecting the country, and it could potentially set the nation up for a even greater confidence crisis when the plan fails to deliver.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:28 PM » The Top Five Reasons The Bailout Interventions Are Making Things Worse
    Published Wed, Oct 01 2008 8:28 PM by ml-implode.com
    by Aaron Krowne for The Implode-o-Meter. The bailout bill currently under debate isn't the first attempt to "just do something" to "fix the crisis". Many interventions have been concocted over the past year, with each seeming to trump the previous in heft, but pitched as the "bailout to end all bailouts" and finally fix the economy. Yet, these interventions have all failed -- all the underlying metrics of the market (spreads, share prices, bank lending) have continued to deteriorate. In this piece we examine why. The implication is: this latest "bailout to end all bailouts" will be, well, anything but, and should be vigorously opposed. 1. They've increased leverage. Fannie and Freddie had their core capital requirements reduced by 30% in early 2008. This was a complete about-face for OFHEO chief Lockhart, which suggests it was a pure panic move to prop up the housing market -- not a logical, considered decision. It certainly aided the cause of pushing most housing market activity through the GSEs. But sure enough, within a few months, even the government had to admit the two were insolvent. Another example is how FASB rules intended to transition to a mark-to-market of bank assets -- meant to go into effect in 2008 -- were postponed, and will likely be modified or postponed for longer. Since it is obvious that under the current model, the assets are significantly over-valued, the postponement has generally bred distrust of financial companies, and has caused them to hoard cash, and has turned away potential outside investors. Yet another example is how in the latest batch of hasty Fed rule changes, long-standing restrictions on using deposits for speculative activities were eliminated. Now, banks can raid their core depository capital as long as they plop some collateral in place -- which of course means dodgy collateral that cannot be otherwise monetized. To be clear, some financial institutions have raised capital and...
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 8:27 PM » BB&T CEO: What About the Good Banks?
    Published Wed, Oct 01 2008 8:27 PM by feeds.feedburner.com
    A widely-unheard perspective on the bailout came to light late last week, courtesy of a letter to lawmakers from Branch Banking and Trust Co. (BBT: 39.34 +4.07%) chairman and CEO John Allison, who argued that the bailout debate has been all too focused on “problem companies”, and not the institutions that have maintained “healthy profitability [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 8:27 PM » How to Turn Good Renters Into Bad Homeowners
    Published Wed, Oct 01 2008 8:27 PM by Seeking Alpha
    submits: Much of the current credit crisis can be blamed on the fact that U.S. public policy (and monetary policy) encouraged excessive homeownership (tax deductibility of mortgage interest, government creation of GSEs, forcing the GSEs to promote subprime mortgages, enacting the CRA, historic low mortgage rates in 2003, etc.), and in the process we turned "good renters into bad homeowners." Here's an idea about how good renters becomes bad homeowners.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:27 PM » Wall Street Bonuses Expected to Drop 50% in 2008
    Published Wed, Oct 01 2008 8:27 PM by Seeking Alpha
    submits: Over the last two years, Wall Street financiers were able to rake in more than $60 billion in bonuses, much of it in cash. Lehman Brothers (LEHMQ.PK) alone disbursed nearly $6 billion in bonuses in fiscal ‘07 before recently filing for bankruptcy and becoming one of the largest casualties of the global credit crisis. Bear Stearns (BSC), Goldman Sachs (GS), Merrill Lynch (MER), and Morgan Stanley (MS) paid a record $33 billion in bonuses to themselves as well in fiscal ‘07.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 2:35 PM » Woman bids $1.75 for abandoned home on eBay...and wins
    Published Wed, Oct 01 2008 2:35 PM by news.yahoo.com
    With a winning bid of just $1.75, a Chicago woman has won an auction for an abandoned home in Saginaw.
    Click Here to Read the Full Article

    Source: news.yahoo.com
  • 10:25 AM » 1,900 more pink slips coming at UBS
    Published Wed, Oct 01 2008 10:25 AM by wallstfolly.typepad.com
    More layoffs are on the way at UBS. 1,900 people will be axed from investment banking, equities and fixed income with the announcement said to be made at the upcoming October 2 annual meeting. Support staff will also be among...
    Click Here to Read the Full Article

    Source: wallstfolly.typepad.com
  • 10:24 AM » Questions Arise Over Citigroup’s Mortgage Exposure
    Published Wed, Oct 01 2008 10:24 AM by feeds.feedburner.com
    In the wake of Citigroup Inc.’s (C: 20.51 +15.55%) acquisition of the banking operations of Wachovia Corp. (WB: 3.50 +90.22%), moves by major rating agencies on Tuesday attempted to put investors’ focus back on Citi’s own existing book of business. CFO Gary Crittenden updated company earnings guidance in a conference call with investors on Monday, and [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
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