Wall Street Breakfast: Must-Know News

• No surprises from FOMC. As expected, the FOMC kept its target range for the federal funds rate at 0%-0.25%, and said the rate is likely to stay at 'exceptionally low levels... for some time.' The committee noted that the economy has weakened since December, global demand is slowing substantially, credit remains tight and a gradual recovery may possibly begin later in 2009. In terms of policy, the Fed will continue to buy agency debt and is prepared to buy longer-term Treasurys "if evolving circumstances indicate that such transactions would be particularly effective in improving conditions in private credit markets." (Read the FOMC's press release)
• Stimulus passes House with lopsided support. The House of Representatives approved Obama's $819B stimulus plan but without the broad bipartisan support the president had hoped for. Despite a week of trying to find common ground with Republicans, the bill passed 244-188 - without a single Republican vote and down 11 Democrats. As one Republican opponent put it, "the strategy under this bill is to throw billions of dollars in every bureaucratic direction, and cross our fingers and hope for the best." The size of the package and the long-term nature of some of its spending could push the deficit to 10%-12% of GDP, roughly double the previous peacetime record. The Senate will vote on their own stimulus bill next week.
• Small steps towards TARP transparency. Under increased pressure from both taxpayers and elements of the government, the Treasury has said it will work to increase the transparency of its TARP program. Its first step is a promise to post all future TARP agreements with financial institutions on its website within 10 business days. Treasury's Geithner said doing so will allow taxpayers to see how their money is being spent. The Treasury has posted nine agreements on its website so far and other past agreements will be posted over the coming weeks. Separately, the Senate is working on a bill that would allow the Government Accountability Office access to the books and records of TARP recipients.
• Bank bailout, part deux. Sources say a revamped bank rescue plan may be on the way and could cost as much as $1T-$2T. The Obama administration could make an announcement within days, but several details of the plan have yet to be determined, including the key issue of how to fix ailing financial institutions without ending up owning them. If a 'bad bank' is created, it could be seeded with $100B-$200B from TARP, with the rest of the $1T-$2T coming from the sale of government-backed debt or Fed borrowing. Despite a desire to avoid nationalizing banks, the government may buy commons shares of struggling institutions, while economists say the government probably can't avoid owning at least some banks for a temporary period.
• CDS crackdown. Congress has been busy lately. Aside from working on the stimulus plan and TARP transparency, there is a movement underway in the House of Representatives to change how over-the-counter derivatives are regulated. The draft bill would ban credit-default swap trading unless investors owned the underlying bonds, potentially prohibiting as much as 80% of the trading in the $29T CDS market. The bill would also force U.S. trading in the $684T over-the-counter derivatives market to go through a central clearinghouse.
• Credit union backstop. Government regulators moved to guarantee $80B of uninsured deposits at corporate credit unions and to inject $1B of new capital into the largest of these wholesale credit unions after an unexpected $1.1B loss on mortgage-backed securities. Credit unions are generally considered to be among the most conservatively managed financial institutions, but regulators wanted to minimize the chances of pain spreading, saying "we are trying to institute confidence in the system, and we think this will do so."
• Mortgage apps plummet. Mortgage applications dropped 38.8% from a week ago, MBA reported, led by a 48% decline in refinances. 30-year fixed mortgages inched down 2bps to 5.22%.

Earnings: Thursday Before Open

• 3M Company (MMM): Q4 EPS of $0.97 beats by $0.04. Revenue of $5.5B (-11.1%) vs. $5.67B. Sees 2009 organic sales volume of -5% to -9% from a previous -3% to -7%. (PR)
• Altria (MO): Q4 EPS of $0.37 in-line. Revenue of $3.83B (+3.5%) vs. $3.87B. (PR)
• American Electric Power Company (AEP): Q4 EPS of $0.59 beats by $0.06. Revenue of $3.5B (+6.1%) vs. $3.1B. (PR)
• AstraZeneca (AZN): Q4 EPS of $1.25 beats by $0.08. Revenue of $8.19B vs. $8.27B. Sees 2009 EPS of $5.15-5.45 vs. $4.97, and sales growth flat. Will cut 15,000 jobs by 2013 (up from 9,000). Shares -4.8% premarket. (PR)
• AutoNation (AN): Q4 EPS of $0.12 beats by $0.01. Revenue of $2.7B (-33.9%) vs. $3.1B. (PR)
• Ball (BLL): Q4 EPS of $0.56 misses by $0.04. Revenue of $1.73B (-1.3%) in-line. (PR)
• Black & Decker (BDK): Q4 EPS of $0.73 beats by $0.06. Revenue of $1.38B (-16.6%) vs. $1.41B. Sees Q1 EPS of $0.05-0.15 vs. $0.74 and full-year EPS of $1.75-2.25 vs. $3.62. Expects double-digit organic sales decline for next three quarters. (PR)
• Celgene (CELG): Q4 EPS of $0.43 beats by $0.01. Revenue of $623M (+52.3%) in-line. Sees 2009 EPS of $2.05-2.15 vs. $2.18 and revenue of $2.6-2.7B vs. $2.85B. (PR)
• Colgate-Palmolive (CL): Q4 EPS of $1.00 beats by $0.02. Revenue of $3.66B (+0.6%) in-line. "The benefits of recently easing commodity and oil prices should begin to flow through during the first and second quarters of 2009." (PR)
• Continental (CAL): Q4 EPS of -$0.84 beats by $0.05. Revenue of $3.5B (-1.5%) in-line. (PR)
• Dominion Resources (D): Q4 EPS of $0.72 beats by $0.03. Revenue of $4.17B (+14.4%) vs. $3.51B. Sees Q1 EPS of $0.85-0.90 vs. $0.99, but full-year EPS of $3.20-3.30 vs. $3.26. (PR)
• Eastman Kodak (EK): Q4 EPS of -$0.08 misses by $0.29. Revenue of $2.4B (-24.4%) vs. $2.8B. (PR)
• Eli Lilly (LLY): Q4 EPS of $1.07 beats by $0.02. Revenue of $5.2B (+0.4%) vs. $5.4B. (PR)
• Fairchild Semi (FCS): Q4 EPS of $0.06 beats by $0.01. Revenue of $321M (-25.7%) in-line. Sees Q1 revenue of $220-245M vs. $289M. Says orders stabilized in January and that it's now building backlog for Q1. (PR)
• Ford (F): Q4 EPS of -$1.37 misses by $0.07. Revenue of $29.2B vs. $27.07B. "Based on current planning assumptions, Ford has sufficient Automotive liquidity to fund its business plan and product investments and does not need a bridge loan from the U.S. government." (PR)
• Fortune Brands (FO): Q4 EPS of $0.68 misses by $0.17. Revenue of $1.79B (-19.4%) vs. $1.85B. Sees 2009 EPS of $2.00-2.50 vs. $3.47. Shares -9.1% premarket. (PR)
• Gentex (GNTX): Q4 EPS of -$0.08 misses by $0.13. Revenue of $122.3M (-28.4%) vs. $131.9M. (PR)
• L-3 Communications (LLL): Q4 EPS of $2.04 beats by $0.10. Revenue of $4.01B (+5.4%) vs. $3.87B. (PR)
• J.B. Hunt Transport Services (JBHT): Q4 EPS of $0.43 beats by $0.03. Revenue of $880M (-6.9%) vs. $950M. Shares -0.7% premarket. (PR)
• Illinois Tool Works (ITW): Q4 EPS of $0.54 beats by $0.06. Revenue of $3.68B (-5.9%) in-line. Sees Q1 EPS of $0.26-0.42 vs. $0.47. Shares -2.6% premarket. (PR)
• International Paper (IP): Q4 EPS of $0.21 in-line. Revenue of $6.5B (+12.1%) vs. $7.0B. (PR)
• Lear (LEA): Q4 EPS of -$8.91 including goodwill impairment of $530M and restructuring costs of $194M vs. consensus of -$1.21. Revenue of $2.6B (-32.6%) vs. $2.8B. (PR)
• Newell Rubbermaid (NWL): Q4 EPS of $0.11 beats by $0.03. "Weakness in consumer spending, compounded by inventory reductions at retail, negatively impacted both sales and productivity." (PR)
• Oshkosh (OSK): FQ1 EPS of -$0.28 misses by $0.16. Revenue of $1.39B (-7.6%) vs. $1.35B. (PR)
• Occidental Petroleum (OXY): Q4 EPS of $1.18 beats by $0.23. Revenue of $4.02B (-27.1%) vs. $4.5B. (PR)
• Petro-Canada (PCZ): Q4 EPS of $1.07 beats by $0.18. "Our production came in at the high-end of our guidance range, largely due to strong reliability at most of our major facilities." (PR)
• Raytheon (RTN): Q4 EPS of $1.13 beats by $0.02. Revenue of $6.2B (+2.6%) in-line. (PR)
• Royal Caribbean Cruises (RCL): Q4 EPS of $0.01 misses by $0.06. Revenue of $1.46B (-2.3%) in-line. Sees Q1 EPS of -$0.35 to -$0.30 vs. -$0.08. Shares +1.5% premarket. (PR)
• Royal Dutch Shell (RDS.A): Q4 EPS of -$0.44 misses by $2.16. Revenue of $81.1B vs. $89.1B. (PR)
• SEI Investments Company (SEIC): Q4 EPS of $0.25 misses by $0.03. Revenue of $268M (-24.1%) vs. $339M. "The severe downturn in the capital markets made the fourth-quarter a particularly challenging one and had a significant negative impact on both our quarterly and annual results." (PR)
• Smith International (SII): Q4 EPS of $1.00 misses by $0.02. Revenue of $3.06B (+33.0%) vs. $3.04B. (PR)
• Starwood Hotels & Resorts Worldwide (HOT): Q4 EPS of $0.49 beats by $0.13. Revenue of $1.33B (-17.2%) vs. $1.39B. (PR)
• Textron (TXT): Q4 EPS of $0.40 beats by $0.05. Revenue of $3.61B (+0.4%) in-line. Sees 2009 EPS of $1.00-1.50 vs. $2.39 and revenue of $12.5B vs. $13.63B. (PR)
• Timken (TKR): Q4 EPS of $0.07 misses by $0.10. Revenue of $1.21B (-9.7%) vs. $1.25B. Sees 2009 EPS of $1.30-1.60 vs. $1.78. Shares -5.9% premarket. (PR)
• T. Rowe Price Group (TROW): Q4 EPS of $0.31 beats by $0.07. Revenue of $416M (-30.4%) vs. $436M. (PR)
• US Airways (LCC): Q4 EPS of -$1.93 beats by $0.22. Revenue of $2.76B (-0.5%) in-line. (PR)
• Xcel Energy (XEL): Q4 EPS of $0.35 misses by $0.02. Revenue of $2.7B (+4.0%) vs. $2.6B. (PR)
• Zimmer (ZMH): Q4 EPS of $1.00 in-line. Revenue of $1.03B (-4.0%) vs. $1.09B. (PR)

Earnings: Wednesday After Close

• Allstate (ALL): Q4 EPS of $0.97 misses by $0.38. Revenue of $6.57B (-26.9%) vs. $8.46B. $2.4B of realized net capital losses. Suspends share buybacks. Unrealized losses of $8.8B up from $4.1B, primarily due to widening spreads. (PR
• Ameriprise Financial (AMP): Q4 EPS of $0.80 vs. consensus of $0.27. Revenue of $1.4B (-21.1%) vs. $1.73B. "The deteriorating market and economic conditions in the fourth quarter had a significant impact on our results." (PR)
• Airgas (ARG): FQ3 EPS of $0.76 beats by $0.01. Revenue of $1.08B (+7%) in-line. (PR)
• Boston Scientific (BSX): Q4 EPS of $0.21 beats by $0.08. Revenue of $2B (-7%) in-line. Takes $2.7B writedown on Guidant defibrillator unit, but says it will continue to be "a key driver of the company's sales and earnings growth going forward." (PR)
• Compuware (CPWR): FQ3 EPS of $0.15 in-line. Revenue of $269M (-13.1%) vs. $295M. (PR)
• Covance (CVD): Q4 EPS of $0.72 beats by $0.02. Revenue of $439M (+6.7%) vs. $419M. (PR)
• Flextronics (FLEX): FQ3 EPS of $0.16 misses by $0.03. Revenue of $8.15B (-10.1%) vs. $7.99B. Sees FQ4 EPS of $0.02-0.07 vs. $0.14 and revenue of $5.5-6.5B vs. $7.17B. (PR)
• Hanesbrands (HBI): Q4 EPS of $0.50 beats by $0.13. Revenue of $1.03B (-10.7%) vs. $1.08B. Expects soft retail consumer environment to continue and does not expect macroeconomic conditions to be conducive to growth in 2009. (PR)
• Intersil (ISIL): Q4 EPS of $0.11 beats by $0.02. Revenue of $131M (-38.3%) vs. $128M. Sees Q1 revenue of $105-115M vs. $125M. (PR)
• Lam Research (LRCX): FQ2 EPS of -$0.09 misses by $0.04. Revenue of $283M (-53.6%) vs. $277M. "The global semiconductor industry has entered one of the most difficult periods in its history, one that is presenting severe challenges to our customers and thus severely limiting investment in wafer fab equipment." (PR)
• LSI Logic (LSI): Q4 EPS of $0.06 beats by $0.02. Revenue of $610M (-17.7%) vs. $588M. (PR)
• Murphy Oil (MUR): Q4 EPS of $0.83 beats by $0.04. Revenue of $4.43B vs. $5.79B. (PR)
• Qualcomm (QCOM): FQ1 EPS of $0.31 misses by $0.16. Revenue of $2.51B (+3%) vs. $2.42B. Sees 2009 revenue of $9.3-9.8B vs. $10.25B. EPS were dragged down by "other-than-temporary impairments" to its securities portfolio. (PR)
• Robert Half International (RHI): Q4 EPS of $0.26 beats by $0.01. Revenue of $990M (-18.9%) vs. $1.04B. (PR)
• Ryland Group (RYL): Q4 EPS of -$1.40 misses by $0.34. Revenue of $528M (-38.6%) vs. $540M. (PR)
• Starbucks (SBUX): FQ1 EPS of $0.15 misses by $0.02. Revenue of $2.62B (-5.5%) vs. $2.69B. Increases 2009 cost reduction target to $500M from $400M. New U.S. stores target lowered to 140 from 200. Store layoffs could equal 6,000. (PR)
• Sepracor (SEPR): Q4 EPS of $0.92 beats by $0.36. Revenue of $370M (+8.7%) vs. $353M. Will reduce workforce by 20%, or about 540 jobs. (PR)
• Symantec (SYMC): FQ3 EPS of $0.42 beats by $0.10. Revenue of $1.54B (+0.6%) vs. $1.48B. (PR)
• Western Digital (WDC): FQ2 EPS of $0.55 beats by $0.24. Revenue of $1.82B (-17.3%) vs. $1.75B. "Against a backdrop of unprecedented global economic turmoil and a rapid intra-quarter fall off in demand for hard drives, WD acted swiftly to align production and operating expenses with significantly lower-than-originally planned unit volumes." (PR)

Today's Markets

• Asia markets closed mostly up. Nikkei +1.8% to 8,251. Hang Seng +4.6% to 13,154. Shanghai closed. BSE -0.2% to 9,236.
• In Europe at midday, London -2.2%. Paris -1.6%. Frankfurt -1.4%.
• U.S. futures: Dow -1.1%. S&P -1.2%. Nasdaq -0.9%. Crude -2.5% to $41.12. Gold -1.1% to $878.80.

Thursday's Economic Calendar

• 8:30 Durable Goods Orders
  8:30 Jobless Claims
  10:00 New Home Sales
  10:30 EIA Natural Gas Report
  4:30 PM Money Supply
• Notable earnings before Thursday's open: AEP, AMB, AN, AZN, BC, BDK, BLL, CAL, CELG, CL, CNX, D, EK, EQT, ERIC, F, FCS, FO, GNTX, HOT, HP, IP, ITW, JBLU, LCC, LEA, LLL, LLY, MMM, MO, MPW, NWL, OSK, OXY, PCZ, RCL, RDS.A, RTN, SEIC, SII, SNE, TKR, TROW, TXT, XEL, YRCW, ZMH
• Notable earnings after Thursday's close: ACF, AMZN, ARBA, BRCM, CA, CB, EMN, IDTI, INFA, JNPR, KLAC, MCHP, MXIM, PKI, PMCS, QTM, RMBS, SPWRA, VAR, VSEA, WMS

Seeking Alpha editor Eli Hoffmann contributed to this post.

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Comments

[Jplout:]

Bank Bail out Part deux
Isn't it wonderful that all the Big Bancs want our Gov to buy their toxic assets so they can write them off. As they are writing them off at our expense they are foreclosing left & right, then wholesaling the paper at 0.3 cent on a dollar making more money in the process.
The Depression will be televised.

Jan 29 07:57 AM

[cryan:]

Got to love the FOMC. They say the Economy have gotten worst since they last met, so their creative solution to the problem? Don't do anything. How many more layoffs have to happen for them to get an understanding that a lack of action is by itself an action. The Depression will be televised but no one will watch...

Jan 29 08:06 AM

[sieraromero:]

The depression will not arrive. We are already talking about doing away with mark to market accounting. If we say that the assets are worth 200% more than their true value, why should the market have to go down. We should just pass laws to eliminate the posting of corporate losses. We could also say that the government is not running a deficit and instead is running up huge budget surpluses. Why all the worry? Because they are running huge surpluses we can pump a trillion or 3 into the economy and it won't create inflation down the road in our capitalistic utopian economy. Don't Worry- Everything is going as planned and is under control! LOL

Jan 29 08:36 AM

[BlueOkie:]

If banks made bad loans they should pay the price! TARP only rewards bad behavior. The double whammy is for those who bought homes at higher prices caused by the increased demand. Now those unable to pay may get another free ride.

Jan 29 09:23 AM

[bobbobwhite:]

I guess I stupidly thought that the Enron debacle ended all those devious accounting "off record" or off book" accounting devices intended to hide or delete damaging or toxic, let us say, "entries". As you state, why have the accounting firms for all our failed banks escaped dire gov't scrutiny and repercussions so far? And, will that deserved scrutiny ever happen, or do these firms have some form of gov't allowed immunity, either tacit or actual?


On Jan 29 08:25 AM Thoreau wrote:

> The Fed is insolvent on a static basis and the whole financial system
> is bankrupt. Why don’t the accounting firms who audit the bankrupt
> financial institutions listen to Roubini? Roubini has been right
> about this whole mess going back to 2005 and made public his analysis,
> this is not a case of not being able to know the unknown. How can
> accounting firms like KPMG continue to issue fraudulent financials
> for Banks like Citi, the math is there for all to see.
> …………………………………………………………...
> Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new
> estimates for expected loan losses and writedowns on U.S. originated
> securitizations:
> • Loan losses on a total of $12.37 trillion unsecuritized loans are
> expected to reach $1.6 trillion. Of these, U.S. banks and brokers
> are expected to incur $1.1 trillion.
> • Mark-to-market writedowns based on derivatives prices and cash
> bond indices on a further $10.84 trillion in securities reached about
> $2 trillion ($1.92 trillion.) About 40% of these securities (and
> losses) are held abroad according to flow-of-funds data. U.S. banks
> and broker dealers are assumed to incur a share of 30-35%, or $600-700
> billion in securities writedowns.
> • Total loan losses and securities writedowns on U.S. originated
> assets are expected to reach about $3.6 trillion. The U.S. banking
> sector is exposed to half of this figure, or $1.8 trillion (i.e.
> $1.1 trillion loan losses + $700bn writedowns.)
> • FDIC-insured banks’ capitalization is $1.3 trillion as of Q3 2008;
> investment banks had $110bn in equity capital as of Q3 2008. Past
> recapitalization via TARP 1 funds of $230bn and private capital of
> $200bn still leaves the U.S. banking system borderline insolvent
> if our loss estimates materialize.
> …………………………………………………………...
>
> If Professor Roubini is correct and I fear he is, why don’t any of
> the accounting firms listen to him? What about starting with the
> accounting firms and perhaps, one of the worst offenders KPMG. <br/>
>
> KPMG audits Citi, how can anyone trust their financial statements?
> Why does anyone even care what KPMG has to say? Why does anyone want
> to work at KPMG? KPMG audits a disproportionate percentage of financials
> yet totally missed the banking collapse. Exactly what is KPMG expert
> at and why would anyone listen to them after all their failed audits
> of failed institutions? Many as early as 2005 predicted the financial
> meltdown and the unsustainable lending pattern of the financials
> including Dr. Roubini of the Stern School of economics, why didn’t
> KPMG listen. If I were a partner or employee at KPMG I would be extremely
> concerned about all the pending lawsuits and potential criminal liability
> of KPMG. You know for a fact that Tim Flynn the CEO and Joe Loonan
> the head lawyer will not stand behind the partners as evidenced by
> the tax partners KPMG threw under the bus when the DOJ came a calling.
> In fact, Flynn, completely reneged on the former O’Kelley’s promise
> to support the tax partners (after he got brain cancer) and lied
> to the tax partners by pulling the carpet out from under the them
> by hiring Bennett and Holmes to not only lie about the tax partners
> to the DOJ but deny them legal fees for defense at the DOJ’s request.
> Loonan, Holmes and Flynn, totally screwed the tax partners and an
> email exists wherein Loonan specifically states that in the KPMG
> tax settlement with the DOJ he has no idea if any of the facts are
> correct but KPMG better sign or the DOJ will put them out of business
> and ends the email by saying: “freedom is just another word for nothing
> left to lose”. The point of course is those that run KPMG have no
> honor, are lying scum and if you are employed by KPMG and something
> bad happens, KPMG will do everything it can to ensure it survives
> at your expense. Of course something bad has happened, the banking
> collapse was a no brainer, predicted by many and most of the KPMG
> audits of the financials are riddled with fraud. The lawsuits and
> criminal investigations are coming, no doubt. All KPMG partners and
> employees should be very concerned as KPMG has no problem throwing
> them under the bus for a life of ass raping if it will save KPMG
> a nickel. Why any clients would accept advice or rely on KPMG for
> anything shows a total lack of due diligence and perhaps, negligence
> by those clients choosing to use KPMG. Of course, the last sentence
> does not apply to those clients that are actually consensually engaging
> in fraud with KPMG. The firm of KPMG has no honor or expertise in
> any matter just self interested thieves like Flynn, Holmes and Loonan
> attempting to make as much money as possible for themselves before
> the firm implodes. Many emails exist concerning KPMG’s malevolence
> and will be disseminated over time. Thoreau has a great quote, “no
> one can associate themselves with the U.S. Government without disgrace”,
> the same applies to KPMG, no one can associate themselves with KPMG
> without disgrace.
>
>
>

Jan 29 09:43 AM

[notsosmart:]

this is u.s. capitalism.if you owe the bank $1000 & cant pay you are in trouble. if you owe the bank $1mil. & cant pay the bank is in trouble. not to worry the $1mil. will be bailed out by the guy owing $1000. also there is a new stand up comedian-putin.read his speech.beware before you invest in russia.

Jan 29 10:24 AM

[auto44:]

Not enough people are being put in jail as per sarbox.


On Jan 29 08:25 AM Thoreau wrote:

> The Fed is insolvent on a static basis and the whole financial system
> is bankrupt. Why don’t the accounting firms who audit the bankrupt
> financial institutions listen to Roubini? Roubini has been right
> about this whole mess going back to 2005 and made public his analysis,
> this is not a case of not being able to know the unknown. How can
> accounting firms like KPMG continue to issue fraudulent financials
> for Banks like Citi, the math is there for all to see.
> …………………………………………………………...
> Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new
> estimates for expected loan losses and writedowns on U.S. originated
> securitizations:
> • Loan losses on a total of $12.37 trillion unsecuritized loans are
> expected to reach $1.6 trillion. Of these, U.S. banks and brokers
> are expected to incur $1.1 trillion.
> • Mark-to-market writedowns based on derivatives prices and cash
> bond indices on a further $10.84 trillion in securities reached about
> $2 trillion ($1.92 trillion.) About 40% of these securities (and
> losses) are held abroad according to flow-of-funds data. U.S. banks
> and broker dealers are assumed to incur a share of 30-35%, or $600-700
> billion in securities writedowns.
> • Total loan losses and securities writedowns on U.S. originated
> assets are expected to reach about $3.6 trillion. The U.S. banking
> sector is exposed to half of this figure, or $1.8 trillion (i.e.
> $1.1 trillion loan losses + $700bn writedowns.)
> • FDIC-insured banks’ capitalization is $1.3 trillion as of Q3 2008;
> investment banks had $110bn in equity capital as of Q3 2008. Past
> recapitalization via TARP 1 funds of $230bn and private capital of
> $200bn still leaves the U.S. banking system borderline insolvent
> if our loss estimates materialize.
> …………………………………………………………...
>
> If Professor Roubini is correct and I fear he is, why don’t any of
> the accounting firms listen to him? What about starting with the
> accounting firms and perhaps, one of the worst offenders KPMG. <br/>
>
> KPMG audits Citi, how can anyone trust their financial statements?
> Why does anyone even care what KPMG has to say? Why does anyone want
> to work at KPMG? KPMG audits a disproportionate percentage of financials
> yet totally missed the banking collapse. Exactly what is KPMG expert
> at and why would anyone listen to them after all their failed audits
> of failed institutions? Many as early as 2005 predicted the financial
> meltdown and the unsustainable lending pattern of the financials
> including Dr. Roubini of the Stern School of economics, why didn’t
> KPMG listen. If I were a partner or employee at KPMG I would be extremely
> concerned about all the pending lawsuits and potential criminal liability
> of KPMG. You know for a fact that Tim Flynn the CEO and Joe Loonan
> the head lawyer will not stand behind the partners as evidenced by
> the tax partners KPMG threw under the bus when the DOJ came a calling.
> In fact, Flynn, completely reneged on the former O’Kelley’s promise
> to support the tax partners (after he got brain cancer) and lied
> to the tax partners by pulling the carpet out from under the them
> by hiring Bennett and Holmes to not only lie about the tax partners
> to the DOJ but deny them legal fees for defense at the DOJ’s request.
> Loonan, Holmes and Flynn, totally screwed the tax partners and an
> email exists wherein Loonan specifically states that in the KPMG
> tax settlement with the DOJ he has no idea if any of the facts are
> correct but KPMG better sign or the DOJ will put them out of business
> and ends the email by saying: “freedom is just another word for nothing
> left to lose”. The point of course is those that run KPMG have no
> honor, are lying scum and if you are employed by KPMG and something
> bad happens, KPMG will do everything it can to ensure it survives
> at your expense. Of course something bad has happened, the banking
> collapse was a no brainer, predicted by many and most of the KPMG
> audits of the financials are riddled with fraud. The lawsuits and
> criminal investigations are coming, no doubt. All KPMG partners and
> employees should be very concerned as KPMG has no problem throwing
> them under the bus for a life of ass raping if it will save KPMG
> a nickel. Why any clients would accept advice or rely on KPMG for
> anything shows a total lack of due diligence and perhaps, negligence
> by those clients choosing to use KPMG. Of course, the last sentence
> does not apply to those clients that are actually consensually engaging
> in fraud with KPMG. The firm of KPMG has no honor or expertise in
> any matter just self interested thieves like Flynn, Holmes and Loonan
> attempting to make as much money as possible for themselves before
> the firm implodes. Many emails exist concerning KPMG’s malevolence
> and will be disseminated over time. Thoreau has a great quote, “no
> one can associate themselves with the U.S. Government without disgrace”,
> the same applies to KPMG, no one can associate themselves with KPMG
> without disgrace.
>
>
>

Jan 29 10:52 AM

[know nothing:]

I don't know about antone else but when I go into the banks I work with they are like a empty. No customers! Housing starts at all time lows, unemployment at all time highs... This is not good. I don't know how anyone can talk about a stock market rally?

Jan 29 12:08 PM

[bobbobwhite:]

A congresswoman from Ohio is urging foreclosed homeowners to not move and give up their homes to bank foreclosure. She urges them to stay put and get legal counsel to make the banks prove they possess the loan note allowing them to foreclose on an unpaid obligation.

So many home loans have been sold and resold so many times over that the bank presently "owning" them has nothing more than a piece of paper saying they own the note, but does not have not the note itself in its possession. The congresswoman is telling homeowners to make the banks prove the note to the court before any foreclosure can proceed.

At least this buys the homeowner some more time before moving as I think most if not all will lose their cases. What it really does is provide a lot more business for Ohio lawyers, of which she is one, of course. There is always at least two sides to every story, with at least one side pretty well cloaked, especially when from a lawyer

Jan 30 10:20 AM

[User 347945:]

LETS BACK UP ABOUT 1-2 YEARS AND GATHER ALL THE QUOTES FROM ARE ILLUSTRIOUS LEADERS. MOST OF THE QUOTES WENT LIKE THIS " THE ECONOMY IS OK, MOST OF THE SUBPRIME IS CONTAINED AND THERE WAS NIL CONCERN ABOUT CREDIT DEFAULT SWAPS" REMEMBER, THESE LEADERS ARE NOW GOING TO FIX THE PROBLEM. I HAVE ZERO TRUST IN OUR LEADERSHIP FROM GOVERNMENT TO CORPORATIONS. BELIEVE NOTHING FROM THE GOVERNMENT,CORPORATION... I MEAN NOTHING!!

Jan 30 02:31 PM