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  • Goldman Sachs, Morgan Stanley: Half Price on TARP Warrants? [View article]
    "How about a license from the government to print money. "

    bwhahahahahaha I love it. Can I give you 2 thumbs up? And let's throw in a big toe for good measure.


    On Jul 22 01:49 PM Mad Hedge Fund Trader wrote:

    > How about a license from the government to print money. It looks
    > like Goldman Sacs is going to leg over the Treasury once again. It
    > is buying back the warrants it issued the Feds as part of its TARP
    > dole out for a mere $1.1 billion, giving a 23% annualized return
    > on the investment. Why is the government selling? Do you think GS
    > knows something about its future earnings the government doesn’t?
    > Could this be the greatest example of insider trading of all time?
    > Has anyone at the Treasury considered keeping free calls on GS to
    > maturity, as Warren Buffet is with his paper? Then they might be
    > worth $10 billion, or even $100 billion. I know that if hedge funds
    > could get these warrants at the same terms as the Treasury, they’d
    > be loading the boat. Safe to say that when GS shakes your hand, you
    > want to count all of your fingers afterward.
    Jul 22 20:09 pm |Rating: +1 0 |Link to Comment
  • FASB Unlikely to Suspend Mark to Market  [View article]
    This line says it all: "I agree that to mark the value of all the houses on a street to the price of the one foreclosed home is inappropriate. On the way up these same companies (and their stocks) benefited from increasing asset values but now that the financial industry is at the edge of the cliff, these same rules look too strict."

    Mark to market was fabulous when these institutions were gobbling up exotic financial instruments like crack addicts and approving loans that should have never EVER under any circumstances been allowed just so they could bundle and sell off their risk. But now that the bottom has fallen out of their little scheme, MTM is the problem. Suuuuure.

    While FASB has its own ineptitude problems to contend with, I'm glad to hear they didn't allow Kanjorski to threaten them. What can he do? Martial law of accounting? Give me a break.
    Mar 13 11:36 am |Rating: +9 -2 |Link to Comment
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