Treasury Now Bailing Out The Speculators? [View article]
It is a puzzle why the administration wants to subsidize landlords. This cannot be a popular program, except upon the special interest it intends to subsidize.
FDIC Nominee Needs To Prove Himself As An Opponent Of Too Big To Fail [View article]
at thegoodoledays If the FDIC is such a great institution, which is opposed to TBTF, then why is it hiding the names of the recipients of and the details of bailout loan guarantees. It is covering up losses from those bailout loan guarantees. When an organization starts hiding losses, then the organization finds itself in Adelphia and Enron territory. Unfortunately, it is taxpayers who have to pick up the pieces of the FDIC.
BNP Paribas was bailed out by the US during the financial crisis through several Federal Reserve lending programs. For example, the Fed purchased $3.3 billion of BNP's commercial paper in 2008 and 2009 when the private sector balked at rolling it. See page 29 of ssrn.com/abstract=1911454
It is a near certainty that large European banks will be bailed out again by the Federal Reserve because they have been allowed to hold insufficient capital to withstand the current crisis and a potential Greek default.
Book Review: 'The Greatest Trade Ever' [View article]
The ABACUS suit was old news to anyone who read Zuckerman's book. Unfortunately, for Zuckerman his book was upstaged by the Micheal Lewis' account with a similar cast of characters.
Bair: Banks Must Prepare for Higher Rates [View article]
1. If the market suddenly believes the government is borrowing too much, austerity is the only answer. 2. If the FDIC and Fed are telling banks to hedge against higher rates, markets should listen. The FDIC has private communications with the Fed, and the Fed more than any other market participant controls short-run interest rates.
Declining Volumes Slow U.S. Treasury's Exit of Citigroup [View article]
I know the folks in the U.S. Treasury press office aren't bothered by facts or figures. Nevertheless, let me give you a few. There are 57 trading days from Sept. 1, to Dec. 14, excluding blackouts. (7.7 B - 3.5 B)/(57 trading days) = 74 million shares per day. The most the UST has averaged was 66 million shares per day. They have averaged 47.5 million per day. The numbers don't make a December 14, exit credible.
Actually it is much worse than that. Suppose you are right and the UST completes its third 1.5 billion sale by September 30. Then there are only 57 trading days - 21 trading days in September = 36 days until Dec. 14 excluding blackout periods. With the remaining .6B shares sold. The UST has to sell (7.7 B - 3.5 B - .6B)/36 = 114 million shares per day to exit by December 14. They won't risk selling 114 million shares per day in the market for 36 trading days!
Government Is the Market for Preferred Stock [View article]
The TARP preferred exchange does not affect the 79.9 percent common equity stake from the Fed loan. See page 88 of SIGTARP report at www.sigtarp.gov/report...
The U.S. Banking System: Too Bigger To Fail [View article]
Treasury Now Bailing Out The Speculators? [View article]
FDIC Nominee Needs To Prove Himself As An Opponent Of Too Big To Fail [View article]
If the FDIC is such a great institution, which is opposed to TBTF, then why is it hiding the names of the recipients of and the details of bailout loan guarantees. It is covering up losses from those bailout loan guarantees. When an organization starts hiding losses, then the organization finds itself in Adelphia and Enron territory. Unfortunately, it is taxpayers who have to pick up the pieces of the FDIC.
The Can-Kicking Bank Bailout [View article]
It is a near certainty that large European banks will be bailed out again by the Federal Reserve because they have been allowed to hold insufficient capital to withstand the current crisis and a potential Greek default.
Book Review: 'The Greatest Trade Ever' [View article]
Buffett Has Good Reason to Be Thankful for TARP [View article]
Does Treasury Stand to Lose on Citibank Shares if It Delays Selling? [View article]
Bair: Banks Must Prepare for Higher Rates [View article]
2. If the FDIC and Fed are telling banks to hedge against higher rates, markets should listen. The FDIC has private communications with the Fed, and the Fed more than any other market participant controls short-run interest rates.
On the Banks That Have Not Repaid Their TARP Funds [View article]
Declining Volumes Slow U.S. Treasury's Exit of Citigroup [View article]
Actually it is much worse than that. Suppose you are right and the UST completes its third 1.5 billion sale by September 30. Then there are only 57 trading days - 21 trading days in September = 36 days until Dec. 14 excluding blackout periods. With the remaining .6B shares sold. The UST has to sell (7.7 B - 3.5 B - .6B)/36 = 114 million shares per day to exit by December 14. They won't risk selling 114 million shares per day in the market for 36 trading days!
The Politics of the Small Business Lending Bill [View article]
Government Is the Market for Preferred Stock [View article]
Government Is the Market for Preferred Stock [View article]
Government Is the Market for Preferred Stock [View article]
Treasury Unlikely to Complete Citigroup Share Sale on Time [View article]