pshah

Why Merrill's CDO Sale Doesn't Mean Big Writeoffs Elsewhere

Vikram Pandit has a 'new broom' at Citi too - and probably bigger problems at the behemoth. Those 2005 CDOs are almost just as toxic as the 2006 & 2007 versions and its just a matter of time for their firesale value to be realized.
Remember - those 06 & 07 versions were rated the same as the 05: AAA.

Financial-Dip Buyers Forget To Ask What's Next

Stating the obvious that the market is overlooking. This is deja vu again - just like the previous two quarterly earnings seasons. Remember in Nov-Jan when banks were proclaiming the damage was limited just to subprime? And then in April when banks reported dilutive fund-raising along with 'better than expected' earnings? Both times shares were bid up and 'experts' on CNBC proclaimed the next great bull run.

I-Bank Execs: Read My Lips... No New Capital

Good article, Mike. You forgot to give special kudos to Dick Fuld of Lehman who invented a new explanation for his firm raising capital at the end of March: 'We didn't need the new capital but raised it to prove that we can...'