pcyhuang

Epic Lehman CDS Auction Tomorrow: Timeline

Lehman's CDS - -- $400 Billion Notional Value Reduced to $8 Billion After Netting


For those people still interested in what happened today in the Lehman CDS auction today it was not the financial atomic bomb everyone expected. The entire cost of the nearly $400 Billion in CDS outstanding would up being only $8 Billion total once all the paperwork was worked out. It seems that banks bought/sold CDS from themselves. I'm sure there is some arcane accounting benefit to this that allowed them to profit but I'm not sure what it would be.

"It won't be easy to draw up a quick winners and losers column, however. Buyers of insurance are also sellers and vice versa. The International Swaps and Derivatives Association says all this netting out means the ultimate payout among trading partners may be closer to 2% of the gross outstanding $400 billion, or $8 billion."

I think the financial markets could breath a sigh of relief that there wasn't a giant smoking hole in the financial industry today. This may account for the end of day rally to some degree. It looks like we may get through this bloodied but not dead.

Full Story: messages.finance.yahoo...

Cheers,

Metrics, Mortgages and Analysts

ETFC's 127,000,000 Shares Short Position

Etrade's 270,000,000 shares short position


www.investorvillage.co...

Metrics, Mortgages and Analysts

An Expression of Confidence by Insiders' and Instiutional Investors


siliconinvestor.advfn....

Metrics, Mortgages and Analysts

Cindy, what's your take of the following announcement:

ETFC -- Sale of Canadian Unit Generates Cash Proceeds of Aapproximately $511 Million


NEW YORK--(BUSINESS WIRE)--E*TRADE FINANCIAL Corporation (NASDAQ: ETFC - News) today announced it has entered into a definitive agreement to sell E*TRADE Canada to Scotiabank (TSX: BNS, NYSE: BNS) for $442 million in cash. E*TRADE FINANCIAL expects the combination of the sale of E*TRADE Canada and the return of related capital to generate net cash proceeds of approximately $511 million.

“We continue to make solid progress against our 2008 Turnaround Plan by monetizing non-core assets to generate capital while delivering consistent organic growth in the retail business,” said Donald H. Layton, Chairman and Chief Executive Officer, E*TRADE FINANCIAL Corporation. “This transaction generates capital for E*TRADE at a very low implied cost. Combined with the other planned non-core asset sales announced this year, we’ve generated more than $700 million in proceeds in a shareholder-friendly manner. With this transaction signed, we re-affirm that our plans to access the capital markets are focused at this time upon the previously-announced debt-for-equity swaps.”

The deal is subject to approval by all regulatory agencies and is expected to close in the third quarter, 2008.

Full Story: biz.yahoo.com/bw/08071...