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  • Merrill Fire Sale - Cramer's Mad Money (7/29/08) [View article]
    MERs press release on the sale of the $11.1 billion "super senior" CDOs is a joke. They claim to have sold the securities for $6.7 billion ($0.22 per $ for the face amount of $30 billion) and taken a writeoff for the $4.4 billion difference. What they actually received was $1.7 billion in cash and a note for $5 billion from the buyer for the balance. The buyer is an affiliate of Lone Star with no assets other than the sold CDOs. Calling this a sale for $6.7 billion is ridiculous. The writeoff should be $9.4 billion.

    Is Cramer saying the model for Citigroup, Wachovia and Washington Mutual for “what they have to do to save themselves” is lie and distort?
    Jul 30 14:19 pm |Rating: 0 0 |Link to Comment
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