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  • S&P, Moody's and Fitch are refusing to let bond issuers use their ratings until they get a better understanding of their legal exposure created by the new financial overhaul laws. It could be the beginning of the "end of the rating agency paradigm," Zero Hedge says.  [View news story]
    If anybody read the article, it's about how bond sales are on hold because they can't get ratings agencies to sign off.

    That would be the exact opposite of "the end" of a paradigm.
    Jul 21 10:53 AM | 1 Like Like |Link to Comment
  • The newest traders aren't just machines, but machines that can learn from past mistakes and adapt, as a growing number of Wall Street investors pin their hopes on artificial intelligence trading.  [View news story]
    What a nonsense article. One firm with a few million dollars uses a computer to find good trades. This would be interesting if it was 1995.
    Jul 14 10:18 AM | 2 Likes Like |Link to Comment
  • EC President Herman Van Rompuy decries "totally irrational" market movement related to Spain and Portugal. "I would like to make it very clear... the situation in these countries has nothing to do with that of Greece, the latter being unique" because of unreliable statistics, a competitiveness problem and high public debt.  [View news story]
    "Bear Stearns' balance sheet, liquidity, and capital remain strong"

    Alan Schwartz
    May 5 12:35 PM | 5 Likes Like |Link to Comment
  • Deutsche Bank (DB +1.7%) sold Paulson-selected CDOs to IKB similar to those that have landed Goldman Sachs (GS -3.2%) in hot water, reports The Atlantic. "Deutsche's view was, you're all big boys, you do your own research. Here is what's in the security - you choose if you want it or not. IKB knew exactly what they were buying," said a Deutsche Bank trader who sold CDOs.  [View news story]
    I agree with everything you said- and I tried to oversimplify things when i made my original statement. But, the fact here is that Paulson had meetings with ACA about selection - if that was widely know, and if IKB or whoever knew ACA was not entirely independent, then there's no case. But, if GS represented ACA as an independent third party, (why not just say the counterparty picked this portfolio? ACA's name had some clout) then it's relevant that someone else was involved in the choice of the portfolio. How material, we will find out.
    Apr 27 01:28 PM | Likes Like |Link to Comment
  • Deutsche Bank (DB +1.7%) sold Paulson-selected CDOs to IKB similar to those that have landed Goldman Sachs (GS -3.2%) in hot water, reports The Atlantic. "Deutsche's view was, you're all big boys, you do your own research. Here is what's in the security - you choose if you want it or not. IKB knew exactly what they were buying," said a Deutsche Bank trader who sold CDOs.  [View news story]
    I agree and understand everything you said- but you miss the point. There is nothing illegal, or in my opinion, of this trade taking shape. People want to gamble, that's fine.

    Obviously, there is a short side - the point of the complaint, is that Paulson influenced the underlying portfolio. If the pitch book stated "ACA, and Paulson, managed this deal" there would be no problem. But, ACA was represented by GS as an independent manager. This is the definition of 'material misrepresentation.' The argument will be on how much influence Paulson had.

    The metaphor I like better is two players at the craps table - one betting the pass and one betting the don't pass. Except, one of the players put in weighted dice. IKB and others thought they were getting a fair bet, and they were not.

    If IKB was working with ACA to put in high-quality, prime mortgages, and Paulson was told otherwise, that would be the same thing.
    Apr 27 11:07 AM | Likes Like |Link to Comment
  • Deutsche Bank (DB +1.7%) sold Paulson-selected CDOs to IKB similar to those that have landed Goldman Sachs (GS -3.2%) in hot water, reports The Atlantic. "Deutsche's view was, you're all big boys, you do your own research. Here is what's in the security - you choose if you want it or not. IKB knew exactly what they were buying," said a Deutsche Bank trader who sold CDOs.  [View news story]
    Nobody gets the central issue here, it's pretty simple:

    1) ACA was influenced by Paulson's suggested CDOs

    2) GS represented ACA as an "independent, 3rd party manager"

    It's like playing blackjack, except the dealer has a rigged deck. All the other allegations are supporting details.
    Apr 26 03:49 PM | 3 Likes Like |Link to Comment
  • Goldman Sachs (GS) takes a cliff dive, -7.8%, as the SEC charges it with fraud in a civil suit saying the bank created and sold a mortgage investment designed for failure.  [View news story]
    Maybe Goldman's clients will finally realize how much they get fucked by their favorite broker/dealer.

    Combined with the galleon case, you're looking at a Drexel Burnham style trifecta - insider trading, securities manipulation, and fraud.
    Apr 16 11:01 AM | 6 Likes Like |Link to Comment
  • Bank of America (BAC), JPMorgan Chase (JPM) and Wells Fargo (WFC) may need to set aside an additional $30B to cover possible losses on home-equity loans, an amount almost equal to analysts’ estimates of profit at the three banks this year, CreditSights says. The process will take months, and writeoffs won’t hit financial statements until later this year.  [View news story]
    What? we suspended mark-to-market years ago.
    Apr 12 03:37 PM | 1 Like Like |Link to Comment
  • The Obama administration finalizes new environmental rules for autos that officials say will spur new vehicle technologies and reduce oil consumption. The rules will carry significant costs for car companies and consumers, raising the average price of a new car by nearly $1,000 by mid-decade.  [View news story]
    When the catalytic converter was mandated in the 70's, the autos threatened that it would shut down the entire industry and add thousands to the cost of each car.
    Apr 1 03:29 PM | 1 Like Like |Link to Comment
  • Continental Airlines (CAL) - a holdout in offering free inflight meals - will start charging coach passengers for food on many North American flights starting in the fall. It's a reversal of course toward fee-flying for CAL.  [View news story]
    That's too bad. Their coach food is halfway decent.
    Mar 15 12:54 PM | Likes Like |Link to Comment
  • Two pension funds sue Morgan Stanley (MS -1.2%) over its 62% net revenue set-aside for compensation in a year where the firm took an annual loss. By comparison, Goldman Sachs (GS) set aside 36% for pay in 2009.  [View news story]
    the comp ratio is 50% when you back out debt spread movements.
    Feb 11 02:14 PM | Likes Like |Link to Comment
  • More of the much-debated details of Apple's (AAPL) iPad: ten hours of battery life in a 1.5-pound device with a 9.7-inch display; a new online bookstore using the open ePub format, partnered with five publishers to start; Wi-Fi and 3G through AT&T (T) - but on cancel-anytime plans, and the device is unlocked. Oh, and shipping in 60 days starting at $499. AAPL now +0.7%.  [View news story]
    No flash! my $200 netbook does that. if you read the blogs, nobody's too impressed with what's been delivered.
    Jan 27 02:47 PM | 5 Likes Like |Link to Comment
  • And just like that, the Dow's triple-digit advance is gone. Dow now just into the negative, -1.74 to 10,364.41. S&P 500 dives, down 0.2% to 1,099.57, and Nasdaq on its way, now down 0.2% to 2,170. Basic materials, especially miners and metals, have been the drag so far.  [View news story]
    This is the sound of a bubble popping.
    Dec 4 11:54 AM | Likes Like |Link to Comment
  • RBS chief credit strategist and uber-bear Bob Janjuah tells clients to take profits and get ready for another storm. "Ask yourself this: who bails out Government after they have bailed out everyone?"  [View news story]
    Um, the fed, who else? Start the printing presses!
    Aug 13 09:35 AM | 3 Likes Like |Link to Comment
  • James Kwak puzzles over the scant attention afforded ratings agencies - who played an intricate role in the breakdown - in the regulatory overhaul.  [View news story]
    This article does not mention Rating Agencies.
    Jun 19 11:26 AM | Likes Like |Link to Comment
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