Barclays was not lying last week when it categorically shot down scurrilous reports that it was about to take a $10 billion writedown, a denial the bank backed up this morning when it announced a writedown of only $2.7 billion on investments related to the subprime mortgage market. Of course, when they said there was “absolutely no substance to those rumors,” they meant to say “those rumors are only 27 percent correct,” but whatever: details. How do you like Barclays now? Probably not as much as Barclays likes itself. “Today’s extensive disclosure demonstrates the strength and resilience of our performance during the year and in particular during the turbulent month of October,” chief executive John Varley said in a statement.
Incidentally: You should watch this
Earlier: Barclays: $10 Billion Writedown Rumor Has As Much Merit As The One About James Cayne Smoking Dope
Barclays Writes Down $2.7 Billion on Mortgage Losses [Bloomberg]
A stitch in time [Breaking Views]
Barclays Ends Speculation Over Subprime Exposure [WSJ]
Posted by , Nov 15, 2007 12:29PM
Thank God.
Posted by , Nov 15, 2007 12:35PM
bess, what's a JCBJTM
Posted by , Nov 15, 2007 12:42PM
I'm going with John Carney Blow Job.
Posted by Anal_yst , Nov 15, 2007 1:29PM
Curious why there isn't more talk in the media that these "writedowns" are basically nonsense. Essentially the decision these banks are making in choosing the size of these announcements amounts to the 'optimum' point between making it big enough to be believable that the worst is over, yet small enough so that it "could have been worse". The true value, is, of course pretty uncertain.
Posted by , Nov 15, 2007 1:32PM
thanks for that stunning insight, anal_yst
Posted by The LOL Guy , Nov 15, 2007 1:39PM
LOL!
Posted by adsense sucks , Nov 15, 2007 1:48PM
i cant fuckin believe these pikers! everyone talks like they deserve addtl bonus for navigating the "turbulent times"? worst since great depression? you fuckin losers who made the mess and collected those fees before this?
fuckin out
Posted by , Nov 15, 2007 1:55PM
How tall is Carney? He looks kinda short in the pic.
Posted by WDE , Nov 15, 2007 4:10PM
Hey anal_yst, if you've actually tried to get into the market and sell some of this puke, you'd know that the actual market value of these things lies somewhere in between a box of your grandmother's old mothballs and leftover meatloaf.
Posted by Anal_yst , Nov 15, 2007 4:30PM
@ 1:32 - suck it. Everyone knows it, but who's actually saying it? Where are Mike Mayo's balls when ya need him?
Posted by , Nov 15, 2007 4:32PM
anal_yst...your comment was about how the media's not saying the writedown shit is "nonesense"...did you read this post before you wrote that?
Posted by , Nov 15, 2007 5:14PM
Can we please stop with the Mike Mayo worship around here?
Posted by Anon E Mouse , Nov 15, 2007 10:42PM
What a relief...but wait didnt they say their total exposure to subprime was only $75m in the FT a month ago ? lol
Posted by , Nov 15, 2007 11:03PM
Wasn't Mike Mayo quoted in the paper as saying he cried once, while doing his job? I mean, real tears.
Posted by Anal_yst , Nov 15, 2007 11:41PM
Aight gents
1. DB doesn't count as "the media" in the sense I was using it, more speaking of CNBC and other MSM. Analysts (including that douche Mayo), flapping heads, pundits or whatever you call them HAVE NO IDEA.
2. All I was trying to say is its funny that anyone takes the value of these writeoffs, etc with anything more than a grain of salt. As some of you have pointed out, these things are essentially worth jack shit, so these announcements are arbitrary at best, yet in the MSM they're treated as if they might as well be mark-to-market writedowns.
3. Mike Mayo is a vagh, as are all the other analysts.
Posted by cdo structurer , Nov 16, 2007 11:03AM
i'm a recent graduate and just recieved a job offer from a major bulge bracket firm to join their cdo structuring group. with all thats going on right now, should i accept the offer?
thank you.
Posted by cdo structurer , Nov 16, 2007 11:04AM
i'm a recent college graduate and just recieved a job offer from a major bulge bracket firm to join their abs cdo structuring group. with all thats going on right now, should i accept the offer? i hear merrill is a big underwriter.
thank you.