September 2008

  • News

    SEC Considering Further Crackdowns At Behest Of GoldGan SachsLey

    Charlie Gasparino reports that the SEC is meeting right now to determine if “further steps must be taken to curtail improper short selling that is causing damage to the share prices of Morgan Stanley and Goldman Sachs,” after receiving calls from John Mack and Lloyd Blankfein. Senators Chuck Schumer and Hillary Clinton apparently put their […]

    / Sep 17, 2008 at 3:48 PM
  • News

    Chanos On SEC Rules: “Tough And Balanced”

    The early reviews of Chris Cox’s new rules are in. Of the efforts to curtail supposedly abusive shorts, Short Selling Wizard-cum-Coalition of Private Investment Companies Chair Jim Chanos said: “It appears the Commission has put forth a tough but balanced proposal that recognizes the important role that short selling plays in capital markets. The Commission […]

    / Sep 17, 2008 at 2:20 PM
  • News

    No Wonder They Went Under

    “We are delighted to extend you a Summer Analyst position in the Corporate Advisory Division of Lehman Brothers (“The Firm”). We anticipate your employment under this agreement to be on or about June 2, 2008 through August 8, 2008. Your compensation will be a (bi-weekly) base salary of $55,000.” Real? Typo? Forgery? Who are we […]

    / Sep 17, 2008 at 1:43 PM
  • News

    We’ll Ask Again: WHAT SOUNDS GOOD WITH MORGAN?

    You’ve probably noticed that Morgan Stanley’s been slip ‘n sliding off a cliff since this morning. Though the name GolGan SachLey feels so right rolling off the tongue and would look great on a business card, all reports have ruled out a merger of the last remaining banks on Wall Street. The only name we’ve […]

    / Sep 17, 2008 at 1:27 PM
  • News

    Caption Contest Wednesday: Treasury Porn

    Hank Paulson and a fish, circa 1973 [Fortune via Daily Intel]

    / Sep 17, 2008 at 12:48 PM
  • News

    Totally Unfounded Rumors: Midday Ratings Summary

    It is another edition of the totally unfounded rumor ratings summary. Lots of developments since the last installment, of course. How are you the reader expected to know which rumors are ok to spread overtly and which require the use of special clandestine services tools like a hoarse whisper outside of Dick Fuld’s office? Our […]

    / Sep 17, 2008 at 12:04 PM
  • News

    Wu-Tang Financial

    “Nowadays we all know that cash rules everything around us. C.R.E.A.M. Get the money. Dollar, dollar bill y’all.” Don’t even try to short them. (Some of the audio is probably not safe for work but since work isn’t really safe for work these days, just go for it.)

    / Sep 17, 2008 at 11:52 AM
  • News

    SEC Cracks Down On No Good Very Bad Short Sellers

    The Journal reports that the Securities and Exchange Commission has issued new rules aimed at curbing “a certain type of short-selling.” Starting at 12:01 a.m. EDT on Thursday, short sellers and brokers must deliver securities borrowed for short sales on the trade settlement date, three days after the transaction, or face the wrath of Chris […]

    / Sep 17, 2008 at 10:43 AM
  • News

    Treasury Department Bails Out The Fed

    You didn’t really think that the Fed’s balance sheet wouldn’t be hurt by lending $85 billion to AIG, pouring liquidity into the markets, opening new borrowing facilities, guaranteeing Bear Stearns obligations and taking junk collateral at inflated prices, did you? And surely you didn’t really buy all that nonsense that the Fed was spending it’s […]

    / Sep 17, 2008 at 10:15 AM
  • News

    What Sounds Good With Morgan?

    Morgan Stanley beat expectations for the third quarter and its CFO said yesterday that everyone just needs to chill because things are getting out of hand but Goy Goldman is apparently feeling a little less unruffled about the sitch this morning. According to CNBC, senior officials are currently considering a merger. And it turns out […]

    / Sep 17, 2008 at 9:37 AM
  • AIG

    A Long-Expected Takeover

    We cannot say we’re shocked that the Federal Reserve and the Treasury swooped in to take over the American International Group US Department of Insurance. We began reporting that a takeover was under consideration shortly before two in the afternoon. But to say we expected this takeover is not to say we understand it. We’re […]

    / Sep 17, 2008 at 9:16 AM
  • Opening Bell

    Opening Bell: 9.17.08

    Stock futures slip after U.S. government’s AIG move (Marketwatch) And this is the thanks the government gets. You hammer out a last minute deal to save the entire financial system, prevent it from melting down and guaranteeing our return to gold-based money and investors don’t even appreciate it. Instead they sell off a little more. […]

    / Sep 17, 2008 at 7:10 AM
  • News

    Fed May Does Offer Bridge Loan To AIG

    The WSJ is reporting that the Fed is mulling over a possible rescue of AIG that would offer the company a secured bridge loan and result in the government controlling the firm. Update: The Times and CNBC’s David Faber have heard the same. In exchange for 80 percent stake in the firm, Faber says A.I.G. […]

    / Sep 16, 2008 at 7:03 PM
  • News

    Write-Offs: 09.16.08

    $$$ “Earlier today, Dennis Kneale was running his mouth (as he is oft’ wont to do) about the complete failure of the “Financial Supermarket” business model, referring to the diversified financial services corporation epitomized by the likes of Citigroup and the like As usual, Kneale conveniently ignored the reality of the situation, which in this […]

    / Sep 16, 2008 at 6:45 PM
  • News

    And We’re Back

    From: redacted Sent: Tuesday, September 16, 2008 3:36 PM To: undisclosed-recipients Subject: So…about Lehman Comm Equipment….well….um….never mind. We are still here! Dear friends – We are delighted to report that some last minute maneuvering has left Lehman’s US operations in the hands of Barclay’s Capital. We are hopeful this will soon extend to our counterparts […]

    / Sep 16, 2008 at 6:30 PM
  • News

    Morgan Stanley Has Had It Up To Here With This Bosh

    Deutsche Bank’s Mike Mayo: “Why did you release your numbers ahead of schedule?” Morgan Stanley’s Colm Kelleher: [Sounding like he was about to lose it and scolding a naughty child]: “Because things are frankly getting out of hand! Ridiculous rumors are being repeated, rumors that if I wrote them down today and read them tomorrow […]

    / Sep 16, 2008 at 5:46 PM
  • News

    Wharton’s Got (To Have) A Plan

    Not sure what’s taken them so long, but Wharton is finally addressing the shit that has hit the fan and boomeranged back to his us in the face. A “Financial Crisis Discussion” panel led by Larry Kudlow gal-pal Jeremy Siegel is happening on campus right now, and lasting ’til 7:30. A video will be up […]

    / Sep 16, 2008 at 5:35 PM
  • AIG, Treasury

    Treasury Is Still Considering Conservatorship for AIG

    Bloomberg is reporting that the US is considering a conservatorship for AIG. Their story will follow. If you’re in a rush to get the news, however, you can read our version from three hours ago. UPDATE: Bloomberg’s story is now up. UPDATE: CNBC is reporting that there are doubts at Treasury about the legal authority […]

    / Sep 16, 2008 at 5:06 PM
  • AIG, Bank of America

    BoA Securities Quits AIG

    Rather than invoking the “WTF” call, Bank of America Securities has announced that it is dropping coverage of AIG. Sayeth BoAS: The situation at this stage is binary and dependent on more political will than analyzable facts. While we see the value of the insurance operations being well excess of the parents liabilities, solving the […]

    / Sep 16, 2008 at 4:34 PM
  • News

    Jimmy Cayne’s 420

    At the very least, former Bear Stearns chief Jimmy Cayne had a sense of humor. He was accused of smoking pot at a bridge tournament while his company sailed into troubled waters. We’d heard that he was angry about this accusation but now we wonder whether he decided to have some fun with it. A […]

    / Sep 16, 2008 at 4:20 PM
  • News

    Laid Off And Laid Out

    The recent events in the life of Lehman Brothers has been difficult for many. But provided you didn’t work there or have a monetary stake in the place, I think we can all agree that the fall of Lehman means one very important thing: KA-CHING. The city is literally crawling with despondent but more importantly […]

    / Sep 16, 2008 at 4:02 PM
  • News

    Morgan Stanley Will Pre-Announce Its Earnings And Hold An Investor Call At 5PM

    Everyone is saying it must be good news, or at least good enough to reverse the slide in Morgan Stanley shares. Update: CNBC reporting that MS beat estimates with $8 billion in revenue, $1.32 per share.

    / Sep 16, 2008 at 3:59 PM
  • News

    Barclehs To Save 9,000 Jobs

    Heidi Moore of DealJournal has the details on the Barclays acquisition announced at Lehman Brothers today. It’s being structured as an asset purchase, with Barclays taking this business but not any real estate assets or derivatives. More good news from Moore: Barclays has reached an agreement to buy the U.S. capital-markets businesses of Lehman and […]

    / Sep 16, 2008 at 3:29 PM
  • AIG

    Is The Fed Giving In?

    Bloomberg is reporting that the Federal Reserve appears to be cracking in its resolve not to bailout AIG. The Fed is considering extending a “loan package” according to a person familiar with the negotiations.

    / Sep 16, 2008 at 3:25 PM
  • News

    A Serious Question

    I’m going to word this carefully because I’m trying to be sensitive about the fact that he probably thinks his life is over but honestly–what hell is it going to take to smoke Dick Fuld out of his cave? As of this afternoon, post-BarcLehs announcement, he’s still yet to show is face or even send […]

    / Sep 16, 2008 at 3:15 PM
  • News

    Overheard At Lehman Brothers

    It’s the cafeteria at Lehman. Shortly after noon on the first day in quite some time when everyone in the world isn’t obsessed with Lehman Brothers. One Lehman employee to another: “The food here kinda sucks today. Do you know if the Barclays cafeteria is any good?”

    / Sep 16, 2008 at 3:12 PM
  • Lehman

    Lehman And Barclays Announce Acquisition To Employees

    The chief executive of Barclays and the president of Lehman Brothers just announced an acquisition of a part of Lehman by Barclays, according to someone present. It was unclear exactly what Barclays was acquiring but earlier news reporters suggested it would be the broker-deal arm of Lehman. Barclays Bob Diamond and Lehman’s Bart McDade took […]

    / Sep 16, 2008 at 2:47 PM
  • News

    Fed Refuses To Bail Out Markets With A Rate Cut

    Despite market turmoil, a plunging stock market, the predictions of many investors and vocal calls for interest rate cuts from traders, the Federal Open Market Committee left its interest rate target at 2 percent this afternoon. Our favorite take on this was from MarketWatch. “Just as it had over the weekend to Lehman Bros. and […]

    / Sep 16, 2008 at 2:45 PM

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