Charlie Gasparino reports that Morgan Stanley has a few things to say this morning:
1. No plans to issue stock, despite insinuations by Barron’s.
2. No “material or significant exposure to Lehman,” despite a note put out last night by Dick Bové.
3. Mitsubishi deal IS ON TRACK. Can’t be announced Monday, though, because of Columbus day here, and “Health and Fitness Day” in Japan, according to CG.
4. And, Gasparino paraphrases here, Morgan feels they were “sandbagged by Moody’s.”
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Did anyone notice the further the market declines the more people cnbc puts on the screen at once. They went from 4 people split to 6 to 8 and last night Kudlow had a lot of company with a 12 person split!!! Direct correlation in my opinion!!!
Sandbagged? More like teabagged.
Is the situation fluid?
Hey Mack, STFU. You are going down like the rest of these wall street fat cats.
could this be KARMA. Alot of pompous overpaid undervaluable jerk-offs have been roaming the halls of MS for many years. You tools have had your day. BYE-BYE.
could this be KARMA. Alot of pompous overpaid undervaluable jerk-offs have been roaming the halls of MS for many years. You tools have had your day. BYE-BYE.
Seriously, is Mack studying from the Dick Fuld playbook on running your firm into the fucking pavement. He needs to get out in front of this or MS is out of business by the end of next week.
How do you say Mack the Knife in Japanese??
I agree, F em.
MS is fucked. There are only two things that can save them now:
1) Mitsubishi uses that $9B to buy the whole firm.
2) Treasury starts buying MS in the open market.
Neither of those is likely to happen. If you’ve got counterparty exposure to MS, what are you going to do?
Short the ratings agencies! Who is going to pay them fees when they’ve bankrupted all of the investment banks?
I have a friend flying into town for their 3rd MS interview next week, if that is any indication that things are fine. It was scheduled yesterday.
Fuck em if they can’t take a joke.
Can Goldman be saved? It’s looking pretty grim. Trading under 85 pre-market. What the hell is Paulson going to do to save Goldman? Oh no! The sell off is accelerating! Close the exchange! Close the exchange!
@8 三文オペラ
I blame Granville, when that fuqr went bullish, it was all over…..
5,6
Sounds like a bitter MS reject…
-not a MS employee
Can we shut down these fucking rating agencies? I used to work at one (starts with S and ends with P). They are rubber stampers in good times and back stabbers in bad times.
They did one hell of job “rating” the risk profile on all those CDOs back by meth lab employees outside of Vegas.
“What would ya say ya do here?”
any doubts now that the Paulson plan was the worst idea ever and was a poorly disguised attempt to save GS (and as a sidenote MS)? remember it was announced on 9/18, the same day that GS fell below 90 and MS broke 12 and both looked like they would not see the light of morning. well look at them now. EPIC FAIL.
Gasparino failed to mention the new accounting rules regarding mark to market, and the new tax advantages related to merging companies.
Now that he can’t bash Wachovia, his greasy ass is now on MS.
Gasparino is the worlds biggest douche
@18 Paulson is a fucking idiot and he’s cost us more than $3T. We wouldn’t be in this mess if he hadn’t fucked over the Lehman bond holders – we wouldn’t be doing this massive CDS unwind today, and banks would trust each other enough to lend to them unsecured.
I just hope that fucker is still up to his armpits in GS stock in the “blind trust” so when it goes to zero he feels a little bit of the pain the rest of us are feeling.
Of course the bailout probably provided just enough cover for Paulson and all of his buddies at GSCO to sell SPX’s and hedge in the PA.
Has a company whose CEO goes out and publicly blames short sellers for the its stock price ever been vindicated in the end?
You cannot stop the market, you can only hope to contain it.
@20 = Sold Lehman CDS
20 Why do you even need CDS if the govt is going to cover every default.
Gasparino should win the Biggest Douche in the Universe award.
@18
It just goes to show you that sometimes you need an outsider to come up with truely innovative solutions. Paulson was too much of an insider, a part of the problem rather than a part of the solution. And his crew at US Treasury are his followers, same problem. This is going to take months to clean up. But it will be cleaned up.
@11, trust an old lehman employee, that doesn’t mean anything
Bess, I love when you use dirty words.
What a joke these ratings agencies are. They are the biggest lagging inicator out there. Only about 2-3 months behind the market.
@ 5, you are a simple fuck. MS may or not survive but your analysis is breathtaking in its complexity. Thanks for providing such cogent analysis. $9 MS can’t be bought by Mitsu as they are prohibited from owning more than 25% of US bank holding company. Fed probably steps in, guarantees the obligations of MS debt, wipes out equity, cuts new deal with Mitsu, eliminates 25% holder rule or brings in another buyer, and away we go. Lehman experience in hindsight a complete disaster and I don’t think Treasury and the Fed will allow MS or GS to unwind. Too messy.
Why is Paulson’s plan suddenly under fire? I thought the majority of DB commentators had supported the plan and the ones that didn’t were ridiculous… am I missing something here?
Yeah @5 you are a simple fuck, as well as big tool. Is that you cluzo posting as a guest?
the leprechaun calls a bottom…fading JEF
It should be made law that statements released by ratings agencies are mandated to end with, “hey, but this is Moody’s (or other agency) talking.”
@20 he was forced to sell all of his GS stock when he joined government. he sold at the peak, and he didn’t have to pay taxes. he wins.
@30 …because it’s not being implemented yet (nothing actually has traded although “bids” have been received) and it hasn’t instilled any confidence. Lehman fail and messy-ass unwind has everyone hitting the ‘sell” button.
and here’s the open…………..
> 500
Fuck I didn’t think I would be playing this so soon.
http://www.youtube.com/watch?v=eONhto0x_nI
SPODE
It’s the moody blues for Moodys. MS will survive and thrive.
Lesbains
Lesbians
Lesbians
@14 that’s means “Three Penny Opera”.
Mack the Knife is “makku za naifu”
MUFG and MS would be the culture clash of the century. Let it happen.
I hope GS fails, all those smug ballbags out on the street. That would make me very happy, to have some gs tool washing my Maserati
I don’t make money, I print it
when do the circuit breakers come on?
@41
http://en.wikipedia.org/wiki/Trading_curb
@41.. 792.50 for the snp500
@41.. 792.50 for the snp500
Long live MS and GS! @40 you must be super cool to have a Maserati. Can I be like you who seems to want to be like the rich guys he so despises? Daddy didn’t hug you enough when you were a kid or was that the reverse hug with his dik in your ass?
I’m with you #40… screw those uppity, ivy league, elitist weasels.
They may be better than everyone else at hiding skeletons but that’s where their excellence ends. Its about time the light gets shined in all their nooks and crannies….F’ them.
@29
Since you’re so confident, why don’t you buy the MS CDS since their debt will be guaranteed.
@47 – own it.
… and Charlie Gasparino is to CNBC what Perez Hilton is to TMZ. Gasbag should try some pink highlights in his hair, maybe he could get more attention.
@46 & 40
finance.yahoo.com.fuckyou
No, thank you.
SPODE
I’m with 40 but not with 46. I’m elitist because I’m better than you. The only skeleton in my closet is a big pile of money shaped like a skeleton. The only light that gets shined in my nooks and crannies are from the deck of my yacht in Bermuda
peWW @30,
Because ‘Guest’ is actually a sophisticated AI experiment attempting to digitally test the Monkeys typing Shakespeare theory that Bess has conjured up.
@30 I believe that’s called “buyer’s remorse.”
@46 & 40
finance.yahoo.com.fuckyou
No, thank you.
SPODE
@51
I know for a fact that pile is actually CMOs, CDOs and CDS… when I sold them to you I said they were ‘just as good as money’. You must have misheard me. My bad.
(PS – It’s not actually a yacht)
Unrelated. I saw Bella yesterday on 50th Street. The black lab is still sniffing for bombs and pooping on the roof of the Leh…I mean Barklays Building. I guess she has 90 days to prove herself to the UK knobs running the Lehman dead corpse before they kick that bitch out.
She has a green collar that says “Bella” but I did not see her ID. If I see a light blue collar and a Barklays ID I’ll let you know.
52:53 Got it.
To a lot of you above, envy makes me sick. Stop being envious of others and work on improving yourself.
My hedge fund friends in Asia tell me that Citi is realing from deposit withdrawals. Any intel?
@56
Lies, Bella works at 30 Rock now. Sniffing around the bog they placed in front of the GE building.
People, people, go easy on your verbal attacks on MS.
I do see good sense in what #29 said.
We’ll find out soon enough.
@45 you are a knob, go clear my trade.
You are probably some clerk who dreamed abt being on a desk until LEH went under and you lost your job. Dont hate the playa, hate the game.
Im thinking of all the residual tail that will be out on the streets when MS ad GS go under, nice for the rest of us with jobs.
@5, 40 & 46 are completely justified. Wall Street is full of smug pompous douchebags. Admit that much of the schadenfreude is a natural “venting of the bile” and move on. You are never going to convince anyone to appreciate you by whining about it. So suck it up Douchebags.
There is absolutely nothing to worry about.
When the Obama Revolution turns Wall Street into a giant sweatshop pumping out “worker’s bonds” in order to finance third-world socialism, you’ll all have equal substandard housing in one of the “Obama Village” blocks to be built just outside Newark, plus you’ll have two weeks off to help gather the corn harvest in order to ensure the meagre rations that all of you deserve.
We’ll hold hands and sing paeans to the Great Leader and march in solidarity towards the glorious sunrise of Islamic Socialism in America.
All Hail the Glorious Leader Obama !
He will free you all from the shackles of Freedom! He will free us all from the chains of Liberty ! When the (half) Black Messiah destroys Capitalism, we will all be rich in Socialist egalitarianism ! Down with Money!
Down with the Greedy Capitalist Pig-Man ! Hail Obama ! Long Live the Revolution !
From Dick Bove
There have been two positive developments concerning
Morgan Stanley since I released a note on the company last
evening. The company published its 10Q for the third fiscal
quarter (ended August 31). In it, the company provided an
extensive breakdown of its marks and other obligations. One
key fact that emerges is that the firm’s exposure to Lehman
counterparty risk is minimal and not the multi-billion number
that had been thought to be the case.
• A second positive development is that Mitsubishi UFJ Group
convincingly indicated that it would make the $9 billion
investment in Morgan that it had promised. This investment
plus the $50 billion it is believed that the company has set aside
to meet demands for repayments is thought to have defensed
the company’s balance sheet. Plus, there is always the Federal
Reserve’s Discount window.
This market is getting ridiculous:
http://upzero.com
Bess doing Moody’s!!!
Where is the video?
@64 You need to stop! Save the spam for spamalot.
@59 Maybe Bella just wanted some free product. So she walked over to 30 Rock for a bag of cran-raisins and an 8oz bottle of cranberry juice. I work next door at 1251 Ave. of the Paulsons and I saw Bella with my own eyes. Next time I’ll snap a picture with my BlackBerry, beeeatch.
Paulson hasn’t fucked up anything yet. The fed tried to marry off LEH but no other bank would touch them. Bond holders rightly got screwed.
CDS players should have thought about (even priced in) true counterparty risk before getting involved just as investors should have priced in a housing bust. Neither did.
Hate to say it but for these players that screwed up it’s time to feel Adam Smith’s invisible fist go up their asses.
That’s the way the market works. Did we forget that? Or is it really true that some animals are more equal than others?
Sigh. Yes, of course, everyone is a genius and the rating agencies were the only ones who miscalculated the risk of MBS and CDOs, which is why the big brains in the i-banks and hedge funds stayed clear of that stuff.
Also, what’s this backstabbing stuff? RA’s may not be the sharpest knives in the drawer but since when are they supposed to be propping up companies which have become riskier?
CTMyVG Thanks for the blog post.Much thanks again. Fantastic.