Reid Calls For $25B In Banking Money For Auto Sector (DJNews)
Harry Reid et al introduced a bill to the floor Monday night calling for $25B from the Baking package. Apparently the American public are as attentive as dogs, simply looking wherever people snap – makes it easy to “accomplish” things that way.
“The bill, to be introduced by Senate Majority Leader Harry Reid, D-Nev., Monday evening, would provide $25 billion in low-cost loans to General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC.”
Dutch Insurance Company Aegon Positioning For Bailout Money (Reuters)
The company is looking to purchase a Maryland based Savings and Thrift so as to qualify for US TARP money – it looks like they’ll be seeking anywhere between $1.25B and $4.75B.
Yesterday, we saw Hartford doing essentially the same with an S&L, but this move is markedly different; it’s not a U.S. Entity. While it’s true that Aegon holds Transamerica Insurance – the company itself isn’t based in the United States – which raises the all mighty question: what the hell?
Let’s expound upon that a little bit – what if a flood of Iranian banks started buying Thrifts and applying for money? Who do we let raid the taxpayer vault?
Ford Drop-Kicks Mazda’s Ass Out The Door (FT)
Ford is selling the majority of its holdings (20%/33.4%) in Mazda for $540MM in an attempt to stay alive long enough for Government money.
“Ironically, Ford had succeeded in making Mazda profitable even as its own business struggled.”
UAW Weakens Its Grip On Washington (NYT)
The United Autoworkers Union has long held a firm grip on the policy makers in the East, but it looks as though their influence may be waning. I’m of the opinion that we’re the chief culprits in this: next to us they look like children. The Time seems to agree – in part – but also cites long standing feuds with the Senate, and poor leadership.
Also touched on was the “Jobs Bank at G.M.” which (via UAW) assured that all workers that were laid off from their auto jobs had full pay until they could find other employment.
Yang To Step Down As Yahoo CEO (DJNews)
Yang is stepping down after failed talks with Microsoft, having been with the company since its founding. Yahoo, for those of you who came to the interwebs post Google, was one of the first fully functional search engines. I don’t remember anything before Yahoo, except books, which you can now get on Google.
M.B.A.s Veer Off Path to Big Finance Jobs (WSJ)
Synopsis: The majority of grads are seeking employment outside of IB, as they’re scared the structure is disintegrating. For those staying in the field, they’ll be seeking employment at Boutique and Middle Market houses. The big winners of the purge are going to be Technology and Consulting, who are going to pick up better grads than previously thought possible – as the job everyone really wants is going to be under water for ~5 years.
Paulson’s Fund Buys Troubled MBS (FT
Paulson, seeing that the MBS market is depressed, has moved to purchase the undervalued securities and could stand to make a tidy sum off them.
I’ve always been a fan of the adage: “when there’s blood in the streets, buy real estate.”
At Least One Citi Employee Will Be Okay (NYDN)
“Drug dealing on craigslist has become so rampant that the city’s special narcotics prosecutor has asked the online trading post to curb the ads, the Daily News has learned.
Bridget Brennan’s undercover investigators have bought drugs offered on craigslist personals from dealers ranging from a Citigroup banker to an Ivy Leaguer to a violent felon using a halfway house computer. In the past four years, her office has prosecuted dozens of dealers.”
–William Richards
Comments (25)
Leave a comment
You can log in with your account or comment as a guest below.
The whole deal with the automakers should not be about saving the Big 3, but about winding them down gently so we don’t add a million people to the unemployment rolls.
The automakers are a big mess with lots of counterparties – parts suppliers, dealers, customers, retirees, etc. Letting them file for Chapter 11/7 would be a nightmare.
I think the government should provide them with bailout money – whether it is $25B or $50B doesn’t matter – it’s a social program. But they should eliminate current management and install new managers who will wind down capacity by 30-50%, cut half the models, eliminate the jobs banks, restructure retiree benefits, and help wind down the dealerships.
@1
We need to manufacture cars in the US. Manufacturing jobs create a middle class, and we need a middle class.
How crappy does your salary have to be for you to sell blow out of your midtown office?
Way to go Mark.
It’s too bad you only received 5 years probation. Nothing “Bubba the Buttmaster” loves more than virgin Investment Banker ass.
you know that picture of “jerry yang” isnt the right jerry yang, right?
The government is not good at “winding down”. Much better at “bloating up”.
“Ironically, Ford had succeeded in making Mazda profitable even as its own business struggled.”
Ironically (or not) it’s the legacy BS that Mazda doesn’t have that allows them to be profitable.
Damn that compared to Jerry Yang Bill Gates looks like a stud. And so does Screech from SBTB… Even Carney…
I’ve owned three Mazdas in the past (have a Mazda 6 now) and they are great, dependable cars.
If bailed out, the Gubmint must insist that Ford should be run by Mazda. That would teach those Ford fuckers a lesson for making the 1988 Aerostar with spontaneously disassembling transmissions.
We will never forget.
8, are you sure you want to admit you owned a Ford Aerostar?
Owned 3 mazda’s with avergae lifetime of 10y = no sex for the last 30y. Way to go buddy!
fuck the bailouts, send us each a few million, we’ll get things cranking again.
@10 But plenty of Mazturbation!
Ford Aerostar…legendary, much like the Ford Escort of the same era.
Harry Reid wants to give the automakers $25B from the “Baking package”? That’s a lot of bread, yo.
Obama will give the auto industry one way or the other. He will not want to be remembered as the newly elected President that added a million people to the employment queue and evicted thousands of struggling families from their homes.
The idea of a Car Czar to oversee the auto industry is fanciful. I don’t know who in the Obama transition team came up with this idea. But whoever takes on this job will be the fall-guy eventually.
The Detroit Big Three are three sick companies because most of their model line-up are irrelevant (oversize gas-guzzling SUV’s and 4×4′s), outdated (I lost count how many Fords are based on decade-old platforms, the Mustang is still based on the platform from the 1970′s), and poor quality.
Furthermore, they only made money in recent years by offering 0-0-0 financing. These are the subprimes of autoloans. Mitsubishi suffered several hundred million dollars of losses in these three years ago. These will catch up to the automakers.
Reality is that the Big Three are up to their eyeballs in shit (shrinking sales and margins, declining value of cars coming off leases, no cheap financing capacity, employee and retiree healthcare burdens, bad autoloans) that $25billion ain’t gonna be enough. Sound familiar?
Mitt Romney for Car Czar. In the process he can teach Cerberus the art of LBO.
the first picture was actually brilliant insomuch as Yang was the donkey at the table who overplayed/bluffed his hand into oblivion
@#16
Hahahahahahahahahahahaha
The Cerberus-GMAC and subsequent Chrysler deals looked good until the bottom fell off the credit markets.
Mitt Romney is overrated as a P/E operator.
The intellectual P/E type like Gerstner, Romney and Steve Rattner (the Quadrangle Steve) don’t travel too well. The hustling type (Kravis and Schwarzman) have had much more success.
#15
Hey, Obama sold blow years back.
Shiti wages are so low that their bankers have to resort to the work of street thugs. Next, Shiti bankers will be convicted of armed robberies and grand theft auto, as they struggle to make ends meet by getting involved in diverse day jobs. Someday soon, they’ll be a Shiti banker on a speedboat leading a pirate ship of somalis to hijack a Philippine junk cargo ship carrying lead-filled Chinese sponge-bob toys to Ukraine. Eventually, Shiti CEO Vikram Pandit will get sent to the slammer for the Old Lame fraud where he will be repeatedly fucked in his tight little nerdy ass by a 13 inch dick belonging to a fat black man named Jerome Biggins. After his jail sentence, vikers will go back to managing his 7-11. After a few unprofitable years of doing that and the expiration of his visa, viki will be forced to go back to calcutta, where he will spend the remainder of his life begging on the street.
@15 – a ‘Car Czar’ is a stupid idea. All they need to do is to put a couple of tough CEO’s in place who want to shrink the car industry to the point it can be profitable.
Give them enough cash to grind the industry down and give all the soon-to-be laid off auto workers time to find new work.
Productivity freeing up huge swaths of US workforce – from automakers to Wall St to retail. We need to reallocate these people into something useful.
hey number 15,
ford and gm have made tremendous stides in reliability, as evidenced by recent consumer reports surveys.
the perception that they make unreliable products is what is killing them.
In the last 2 years, nearly every new product in Toyota’s portfolio has been larger and less fuel efficient than the models they replaced. Why?
@18
If the GMAC and Chrysler deals ever looked good to you, you must also have like Wamu and probably you were long Enron as well. Nobody with half a braincel wanted anything to do with GMAC and Chrysler, let alone a further leveraged version of them.
Lets talk about PE succes. There are only two meaures and that are historic returns and fees charged.
So either you know your numbers and you know you are wrong or you are just bullshitting and know shit about pe.
Which one is it?
hey #19, you are a stinking piece of shit. Vikram is from Bombay, not Calcutta, well you wouldn’t know cos they don’t teach you world geography in school. Don’t open your mouth unless you know something you assface.
#23 assface, stinker, pig-fucker, bitch-ass mofo, dinky dong-dong face, poo-poo head, pee-pee face……
still fail to give us a reason why Shiti CEO pandit the bandit deserves to stay on the job or why he defrauded Shiti shareholders of $800 million for the sale of Old Lame that blew up at†g less than a year after it was bought. and its kolkata now, not calcutta. i know my geography, i was just using calcutta since its more familiar to people and that it is much poorer than mumbai…
Shiti CEO pandit the bandit will still go to jail where he will be repeatedly given a prostate exam by Jerome Biggins, the black man with a 13 inch penis which will tear viki’s ass apart. after his stay at a humbling american jail, the Shiti CEO will be forced to give 25 rupee blow jobs on kalkota streets to feed himself.
Danny boy we know you are still out there and we haven’t forgotten you.
http://www.youtube.com/watch?v=OCbuRA_D3KU
SPODE