AIG’s Cassano Under Investigation (Reuters)
The ex-head of AIG Financial Products is under Federal investigation for his role in the loss of Billions of dollars, which many see as the catalyst leading AIG to financial ruin.
The announcement comes on the heels of AIG’s announcing that they had completed the $40B sale of preferred stock to the US Treasury under the terms of the TARP. Also newsworthy of AIG: FT is reporting that AIG’s Edward Liddy has agreed to accept a $1 salary as some symbolic move.
“This gesture by AIG is appropriate and I encourage other firms to wake up to the new reality on Wall Street and follow AIG’s step quickly,” Mr Cuomo said in a statement.”
I’m sure you meant “quickly follow AIG’s step” Mr. Cuomo, but that aside, what’s the rush?
Porsche backs away from buying VW majority this year (Reuters)
Something about “ridiculous prices.”
EU Stimulus Plan Proposal (DJNewswires)
“The European Commission proposed Wednesday a sweeping stimulus package worth EUR200 billion, European Union sources said.
The sum, the equivalent of 1.5% of the European Union’s gross domestic product, was more than the EUR130 billion that commission chief Jose Manuel Barroso had said previously that he was looking for.”
Russia Threatens To Step Down Oil Production, Prices Respond (BBC)
While the Price reaction was minimal, there’s the off chance that this could have a lasting effect. Russia has been rogue to the policies of OPEC in recent years, acting effectively as it saw its own best interests. We’re seeing a stepping in line, however, as Russia is positioning itself with OPEC in Oil production cuts.
Some issues here to pay attention to: they’re not actually aligning themselves with OPEC, merely following OPEC’s most recent move. Also: they’re probably drunk.
108bps Drop In China Key Rate (Bloomberg)
I’ve always been a fan of odd-lot cuts, as they seem remarkably arbitrary. I don’t, for instance, see how one comes to the 108 number: why not 109 or 110?
“The cuts are aimed “at ensuring sufficient liquidity in the banking system and to promote steady loan growth so that monetary policy can play an active role in supporting economic growth,” the bank said in a statement.”
Inbursa buys 26MM share block of C (CNBC)
The big question here is whether or not this signals Carlos Slim’s tacit nod of approval for Citi.
Why CNN Can’t Cover The Credit Crisis (Infectious Greed)
IG is covering what amounts to an organized rant on how MSM is botching the coverage of the liquidity crunch, and as a bonus there’s a Suze Orman bashing.
Goldman’s FDIC Backed Bond Issue (DJNewswires)
For those of you without access:
“Demand for the bonds was strong, with 300 investors placing orders for the deal that is likely to serve as a benchmark for other banks lining up to raise funds under the Temporary Liquidity Guarantee Program, or TLGP.
The program aims to ease the process of refinancing bank debt, and in turn possibly free up lenders to extend new loans to customers and businesses again. It’s only one weapon in the government’s arsenal to battle frozen debt markets that threaten to make a recession in the U.S. economy much deeper.
Goldman sold $5 billion of three-and-a-half year notes at a risk premium of 200 basis points over the 1.75% Treasury due November 2011. This put the interest rate at just 3.367%, significantly lower than the bank’s outstanding debt that isn’t backed by the government. Goldman’s 5.7% notes due 2012, for example, are currently trading at a yield of 8.5%, according to one bond trader.
Some 40% of the issue was placed outside of the U.S., according to a spokesman at Goldman Sachs.”
Toyota’s Credit Rating Cut By Fitch (Bloomberg)
The move by Fitch drops Toyota from AAA to AA, which increases the cost of Debt. Wait.. People still trust ratings companies? How have they not been put out of business?
–William Richards
FDIC Graphs Show the Extent of Financial Crisis: More Institutions Report Declining Earnings, Quarterly Losses; Lower Asset Values Add to the Downward Pressure on Earnings; Growth in Reported Noncurrent Loans Remains High; Nine Failures in Third Quarter Include Washington Mutual Bank; Failure-Related Restructuring Contributes to a Decline in Reported Capital: http://tinyurl.com/5s3d82
FIRST, SPODE, TGFD, SHAMWOW, WIDECLOPS, JO&C, DIFGTBAB, VIKKI, RUSSIAN HOES, TABLE SVC, LUNCH W/CLIFF HUXTABLE.
-MONEYGRIPWISDOM
108 is not an arbitrary number. it is 4 * 27bps. there is a historic reason in china for increments of 27, with the number being 3*3*3 (3 cubed) and perhaps easier to calculate with the abacus or something. i would be curious if someone knows the exact reason for using 27.
Michelle Caruso Cabrera – looking WHITE HOT in here “F&#K Me ” boots and white outfit today!!!
108 is not an arbitrary number. it is 4 * 27bps. there is a historic reason in china for increments of 27, with the number being 3*3*3 (3 cubed) and perhaps easier to calculate with the abacus or something. i would be curious if someone knows the exact reason for using 27.
8 is the important number. 8 is lucky. so probably wanted to cut 100 bps but figured putting the 8 on there would increase the karma.
A wise old chinese wideclops once told me that “8″ is a lucky number in China.
And den???
Did anyone buy/see bought the GS $5b raise?
I’d like to know who put that in.
to clarify, the PBOC always cuts or hikes in increments of 27bps.
multiplies of 27 bps instead of multiplies 25 bps is because Chinese financial calendar has 360 days and any rate dividable by 9 is preferrable, to avoid round-offs
this AIG thing is pathetic. hunky is pouring money for preferreds in a company de facto owned by the fed….
because they’re ghay? is magic involved?
paul volcker = uncle junior soprano
GS = Paul Volcker = Tim Geithner
The legacy continues, mother bitches!
I want to have a “fluid situation” with Michelle Carusa Cabrera!
“The ex-head of AIG Financial Products is under Federal investigation for his ROLL”
Ahem – role??
WHAT ARE 1ST YR ASSOCIATE NUMBERS, WHAT IS GOING ON @ MS?, BALLER, CANARSIE, BACK OFFICE, LAYOFFS, MUFF.
-MONEYGRIPWISDOM
@16…
Tsk, tsk. Can’t you see DB is too busy correcting Cuomo’s GSP to be bothered proofing their own?
@ 7 – too harold and kumar, didn’t read
re: 108 bps
8 is a lucky number in China
that’s why the cut is 108 and not 109 or 110 bps.
@19… should be “too dude, where’s my car; didn’t read
If you are going to mock someone, do it right
NO AND THEN!
That turkey is weirding me out. I can’t stop staring at it.
The turkey knows the magic of the chinese.
Haha. With all the acronym usage flying about these days, TARP, TLGP and the like, it won’t be long before they cave in and use my TGFD moniker to sum the whole damn thing up…
TGFD = Truly Guaranted Financial Debacle.
Once that happens, everyone will know that we are at the dark bottom. Then we can begin to move toward the light.
The Guy from Delaware
p.s. Suze Orman is useless. I remember when she was telling CNBC viewers to buy tech stocks in late 2000/early 2001.
suze orman spawns wideclops.
her taco is a conduit for many unholy things.
Did the Turkey just tell anyone else to take off their pants?
Does the Turkey know Wideclops?
@ TGFD – Did you end up selling your C shares on Monday?
@ 21 – woopsie
@#27…
Thanks for asking. On Tuesday, I sold 1500 of the 2500 shares on a stop loss at $5.95 per VOL IS KING’s suggestion. Got back almost all of my initial investment. I still have 1000 shares of Citi now, basically all profit. I’ll keep them for awhile. My cost was $3.65.
The Guy from Delaware
108 = 9 x 12…always multiples of 9
I hate Suze Orman so much. So, so very much.
@analyst
MarketWarnings?
@ phobos
What? I don’t acknowledge such nonsense (especially with writing skills similar to a random word generator or babelfish translation)
@anal_yst
sorry — f*cked that one all up. You said something on the other thread about jesus II, i was wondering what you were talking about.
@ Phobos
I meant, “Jesus! II’s (Institutional Investor’s, not II as in the numeral) website is heinous”
Although now that you bring it up, I’m curious, what’s worse, financialtraders or marketwarnings (or are they one-in-the-same, hmmmm)
3-cubed is a good number, and so’s many numbers that end with 8.
The Chinese really don’t like rounding numbers-in fact, they didn’t even teach the idea of rounding in China (not even for college level math) since the idea of using an imprecise estimate in mathematics made no sense to them. They’ve probably started teaching this kind of stuff (at least for significant digit use I’d presume), but I’d guess that the people pulling the levers in the government will do whatever it takes to ensure that rounding is never used.
Anyways, I’m sure the fact that the 8 is lucky was a nice bonus.
Anyways, if you ever have to do a financial presentation or something in China I’d avoid using too many rounded numbers (or at least letting people know that you rounded), I think it still gives a lot of people there the impression of sloppiness and imprecision.