Lots and lots of things (and stuff). Some of it conflicting, some not. All of it fluid. Sayeth Gasparino:
I can’t remember the Treasury Department bailing out Steve Cohen and Art Sandberg. They’re bailing out Citigroup and Bank of America and the bailout plan they have on the table right now, at least one that’s been recently teed up in the press which is essentially this aggregator bad bank where you buy all the bad assets between $1 and 2 trillion. It’s been leaked out they’re looking to do this.
This thing, according to sources, telling CNBC, this thing is now officially been put on hold. It’s hit a major snag. They can’t figure out how exactly to make it work. It was the same problem back in September when we broke the story about the TARP when the market went up 500 points because it makes great conceptual sense. If the government cancome in and buy up all the bad stuff off the balance sheets of all the big banks. If this stuff can trade up it’s worth 50 cents on a dollar and not 22 cents on the dollar. Everybody’s happy.
Making that thing work has proven very difficult. The Treasury Department, the FDIC and the Feds recently, the last couple of days, have been having meetings with senior CEOs at the major Wall Street firms to price the stuff sold to this aggregator bank. You know, they’re more confused now than ever before. The feeling I get, at least these talks are ongoing. There was talk about a meeting this weekend with all the CEOs to try to do this thing. I heard that. That is not happening, at least as of 10 minutes ago. No meeting called. No way Wall Street expects that meeting to be called. They can’t figure out how to make this thing work. The pricing is at issue. If you hold the stuff, Wall Street holds it on the balance sheet, they can mark it up to their model 50 cents on the dollar. Or they sell it, the market says it’s 22 cents on the dollar. If the government buys it at 22 cents, most of the banks would take major losses. We’ll be back to where we were a couple of weeks ago. If the government buys it at 50 cents on the dollar, the taxpayer could be taking it on the chin. That’s the problem we have here. While they may shelve this aggregator bank, they may come up with some other alternative like insurance or some sort of guarantees on this stuff blanket across the board.
These are the things being talked about right now. These are conversations between senior– this is at the CEO level and with the Treasury Department. One of the problems with doing this thing real fast, they understand there is a sense of urgency and markets want it bad.
Steve Liesman broke this two days ago, the market went up 200 points. Tim Geithner, the Treasury Secretary, doesn’t have senior staff assembled yet. It’s pricing and very difficult to pull off. The feeling I get, at least right now, is that the aggregator bank has been put on hold indefinitely. They may go for something else. They may do a hybrid. Aggregator bank guarantees– it’s hit a major snag.
Gasparino, 3:26 PM: “They’re not shelving it. But it’s hit a snag…everything is on the table.”
I’m convinced this is a bullshit leak to Charlie. There was no “reporting” – someone took Charlie to lunch and dumped all of this on him hoping to pump up some volatility today.
What’s the difference between buying it at 50 cents and guaranteeing this stuff? Taxpayers take it on the chin regardless.
too pricey, didn’t buy
excellent, go SKF!
@1- there’s never any reporting. he’s known for making stories out of nothing that can’t be proved or disproved. his “breaking news” is that the bad bank “MAY not happen.” If it doesn’t, he “called” it, if it does, he’s safe.
Taxpayer taking it on the chin. Also known as the (TARP) money shot.
Also, how did growing pains get away with having a character named boner?
I am hearing Barney Frank is the Gasbag’s source – the NY Post is reporting that the Gasbag was seen playing foot tag with Barney Frank at a bathroom on the upper east side. The Post is also reporting that he came out of the bathroom stall with several different white substances on his face.
I think you need another poll.
1) Do the taxpayers take it on the chin?
2) Do the politically connected banksters take it on the chin?
If you answers 2, then another poll:
The WMD were:
1) Real
2) A scam made up for the consumption of dumbass peasants.
Hey Charlie go get some Visine and STFU.
You are part of the problem.
Effing Jacking Jaws.
gasparino doesn’t have a source. he MAKES SHIT UP.
@8, If Goldman Sachs turned out to be a ponzi sceme, would:
1) Lycans eat you, howl at moon
2) Lycans quitly close down their leveraged feeder funds, howl at Citicorp billboard
So Lycans eat men, recently ascended to power, have lots of back hair . .. . .yeah, doesn’t sound like anyone on the house banking committee to me either.
7, 11, 12: U-R so gross. Barney Rubble does not pump & dump into the Gasbag – all of Gasbag’s white out episodes are self-inflicted and only up the nose!
It was Paulson, Bernanke and Geithner who liked the bad bank idea. So somebody up there doesn’t like it now? Would that be the new boss? Interesting.
Who are Gasparino’s sources? Last time I checked he didn’t seem to be connected to DC. So are the banksters leaking this out to him? Why?
Why on earth are we talking about Lycans. That movie sucked ass. we should be talking about sookie stackhouse obvi
WTF does it matter? Whether the govt. buys it at market or book value, IT’S STILL TAXPAYER FUNDS!!! They’re going to do what they want anyway which is probably just buy it at a premium. I guess you can say I had a similar situation the other night;
(3:15am circa 2 weeks ago; chick I just met in Battery Park a few days prior)…
ME: “Oh god, I’m bout to n**. You want it on your face or your chest?”
HER: “What??? Why can’t you just pull out and shoot it over there? (points to a stack of old “W” magazines)
ME: “I won’t make it! Oh God, “MAKE A DECISION! CHEST OR FACE, Oh god…”
HER: “Fine…uh…uh…CHEST!!!”
ME: “FACE IT IS!!!” (SPODE)
The End.
WTF did he just say? I can’t make heads or tails of that rambling mess of words and grunts.
@17- that story was made up, like gasparino’s report.
@18- analyst, you get it right? he’s purposely vague, and makes no sense, so whatever happens, he can say he called it.
@17
Nice try pal. I remember you.
-Barney
I know it is a different topic, but is it me or does Melissa Lee actually look pretty fuckable today?
El Gasparino: Well, you told me I have a plethora. And I just would like to know if you know what a plethora is. I would not like to think that a person would tell someone he has a plethora, and then find out that that person has *no idea* what it means to have a plethora.
Jefe: Forgive me, El Gasparino. I know that I, Jefe, do not have your superior intellect and education. But could it be that once again, you are angry at something else, and are looking to take it out on me?
@15: the only credible sources Gasparino seems to have are the voices in his head. 4 out of 5 of those voices should keep telling him to shut his damm cake hole
@17 = Dylan Ratigan
The bad bank is doomed at the planning stage? pfft good luck with the actual implementation. take the hit move on…easier for eveyone.
I don’t know what the problem is. It’s a 30 point spread, big deal. Buy it, just buy it, just…f*ck. Let’s blow up Chiti and get them back here.
At least if you bought the bonds at market with taxpayer funds, the taxpayer has a chance of coming out whole when they sell those things later (i.e. RTC). But to buy the shit at a premium is just guaranteeing the taxpayers get it in the can. Given the banks’ situation, I just don’t see how they can buy the stuff at market, though they should.
As was commented in another thread:
this Bad Bank is more like attacking Russia in the winter.
Paulson / France: “I’ve got a great idea!!!” [later] “Shit! What a horrible idea!!!”
Geithner / Germany: “I’ve got a different idea!” [later] “Shit! It’s the same idea!”
Charles, disinformation is this week’s new black, so get a hold of yourself and stop doing the hybrid Meth
I just don’t know how he finds the time to manage the Yankees.
@21, M. Lee did bring her A game to the playground today.
Kind of related, does anybody else here find Karen Finerman fuckable, or just me?
-BeckyBootFan
@31 KFin is much like Hillary Swank some days I think I really want to fuck her and other days Im like gross she just shat out twins.
I’d cream on Dylan Ratigan. As long as that Rolex he has is a real one.
Maybe we can split CNBC into “good” CNBC and “bad” CNBC. Good CNBC would have Becky Quick topless talking about positive earnings reports and “bad” CNBC would have Charlie the Gasbag and Dylan the Ratsass arm wrestling over who gets to announce another bad housing start number.
@32 – you perfectly put into words what I couldn’t quite coalesce . . .
I would quant fuck KFine until I mensched everywhere.
@32 I think Hillary Swank played a Lychen in a movie (maybe the basketball diaries).
I especially want to nail KFine when she says shes a “Value Girl” I have always wondered what a “Value Girl” would be like in the sack.
Charlie Gasbag says, “Heyyyyyy who Farted?”
@38, probably go down bigtime if it was last year
-The BAC Lycan
@34, I like the way you think, cowboy.
Put all the rest of the girls on bad…make them earn their way to the good side.
-BBF
As long as the situation is fluid then I’m fine. Although things aren’t so fluid over at DABA Bitches. They’ve got some story about “orange and falling.” Not what I was expecting. Something more along the lines of “DABA Bitches Support Group Meating Turns Into A Naught Pillow Fight” would do it.
Any word if the Bad Bank will be a silver bullet?
SPODE
SPODE, Bad Bank will slow but not halt the rise. Its in their blood.
The other IT guy
Art SANDBERG?
for shame
Art SANDBERG?
for shame
22 and 50 cents on the dollar is this years Black
Art SANDBERG?
For shaaaa-aaaaame
Art SANDBERG?
For shaaaa-aaaaame
Include in “bad” CNBC bank is that dumb Erin Burnett.She needs to study her assignment before asking questionsso she won’t make mistakes of asking non sense or stupid questions
@34 just made my week
I called CNBC´s editor in chief to ask him about the “sources” of G ass parino “news”.
Editor : “I trust him. He is a good reporter.
My question – again :”Don´t you think he should have named the source?”
Answer :”No.”
Me : “Are you kidding me ? Isn´t it appropriate at least to tell whether he´s got it from government or Wall Street sources?”
Answer :”I got your point. Have a nice day.”
CNBC morons.
Gas bag is on Kudlow’s show right now…I swear he’s drunk
CNBC loves scandals and on air unethical behaviors of their talking heads.
I suggest they should create a show that includes people with different personalities and level of intelligence such as Cramer, Kneale, Gasparino and Burnett. It’s going to be fun!
CNBC loves scandals and on air unethical behaviors of their talking heads.
I suggest they should create a show that includes people with different personalities and level of intelligence such as Cramer, Kneale, Gasparino and Burnett. It’s going to be fun!
“”The three Stooges and the Lady Dumb”.
WTF? I’ve seen Gaspi @ 6AM. He does not look THAT good.
That clip of him is from Glamour Shots at The Court @ King of Prussia mall.
Gasparino is a liar. He made up this story. CNBC should be sued.
@56 damn good idea. Thought about it. Would be fun to see G ass parino´s personal accounts raided by the FED´s.
@51
I heard Gasparino say that his sources were Wall Street top executives or something like that. So they were not in Washington. I doubt very much that Gasparino can get any sources inside the new administration.
Wasn’t the whole good bank / bad bank Lehman’s idea to sequester the toxic assets?
Done. We’re done with CNBC on my trading floor. We just switched over to FBN. The information may not be as panicked and exciting as Gasbarino but they’re at least right and cautious and their babes Liz Sandra and Nicole are waaaay hotter. Our CEO is so over CNBC. buh bye
TGFD watches Bloomberg TV. Kathleen Hayes does it for me. CNBC is not happening on TGFD’s TV.
The Guy from Delaware
Making the Bad Bank Work
The Layaway Solution
To Whom it May Concern:
In order to make the “Bad Bank” plan work, we need to look back into the past and re-visit layaway. The TARP can pay banks a low price (I will say 20 cents on the dollar) right now for the assets which will act as a layaway payment. For now, the banks will hold onto the asset and the 20 cents which will make the banks immediately stronger. Down the road when we have some clarity on what each individual security is worth, the TARP will make another payment to the bank and takeover the asset. This payment will be the actual value of the security less the original payment and less a 5% or so take for the government. If the asset proves to be worth a lot more then the bank will get its money and the taxpayer will be whole. If it proves to be worth just the 20 cents then the banks will have had years to shore up the financial position in order to absorb the hit. Obviously, the 20 cent number and the 5% are flexible.
This should free up the bank’s balance sheets immediately and insulate the taxpayer from big losses.
Sincerely,
VSM