Must you make her say it again? Stiletto spikes to all of your asses! You think this is funny? You won’t be laughing when she administers the testicle clamps!
Talks of creating a “bad bank” are once again gaining momentum, and accordingly, we feel compelled to repeat and review our thoughts on the subject. In brief, simply removing “toxic” assets from bank balance sheets will not directly cause banks to increase lending. Lending standards have tightened dramatically, and there is an unavoidable restructuring of risk taking place. Such causes money to come out of the system and lending to contract, with or without this “bad bank” structure. Lower asset bases, higher credit losses, and bloated expense structures will continue to pressure banks’ earnings power and capital creation. We remain cautious on the group.
No Bad Bank Please [Oppenheimer]
I wonder when Bud’s going to fire her…no reason to cover banks anyways, and I can’t imagine anyone’s actually trading through Opco right now
She is no Jedi.
Whoever is selling the bad bank idea as the means to restore lending is confused.
The bad bank idea is to restore solvency to a few banks that behaved badly. The biggest component of their bad behavior was ridiculous lending standards. Those idiot standards are going to be out the window as long as the economy is in the crapper. That’s going to be a long time. Strict lending standards are going to be the rule, no way to change that anytime soon.
“If the government elects to pay fair market value, the banks will likely not elect to participate as capital hits would be too dear; however, if the gov’t pays above market, the burden on an increasingly “taxed” taxpayer grows.”
as a taxpayer, I don’t want uncle sam overpaying. that said, the problem – which ms whit, whit doesn’t seem to acknowledge – is that there is no market right now. thus, price discovery is not available. yes, there have been deal’s like mer’s sale of assets to lone star at $0.22 on the dollar. however, I would argue that while that deal was done at a market clearing price, it wasn’t reflective of a functioning market. perhaps if we had created a bad bank back in october instead of giving good money after bad to citi and bofa (and a host of others) we wouldn’t still be discussing this $h1t!
I’ll take one each of Meredith and Marisa Noel Brown. Thank you
There is never “no market.” The market price may be zero, but that’s a market.
Damn she’s hot
investorcluzo-
the American people are starting to catch on to your corrupt agenda. If you hurry you may be able to rush something through Congress before opposition gets over 50% though.
I don’t understand the idea that there is no price discovery going on in the market. There is plenty of information out there to infer the proper marks. It’s just that no one wants to acknowledge that the price discovery leads to $0. The market is functioning, but no one wants to believe what it’s saying.
@8 – I’m against all this nonsense. I’ve been betting against wfc for some time. this “good bank, bad bank” $h1t is killing me. but I was right on wachovia and in the end (if I can stay liquid), I’m sure I’ll be right on the left coast charlatans. seriously, how do you fk up book value per share by $7?
@9 – if you had done deals in the insurance industry, you would know that $0 is not a floor. there are companies out there who will pay you to take their “assets”. if you think the number is $0, then so be it – but I’m fairly certain that “buyers” would come out of the woodwork at that price. you can read the papers just like everyone else – it’s been well documented that forclosure sales have been ratcheting up. this is evidence that somewhere north of zero is the right price…
@6, uh yes, there is such a thing as “no market”. If no one will bid and no one will offer, there is NO MARKET. Is it your implication that ata price of zero a transaction would occur? If so, why?
@9, @11 Hard to believe you work in the capital markets. Or do you? The price of an asset for which there is no bid is $0. Don’t like that answer? The ratings agencies and monoline insurers have plenty of models that say otherwise. They’ll even sell them to you, slightly used!
The document is GONE….
Bess, can you repost the .pdf somewhere else (DB server)?
I am all for the idea of marking to market if you use a tangible asset as the yardstick. Using fiat currency that is easily manipulated by fluctuations in the availability of credit yields false ‘marks’ and that is the real reason we are in this mess today. To oversimplify but hit on the point, everything got marked up based on the availability of lots of fake money…and now that someone capped the well, look out below. Had everything been marked to gold or silver or oil we would be fine. Mark to market is for use in the barter system. Since fiat has no tangible value (and can therefore be manipulated at will) how is it that marking to market in fiat establishes any real value at all?
yea, does anyone know where I can get a copy of her report?
@13/15- email me
Is that Testeclamps or Testiclamps?
hey bess, could you email me at lintien at gmail? many thanks. (I dont know how to email you)
@12, there is a whole asset class out there where you probably couldn’t get a bid on 75% of available securities on any given day. Yet they are priced daily (not CDO’s or asset backed) and in fact hold value. They have intrinsic value. No bid does not equal no value (aka zero price). Can you guess?
I can’t believe you’re in the cap markets.
Nice tire-gut Tipper Gore…even Faux Channel suit makes it look nasty
hey retard @19
did I say no bid = no value? No, dope. Something can have value, yet if there is no bid for it. Guess what? That price is 0. Or do you model CDOs for Citi?
Take your guessing game to the muni desk and ask them.
Dope.