• 19 Feb 2009 at 7:54 AM

Opening Bell: 02.19.09

UBS’s Capitulation On Privacy Policy Could Fuck Banks (Reuters)
Swiss Banks have managed to keep the names of clients well guarded for the past unknown years, but no more: the US tax code has prevailed in destroying whatever trust remained in the once illustrious institutions’ ability to keep their collective mouths shut. You have to give attention to the fact that the governments of the world now demand access to more information than ever before in history, which is the first step towards autocracy; the latter steps being that they remove education and the ability to defend oneself. Aside, there may be a flight to safety (from Swiss banks of all things) to locations where privacy is still guarded – Antigua, anyone?
Japanese Banks Take Hit After Changing Investment Strategies (Bloomberg)
“The lenders took on increased risks under foreign ownership. Aozora Bank Ltd., acquired in 2003 by Cerberus Capital Management LP, reported reverses on subprime mortgages, GMAC LLC shares and Bernard Madoff’s fund. Shinsei Bank Ltd., bought in 2000 by private investors including billionaire J. Christopher Flowers, had losses on a stake in Germany’s Hypo Real Estate Holding AG.
“Aozora and Shinsei were managed like many banks in America, investing in derivatives and other toxic assets,” said Neil Katkov, head of Asia research at Boston-based Celent LLC. “It was a bargain with the devil.”"
Oil Up On Supply Crunch Warning (BBC)
There’s fear coming from the IEA that there’s going to be a supply lag once the collective world economy picks back up again, which is like saying “once we stop Atlanta from burning there’s going to be a shortage of water for a while.”
“”Currently the demand is very low due to the very bad economic situation,” Mr Tanaka said.
“But when the economy starts growing, recovery comes again in 2010 and then onward, we may have another serious supply crunch if capital investment is not coming.”"
Playboy Posts Loss, Will Consider Company Sale (Reuters)
I’m volunteering to work the deal; given today’s economic climate there’s going to need to be months of due diligence – it’s important this is done right.
“Playboy Enterprises Inc, publisher of one of the world’s best known adult magazines, posted a wider fourth-quarter loss, hurt by $157.2 million in restructuring and other one-time costs, as well as weaker-than-expected revenue.
The company, which posted a net loss in each quarter of 2008, also said it would be open to discussions about an outright sale of the company, or changes in the strategic direction of the flagship Playboy Magazine.
Net loss for Playboy, which in recent months has seen a management shake-up including the resignation in December of longtime Chief Executive Christie Hefner, was $145.7 million, or $4.37 per share. This compares with a loss of $1.1 million, or 3 cents a share, in the year-ago period.”
On The Heels Of The Mortgage Announcement, Fed Announces Inflation Target (FT)
More interesting than the Mortgage Bailout (to include: who’s angered by it and who’s not, who qualifies and how I don’t really care) the Fed has announced they’re pushing for a long term target inflation of 1.7 to 2.0% with a short term contraction of .5 to 1.3%. How they’re going to deal with this influx of Ms and not have an inflationary push is somewhat of a mystery, though their argument may source from destroyed wealth through this economic contraction.


In The main attraction to the Stanford funds was that they were safe and worry free (Bloomberg)
“They told me that they had insurance. The broker told me not to worry and that the bank was safe,” said Pedro.

Comments (40)

  1. Posted by guest | February 19, 2009 at 8:06 AM

    U B Sucks. In case you were wondering.

  2. Posted by guest | February 19, 2009 at 8:08 AM

    Isle of Man, Jersey, Guernsey to name a few havens. Like Switzerland, Antigua will forever be stained …

  3. Posted by guest | February 19, 2009 at 8:14 AM

    This so feels like “the circle game”. The American Consumer takes a break and all hell breaks loose. Meanwhile everyone criticized Americans for their lifestyle.

  4. Posted by guest | February 19, 2009 at 8:14 AM

    Switzerland is in double trouble. They’re about to lose much vaunted privacy. In addition they’ve loaned billions in Swiss Francs to all of eastern europe. I can’t wait. All of them dull, eurotrash crooks.

  5. Posted by guest | February 19, 2009 at 8:15 AM

    I wonder what percentage of the UBS tax cheats are major Democratic donors?

  6. Posted by guest | February 19, 2009 at 8:17 AM

    @5
    And Republican. Jeez.

  7. Posted by guest | February 19, 2009 at 8:19 AM

    @3 – that’s right – it’s immoral for Americans to prop up third world economies with consumption. What we need is for Americans to send direct aid to the third world.
    Every American should go and get a second job so we can increase the tax base and fund grants to China, India, Africa, etc.

  8. Posted by guest | February 19, 2009 at 8:20 AM

    Well, #4, perhaps the government should collect that settlement….NOW!!!

  9. Posted by american bandersnatch | February 19, 2009 at 8:20 AM

    Reminds me of an old science fiction story I once read where everyone was forced to consume vast quantities of goods to keep the economy going. The elite were allowed to consume less. Can’t remember who wrote it or its name.

  10. Posted by guest | February 19, 2009 at 8:21 AM

    Heh.
    http://www.ubs.com/1/e/about/brand.html
    Those clients are feeling pretty screwed at the moment.

  11. Posted by guest | February 19, 2009 at 8:22 AM

    @9 – Brave New World – Huxley?

  12. Posted by guest | February 19, 2009 at 8:22 AM

    About time the scumbag tax evaders were found out. The Swiss see the writing on the wall – and other tax havens will follow. Why should taxpayers subsidize these assholes?

  13. Posted by guest | February 19, 2009 at 8:29 AM

    “You have to give attention to the fact that the governments of the world now demand access to more information than ever before in history, which is the first step towards autocracy; the latter steps being that they remove education and the ability to defend oneself. ” – wtf, is Ted Nugent writing the opening bell now?

  14. Posted by NAS Keflavik boi | February 19, 2009 at 8:29 AM

    While I am no fan of the gun grabbing nanny-state, I really don’t give a flying fuck if a bunch of tax-scamming fucktards get caught. And screw the damn Nazi gold fencing Swiss.
    You don’t trust Uncle and wanna hide assets? go bury Kruggerands in your back yard.

  15. Posted by american bandersnatch | February 19, 2009 at 8:30 AM

    @11 – Wasn’t that one. In the end the guy teaches his robot to wear out his golf clubs, etc so he can relax.

  16. Posted by guest | February 19, 2009 at 8:32 AM

    Betty Liu or Erin Burnett?

  17. Posted by trojan | February 19, 2009 at 8:33 AM

    I am the Dow, what is capitulation?

  18. Posted by guest | February 19, 2009 at 8:33 AM

    Listen you stupid fuckers!
    Your “anonymous” overseas tax-haven fund-hiding bank had better not have ANY operations in the U.S.!
    THAT is the key.

  19. Posted by guest | February 19, 2009 at 8:34 AM

    @11 & @Bandersnatch
    I just walked into my partners office and she has it sitting on a shelf. Since I’ve got nothing better to do, sitting around home today, I’ll read it.
    Thanks for the tip.

  20. Posted by guest | February 19, 2009 at 8:36 AM

    Isn’t the system based solely on numbers? So where are they getting names?

  21. Posted by guest | February 19, 2009 at 8:42 AM

    I don’t think any “tax haven” is “safe” anymore, regardless of whether or not they operate in the US

  22. Posted by guest | February 19, 2009 at 8:46 AM

    19 – read the Glass Bead Game – much more appropriate to your life.

  23. Posted by guest | February 19, 2009 at 8:47 AM

    Gasparino reports that Jamie Dimon was asked at a town hall meeting “what was the grilling like” (referring to the hearing)and he apparently said “while I was sitting there I wanted to say “I’ll wire you the tarp money if you let me leave right now”.
    John Kerman said he wanted to own some gold in case he had to leave the country?
    Gasparino said “but the story is Goldman this week”.

  24. Posted by guest | February 19, 2009 at 8:48 AM

    eey yie yie!!
    “UBS’s Capitulation On Privacy Policy Could Fuck Banks ”
    deary me, william richards, did you attend this school or something?
    http://uk.news.yahoo.com/21/20090219/tuk-pupils-allowed-to-write-swear-words-6323e80.html
    “Pupils allowed to write swear words”
    “A junior school head has apologised to parents after children were allowed to write swear words in their exercise books during a lesson.”

  25. Posted by guest | February 19, 2009 at 8:52 AM

    Look at Art Cashin, his eyes are so sad, look at his eyes.

  26. Posted by guest | February 19, 2009 at 9:00 AM

    Oh, Billy Boy … “Autocracy” is government by a single person having unlimited power, or despotism. While it is a nice, inflammatory word, I think you better go back to your high school civics class textbook to find a better one.

  27. Posted by guest | February 19, 2009 at 9:04 AM

    @22
    Will check it out.

  28. Posted by guest | February 19, 2009 at 9:16 AM

    @26
    Are you a raging idiot? Do you think autocracies are formed by someone running to the front of the line, throwing up their hands, and screaming “I WIN!, I’M THE RULER!” ? Is THAT where the single person comes from?
    Christ.
    @AB
    http://en.wikipedia.org/wiki/Beyond_This_Horizon
    Is that the book? You’ve got me curious.

  29. Posted by Anal_yst | February 19, 2009 at 9:23 AM

    The only solution to this issue is to form a co-op-esque new sovereign state (there’s a few islands for sale in the caribbean); you can’t pass muster (just like sitting in front of the co-op board), you can’t get in. Don’t wanna pay the common/maintenance charges, then get the f’ out.
    Discuss.

  30. Posted by guest | February 19, 2009 at 9:28 AM

    @28 – Oh, yeah. That’s exactly what I was saying. Putz.
    Was that your attempt at an argument, or refutation? It sounded more like you just spilled hot coffee on your lap.
    Grow a pair (and a brain) before you come back and comment here again, loser.

  31. Posted by guest | February 19, 2009 at 9:34 AM

    They said “I know you’ve lost a lot” but if you go into stocks with dividends then you will be fine”. CBC cut the dividend!

  32. Posted by trojan | February 19, 2009 at 9:34 AM

    @Analyst
    sounds like joining Augusta. I can think of a certain Windward Island that may be willing to whor e itself now that it no longer has a benefactor. wto suits against internet gaming ban in the US also provide incentive for windfall WTO settlement as a dividend for members

  33. Posted by guest | February 19, 2009 at 9:46 AM

    @AB
    I’m adding it to the list to read; we just looked up the author, the words “holy god he’s old” and “he’s not dead yet” came simultaneously from two colleagues.
    @Anal_yst
    Not a bad idea: Central America also has some great little islands.
    @30
    You didn’t say anything (proffer an argument); you defined autocracy. Your definition of autocracy wasn’t out of line with what “Billy Boy” said could happen.

  34. Posted by guest | February 19, 2009 at 10:13 AM

    Yeah, sure, Bill, the secrecy of Swiss banks has been the bulwark against global autocracy. Everyone knows that (???). A tip o’ the tinfoil hat to you, sir.

  35. Posted by guest | February 19, 2009 at 10:14 AM

    Yeah, sure, Bill, the secrecy of Swiss banks has been the bulwark against global autocracy. Everyone knows that (???). A tip o’ the tinfoil hat to you, sir.

  36. Posted by guest | February 19, 2009 at 10:18 AM

    “The Midas Plague” by Frederik Pohl is the story being referenced you Wall Street scum.

  37. Posted by guest | February 19, 2009 at 10:20 AM

    “The Midas Plague” by Frederik Pohl is the story being referenced you Wall Street scum.

  38. Posted by guest | February 19, 2009 at 10:21 AM

    @36
    I hope you don’t stab yourelf in the foot with that pitch fork.

  39. Posted by guest | February 19, 2009 at 10:22 AM

    “The Midas Plague” by Frederik Pohl is the story being referenced you Wall Street scum.

  40. Posted by guest | February 19, 2009 at 10:33 AM

    @36,@37,@39
    I sense a great anger in you. Beware the power of the dark side.

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