BofA's Lewis Subpoenaed Over Merrill; Thain Talks (WSJ)
How about everyone keeps their bonus and we can stop hearing about it?
"Bank of America Chairman and Chief Executive Kenneth Lewis was issued a subpoena by New York State Attorney General Andrew Cuomo, who is investigating whether the bank withheld information from investors in violation of state law, according to people familiar with the matter.
Mr. Lewis, who received the subpoena late last week, is the highest-profile subject of Mr. Cuomo's investigation into the Charlotte, N.C., bank's purchase of Merrill Lynch & Co. on Jan. 1. Mr. Cuomo's office is trying to determine if investors were misled about the depth of Merrill's losses in late 2008 and whether details of the bonuses to Merrill employees, contained in a nonpublic document, should have been disclosed to investors."
Prudential Looking To Expand (Reuters)
"Prudential Financial Inc (PRU.N) is leading the race to buy two Japanese life insurers put on sale by American International Group Inc (AIG.N) in a deal due to close next week, sources familiar with the matter said on Friday.
AIG Edison Life Insurance Co and AIG Star Life Insurance were put on the block last year as part of AIG's efforts to shed assets globally following a bailout by the U.S. government."
Hints Of A Credit Thaw (Bloomberg)
For those of you that can remember back far enough: this actually started as a liquidity problem. That the liquidity problem managed to catapult itself into equities isn't exactly unexpected, but it's a little off putting that there's any expectations that new found liquidity in the debt markets will in turn show growth in equities.
"Corporate bond trading in the U.S. is rising to the highest in two years, adding to evidence that credit markets are thawing even with stocks off to their worst start since the 1920s as the recession deepens.
An average $17.1 billion of corporate bonds traded daily this month, compared with $17.7 billion in January, according to the Financial Industry Regulatory Authority. The business is up from last year's low of $9.4 billion in August and reached the highest level since February 2007, Finra data show."
Government Plans To Float Loans To Hedge Funds and PE Firms (NYT)
The Administration is planning on making available as much as $1T to hedge funds and private equity firms in hopes that they'll take the money and buy bundled loans. The only hedge funds I could imagine would take the money are the ones that are failing miserably, though: there's not a stable fund on the planet that would risk government intervention to source capital.
The BBC's Contribution To Our Graphics Filled Morning (BBC)
The BBC has and graciously provided this morning's chief source of entertainment: the bailout as expressed through nine graphics, with three part harmony.
Posted by guest , Feb 20, 2009 8:15AM
Oh no! not circles again!
Posted by guest , Feb 20, 2009 8:22AM
no post about the chicago tea party? whos in?
Posted by merkin capital partners , Feb 20, 2009 8:23AM
why is mel brooks on cnbc?
Posted by guest , Feb 20, 2009 8:25AM
I am a hedge fund manager. What is this CNBC you speak of?
Posted by guest , Feb 20, 2009 8:31AM
OR
New York State Attorney General Andrew Cuomo, who is investigating whether he can get quality face-time like Frank, Capuano, Waters, et al.,
issued a subpoena to Bank of America Chairman and Chief Executive Kenneth Lewis. . .
Posted by guest , Feb 20, 2009 8:35AM
"How about everyone keeps their bonus and we can stop hearing about it?"
How about everyone who got more than $1mm in bonus from a wall street firm in 2005-2008 give it back and we'll use the money to do serious mortgage mods for military, teacher, nurse,police, fire, and ems families?
Posted by guest , Feb 20, 2009 8:37AM
@6
STFU
Posted by guest , Feb 20, 2009 8:40AM
I am an options trader. What is CPI?
Posted by guest , Feb 20, 2009 8:44AM
"This video from "Mad Money" host Jim Cramer is worth a look: "Lehman Brothers – Five Months Later The ghost of Lehman Brothers will forever haunt Tiny Tim Geithner, Cramer said Thursday. The Treasury secretary’s decision to let that investment bank fail will be a black mark on his credibility. In fact, it’s the whole reason he can’t garner popular support for his latest rescue plan." http://www.cnbc.com/id/29283619"
Posted by NAS Keflavik boi , Feb 20, 2009 8:44AM
this is all the economic analysis anyone needs right now:
http://www.youtube.com/watch?v=DxPcJyypUKc&eurl=http://dailybail.com/home/2009/2/18/bailout-news-video-hes-an-original-hes-back-and-hes-still-no.html
Posted by guest , Feb 20, 2009 8:49AM
@10 - bravo, put him on CNBC
Posted by guest , Feb 20, 2009 8:49AM
@10
Dude, I couldn't watch that for more than 20 seconds. You have the patience of God!
Posted by guest , Feb 20, 2009 8:49AM
i am utterly miserable
Posted by merkin capital partners , Feb 20, 2009 8:50AM
mr governor, please look this way...no, that's not a bear, it's a fur coat.
Posted by guest , Feb 20, 2009 8:52AM
#13, get a dog
Posted by guest , Feb 20, 2009 8:54AM
@13
or a cat. unconditional love.
Posted by Seaman Bodine II , Feb 20, 2009 8:56AM
i am horny, what are liz claman's tits
Posted by guest , Feb 20, 2009 8:57AM
@7, ironically it took Putin to point out that wall street blew more than 20 years of accumulated profits in the last few years. the bonuses were part of the ponzi process.
if your 'STFU' really represents the most constructive wall street opinion at least that will be useful for the people who take care of you to know. grazie.
Posted by guest , Feb 20, 2009 8:59AM
@18
STFU
Posted by guest , Feb 20, 2009 9:01AM
@18
STFU, Idiot.
Posted by guest , Feb 20, 2009 9:03AM
cats? Unconditional love? Don't you mean unconditional aloofness and lack of appreciation?
Fuck cats man, what am I? A 90 year old lady in Pelham?
Posted by guest , Feb 20, 2009 9:03AM
@18
I hope your kidding, otherwise, please go drive your car off a cliff.
Posted by guest , Feb 20, 2009 9:04AM
@18
Go kiss Putins ass! Putin is completely wrong (you can't expect ex KGB man to tell truth)
STFU!
Posted by guest , Feb 20, 2009 9:04AM
@18
STFU
-phobos.
Posted by guest , Feb 20, 2009 9:05AM
Does anyone know who gave the solvency opinion for BAC/MER merger?
Posted by Revmachine21 , Feb 20, 2009 9:06AM
@10 i got a sunburn from his redneckery.
Posted by trojan , Feb 20, 2009 9:09AM
does DB ever update the "Hot Topics" tabs? private equity doesn't even exist anymore
Posted by guest , Feb 20, 2009 9:10AM
@18 rocks!
-P.w.P'fork
Posted by guest , Feb 20, 2009 9:15AM
@Everyone
STFU
Cash bonuses should be replaced by kittens in bundles of a thousand -- kbs if you will. I think jump starting the kitten kennel business will really jump start the economy.
Everyone is happy --- yay!
Posted by guest , Feb 20, 2009 9:16AM
@trojan- guess you answered your own question there, eh?
Posted by guest , Feb 20, 2009 9:18AM
We are really back to the tipping point like we were in November.
The banking index is down 50% since January 1. That's right, 50% of the market cap of US banks has been wiped out in the last 50 days.
And yet the Administration has gone completely silent and CNBC continues to blather on and on about how indignant they are about the moral hazard of bailing out homeowners.
What about the danger of a failure of the entire financial system?
How happy will Rick Santelli and his buddies be if a wave of bank failures takes down the OCC and they can't get their profits out?
Does anyone really believe that if nationalization begins it will end with the banks? If we wipe out bank equity there will be massive, massive losses at insurance companies and pension funds.
What's that? Then we'll nationalize the insurers? Good thinking - except for the additional losses at pension funds that will require states and private companies to increase contributions.
Eventually the PBGC will be running the entire US pension system.
Since the 1930's the US banking system has been the most heavily regulated US industry. For decades investors have paid heavy taxes in exchange for government oversight. What has this earned us? Nothing but failure and losses.
Despite all of the hope and hype, the Obama Administration is quickly becoming as bad or worse than the Bush Administration. Despite having $350B of TARP money and winning an $800B stimulus package, we are about to breach the lows.
When do we hit the tipping point? When does the market and economy hit the point from which it cannot recover?
Rumors are rife and the markets and economy are consumed with fear. Yet the silence out of Washington is deafening.
The run on BAC and C is destroying America. Treasury should tell us what they plan to do about this and they should tell us today.
Is nationalization going to happen? Then let's get it done. If nationalization is off the table, then make that clear so we can move on.
Posted by Anal_yst , Feb 20, 2009 9:26AM
From the NYT Piece, emphasis mine:
"The program also does not try to change securitization practices that, many investors say, spread risks throughout the world and destroyed financial institutions. **Policy makers acknowledge that for now, fixing credit ratings, reducing conflicts of interest and improving disclosure can wait.** "
WHAT.THE.F*CK??????
Posted by guest , Feb 20, 2009 9:39AM
&17......They are what we thought they were....they are what we thought they were.
Posted by guest , Feb 20, 2009 9:45AM
@10 NAS WIN!!!
Posted by guest , Feb 20, 2009 9:54AM
"there's not a stable fund on the planet that would risk government intervention to source capital."
huh? If the government is offering you credit at near-Treasury rates, why the hell wouldn't you take it?
Posted by guest , Feb 20, 2009 10:04AM
@35
Two words for you: Maxine Waters
Posted by guest , Feb 20, 2009 10:04AM
@35 Because of the strings attached.
Posted by guest , Feb 20, 2009 10:10AM
@35
US Govt=Loan Shark
Posted by guest , Feb 20, 2009 12:09PM
@31:
"For decades investors have paid heavy taxes in exchange for government oversight. What has this earned us? Nothing but failure and losses."
I think you meant to say:
"For decades special interests/lobbyists have paid heavy campaign contributions in exchange for government turning a blind eye. What has this earned us? Nothing but failure and losses and ponzi schemes as far as the eye can see. Thanks, George Bush and Chris Cox! Job well done.
Posted by guest , Feb 20, 2009 12:27PM
there are strings attached for the issuers, not so much for investors
http://www.ny.frb.org/markets/talf_faq.html