$$$ Banks haggle over small print in €8bn bailout plan [Independent.ie]
$$$ Delphi Value May Be Too Low to Pay Bankruptcy Lenders [Bloomberg]
$$$ Madoff’s Private Equity Clients [DealJournal]
— Advertisement —
Comments (44)
Leave a comment
You can log in with your account or comment as a guest below.
- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
So…under this new plan coming out on Monday, CNBC is speculating that troubled banks will have their preferred shares converted to common.
That’s all well and good and dilutes the common shareholders. But doesn’t it make bank preferreds and debt a screaming buy?
Nothing like an investor voluntarily subordinating a few billion of pari passu.
What the plan means is that
1. Summers beat Geithner (Geithner just wanted a wrap.
2. Citibank common shareholders will be effectively wiped out (they won’t pass the stress test, so their capital hole will be plugged with US government common equity, leaving current shareholders with nada.)
3. Same may or may not happen to B of A
4. Bank debt is probably golden. Preferreds/hybrids, not sure.
JPM and Wells are winners.
What the plan means is that
1. Summers beat Geithner (Geithner just wanted a wrap.
2. Citibank common shareholders will be effectively wiped out (they won’t pass the stress test, so their capital hole will be plugged with US government common equity, leaving current shareholders with nada.)
3. Same may or may not happen to B of A
4. Bank debt is probably golden. Preferreds/hybrids, not sure.
JPM and Wells are winners.
Cody is my stimulus plan.
I tell you that…for instance… the day someone like Michael Phelps is caught with something crazy like a “bong” or something, well, that will be the day I stop believing this financial mess we’re in can’t be fixed. So, I just have to laugh at the idea that the financial mess can’t be fixed.
I thought these banks didn’t need any money from the government? Isn’t that what they’re telling us? They had to take the money because Paulson made them. They didn’t want it! Really, they didn’t! But what could they do? If the government makes you take free money from taxpayers you have to take it!
The real criminals in this will never be brought to justice.
Re: the Delphi article.
Looks like Appaloosa was much the wiser than Cerberus when it comes to ‘Detroit’.
http://www.youtube.com/watch?v=xcX11TRTETU
-C
#2/#3: You have just redeemed the reputation of “guest.”
@2 – if C fails the stress test it will mean heavy dilution for shareholders but it isn’t clear at what price and how much Treasury will own.
Do you think C and BAC fail the stress test with their existing government guarantees?
I don’t know about C and BAC but I think a lot of the regionals will fail the test and will be issuing new common. Consolidation is coming.
all the best articles for the whole week inside 1 link with thumbnails of each article inside.
here are the squirrels for everyday this week in case you missed any.
http://bit.ly/Q9Se
http://bit.ly/2iOU48
http://bit.ly/2tvFsp
http://bit.ly/y9Fv
http://bit.ly/XHOB
http://bit.ly/f1eK
there will be another new one for today posted later.
that’s everything. congrats to dealbreaker on their best month ever.
steve,
dailybail
Maybe this is just an opportunity for the major banks to take over regional banks and then they will always be saved because they will be “too big to fail.”
The government should be doing the opposite – the major banks are all insolvent, they have been for a long time. They government should have had a plan in place to dissolve them and sell off the viable pieces. But that is what honest people would do – dishonest people do anything they can to help the major banks because Rubin and other people have so many of their stocks.
http://gawker.com/5141450/americas-most-correct-internet-conspiracy-theorist-calls-next-market-crash
Last
With the horrible news today re: suicides in the armed forces, take some time to learn what you can do to thank/support our soldiers and vets.
http://www.USO.org
Whatever happened to that Schrenker guy?
5:01 PM… Thanks for stopping by Bess. Don’t forget your follow up letters expressing your interest in the position, my sweet little desert.
SPODE
Snip from our most popular post this week:
CNBC’s Erin Burnett, Banking Apologista, Leader of Idiots
“So Erin, your argument is specious and smacks of being too far up Jamie Dimon’s ass. Remove it, and study pooled capital before we decide to target you. Cuz it won’t be pretty. We’re an independent news site with no advertising so we can pretty much say whatever the hell we want.”
http://dailybail.com/home/2009/2/2/bank-bailout-news-cnbcs-erin-burnett-banking-apologista-lead.html
Bess is my stimulus plan!
The Other Guy from Delaware
Other Guy @18- Are you ready to talk about your inner anger yet?
Dr. Phil
That Treasury is even considering converting preferred to common means only one thing: banks are even now losing so much money that they can’t even pay the preferred dividend. Next, the banks even after conversion still lose so much money that they can’y pay their bond coupons.
@2 – double post = fail.
wells = fail. the bank rescue plan will only serve to perpetuate the ponzie scheme that tricky dick kovacevich has been playing for the past several quarters. it’s quite amazing that investors have bought into the fantastical tale of how wells has magically avoided writing any bad residential real estate loans in their home state. really, you’re buying that? I’m selling interests in a bridge on the southeast east side of manhattan if you would like to buy a share or two. the pop in the stock today is just delaying the inevitable. what’s the first step to recovery, denial?
kenny boy sounded like the bumbling idiot that he is in that interview with the fluffer today on cnbc. what a joke: “we plan to pay back the gov’t loan within three years”. good luck buddy. how are they going to do that with more than half of the fin advisors from the mer acquisition sitting on desks at competing banks?
Snip from latest piece just posted now:
‘Bank of America CEO Ken Lewis Should Shut His Pie Hole’
“He’s still incredibly out of touch with the American people. Listen early on as he says that $500k in salary is ok. That he’ll make do. Ken, some advice, before you have another piece of pie: remember that the average taxpayer earns less than $40k in this country and most work just as hard as you. Plus none of them has billed taxpayers for $45 billion nor requested a $120 billion guarantee on shit assets, nor did any of them give Merrill $15 billion to spend on bonuses. You are unique in your achievements.
And yet you still have a job (seriously wtf?), for which we are paying you $500k. I just contemplated that sentence. Why are you being paid at all for 2009? You should have been shit-canned months ago for driving BAC into the ground with the 2 most ill-conceived bank purchases of the last decade.”
http://dailybail.com/home/2009/2/7/bailout-cnbc-bank-of-america-ceo-ken-lewis-should-shut-his-p.html
includes cnbc video from today.
I know I haven’t had my coffee yet but did I just her some woman on CNBC organizing “No Buy Month”? What the heck is hse doing, I guess she wants more of her friends and neighbors to be out of a job and the economy to really take an unfathomable hint. The host thinks this is a great idea?
Ban the dailybail IP address plz. Kthxbye.
“NRDC Equity Partners Llc., the parent company of Lord & Taylor, bought Fortunoff from two investment firms – Trimaran Capital Partners and the Kier Group – last March for $110 million. NRDC immediately infused $10 million into Fortunoff, with plans to invest millions more and set up Fortunoff jewelry boutiques within Lord & Taylor.” http://www.newsday.com/business/ny-webfort0612434482feb05,0,984058.story
Faux news going for the jugular? “Monica Lozano on the boards of Disney and B of A. Imelt’s company receives money from the government.” “Who is going to keep an eye on them since they are advising the administration. Who is going to keep an eye on them and make sure they have the best interests of the American people? The gloves are off.
Does Muffie know about this? How could a jewelry store declare bankruptcy the week before St. Valentine’s Day? They are ruining everything.
Dr Phil @19: WTF r u talking about? The only thing that makes me angry are dolts like you.
The Other Guy From Delaware
For saturday night entertainment i just posted 7 NEW bailout songs and comedy pieces.
The Wanda Sykes wall street commentary on the bailouts is the funniest by far, imo. It’s from a recent appearnace on Leno. It’s about the 3rd or 4th post down the home page.
The Daily Show pieces are also hilarious. And all the songs posted are excellent.
Here’s the link. They are all on the home page.
http://dailybail.com/
25 Weekend Stories all in one link.
http://bit.ly/CL38
@ 29 – they are neither interesting nor funny.
I hate the daily fail. Please return to Ohio and kill yourself.
I enjoy soduko.
@22
Go back to yahoo finance, seriously, wtf are you talking about?
@ dailybail
1. Learn some internet etiquette.
2. Go back to #1.
Once you’ve completed steps 1 and 2, then we’ll address your limited value-add, but colour me a cynic, I’m not exactly optimistic this’ll ever happen.
“Update 2:10am Eastern. Invaluable Rob Nepell has put up an easy-to-use searchable version of the “compromise”/Sellout Amendment text online at Read the Stimulus.org” http://tinyurl.com/3ry4t
“$850 Billion, 1588 pages, and counting… somebody needs to read it!”
http://tinyurl.com/dx9ooe
@1
Not coming out Monday anymore. Scratch tomorrow’s selloff, or what the heck, on with the selloff anyway. Or squeeze the shorts. Or whatever…
Must
Have
DB
iPhone
App…
I hate dailybail more than guest. And that’s saying a lot.
Dailybail = Steve/Steven Megremis.
http://www.facebook.com/people/Steven-Megremis/771752240
Dealbreaker: Due to the sustained increase in CNBC-focused comments, how about a thread dedicated to that ship of fools? Would focus our collective energies.
@40
You can create your own in the Community section, fyi
@41- Thanks for answering for Dealbreaker – you should add “Publisher, Dealbreaker.com” to your personal quals.
Other Guy @28- You’re still in the denial phase. I’m here for you. It’s not your fault.
It’s not your fault.
Dr. Phil
Dr. Phil @ 43: Stick it in your ear.
The Other Guy From Delaware