9:50-10:04: Apparently this is the Treasury’s first time holding a conference call, which would explain why, instead of hold music, we’ve been listening to a guy cough, pant, and wheeze into the phone for the last 15.
10:05: Counselor to the Treas. Sec. Gene Sperling (sp?) and Matthew K. Baker in the hizzous.
“Today is simply announcing an other part of our liquidity piece.”
Geithner always tells us, “you have to choose a viable alternative.”
“We can’t be passive.”
10:12: We’re doing 3 things:
1. We’re maximizing the impact of each taxpayer dollar
2. Rather than take the full risk ourselves, we’re designing a proposal that shares risk with the private sector. I want to be very clear– we’re not shielding the private sector, we’re sharing with the private sector. The private sector is putting their capital at full risk, with nothing to protect them. (So who wants in?!).
3. Private sector price discovery.
Secy. Geithner likes to say…”If you had to sell your house tomorrow, and no one could get a mortgage, your house would go for a very very low price.”
10:14: Matt K. Baker either just unzipped his briefcase, or pants.
“It’s going to be a long road.”
“The problem is across the system.”
We had to deal with one of two problems– the bad assets at the banks or the credit freeze.
10:17: We’re expanding TALF.
We put out an application today for competent, longstanding asset managers. Nobody, like, too smart, but guys who know not to stick their dicks in pencil sharpeners, for sure.
Questions:
Private equity manager: What are the qualifications to apply?
Baker: We said today on our website. How long have you been managing assets in this asset class? What’s your track record like? Will you get women involved? Etc, etc etc.
Some Berkley professor named Brad DeLong is telling us how much knows about the history of the Bank of England.
Baker, with a SERIOUS tone in his voice goes, “Well, BRAD, I’m not going to take you on on your 1830 financial history.”
Brad, who you know has been working on this line forever, asks, “Are you the Energizer Bunny of Treasuries? Are you going to keep on coming with money?” (Apparently Baker’s not going to “use your cute little phrases”).
John Carney of Clusterstock wants is worried that bids are so low that banks won’t want to part with their assets. Wonders if anyone wants to comment.
Baker, getting a tone again: We can’t guarantee participation. We’re trying to change the dynamic in the markets.
8====D = TIMMMMAY
“Will you get women involved?”
And why does that matter?
Are they really going to turn good people away in this crisis if they can’t spout the PC line?
Didn’t even know that Sperling had joined the administration.
Meanwhile, how much failure can you cause before you reach dick-in-pencil-sharpener levels? Is this an unfair singling-out of SAC?
Wonder if they will ask party affiliation? Who you voted for?
Brad Delong is bitch slapping these jokers
I went out on a couple of dates with Gene Sperling. Still don’t think he’s married. He is such a star-fucker – and with “stars” being “people in elected office”. He would hyperventilate around Hillary Clinton (when she was after she was in the White House) and couldn’t understand why I did not give a crap. So, you know, it didn’t last.
Plus – very short. Not even “Jewish 6 foot”.
Carney on the call. Bess are your next?
complete non-event
took 2 questions
lol
TRB
so another half-baked plan, but this time we – taxpayers – are not at full risk?
http://www.kypolitics.org/.a/6a00d8357d58c369e2011168588d5c970c-popup
http://www.kypolitics.org/.a/6a00d8357d58c369e2011168588d5c970c-popup
So this was basically an impromptu press conference with bloggers? A few questions that they wouldn’t answer.
Obama on the Tonight Show?
The Treasury discussing economic recovery with bloggers?
The current administration is trying it’s hardest to out-clown George H.W. Bush. No offense to talk shows or blogs but…really are these guys trying to solve problems or win America Idol?
(So who wants in?! 100% downside… but upside must be split).
That’s actually wrong, Treasury puts up half of the equity, so their return is equal to yours…
Im just glad Muffie Benson Perella was on the line. I imagined her voice wouldn’t be so quite so mannish though…
@15- it’s called mbp = ep.
@ 14
treasury matches private dollars 1 for 1
and THEN also gives 50% leverage if the institution qualifies
will give 100% leverage under certain circumstances
They let the private market set the price at which they participate (smart)
Its like your grandpa saying I’ll loan you & the money you pick the stocks….I’ll also put in my own money with you…you keep your gains
Jeff Session is on CNBC now, he can’t believe what is happening.
@17, FDIC gives up to 6:1 leverage to the successful bidder.
Treasury then puts up half of the remaining equity with the winning bidder coming up with the other half, so CF to the bidder and treasury is Pari Passu.
Treasury gets the same return the investor group gets while the FDIC gets lender returns…
TGFD listened in for the final 20 minutes or so. I did put my phone on speaker and held it close as I flushed a toilet while Geithner was speaking. I don’t know if he heard it or not, and I did hear Carney ask his question.
The Guy from Delaware
p.s. to Bess. Thanks for giving us the call-in info.
@20 geithner wasn’t on the call, numbnuts.
guest@#21…
TGFD did get there late, and I didn’t know who in hell was on there talking, but you’re right. TGFD does deserve “numbnuts” for that one.
The Guy from Delaware
Obama’s prime time press conference last month: “The recession wasn’t caused by homeowners, it was caused by financial institutions making leveraged bets on mortgage securities and losing”
Treasury’s press conference today “The solution is found in lending money to financial institutions so they can make leveraged bets on mortgage securities without much risk”.
I love it when academic economists spout their knowledge on finance and proceed to craft $1T finance deals. Ch-ching!
Obama on 60min last night (his second in view in 4 weeks). I think he thinks he is still running for office.
I wish he was…
Oh come on, Bess, I know you’re more literate than this. The proper spelling is “Berkeley”–as it has been for centuries:
http://en.wikipedia.org/wiki/George_Berkeley
@13,@25: Obama will also be an alternate on the next Dancing with the Stars, play a wrongly accused college professor on Law & Order: SVU, and bring the whole family for a rousing game of Hole in the Wall.
was Muffie B-P really on the call? what a coup… or waste of a legit opp?