Government To Include Insurers In Bailout (WSJ)
You have to wonder how many of these companies will actually be willing to participate at this point, and what the incentive for the government to suddenly open its doors to the insurance companies is. Aside from those two points, this makes sense.
"The life-insurance industry is an important piece of the U.S. financial system. Millions of Americans have entrusted their families' financial safety to these companies, so keeping them on solid footing is crucial to maintaining confidence. If massive numbers of customers sought to redeem their policies, it could cause a cash crunch for some companies. And because insurers invest the premiums they receive from customers into bonds, real estate and other investments, they are major holders of securities. If they needed to sell off holdings to raise cash, it could cause markets to tumble."
Taiwanese Based Firm Sues Apple (NYT)
They're claiming apple infringed on two patents across several lines (including mac books and iPods) and they're seeking damages, though no one knows how much yet.
"Elan said it won a preliminary court injunction against U.S.-based rival Synaptics in a dispute over one of the patents mentioned in the Apple lawsuit, after a then-subsidiary unit filed suit in 2006. Synaptics counter-sued."
Attorney Possibly Next BAC CEO (WSJ)
"Mr. Lewis on Dec. 9 told Bank of America's 16 board members, including several former Fleet directors who are close to Mr. Moynihan, that the executive might leave the company. Instead, the next day he was promoted to general counsel, a job he held for 43 days before taking over Merrill."
Taleb Speaks Out: 10 Rules of Life (FT)
Discuss.
Down To $135B (Reuters)
So, given the Bailout bucks are down to $135B, there's a solid chance that the President is going to have to go back to Congress to seek further funds, which I don't see as "likely to happen" (I think the pink shirted ladies have thoroughly infiltrated Congress, and have every expectation that Maxine Waters will start showing up at her own hearings wearing the shirts and demanding the robbers return the money). Any thoughts? If the stress tests go south can the President pry enough capital from the hands of the Hill to keep the banks propped up?
Congressional Panel Suggests Firing Bank Heads, Liquidating Banks (Bloomberg)
I'm totally with them on this. Banks are so 1980's, what we need here and now is a way to distribute money such that it does the most good for the greatest number of people. That's what makes sense.
"A congressional panel overseeing the U.S. financial rescue suggested that getting rid of top executives and liquidating problem banks may be a better way to solve the economic crisis.
The Congressional Oversight Panel, in a report released yesterday, also said the Treasury may be relying on too rosy an economic scenario to guide its $700 billion bailout, and declared that the success of the program after six months is "mixed." Three of the group's members disagreed with at least some of the findings."
Posted by guest , Apr 08, 2009 8:07AM
Can we hurry up and get this second crash over with? i am paying too much theta on my puts.
Posted by guest , Apr 08, 2009 8:11AM
The banks are only writing down to 98 cents on the dollar, because they know the Feds will not make them do it further. I don't understand why no one is calling for more global competition in the US banking system. Credit Suisse, Deutsche Bank, and Nomura should be able to setup branches and offer commerical loans, at least in US dollars if not in their reserve currency.
In Tokyo I can go to the Citi branch and withdraw money as if I'm at the Citi in midtown Manhattan. Why can't Japanese savers do the same here?
You know it's going to happen anyway once the dollar inflates away, though this may take ten years, the next debt crisis, and a more free market administration to put it in place.
Posted by guest , Apr 08, 2009 8:38AM
hsbc tried that. didn't work out too well.
Posted by guest , Apr 08, 2009 8:44AM
Wait a minute. TARP for insurers was dead as of a few weeks ago. Then, Neal Wolin, former Pres of Hartford P&C is nominated to be Asst Treasury Secty. Miraculously, life insurers now considered for TARP. Wolin was the ONLY top exec at Hartford to get his bonus for 2008 (95% payout). Plus he has a serious interest in the continued ability of his former employer to pay out his material financial stake. Coincidence? Right.
Posted by guest , Apr 08, 2009 8:52AM
Hi All,
Want to to be in TIME Magazine?
Be Part of the Next Big Picture: http://www.nextbigpicture.com
Next Big Picture will be advertised in TIME's 2009 Person of the Year Issue. (Dec 18th, 09)
Posted by ab , Apr 08, 2009 8:58AM
@WRichards
I love how you pretend to be a hard-core capitalist, but the second somebody suggests a capitalist solution (e.g. bankruptcy for insolvent banks) you ridicule them.
Posted by guest , Apr 08, 2009 9:33AM
Erin Burnett has a zit on the left side of her chin this morning.
Posted by guest , Apr 08, 2009 9:46AM
"NAIROBI (Reuters) - Somali pirates hijacked a U.S.-flagged, Danish-owned container ship on Wednesday with 20 American crew on board in a major escalation in attacks at sea off the Horn of Africa nation, officials said." http://tinyurl.com/cxebbp
Posted by guest , Apr 08, 2009 10:30AM
@6 It is called state capitalism (ahem, fascism).
Posted by Debter , Apr 08, 2009 10:49AM
On Taleb: Basically he says we should quit listening to the economics establishment. So doesn't that discount his "Ten Principles" to worthless since he is part of the establishment? There is no way he spends any time on the street as a trader or in academia and does not fall prey to their ways of thinking, even if he is contrarian. Can you be against the establishment (contrarian) without falling victim to that same mentality? What I'm really saying is: if you're constantly taking the other side of the establishment trade aren't you just as wrong, and risk losing tons, when they are right?
Posted by guest , Apr 08, 2009 11:25AM
Taleb is a tool.
Posted by guest , Apr 08, 2009 11:46AM
@ 11 - but his line about banks and insurers "picking up pennies in front of a steamroller" is fucking awesome AND true
Posted by guest , Apr 08, 2009 12:46PM
@12 - I thought that was Cassano?
Posted by guest , Apr 08, 2009 10:44PM
@2
Yea you can, how much they killing you on the conversion charge? Just asking because I was in Egypt for while and I got smoooooked.