Opening Bell: 10.05.09

Posted by Dealbreaker, Oct 05, 2009, 8:00am

Picture 1.pngBofA To Select Emergency CEO (WSJ)
Bank of America is expected to pick someone this week to potentially take over the event Ken Lewis “is forced to step down” before the end of the year, so if you’ve got any suggestions, do share. Also: “Government officials are expected to tell the bank if they don’t approve of specific names, essentially giving the U.S. government informal veto power.”

Goldman To Be Paid 1 Billion If CIT Fails (FT)
Others (the US taxpayer, not so much): “The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis. The potential loss for taxpayers would be the biggest to crystalise so far from the government’s capital injection plan for banks.”

Gang Of Nine Tales
Neil Barofksy: Paulson lies!!!

Roubini Says Stocks Have Risen ‘Too Soon, Too Fast’ (Bloomberg)
“Markets have gone up too much, too soon, too fast,” Roubini said in an interview in Istanbul on Oct. 3. “I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year.”

Lehman Creditors To Get Payout Plan (WSJ)
The administrator for Lehman’s operations in London plans to seek permission to remove the claims from U.K. courts and dole out assets directly to creditors, if enough hedge funds are willing to go along with the move.

Sheila Bair Turns Up The Heat In Istanbul (NYP)
The FDIC chair said she wants to regulate not just banks but hedge funds as well, and then turned heads in a plunging neckline later that night.

HSBC chief fears a second downturn (FT)
“Is this a V recovery or a W?” Mr Geoghegan asked in an interview with the FT. “[I think] it’s the latter. [If I’m right], we have to be very careful we don’t grow the balance sheet so far before the recovery has come only to write it back into the impairment line later on. I’m cautious about growing too fast.”

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