Write-Offs: 01.07.13

$$$ Banks Reach Settlements on Mortgages [NYT]

$$$ Citi Names Forese, Medina-Mora Co-Presidents [WSJ]

$$$ “We find that the probability of both a credit rating downgrade and bankruptcy increase, with large economic magnitudes, after the inception of CDS trading. This finding is robust to controlling for the endogeneity of CDS trading. Beyond the CDS introduction effect, we show that firms with relatively larger amounts of CDS contracts outstanding, and those with relatively more “no restructuring” contracts than other types of CDS contracts covering restructuring, are more adversely affected by CDS trading. Moreover, the number of creditors increases after CDS trading begins, exacerbating creditor coordination failure for the resolution of financial distress.” [SSRN via Bloomberg View]

$$$ Dick Parsons is reviving a Harlem jazz club [NYT]

$$$ AIG Damaged by Government Run Amok, Ex-CEO Greenberg Says [Bloomberg]

$$$ BNP Paribas Investment Partners is looking for a fixed income investment specialist in New York [DBCC]

$$$ Former Goldman Partner Cahilly Joins NBA as CFO, VP of Strategy [Bloomberg]

$$$ RBC Hires Tarnished Ex-Citi Internet Analyst [WSJ]

$$$ S.E.C. Names New Top Lawyer [DealBook]

$$$ Coming Soon to UK Schools: Bankers! [FT]

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  1. Posted by CDS Dude | January 7, 2013 at 7:04 PM

    Did they ever consider the fact that, you know, maybe no one wants to buy credit insurance on a company that is not likely to default, man? And, like, people usually only want to buy credit insurance if they think there is a reasonable possibility of default? Hasn't that ever occurred to you, man?

  2. Posted by UBS Stats Quant | January 7, 2013 at 7:12 PM

    Correlation = causation, dude.

  3. Posted by Funkycoldmedinamora | January 7, 2013 at 7:28 PM

    Um, Jamie? This winter club of yours- there is no golf?