We knew this was coming. Charlie Gasparino is reporting that Spencer Bachus is ready to call for a Congressional investigation into political pressure on big banks to rescue the failing lender Shorebank Corp. Read more »
Posts by Zachery Kouwe
France is none too pleased with Germany’s unilateral action yesterday to ban bearish bets on certain financial companies and European government’s bonds. Christine Lagarde, the French finance minister blasted the Germans for stepping out of school yesterday, a move she thinks could dampen liquidity on the European bond market.
Lagarde has ruled out imposing its own ban on naked shorting, however it is still enforcing a ban on shorting certain financial stocks that was put in place in September 2008. Sweden and the Netherlands also came out against the Germans yesterday.
“I think we should really request the views of those governments affected by this measure. We did not envisage doing this. And for liquidity reasons, it is useful to continue functioning without banning short selling,” she said.
Backlash builds against German ban [FT.com]
Paul Volcker, President Obama’s special advisor on financial regulatory reform, appears to have endorsed the main bill sponsored by Sen. Chris Dodd of Connecticut. Although details are still being worked out, Congress is moving to pass the bill by the end of the month. Read more »
Germany said “auf Wiedersehen” to naked short selling, but it appears the ban is doing nothing but raising fears that Europe is in the midst of a financial crisis of its own. Traders are already clamoring to close out open positions, but who knows if the ban will really prevent a financial calamity. Read more »
We couldn’t help notice that some clueless shareholder had the audacity to ask John Mack at the Morgan Stanley annual meeting whether he really told Tim Geithner to go fuck himself in the midst of the financial crisis. Mack has admitted several times that Andrew Ross Sorkin’s account of him in the book “Too Big To Fail” was accurate. Mack’s actual words, according to the book, were, “tell him to get fucked,” or something along those lines. Read more »
James Gorman, aka “Jimmy G,” is sick and tired of all these reporters suggesting his firm is under some kind of investigation by the Feds. Just because Goldman has been charged by the SEC, doesn’t mean Morgan Stanley, which lost a lot more money than GS during the crisis, also bet against its own shitty CDO deals. All the noise surely points to a conspiracy of short-sellers. And he knows who you are and he will hunt you down. Quick, back to watching Miss USA pole dancing before he catches you.
Hedge funds have bounced back in a big way from the financial calamity of 2008, but that hasn’t stopped regulators, especially in Europe, from trying to hit the industry with a bevy of new rules. Read more »
If you thought the SEC’s charges against Goldman Sachs poured fuel on an already-raging populace fire, Wall Street’s involvement in a massive bid rigging scandal in the $2.8 trillion municipal bond market will fan the flames even more.
Earlier this month, we heard about an SEC investigation of conflicts of interest at big banks that bought credit default swaps on muni bonds they sold to state and local governments. But Bloomberg is out with a big investigative piece today about a massive bid-rigging scandal in the muni market that, if true, bilked 160 state agencies, local governments and non-profits out of hundreds of millions of dollars. Read more »