• News

    You Don’t Have TARP’s Automotive Industry Financing Program To Kick Around Anymore

    Or Ally Financial, for that matter. (Well, you can continue to kick Ally Financial around, but if you’d like to do so as a shareholder, which every American citizen has sort of been for the last six years, you’ll actually have to buy your own shares now.)

    / Dec 22, 2014 at 5:02 PM


    Phil Falcone Would Appreciate It If Someone Would Write Out An Explicit Set Of Rules Re: What One Can And Cannot Do With Company Funds

    As those of you who keep close tabs on the trials and travails of La Familia Falcone know, one of the biggest mistakes Phil made in the last several years was the time he borrowed $113 million from a gated investor fund to cover personal taxes, for which he had failed to set aside enough […]

    / Mar 28, 2014 at 1:28 PM
  • Michael-Noonan


    When Will Allied Irish Bank Execs Start Receiving Bonuses Again?

    Let’s see it’s just after 7:30PM in Dublin so carry the one and Finance Minister Michael Noonan is going to go with NOT ANY TIME SOON.

    / Jan 29, 2014 at 2:37 PM
  • News

    Former Colonial Power Decries Colonialism Of EU, IMF

    Portugal has a long and sordid history of imposing its will on others, so it knows colonialism when it sees it. And all of the strings attached to all of that German money that kept its economy from full-scale collapse? Indubitably imperialistic.

    / Sep 16, 2013 at 4:37 PM
  • News

    Let’s Not Talk About How Much More German Money Greece Needs For Another Two-And-A-Half Weeks Or So

    There will be no third Greek bailout until after Angela Merkel is safely reelected later this month. Once that’s in the bag, though, there’s no time to waste, because the IMF has instituted a very sensible rule for dealing with immediate crises.

    / Sep 5, 2013 at 3:46 PM
  • condoftmyers


    Obviously When Bank Chief Said Bailout Money Was For “Bleeding Patients” He Was Referring To The Kitchen In His New Waterfront Condo, Which Required A Viking Stove To Replace An 80’s-Era Frigidaire

    Yesterday afternoon, former Mainstreet Bank chairman Darryl Lane Woods pleaded guilty to criminal charges stemming from misuse of TARP funds. According to prosecutors, Woods’ crime was two-fold. Part one involved applying for bailout money in November 2008, and then using the $1 million his bank received to purchase a $381,000 vacation home in Ft. Myers, […]

    / Aug 28, 2013 at 12:18 PM
  • Jes Staley


    Jes Staley Thinks That One Day Investors Will Be Able To Understand Banks

    The basic thing about investing in big banks’ unsecured debt is that once upon a time it was a pseudo-risk-free proposition because, like, it’s a bank, what could possibly go wrong,1 and now it’s like,2 hi, you are buying the mezzanine (call it 10-to-30%-loss3) tranche in an actively traded and extremely opaque CDO full of […]

    / Jun 4, 2013 at 5:38 PM
  • News

    RBS Has 12,000 Reasons To Wish It Had Just Taken That Bailout A Few Months Earlier

    Once, in 2007, the people who ran RBS though it would be a good idea to buy a Dutch bank with lots and lots of toxic assets. It proved to be not so good an idea, so RBS needed to raise some cash. So it sold £12 billion worth of new stock in June 2008. […]

    / Apr 3, 2013 at 2:40 PM
  • No line!


    Cyprus Finds Exciting New Way To Make Everyone Miserable

    Things in Cyprus: kinda bad. There are better places than here to read about it; I particularly recommend Joseph Cotterill here and here, pseudo-Paweł Morski here and here, Mohammed El-Erian here, the FT’s coverage here and here, the Journal’s round-up of analyst reaction here, etc. The basic story is that Cyprus’s government and banks are […]

    / Mar 18, 2013 at 9:27 AM
  • News

    Commerzbank To Have Cake, Eat It, Too

    Appreciative as it is for the €21 German taxpayers threw it, Commerzbank has had quite enough of living under the government’s thumb. So it’s going to finish paying back those taxpayer loans by conveniently diluting its shares such that the German government can’t tell it what to do anymore.

    / Mar 13, 2013 at 4:39 PM
  • where is my dog


    AIG’s Directors Will Spend Tomorrow Pretending That They Might Sue The Government

    Is AIG going to sue the government for bailing it out? Hahaha no of course not, come on, that would be nuts. So what is this? The board of A.I.G. will meet on Wednesday to consider joining a $25 billion shareholder lawsuit against the government, court records show. The lawsuit does not argue that government […]

    / Jan 8, 2013 at 10:27 AM
  • The 2013 model.


    GM Is Buying Some Stock

    One thing to savor about Treasury’s plan to get out of GM is how many corporate-governance hot buttons it gently caresses. “GM will purchase 200 million shares of GM common stock from Treasury at $27.50 per share” translates into news reports as “Treasury is losing a bazillion dollars,” since after all Treasury paid rather more […]

    / Dec 20, 2012 at 11:01 AM
  • Gray = TAF-time


    Receiving Government TAF Funding Was Just The Wakeup Call Banks Needed To Get Their Acts Together

    While we’re celebrating successful bailouts I suppose it’s worth looking at this VoxEU post and related paper from two Swiss economists about the Fed’s Term Auction Facility, which provided short-term secured funding to U.S. banks who might otherwise have trouble getting such funding between December 2007 and March 2010. The authors ask the questions that […]

    / Dec 12, 2012 at 9:55 AM
  • Today the blue line reaches zero and the circle of life is complete


    AIG’s Remaining Bailout Reduced To Rounding Error

    A while back I built a spreadsheet to do math about AIG, and it took me a long time and led to basically one short post with what I still think was a rather lovely blobby picture, so I’m just going to shamelessly reuse that spreadsheet with slight updates and be all OOH LOOK AN […]

    / Dec 11, 2012 at 5:47 PM
  • robertbenmoscheaig

    Take a bow

    Robert Benmosche: We Showed This World A Thing Or Two

    “Dear Colleagues,” Robert Benmosche wrote in a memo to AIG employees today. “We come together as a company to celebrate in good times and we draw together in times of shared crisis. Today warrants a celebration like no other in AIG’s history and places well in the past a crisis none of us will ever […]

    / Dec 11, 2012 at 11:06 AM
  • Banks, News

    Surprisingly, Treasury Purchases Of Goldman Sachs Preferred Stock Did Not Increase Small Business Lending

    Why would you bail out a bank? Theories abound; perhaps you want to keep the capital markets functioning, or prevent contagion to other systemically important financial institutions, or perhaps you just like banks and bankers and would be sad if there were fewer of them or they had less money. Somewhat less likely, you could […]

    / Nov 12, 2012 at 3:23 PM
  • There was some temptation to use the Onion's Joe Biden with Camaro picture, which would be pretty on the nose, but we're not that sort of operation.


    Let’s Help Treasury Get Out Of GM

    I’m pretty sure that there’s one or two or thirty investment bankers currently handholding at the U.S. Treasury and General Motors in their debate over when and at what price Treasury should get rid of its remaining GM shares. I’m also pretty sure that those bankers are fed up with their principals’ childishness. Thus, I […]

    / Sep 17, 2012 at 10:49 AM
  • News

    Greece Doesn’t Need You!

    Greece doesn’t need any of you!

    Greece’s finance minister on Thursday denied a report citing the country’s representative to the IMF as saying Athens would need a third bailout package. The euro weakened against the dollar on the report, which was later also denied by the official quoted in the article and came as international inspectors are mulling handing over the next tranche of Greece’s second aid package. “The country’s positions are formulated by the Prime Minister and the Finance Minister,” Greek Finance Minister Yannis Stournaras told Reuters in response to the Dow Jones/Wall Street Journal report. The article quoted Thanos Catsambas, Alternate Executive Director at the IMF Executive Board representing Greece, as saying the country would need a third bailout from European creditors. It also reported Greece could not bridge a funding gap and had met only 22 percent of targets for the second bailout…Catsambas issued a statement saying the article included “at least three important inaccuracies”.


    / Sep 13, 2012 at 2:12 PM
  • This is a graph of "Bank Total Risk" as measured by "6-Months Rolling Risk Measures." You could have questions about these measures, which are a combination of (1) stock market measures (basically the vol of a bank's stock) and (2) balance sheet measures like Z-scores. So you could ask yourself "does this reflect the bank's risk-taking, or the market's perception of the bank's risk, and are those meaningfully different things to measure?" ANYWAY. Up is riskier.


    Don’t Rely On Rating Agencies To Tell You Who Will Get A Bailout

    A thing I sometimes enjoy is reading research papers examining questions like: if you are a bank, and you are likely to be bailed out, do you take more risks than a bank all on its lonesome, and once you’ve been bailed out, what then? We’ve looked at a BIS paper on international banks, which […]

    / Aug 21, 2012 at 12:09 PM
  • Banks, News

    Bailed-Out Banks Were, Are, Will Always Be Riskier Than Non-Bailed-Out Banks

    The banking system is a machine to transform risk: people put their money into a bunch of risk-free-ish-or-so-they-think banks, and those banks lend that money to risky businesses, and the banks make money on their ability to price that risk appropriately and/or on their ability to get a government bailout when they price it inappropriately. […]

    / Aug 1, 2012 at 10:00 AM
  • News

    And Now, Spanish CDS

    Did you think you could avoid it? So the deal is this. Spain has some banks, and those banks have some loans, and those loans have some problems. And so Spain wants to bail out its banks via a thing called the Frob, which is perhaps more confidence-inspiring in Spanish than it is in English? […]

    / Jun 11, 2012 at 12:03 PM
  • I just like the Erechtheion. That's all.


    This Is Really Only The “Second” Greek Bailout?

    If you’re into Greece you’ve probably already read all about it and if you’re not I can’t make you. But in brief: Greece is fixed and we will NEVER HEAR ABOUT ANY PROBLEMS EVER AGAIN. In less brief:
    (1) Some folks stayed up all night and produced a statement.
    (2) Greece’s private creditors will be offered the long-anticipated opportunity to voluntarily exchange their old bonds for new bonds, which will for the most part be the same as the old bonds except for minor differences including but not limited to a greatly extended maturity (to 2042), a 53.5% reduced face amount, and a 3.6% blended interest rate.
    (3) If they don’t voluntarily exchange, which they will because – hilariously – they’ve already taken accounting writedowns (and also because I guess it’s better than a disorderly default), private holders will get CAC’ed, which may or may not be as bad as it sounds, but in any case at least CDS will pay out, unless it doesn’t.
    (4) Also the public sector will do various helpful, confusing things.
    (5) In exchange for this, Greece will enact horrible austerity, and because no one believes that Greece will actually do that, there will be escrow accounts and what Reuters ominously calls “permanent surveillance by an increased European presence on the ground.”
    (6) Everyone is pretty sure we’ll be doing this again in six months and, look, just fair warning, I will not be writing about it then, because feh.

    We haven’t had a serious international bankruptcy, which this pretty much is, since I started paying attention to the financial markets, two months ago, so I mostly think about insolvency from a US bankruptcy law perspective. One thing that happens in bankruptcy is that, like, really really roughly speaking, the creditors stop being creditors and become the owners. This isn’t always the case but the basic playbook of US bankruptcy law is:

    / Feb 21, 2012 at 2:38 PM
  • News

    Jerks To Get Paid More Than Nice People

    No, not your comp, though probably that too. The Times and the Journal check in today on the state of play in Greece and it’s kind of how you might expect. From the Times: For months now, Greece has desperately been trying to persuade its private-sector creditors that it is in their interest to exchange […]

    / Jan 10, 2012 at 7:16 PM
  • News

    Unpitted Olives Likely To Blame For Congressman Dennis Kucinich’s Crankiness Surrounding The Wall Street Bailouts

    As some of you may remember, back in fall 2008, Congressman Dennis Kucinich was not at all happy about the idea of bailing out Wall Street. “Let Wall Street bailout Wall Street,” he screeched. “The bailout bill is the dumbest thing I’ve ever seen,” he said. “Is this the United States Congress or the Board […]

    / Jan 26, 2011 at 5:05 PM
  • News

    FYI, Citigroup Didn’t Actually Want That Bailout

    Proving yet again that in this country, we don’t let banks fail even if they want to.

    / Jan 14, 2011 at 10:36 AM
  • News

    Irish Parliament Okays EU/IMF Bailout Package, Fake Irishman Weighs In On Crisis

    Reuters reports that Ireland’s parliament has approved the 85 billion euro bailout, by a vote of 81 to 75. In related news, one Canadian posing as a Irish citizen recently offered his two cents on the situation, noting that there are four causes of Ireland’s current predicament. They are: 1) ‘greed, greed and more greed’ […]

    / Dec 15, 2010 at 10:20 AM
  • News

    PIMCO Got A Nice $7.1 Billion From The Fed

    Making it one of the largest borrowers of the Fed’s Term Asset-Backed-Securities Loan Facility. This calls for a mid-afternoon conga line.

    / Dec 1, 2010 at 1:45 PM
  • News

    Federal Reserve Releases Bailout Details

    As promised. If you’re looking for some lunchtime reading material, check them out here. Do feel free to share your favorite passages with the group.

    / Dec 1, 2010 at 12:02 PM

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