$$$ We apologize for the paucity of posts today. The DealBreaker servers decided to take a snow-day. In fact, we have no idea when this edition of write-offs will show up. We’ll be back on at full speed on Monday. [John and Bess]
$$$Chuck G says Wachovia, Citi and a consortium of other banks are thisclose to arriving at a deal—equity infusions and lines of credit—to bailout out the bond insurers. [CNBC]
$$$ Citigroup says more write-downs could be on the way: "There is a risk of a U.S. and/or global downturn in 2008. A U.S-led economic downturn could negatively impact other markets and economies around the world and could restrict the Company’s growth opportunities internationally. Should economic conditions further deteriorate, the Company could see revenue reductions across its businesses and increased costs of credit. In addition, continuing deterioration of the U.S. or global real estate markets could adversely impact the Company’s revenues, including additional write-downs of subprime and other exposures, additional write-downs of leveraged loan commitments and cost of credit, including increased credit losses in mortgage-related and other activities. Further adverse rating actions by credit rating agencies in respect of structured credit products or other credit-related exposures, or of monoline insurers could result in revenue reductions in those or similar securities." [SEC]
$$$ There’s an old saying on Wall Street: “When a man retires, his wife gets twice the husband and half the salary.” Maybe at some point that just gets old.
$$$Deals: Off the Record? An Intriguing Week
In our M&A Roundup for the week ended Feb. 10, activity is light, with only two billion-dollar deals. But interest in Yahoo and Alcoa's purchase of Rio Tinto shares keep dealmakers buzzing. [CFO.com]
$$$ Seth Tobias Death Involved No Crime, Prosecutors Say [Bloomberg]
$$$ I've spent the last several years chasing a mirage, with little time or desire to have anything lasting. I've done the bar scene, but usually the women – while physically attractive – are flakey, superficial, or a few fries short of a Happy Meal. That's not hot. [Craigslist]
$$$Deals: Waiting for Yahoo
In our M&A Roundup for the week ended Feb. 3, the number of agreements is up, but overall activity remains quiet as the market awaits news of Microsoft's hostile bid for the search engine. [CFO.com]
$$$ Here's the 74 billion question: Was the Fed's decision to cut rates last week the indirect result of Kerviel's unauthorized $74 billion in trading positions, which SocGen was furiously unwinding on MLK day? Bonus round: has the realization that it was one bank's unwinding made a deep Fed cut less likely tomorrow?
$$$ The question is, why wasn't Charlie Gasparino quoted in, or at least consulted for, this story? [thestreet.com]
$$$Jerome Kerviel is down to ONE FRIEND on Facebook, from eleven this morning. Let this be a warning to all of you contemplating breaking the law. [Facebook]
$$$ Crash [WallStrip]
Don't Forget: tonight on MOJO, the people who brought Tim Sykes into all our lives--Wall Street Warriors, season 2 (9:00 PM), Bobby G: Adventure Capitalist (9:30 PM), Start Up Junkies (10:00 PM). Discussion groups tomorrow.
