Search results

Trying to sort through the bondholder situation for WaMoo. If anyone spots an error or false assumption, please feel free to correct. I think it can benefit all of us to get a clearer, more accurate picture of the situation. It appears WaMoo had approx $90B in unsecured debt. Further, it...

JPM said on the conference call that they had lots of time to look over everything. The rumors of a WaMu deal have been rampant for some time - I suspect OTS/FDIC didn't pull the trigger on the actual receivership until the last moment, and let the look-over process start well in advance with...

It would seem a whole lot of people are about to learn what the "subordinated" in "subordinated debt" really means. Ditto for "unsecured". If anybody has a list of the major WaMu holders of the sub- and unsecured stuff, I would appreciate seeing it. So far, it appears there is no direct...

Early notes from the call. Taken on the fly, any errors are strictly my own. "...this builds a great franchise for us..." "...only negative...how to deal with some of these bad assets..." "...accretive immediately...fifty cents..." "...[becoming] largest financial depository in...

That cannot be true. You can't wipe out debtholders without going through bankruptcy. Well, if you're the government you can do anything, but such an action would bring instant lawsuits. The conf call starts in ~10 minutes, actual details should be pouring out shortly.

I believe - technically - FDIC isn't taking anything over. JPM gets deposits and some assets - Fed takes the "bad assets" - JPM writes a check to FDIC for $10B. So technically, this doesn't even go down as a bank failure. Technically.

Not going to happen. If GOP doesn't (mostly) support this, Dems will not pass it. Leadership in both parties is strictly in re-election mode, they will cover each others asses at the expense of pretty much anything else. Party lines and idealogy be damned. What gets interesting is the stunt...

The insurance premiums don't cover the risk. Therefore the insurance is a subsidy, because we all know FDIC insured deposits will be covered no matter what happens to FDIC. Depositors aren't the only ones benefiting, of course, the banks themselves benefit immensely as well. And it's all...

Not marking down assets to market value is the path Japan took. Worked real well, I hear.

Then the one lesson everyone should take away from this mess is to never, ever over-leverage, so that you'll never be in the back pocket of "BIG BOND HOLDERS". Let's start by balancing the federal budget - which probrams would you like to cut to reduce spending by $600B?

It is when your taxes don't cover the cost of the service you're using.

If you're such a believer in free markets, why are you posting on the government subsidized internet and trading in a government subsidized trading account? No bailout for you! You've already had yours.

Right. That's why the debt ceiling is being lowered and we're not calling on China and the Emirates to buy our debt. Here's an idea. Anybody who sold their home in '03, '04, '05 benefited from the exact same over-levaraging that enabled those incredible exec bonuses at Goldman etc. Only...

It might well be. Keep in mind the next Treasury auction is on Monday. If there is no plan, no bailout, the auction will fail. And then what?

It already happened. It's been happening for years. Until people understand that a subsidy is nothing more than a slow-motion bailout, there is no hope. Cheers.

Nothing will change until Main Street Americans accept their involvement and responsibility for this crisis. Pabst is absolutely right - the average American has turned a blind eye to all the everyday subsidies (ie, slow-motion bailouts) - has turned a blind eye to incredibly irresponsible...

AAPL is one obit away from an instant 30% gap down. In the long term, this stock is dead.

The new regs were first proposed in 2003. Regardless, in both 2003 and 2005, both sides of Congress were controlled by the Republican party. With a sitting Republican president, they had as close to free reign on policy as a democracy can get. To say Dems were opposed to this is correct - to...

I doubt it would make any difference at this point. If you really want to make a statement, go to cash. Physical cash. Pull your money out of the markets and out of the banks. It doesn't have to be for long - and it won't require all that many participants to get the message across.

It's not "hidden", it's not a "secret", it's just off the books. Everybody knows it's there, it's just not counted as part of the official debt number. It's not a conspiracy, it's accounting. :) The poster child for this is Social Security, for which the accounting was completely changed...