And Now For Some Bleacher Levity
Submitted by Tyler Durden on 08/14/2009 - 18:42The perfect segue to the weekend.
Technical Reading: Adverse Selection vs. Opportunistic Savings in Dark Aggregators
Submitted by Tyler Durden on 08/14/2009 - 17:37Scientific observations on dark pools and associated algorithmic approaches
Weekly Credit Summary: August 14
Submitted by Tyler Durden on 08/14/2009 - 17:10Credit significantly underperformed stocks this week as last week's capitulation in CDS markets did seem to be the turning point for this swing. HY underperformed IG considerably as single-names led the weakness but with spreads so much wider close-to-close, the S&P is almost unch, VIX is down, and Oil and Gold both fell with the dollar (unexpectedly) and we sense some weakness (following today's flatline in stocks midday) to come in equity markets.
Colonial Is Officially Under, FDIC Is $2.8 Billion Poorer
Submitted by Tyler Durden on 08/14/2009 - 17:01First casualty: Dwelling House Savings and Loan Association, Pittsburgh, Pennsylvania, to be acquired by PNC. $13.4 million in assets and $13.8 million in deposits (did they have $0.4 million in contra assets somewhere?). FDIC PR here.
Second casualty (pro forma): Dwelling House Savings and Loan Association of Pittsburg, does not pass go: FDIC appointed receiver. "Dwelling House, which had total assets of $12.9 million, was in an
unsafe and unsound condition, was critically undercapitalized and had
no reasonable prospect of recovery." Oddly the "same" entity can have two different total assets at the same time OTS PR here.
Third casualty: Colonial Bank, Montgomery, Alabama, with BB&T being the lucky winner. $25 billion in total assets, and $20 billion in total deposits. FDIC retains $3 billion of the total assets not purchased by BB&T ($23 Billion). The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion. The FDIC and BB&T entered into a loss-share transaction on approximately $15 billion of Colonial Bank's assets. FDIC PR here.
Fourth casualty: [leave space blank]
Richard LeFrak Not Optimistic On CRE
Submitted by Tyler Durden on 08/14/2009 - 16:42Richard LeFrak on the long, hard path before commercial real estate (and he should know). Also, in a stunning development Ivanka explains CMBS (which she undoubtedly learned from fiance Jared Kushner who knows all about CMBS and 666 Fifth Avenue)
Citadel - E-Trade Update: OTS Suspends Application While It Examines "Certain Issues"
Submitted by Tyler Durden on 08/14/2009 - 16:08"The OTS has decided to suspend consideration of the application while we examine certain issues." - William Ruberry, OTS Spokesman
Treasury Responds To AIG FOIA, Releases 145 Pages Of Information
Submitted by Tyler Durden on 08/14/2009 - 15:01The Treasury has provided a substantial FOIA disclosure packet to the good folks over at Judicial Watch. At this point we are awaiting a similar FOIA response from the Fed, which was requested by Zero Hedge previously and we expect to have it within 1 month.
BAC Stock Up On Various Rumors (Or For No Reason At All), CDS Wider For The Day
Submitted by Tyler Durden on 08/14/2009 - 14:22Bank of America stock up 2% at last check, while CDS is 5 bps wider. Someone please explain that one to us.
Citadel Set To Control 97.5% Of E-Trade's Order Flow
Submitted by Tyler Durden on 08/14/2009 - 13:29Ken Griffin's recent announcement that he is divesting a major portion of his E-Trade holdings presumably demonstrates a divergence of the paths of the two firms, while in fact Citadel is getting ever more intertwined with the online broker's operations, in fact giving the Chicago firm almost exclusive control over E-Trade's customer trade flow.
Sideways Market
Submitted by Tyler Durden on 08/14/2009 - 12:55
Or the purest definition thereof seen in a while. In the meantime dollar, bonds and equities seem to be dislocating.
Is HSBC Europe Chairman Subject Of Major Criminal Investigation
Submitted by Tyler Durden on 08/14/2009 - 12:29"Sources close to the Carroll Foundation Charitable Trust board of trustees have confirmed that compelling criminal evidence Carroll Trust Dossiers have been submitted to Scotland Yard and the FBI surrounding the fraudulent incorporation of dummy Gerald Carroll Trust HSBC bank accounts and the resultant embezzlement of over $150,000,000, (one hundred and fifty million dollars) of Carroll Trust liquid funds located and held in offshore tax havens within the framework of an international criminal syndicate operation."
Icahn On The Receiving End For Once
Submitted by Tyler Durden on 08/14/2009 - 11:49A lawsuit filed several months ago by R2 Investments puts activist investor Carl Icahn on the defensive for once.
Introducing: The Zero Hedge Tip Line
Submitted by Marla Singer on 08/14/2009 - 11:13We've opened up the Zero Hedge tips line and our (one-person) satellite offices in Zurich and London. Just in case you happen to come across something Zero Hedge worthy when your Blackberry is on the fritz.
So This Is Where All The Volume Disappeared To
Submitted by Tyler Durden on 08/14/2009 - 10:53
Down-day volume dominating. How long before some exchange breaks again?
