The Rats Are Abandoning The Sunken Titanic: Lockhart Resigns From Federal Housing Finance Agency
Submitted by Tyler Durden on 08/05/2009 - 12:41Developing story: James Lockhart III, the man who is (was) overseeing Fannie and Freddie, has resigned. From the green shoots bleachers - FRE and FNM's pristine condition now allows them to supervise themselves.
Cash For Clunkers Moves To Toxic Financial Stocks
Submitted by Tyler Durden on 08/05/2009 - 12:16
AIG (short interest of 16%) and CIT (13%) are today's latest squeeze puppets. Because non-bankruptcy prospects before both companies are just so hot. Will whoever is pulling all the borrow please fess up already.
Substantial, Over Half A Trillion Net, CDS Derisking Since March Lows
Submitted by Tyler Durden on 08/05/2009 - 12:04
Analyzing CDS open interest data since the March 6 lows demonstrates a troubling trend: there has been over half a trillion in net derisking across various industries, with financials leading the pack with over $130 billion. The global tightening in the CDS universes across all sectors is one direct consequence of this substantial shift to derisking.
Two New Governmental Investigations Into Goldman Compensation And Credit Derivative Practices Disclosed
Submitted by Tyler Durden on 08/05/2009 - 10:49Group Inc. and certain of its affiliates have received inquiries from various governmental agencies and self-regulatory organizations regarding the firm’s compensation processes. The firm is cooperating with the requests.
Group Inc. and certain of its affiliates have received inquiries from various governmental agencies and self-regulatory organizations regarding credit derivative instruments. The firm is cooperating with the requests.
Oregon Discusses Scary Economic Prospects, New Fund Commitments, And "Returns"
Submitted by Tyler Durden on 08/05/2009 - 10:17Some very useful economic perspectives out of the Oregon Investment Council, coupled with some objective (and quite frightening) prospects for the economy - read the section on the upcoming $3 trillion in refis, and a listing of all the fund beneficiaries of the Council's largesse.
JPM Finally Turns Those Damn Machines Back On
Submitted by Tyler Durden on 08/05/2009 - 09:26
Sure has been a while since the SPY IOIA page has graced Zero Hedge.
Damn it feels good to be an SPY market making gangsta.
Federal Reserve Responds To AIG FOIA Request, Davis Polk And Morgan Stanley Data Forthcoming
Submitted by Tyler Durden on 08/05/2009 - 09:09
Zero Hedge recently submitted a FOIA to the Federal Reserve regarding information prepared by Davis Polk and Morgan Stanley in their capacity as legal and financial advisors to the Fed in its negotiations on whether or not to push AIG into bankruptcy. We present their response.
Investment Advice From GE's Subsidiary
Submitted by Tyler Durden on 08/05/2009 - 08:26
No comment necessary.
Goldman Defends Its Trading Practices, Claims It Does Not Front-Run The Market
Submitted by Tyler Durden on 08/05/2009 - 08:08"To our Goldman Sachs Execution & Clearing, LP clients -
Given the pace of change in the equities market structure and the recent public dialogue about trading strategies, market venues and order handling, we thought it would be an ideal time to affirm our practices relating to electronic order handling and we highlight these in a letter to our customers."
Goldman's 42 $100MM+ Trading Days In Q2 - An Absolute, Unprecedented Record; Just Two Days Of Trading Losses
Submitted by Tyler Durden on 08/05/2009 - 08:01
Goldman reported their $100MM+ trading days. It is a stunner: Goldman made over $100 million on 46 out of the 65 total trading days in Q2, 70% of total. Goldman made over $50 million on 58 of the 65 total trading days in Q2, 89.2% of total.
Frontrunning: August 5
Submitted by Tyler Durden on 08/05/2009 - 07:42- Flash trading reversal by SEC may hit Direct Edge, Boost NYSE (Bloomberg) - let's see what happens to the NYSE when dark pools are unwound next...
- Ethics, journalism, the web and the profits of brokerage businesses - oh, and Paul Krugman (Bronte Capital)
- Credit crunch part deux (DollarDaze)
- Why you've stopped watching CNBC (Slate)
- S&P downgrades UK bank debt (FTAlphaville)
- FDIC sends out warning on second mortgage loan accounting (The Truth About Mortgage)
Daily Highlights: 8.05.09
Submitted by Tyler Durden on 08/05/2009 - 07:09- Land prices are on the rise again in China, helped by easy credit.
- Asian stock markets were mixed on Wednesday as investors eye US econ data.
- Australia's trade deficit narrowed in June to a smaller-than-expected gap.
- Auto dealers are citing tight inventories as a threat to "Cash for Clunkers."
- Number of homes listed for sale declined again in many U.S. cities last month.
The New Wall Street Reality
Submitted by Tyler Durden on 08/05/2009 - 00:54Some of the cause and effect chains ahead of tomorrow's ominous full moon. In other news, voodoo dolls proven an effective shareholder proxy fight defense mechanism.
Latest DTCC CDS Update (Week Of July 31)
Submitted by Tyler Durden on 08/04/2009 - 22:52Due to popular demand, Zero Hedge is happy to bring back the weekly DTCC CDS gross/net open interest recap. The primary reason we dropped coverage of CDS data over the past month was/is our belief that both fundamental and technical analysis, in the face of a rapturous market is pointless, and the only thing that matters is the ticking sovereign debt timebomb, as indicated by various Federal Reserve disclosures such as the H.4.1, H.3, and Z.1. If you don't believe me, please call any fundamental analyst at either a sell or a buy side firm at 4:00:01 pm. Nine out of ten times you will get voicemail (which, all else equal, is better than a vibrating dildo). Nonetheless, for the sake of completeness, it is useful to see what this formerly very useful data point from the world of CDS indicates: so here is what the latest out of 55 Water street says.
And As For Thanking The Academy...
Submitted by Tyler Durden on 08/04/2009 - 19:28Some late night media perspectives courtesy of Wall St. Cheat Sheet. On behalf of all of us at Zero Hedge, we thank the academy (and Damien).
