Archive - May 2009

As Zero Hedge reported previously, Florida bank BankUnited was put on dodecatuple secret probation under a "prompt corrective action directive" on April 18th to find a buyer within 20 days or face imminent shutdown. 20 days came and went, and the bank is still standing "strong," unshutdown, and unpurchased.

The DXY continues to tunnel deep inside 200 DMA territory, with equity momo day traders and overcaffeinated hi fi program traders taking a cue from the 2005 playbook and buying up equities, making even more impromptu follow on offerings not a question of if but when. Then again, nobody said bizarro market is over, and in this upside-down world dilution is a good thing.

The DXY continues to tunnel deep inside 200 DMA territory, with equity momo day traders and overcaffeinated hi fi program traders taking a cue from the 2005 playbook and buying up equities, making even more impromptu follow on offerings not a question of if but when. Then again, nobody said bizarro market is over, and in this upside-down world dilution is a good thing.

Bloomberg reports that the largest publicly traded asset manager has lost its two key debt-focused executives.

Mega-LBO Clear Channel, which closed a mere 9 months ago, and is faced with a staggering debt load, is considering among other options, a prepackaged bankruptcy to address its insurmountable leverage, the NY Post reported today.

Due to a change in the Zero Hedge DNS provider, the site may experience abnormally slow traffic today which will hopefully be resolved within a day or two. As a result of the change, the www.zerohedge.com forwarding address is temporarily down, as are current email configurations. If readers have pressing email questions or requests, please send them to zerohedge@gmail.com until things revert back to normal.

The map below demonstrates the chickenpox impact that just the initial round of Chrysler dealer shutdowns will have on the US economy.

The map below demonstrates the chickenpox impact that just the initial round of Chrysler dealer shutdowns will have on the US economy.

In bankruptcy court earlier, Chrysler filed an initial salvo in its quest to trim its cost side from uber-bloated to merely bloated. The list presented below, highlights the 789 dealers (out of a total of 3,200) that Chrysler has decided to eliminate at the first possible opportunity. Zero Hedge is attempting to evaluate the geographic fallout of these massive initial cuts, and will present its readers with the results as soon as practicable. If you are a dealer and you are on the list below: tough luck - you may have a chance to appeal, but the process will likely be a moot point.

In the latest twist of the Yellowstone Club bankruptcy saga, presiding Judge Kirscher ruled that investment bank Credit Suisse which had lent $375 million in first lien debt to the bankrupt club had engaged in predatory lending, and the resulting lien backing the loan would become subordinated equitably subordinated to virtually everyone including unsecured creditors. Can't be good for those recovery prospects.

In the latest twist of the Yellowstone Club bankruptcy saga, presiding Judge Kirscher ruled that investment bank Credit Suisse which had lent $375 million in first lien debt to the bankrupt club had engaged in predatory lending, and the resulting lien backing the loan would become subordinated equitably subordinated to virtually everyone including unsecured creditors. Can't be good for those recovery prospects.

• Weil: Goldman pays greenmail to make snoops go away (Bloomberg)
• Wholesale prices rise 0.3% in April, higher than 0.1% consensus (Yahoo)
• ECB policy makers clash over bond-purchasing less than a week after Trichet-engineered truce (Bloomberg)
• GM to pay suppliers a week ahead of filing for bankruptcy (
  

Judicial Watch, which lucked out majorly on a FOIA request to the Treasury, has received several hundred pages of stunning revelations, among which are that Hank Paulson essentially used the same tactics that he used on Ken Lewis on a group of nine bankers at the October 13 meeting which apportioned government investments to the various "critical" banking institutions.

Judicial Watch, which lucked out majorly on a FOIA request to the Treasury, has received several hundred pages of stunning revelations, among which are that Hank Paulson essentially used the same tactics that he used on Ken Lewis on a group of nine bankers at the October 13 meeting which apportioned government investments to the various "critical" banking institutions.

(And no, not from smoking up shoots or otherwise).