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The Brits are scared... very scared

The Donald managed to convince his bondholders and senior lenders that he is worthy of yet another temporary reprieve, and announced a two week forbearance extension early today. At this point February 4 is the D-Day at which point the $53 million unpaid interest on the $1.25 billion 8.5% Notes due 2015 become fully due.

The Donald managed to convince his bondholders and senior lenders that he is worthy of yet another temporary reprieve, and announced a two week forbearance extension early today. At this point February 4 is the D-Day at which point the $53 million unpaid interest on the $1.25 billion 8.5% Notes due 2015 become fully due.

Dubai's Istithmar investing company, which purchased the Company for $942 million in 2007, says it is sick of this whole aspirational consumer bullshit and wants a refund...

Per Charlie; WSJ Confirms

The $87 thousand rug really did tie the office together though.

****UPDATE*****

Bloomberg reports that Thain is resigning by "mutual agreement"

The 30 Year Treasury dropped over 250 bps today ato 123.04 last, for a yield of 3.267%, the highest yield since December 3. TBT longs everywhere rejoice.

Gasparino's high placed sources have notified him of a high level meeting at BofA at 11:30 am this morning at which John Thain will most likely be booted out.

What about Ken Lewis?

Good riddance

********UPDATE*********

Gasparino reports that Thain had spent $1.22 million to redecorate his office at Merrill, and paid his driver over $230,000 last year.

After blowing over a hundred billion dollars propping up its currency, Russia's Central Bank has had enough and beginning tomorrow it has set the weak end of the Ruble's trading range against a basket of dollars and euros at 41.

After blowing over a hundred billion dollars propping up its currency, Russia's Central Bank has had enough and beginning tomorrow it has set the weak end of the Ruble's trading range against a basket of dollars and euros at 41.

New York Mayor Mike Bloomberg testified before the state assembly ways and means committee about what the proposed NY State budget would mean for NYC. In a nutshell, NYC is on the verge of 1970's Taxi Driver status.

BofA estimates that the U.S. Treasury and Federal Reserve combined, now are responsible for directly supporting about 70% of the banking system liabilities and 20% of shareholders' equity. Presuming there is virtually no equity value in U.S. banking, which would of course be the case without systemic support, then liabilities equal assets. In that case, in a government mediated vicious circle, U.S. taxpayers have indirectly paid off 70% of the loans that the US banking system has underwritten to U.S. taxpayers...

BofA estimates that the U.S. Treasury and Federal Reserve combined, now are responsible for directly supporting about 70% of the banking system liabilities and 20% of shareholders' equity. Presuming there is virtually no equity value in U.S. banking, which would of course be the case without systemic support, then liabilities equal assets. In that case, in a government mediated vicious circle, U.S. taxpayers have indirectly paid off 70% of the loans that the US banking system has underwritten to U.S. taxpayers...

The drama in U.K. financials this week highlighted the systemic division as to how different governments approach the "bail out" problem absent of an outright nationalization. The current two main options on the table, which Obama's administration will have to pick and choose from unless he decides to nationalize Citi, BofA, and others outright, are the "aggregator bank" and the "bad bank" models, as seen in the U.K. and in Switzerland, respectively.

• The Mattress Savings plan (OptionARM via FT Alphaville)
• Russia reserves lost $30.3 billion last week in ongoing failed attempt to prop ruble (Bloomberg)
• Gold from the British Pound perspective (FT Alphaville)

GDP at 6.8% was not a surprise: it was Right on top of expectations. This is compared to 9.0% for the same period last year.
PPI came out at -1.1%, a whole 100 bps lower than consensus, and much lower from the 2% last year.
CPI was 1.2% versus an expectation of 1.6%. The decline in CPI indicates deflation is picking up; the more notable decline in the PPI is more troubling as it is a leading indicator for much lower CPI numbers down the line.