Archive - Jan 2009 - Story

Maria Bartiromo is trying to steal Gasparino's thunder by posting the latest update in the Thain commode saga. Per an internal memo, the former Merrill CEO is finally being contrite and will pay back the $1.2 million that he spent on the office renovations. He couches it by saying this the expenses were incurred over a year ago "when it was a different environment", and included, in addition to his office, two conference rooms and a reception area... not sure how that makes it better per se...

• Caterpillar stock plunges 20% premarket after outlook and job cuts (Bloomberg)
• ING Group laying off 20,000 (NY Times)
• Barclays says all good despite $10 billion writedown, we don't need your stinking bail out (

• Pfizer Offers $66.8 Billion for Wyeth (Bloomberg)
• 8x levered auto supplier at 16 pts up CDS anyone?
  

The liquidations of Circuit City and Linens 'N Things are just the beginning. As we discussed recently, the dea(r)th of distressed financing will crimp the plans of any companies who plan to brave the current crisis through traditional Chapter 11 bankruptcies.

As CDS traders are aware, two months ago, or about the same time Chris Cox wanted to turn everyone that had even the remotest connection to trading CDS into soap, the DTCC started disclosing everything it knows (not all that much) about the CDS market on a weekly basis. At Zero Hedge, we are starting a weekly column that looks at the net additions and reductions, and ergo, net change in the CDS market, from both a notional and contractual point of view, based on DTCC data.

As CDS traders are aware, two months ago, or about the same time Chris Cox wanted to turn everyone that had even the remotest connection to trading CDS into soap, the DTCC started disclosing everything it knows (not all that much) about the CDS market on a weekly basis. At Zero Hedge, we are starting a weekly column that looks at the net additions and reductions, and ergo, net change in the CDS market, from both a notional and contractual point of view, based on DTCC data.

In a bet gone very bad, that if true would make Jerome Kerviel's $5 billion loss at Soc Gen seem like amateur hour, the WSJ reports ($$$ link with hat tip to portfolio.com) that the main reason for Merrill's massive $15 billion Q4 loss was due to some very large basis trades gone horribly wrong.

In a bet gone very bad, that if true would make Jerome Kerviel's $5 billion loss at Soc Gen seem like amateur hour, the WSJ reports ($$$ link with hat tip to portfolio.com) that the main reason for Merrill's massive $15 billion Q4 loss was due to some very large basis trades gone horribly wrong.

Zero Hedge makes fun of sell side research often. After all who doesn't. But sometimes we are pleasantly surprised, such as when we read Goldman's weekly economic analysis piece for the week of January 23. Several issues discussed in the report include an overview of the remaining arsenal of governmental responses to the mega crisis we are in, both in the fiscal and monetary realm, a sober estimation of just how bad the real troubled asset situation in the U.S. may be if we remove the wool from our eyes, as well as what needs to be considered before making an appropriate policy move.

Zero Hedge makes fun of sell side research often. After all who doesn't. But sometimes we are pleasantly surprised, such as when we read Goldman's weekly economic analysis piece for the week of January 23. Several issues discussed in the report include an overview of the remaining arsenal of governmental responses to the mega crisis we are in, both in the fiscal and monetary realm, a sober estimation of just how bad the real troubled asset situation in the U.S. may be if we remove the wool from our eyes, as well as what needs to be considered before making an appropriate policy move.

In surely a harbinger of many more such episodes to come, Ryan Brinkerhoff, 24, apparently lost his mind last night, and tried to set fire to the 34th floor of 7 World Trade Center.

In surely a harbinger of many more such episodes to come, Ryan Brinkerhoff, 24, apparently lost his mind last night, and tried to set fire to the 34th floor of 7 World Trade Center.

...To Los Angeles. The latest victims are 91 year-old Zsa Zsa Gabor, together with her ninth, and 30 years old younger husband, Frederic von Anhalt.

...To Los Angeles. The latest victims are 91 year-old Zsa Zsa Gabor, together with her ninth, and 30 years old younger husband, Frederic von Anhalt.

Despite it being only 20 days into the year, some hedge funds have already posted their performance. Some notable YTD performers:

Stratus Fund: 1.81%
Traxis Fund: -5.71% (We hope Barton Biggs' book profits are better than his hedge fund's)
Moore Global: 2.21%
Moore Emerging Markets: -1.62%