Archive - Mar 10, 2009 - Story

Good read on the purposefully leaked Citi memo today from Financial Times. The Brits make a good point about Citi's so called bumper revenues, which a) are not bumper at all based on historical standards and b) are to be expected as increased revenues always accompany volatile markets, especially in f/x and cash equities. The main thing Citi did not provide info on is the impact of writedowns, which one can bet their bottom dollar will be large to quite large.

From Robert Savage of GS.

Market rumors swirling that GE has asked existing lenders of GECC's $21.5 billion revolving credit facility which matures 2012 to amend terms of the agreement, which would allow GE, currently a guarantor on the facility, to become a borrower instead. And unlike the GGP forbearance request, lenders have said GECC has so far not contemplated any amendment fees or pricing changes.

A report by Fitch just out, spreading some more doom and gloom, after the earlier news of a forbearance being sought by the mall operator which is bankrupt in all but name.

GGP RUNNING ON FUMES ON FORBEARANCES; IDR DOWNGRADED TO "RD"

In its chart of the day, Bloomberg shows the recent performance of the iTraxx Financials CDS index. The index tracks the performance of 25 bank and insurers unsecured securities, and today, for the first time since the Lehman bankruptcy, the Financials index surpassed the iTraxx Euro Corporate index. According to Bloomberg the inversion is indicative of "systemic stress" in the financial system and increasing expectations by financial company bondholders that in the upcoming financial restructurings, unsecured notes will likely end up getting impaired.

In its chart of the day, Bloomberg shows the recent performance of the iTraxx Financials CDS index. The index tracks the performance of 25 bank and insurers unsecured securities, and today, for the first time since the Lehman bankruptcy, the Financials index surpassed the iTraxx Euro Corporate index. According to Bloomberg the inversion is indicative of "systemic stress" in the financial system and increasing expectations by financial company bondholders that in the upcoming financial restructurings, unsecured notes will likely end up getting impaired.

In its chart of the day, Bloomberg shows the recent performance of the iTraxx Financials CDS index. The index tracks the performance of 25 bank and insurers unsecured securities, and today, for the first time since the Lehman bankruptcy, the Financials index surpassed the iTraxx Euro Corporate index. According to Bloomberg the inversion is indicative of "systemic stress" in the financial system and increasing expectations by financial company bondholders that in the upcoming financial restructurings, unsecured notes will likely end up getting impaired.

It's official: Bernie to plead guilty on Thursday to all charges. U.S. Prosecutor Marc Litt says there is no plea agreement, meaning Bernie may have to lie in jail for up to 150 years. Charges against Bernie include fraud, investment advisor fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the SEC and theft from an employee benefit plan. Additionally, Madoff claims his total account balances total $64.8 billion, while U.S.

First Roubini moderating his expectations on the temperature in Hades, now Jeremy Grantham, chairman of $85 billion Grantham Mayo Van Otterloo is urging investors to move money from cash to stocks before "rigor mortis" sets in. As Jeremy, who now has large share of his capital riding on a market upswing says:

Really just one relevant data point here: all of Paulson's funds down in February... we have been worshipping false idols... Zero Hedge is doubling down on JP being up in March as otherwise the end of the world must be nigh.

Really just one relevant data point here: all of Paulson's funds down in February... we have been worshipping false idols... Zero Hedge is doubling down on JP being up in March as otherwise the end of the world must be nigh.

Really just one relevant data point here: all of Paulson's funds down in February... we have been worshipping false idols... Zero Hedge is doubling down on JP being up in March as otherwise the end of the world must be nigh.

Bankrupt Lehman Brothers posted a monthly operating report for January in which it disclosed a $1.8 billion increase in the cash of the bankrupt estate. At the end of January Lehman held total cash of $6.8 billion. The cash at LBHI alone is worth roughly 5 cents in recoveries to bondholders (assuming $150 billion in unsecured claims).

Bankrupt Lehman Brothers posted a monthly operating report for January in which it disclosed a $1.8 billion increase in the cash of the bankrupt estate. At the end of January Lehman held total cash of $6.8 billion. The cash at LBHI alone is worth roughly 5 cents in recoveries to bondholders (assuming $150 billion in unsecured claims).

Bankrupt Lehman Brothers posted a monthly operating report for January in which it disclosed a $1.8 billion increase in the cash of the bankrupt estate. At the end of January Lehman held total cash of $6.8 billion. The cash at LBHI alone is worth roughly 5 cents in recoveries to bondholders (assuming $150 billion in unsecured claims).