Archive - Aug 2009 - Story

For those rare occasions when a megasqueeze in financials just won't raise the market:

"Break dollar in case of manipulation failure"

In other news, everyone at the SEC is currently on a 7 hour long coffee break, spiking the top line of SBUX and GMCR.

Now, more than ever, with the market becoming even more extended, the Fembots are cracking the whip even harder on the 19-year old gamers to quickly rotate money to the stocks and/or groups moving the fastest.

Title says it all.

TrimTabs: "We know now that by ignoring real-time data, the BEA was providing an inaccurate view of the economy’s health."

Developing 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.

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.

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.

Group 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.

Some 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.

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.

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.

No comment necessary.

"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 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.

• 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)