Archive - Story

• Futures hammered (Bloomberg)
• The timeline of Geithner's impromptu bank rescue plan (Washington Post)
• California in limbo with no budget, 20% of state workers to be let go shortly (Reuters)
• Automaker bankruptcy looms (
  

The board of Trump Entertainment, absent the lovely Ivanka Trump, is currently meeting to prepare a bankruptcy filing early tomorrow morning according to the WSJ.

A little over two years ago, Los Angeles-based private equity group Leonard Green acquired luxury watch distributor Tourneau, best known for its 57th street and Madison flagship New York store, in a $355 million going private transaction, which repre

Looks like the list of independent investment banks may soon be one less. U.S. Trustee Irving Picard, who is liquidating the Bernie Madoff estate, has issued a subpoena to middle-market advisory boutique Jefferies. As Jefferies is mostly a high yield trading platform it is a little odd that it is the the first company to feel the wrath of the trustee. The 2004 examination order was sent on February 13 and made available by New York bankruptcy court today. The scope of the investigation was not disclosed in the subpoena form.

• Latest: S&P Futures down 10.3 bps, Yen at 91.83
• GM told by administration to address bankruptcy option as part of Feb 17 report (WSJ)
• Krugman on the biggest Ponzi of the past 10 years, the U.S.
  

Large scale under the radar derisking occuring in Japan.

In G-7 risk, virtually everything wider

A group of disgruntled Sirius creditors has threatened to fire Mel Karmazin and other senior execs if the company does not cut a deal with EchoStar or John Malone (who has offered to provide bridge financing) and instead files for bankruptcy. Edward Weisfelner, a lawyer with Brown Rudnick was quoted as saying:

Just out on Bloomberg

*ADMINISTRATION WON'T NAME AN `AUTO CZAR, PEOPLE FAMILIAR SAY
*GEITHNER, SUMMERS TO HEAD PANEL ON U.S. AUTO RESTRUCTURING

Link to full NYT article.

pretty much means Chapter 11 most likely done deal. At least Rattner's wife's DWI news will be burried for ever.

Luxury automaker Porsche, which in October briefly became the world's largest hedge fund after it disclosed stock and derivative holdings in fellow car maker Volkswagen, prompting a massive short squeeze, and propelling Volkswagen to the status of largest company in the world by market capitalization, may be in some deep trouble after brand new disclosures by Porsche CFO Holger Härter.

In what could be the final blow to California's crumbling economy as it faces a $42 billion budget deficit, the WSJ reports that a vote to reach a complex plan to close the budget was unsuccessful by 1 vote.

Along the lines of our expectations, Naked Capitalism has a good piece on whether Eastern Europe will trigger a Financial Meltdown

Rolfe Winkler's take on the paradox of the Stimulus package (OptionArmageddon)

The topic of whether China has decided it has had enough of U.S. Treasuries, or is just posturing, has gained significant traction recently. The latest development comes from Luo Ping, an official at the China Banking Regulatory Commission, who said holding U.S. government bonds "is not the only option for investing reserves." According to Bloomberg:

Stimulus bill caps banker bonuses to 1/3 of total comp, compliments of Chris Dodd (NYT, Naked Capitalism has great comment on this)

Berkshire Hathaway propaganda - first Warren, now Charlie Munger on restoring confidence... After S&P drops another 300 points it may well be Becky Quick (Washington Post)

The WSJ is out with a muchly regurgitated piece, which may, however, finally end up being right. Turns out the negotiations between bondholders, the company and the intractable UAW are going nowhere in a hurry, and as the company has a February 17 deadline to report on its progress (of which there has been none), it may finally be time to pull the plug.