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And y'all thought Lyondell is going to be the only spectacular chemical LBO bankruptcy. The list is long and focuses mostly on plastics makers: Ineos, Chemtura and Georgia Gulf. The third-largest producer of polypropylene sealed its fate in 2005 when it bought BP's Innovene unit for $9 billion. Net debt most recently was $9.7 billion, 4.3x more than LTM EBITDA according to CFO John Reece. Of course there is the matter of plummeting EBITDA... Doubt leverage will be there for long time.

Or at least according to Nouriel Roubini. The NYU professor and longtime pessimist fired the latest shot across the bow of the financial house of cards. His claim: financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is "effectively insolvent."

Or at least according to Nouriel Roubini. The NYU professor and longtime pessimist fired the latest shot across the bow of the financial house of cards. His claim: financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is "effectively insolvent."

State Street (STT) stock tumbled 33% in premarket trading (last at $24/share). The world's largest money manager for institutions said 2009 profit will be little changed from last year after Q4 earnings fell 71%. What is curious is that according to Bloomberg out of the 18 analysts who cover the stock, 9 have a buy rating, 9 have a hold and 0 are at sell...yup, good to see sell-side research ahead of the ball on this one too.

• The pound is dead, long live the pound (Bloomberg)
• Banc of America expected to cut up to 4,000 in its capital markets group (CNBC)
• UAW's Ron Gettelfinger "Deadline may be almost unattainable" (Detroit Free Press)
• Fiat getting 35% of Chrysler, forming global alliance (

CEO of Russia in Perpetuity, Vladimir Putin, was faced Monday with the tough truth of plummeting oil prices. Oil, of course, has been the lifeblood of Russia's renaissance in recent years.

CEO of Russia in Perpetuity, Vladimir Putin, was faced Monday with the tough truth of plummeting oil prices. Oil, of course, has been the lifeblood of Russia's renaissance in recent years.

Just out: The New York Times Company Enters into Agreement with Banco Inbursa and Inmobiliaria Carso for $250 Million in Senior Unsecured Notes.

In what some might consider a minor case of about-face and an even more minor case of hypocrisy, the Oracle of Omaha is quoted by Reuters as saying the stimulus plan under consideration by the U.S.

In what some might consider a minor case of about-face and an even more minor case of hypocrisy, the Oracle of Omaha is quoted by Reuters as saying the stimulus plan under consideration by the U.S.

*POUND WEAKENS ON SPECULATION U.K. CREDIT LOSSES WILL SPREAD
*POUND FALLS TO SIX-YEAR LOW OF $1.4295 AGAINST DOLLAR

Yes, we all know median home prices are down, nobody is buying or selling anything, 30 year mortgages are the cheapest they have ever been but nobody can get one, yada yada... However, this is all for California, Nevada and Detroit, right? Wrong.

Bridgewater quant guru and author of A Demon of Our Own Design, Rick Bookstabber, has found an unexpected role in this curious take on Dr. Seuss' The Lorax.

Cerberus is allegedly laying off 10% of its worldwide staff of 275 professionals. According to a spokesman "Any action we take will, of course, be consistent with the best interests of our investors." I wonder if those interests were consulted when the PE firm acquired Chrysler and/or the 51% stake of GMAC. Other PE firms performing actions consistent with investors' best interests include American Capital, Carlyle, Investcorp and 3i.

Ladenburg analyst Dick Bove (who understandably underestimated the stupidity of the Treasury and on Sept. 12 stated his belief that "Banc of America will win the auction for Lehman Brothers.") has just whacked his target price for Citi from $14 to $6, and is projecting a 2009 loss of ($1.45), a whole buck lower than consensus estimates.