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Gerald Ford To Bail Out Guaranty Financial
* Consortium led by Gerald Ford bids -- source
* Consortium bids despite FDIC rule uncertainty -- sources
* Other bids expected by Tues. deadline -- sources
It was unclear how many offers were submitted in total by
Tuesday's deadline for bids, but sources said that there were
also expected to be bids from other parties.
The Ford consortium includes Blackstone Group,
Carlyle Group, Oak Hill Capital and TPG, the
sources said.
The Financial Times reported on Monday that Canada's
Toronto Dominion and JPMorgan had expressed
interest in Guaranty. Another reported to have been interested
is U.S. Bancorp.The Federal Deposit Insurance Corporation recently
published tough proposals for private capital investors in
failed banks and the industry is awaiting final guidelines from
the U.S. regulator.
It was unclear how the Ford-led bid had been structured
amid the uncertainty over the proposed FDIC guidelines.
However, private equity executives and observers have
previously said that it would be unlikely any deal would be
inked in accordance with the original guidelines proposed,
which they view as too harsh.
The guidelines include a proposal that banks to be bought
by private equity have a Tier 1 leverage ratio of 15 percent,
far higher than the 5 percent required of well-capitalized
banks. That is widely expected to be reduced when the FDIC
publishes its final guidelines, industry sources have
previously told Reuters.
(Reporting by Megan Davies and Paritosh Bansal; Editing by
Gary Hill)
***
So basically everybody is interested, yet nobody has bought this toxic collection of $14 billion in significantly impaired loans yet, even as we are now less than two hours away from a symbolic deadline. One almost wonders (but no quite) how Kudlow will spin this implicit taxpayer bailout as proof of capitalist success, while Pisani will extol the virtues of socializing yet more toxic assets as the umpteenth (disclaimer: a number not officially recognized by Basel II) victory for the bulls.
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Ford to FDIC: Drop Dead.
It has become a joke how the cheerleaders at CNBC can only see "green shoots". Haines is the only one who will pose tough questions and refute the total bullshit being spouted by his guests and co-workers.
Are you kidding me? Haines is a POS...He is no different than any of them. Get a grip!!!
Stop bothering Haynes
He's busy figuring out "fair value"
and Growthyness really stumped him yesterday....
Who say's money don't follow politicians.
Can the same old "system is collapsing" trick work again, and to what gain for the government?
Goldman and Bank of Amerika run the markets along with Geithner, and beagle boy Ben. There is no free markets, only welfare capitalism and socialism for capitalism.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
sometimes you just can't even make $hit up this good... priceless.
Pisani and Kudlow:
Yes, please make us women for the right price.
We will sell whatever it takes to make the payments.
Hell, we even cheaper than that.
Afterall real men need integrity AND backbone.
None remaining on CNBC do. Even poor Santelli who had the makings. But having once drunk from the bitter cup of the dark prince...
I think Ford does have $14 billion in significantly impaired loans, or will by year-end. Just have to add Motor and Credit.
Dear Sirs,
Please put Gerald Ford in front of the microphone. Didn't think so. What pathetic creatures you are. You will hang from the guillotine.
whats the point of hanging from the guillotine? Can you even get physically hanged after being through the guillotine?
I have been waiting for Guaranty to blow up for a while now. This is going to make a nice impact crater. I am sure CNBC talking heads will be able to spin this in positive light. If they don't, CNBC will find another dirty boot licker.
Thanks for the heads up TD.
Apparently, that's what China wants.
Why does Ford care? He's not in the oligarchy, is he???
The FDIC has no choice. They didn't get any bids by the initial deadline (yesterday) and it sounds like the bid from Ford will be in Ford's favor, not the FDIC's.
This is, in my opinion, a turning point in the ability of the FDIC to keep juggling the failing banking system.
Watch out below.
Anyone remembers old Gerald's Hilltop pmup-and-dump forays into Fremont and Downey Savings? Just saying..
A Bankrupt FDIC is yet another victory for the Bulls.
TPG looking for another financial success after that sweet foray into Wamu.
Uhh, for those on this post who don't know... Gerald Ford the president died Dec 27th 2006.
Does this imply a growing recognition of possible lynch mobs if the SEC continues to participate in fraud?
vGoldman and Bank of Amerika run the markets along with Geithner, and beagle boy Ben. There is no free markets, only welfare capitalism and socialism for capitalism.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions