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Gerald Ford To Bail Out Guaranty Financial

Tyler Durden's picture




 

According to Reuters:

* 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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Tue, 08/18/2009 - 22:31 | 40645 deadhead
deadhead's picture

Ford to FDIC: Drop Dead.

Tue, 08/18/2009 - 22:33 | 40647 Anonymous
Anonymous's picture

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.

Tue, 08/18/2009 - 22:47 | 40671 Anonymous
Anonymous's picture

Are you kidding me? Haines is a POS...He is no different than any of them. Get a grip!!!

Wed, 08/19/2009 - 03:34 | 40796 Anonymous
Anonymous's picture

Stop bothering Haynes
He's busy figuring out "fair value"

Wed, 08/19/2009 - 12:16 | 41177 VegasBD
VegasBD's picture

and Growthyness really stumped him yesterday....

Tue, 08/18/2009 - 22:35 | 40648 digalert
digalert's picture

Who say's money don't follow politicians.

Wed, 08/19/2009 - 16:46 | 41209 jake (not verified)
jake's picture

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

Tue, 08/18/2009 - 22:37 | 40652 Stuart
Stuart's picture

sometimes you just can't even make $hit up this good... priceless.

 

Tue, 08/18/2009 - 22:47 | 40672 Anonymous
Anonymous's picture

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...

Tue, 08/18/2009 - 22:48 | 40673 Gilgamesh
Gilgamesh's picture

I think Ford does have $14 billion in significantly impaired loans, or will by year-end.  Just have to add Motor and Credit.

Tue, 08/18/2009 - 22:51 | 40679 GoldmanSux
GoldmanSux's picture

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.

Wed, 08/19/2009 - 00:59 | 40744 Anonymous
Anonymous's picture

whats the point of hanging from the guillotine? Can you even get physically hanged after being through the guillotine?

Tue, 08/18/2009 - 23:23 | 40703 Fish Gone Bad
Fish Gone Bad's picture

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.

Wed, 08/19/2009 - 00:07 | 40725 My cognitive di...
My cognitive dissonance's picture

Thanks for the heads up TD.

Apparently, that's what China wants.

Wed, 08/19/2009 - 01:06 | 40751 Anonymous
Anonymous's picture

Why does Ford care? He's not in the oligarchy, is he???

Wed, 08/19/2009 - 01:18 | 40760 Anonymous
Anonymous's picture

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.

Wed, 08/19/2009 - 02:23 | 40777 Anonymous
Anonymous's picture

Anyone remembers old Gerald's Hilltop pmup-and-dump forays into Fremont and Downey Savings? Just saying..

Wed, 08/19/2009 - 07:28 | 40861 Anonymous
Anonymous's picture

A Bankrupt FDIC is yet another victory for the Bulls.

Wed, 08/19/2009 - 10:33 | 41002 John Self
John Self's picture

TPG looking for another financial success after that sweet foray into Wamu.

Wed, 08/19/2009 - 10:47 | 41024 Anonymous
Anonymous's picture

Uhh, for those on this post who don't know... Gerald Ford the president died Dec 27th 2006.

Wed, 08/19/2009 - 16:46 | 41208 jake (not verified)
jake's picture

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

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