• OTC Derivatives: Is the DTCC Too Big To Fail?
    rc whalen
    02/09/2010 - 08:06
    At our firm we frequently receive calls from clients and readers asking about the likelihood of the passage by the Congress in Washington of reform legislation regarding over-the-counter (OTC) derivatives, financial regulation and/or mortgage securitization. Our answer is small to none given the political trends and the state of the lobbies in Washington, most specifically the large bank lobby that protects the Sell Side monopoly in OTC derivatives and securities. The fact that Senator Richard Shelby (R-AL) is still apparently not comfortable with the entirely watered down House proposal to reform OTC derivatives, for example, tells you all you need to know. Stick a fork in it.
  • Greece Implements Pension Reforms
    Leo Kolivakis
    02/09/2010 - 08:44
    Greece just implemented pension reforms in an attempt to shore up its public finances and others will follow suit...
  • Why Casinos Deserve Our Trust More than Banks
    smartknowledgeu
    02/09/2010 - 02:23
    Today, casinos have much more integrity in their business dealings than do banks. In general, casinos have more cash and more transparent business dealings with their clients than do banks. That's why it's so ironic that most large commercial banks, as part of their "moral code", do not allow private bankers to do business with casinos. It appears today, that the bankers got that one entirely wrong.

Market Top: AEI Cancels IPO After Drop Of Price Expectations

Tyler Durden's picture
Submitted by Tyler Durden on 10/30/2009 10:31 -0500



Ah, the dreaded "market conditions" loophole. After several recent IPOs had seen a less than stellar reception by the equity market, banks have decided it is time to pull IPOs entirely and wait for a better window of opportunity. The most recent casualty: energy company AEI. As the AP reports:

AEI, a former Enron entity with energy-infrastructure operations in 19 developing countries, had expected shares to price between $14 and $16 per share. The company was offering 16.7 million shares. Its largest shareholder, Ashmore Funds, planned to sell 33.3 million. Thursday, AEI lowered its expected price to $12 to $13 per share. It raised its offering to 20 million shares, while Ashmore Funds cut its offering to just 1 million shares.

Per the company's disclosure:

"We have decided not to proceed with an initial public offering of our shares at this time due to market conditions."

If market conditions are inhospitable at the S&P at nearly 1,100, one wonders when the next IPO window of opportunity will come. Now that the Fed is liquefying markets much less, and the Treasury has bigger problems (debt ceilings and such) to deal with, it may be the case that just like last summer when in a matter of one week over a dozen coal IPOs were pulled as the energy market broke down, that if you were lucky enough to catch a few greater institutional fools - good for you. And if you did not, you may well be stuck holding on to that paper equity for quite a while longer.

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