Reggie Middleton's blog

“Goldman, unlike the rest of the street and practically the rest of the I banking world, is ratcheting up VIE risk!!! Is BoomBustBlog the only one inquiring as to WHY??? We have a few reasons in mind… And to think, many thought the Enronesque days of “hide the sausage” games have come to an end…”

Wall Street responds to my missive on the potential of concentrated derivatives risk blowing up the banking system. Traders, salesman and financial engineers chimed in, and made some cogent points. Of course, I must rebut. It is the actual rebuttals that are probably more stinging than the original article - particularly the one concerning hedge funds. Please read on and feel free to chime in. Don't forget to bring the "Fiery Sword of Truth!"

Blogs, Banks, Derivatives Risk and the Fiery Sword of Truth: This One Has It All - Even a step by step guide to the TRUTH!

I bet you won't see too many of these point's in your favorite broker's analyst reports!!!

Here’s a little cross pollination to attract bears from all over. Karl Deninger, the editor of the Market Ticker, invited me over for a half hour chat on his Blog Talk Radio show to discuss things such as foreclosure fraud, banks, derivative risk and the markets. You can access the original airing podcast on Karl’s site. I have taken the liberty to append some graphics to the background to add some information to the discussion (see below). Enjoy!

The glory days of reckless banking aren't going to be punished by the courts, congress, or the regulators. The undeniable pressures of the markets are whose coming home to roost!

As the putback parade gets going, the question is not whether the banks can afford to buy back the mortgages. The question is “Can the Banks Afford the Instantaneous and Guaranteed HIT to CAPITAL?” What investors will lend money to see it instantly evaporate, and how much will they charge for those evaporation services? TARP 3.0 coming to a door step near you!!!

Increased Competition begets more pressure on margins. It's simple business 101. But "Apple's margin pressure came from growth so rapid that they couldn't source the components fast enough" you say. I say you should just take a closer look at that story before you go around repeating it... Maybe the Android will listen to it?

The latest on Apple's earnings that went far in corroborating what I've been preaching for months to a bunch of crazed, excitable Apple fanatics who simply refused to see facts for what they were. Its called compression!

Less than an hour after my CNBC Squawk on the Street segment on JP Morgan I read JP Morgan's analysts predict that forced repurchases of soured U.S. mortgages may be the “biggest issue facing banks”. I'm simply flabbergasted. Didn't I say the same thing on the 12th, as well as the 18th (OF JANUARY!!!). Worse yet, it appears as if Jamie Dimon didn't get the memo or read BoomBustBlog before the conference call. Somebody buy him a subscription!!! Yeah, I know I'm not making too many new friends on the Street, but I try to call 'em as I see 'em...

This is the introductory article for my JP Morgan quarterly opinion, which asks questions that will probably piss off management but I haven't heard anyone else ask them. I will be presenting views on this topic on CNBC's Squawk on the Street tomorrow (Monday) morning. I urge all to tune in.

Bloomberg features what they consider to be the most successful and accurate financial analysts since 2008. Of course, the firm that "Does God's work" is the one that won! Reggie Middleton disagrees, and thinks a blog beat them all! I urge the mainstream media to look beyond the traditional banking centers of influence for analysis. Not only is it soooo old school in a new digital age, but they just might find comparable (of not superior) talent in the blogosphere.

Google's earnings surprised everyone except BoomBustBlog readers and subscribers - and this is most likely just the beginning.

Without an economic incentive to foreclose, it would not be in the bank shareholders best interests to pursue foreclosure even though borrowers clearly defaulted & owe money to the lender. In this scenario, even Tyler Durden, whose controversial ZeroHedge site I read and contribute to with a passion, is being too optimistic. Yeah, that’s right! You know things are bad when ZeroHedge is too optimistic! I want all to keep this in mind when pondering the release of reserves by the banks. My JPM quarterly review is still on its way, and I will share a substantial amount with the public.

Before I release my opinion of JPM's most quarterly results, I want to demonstrate the risk that banks take in releasing provisions to boost accounting earnings in this environment. After reading this in its entirety, JPM shareholders should be infuriated at JPM management's actions, which are sure to be reversed in the near to medium term. It is not as if the accounting earnings boost has fooled anyone and lifted the stock, which is currently down on an up day.