AIG

Tyler Durden's picture

Frontrunning: June 17





  • Greek central bank issues 'Grexit' warning if aid talks fail (Reuters)
  • Kerry says 'patience wearing thin' on Syria's Assad (Reuters)
  • Juncker accuses Athens of misleading Greek people (FT)
  • Al Qaeda kills two Saudis accused of spying for America (Reuters)
  • Hedge-Fund Bet Hits Pensions (WSJ)
  • ‘Flash Crash’ Trader Navinder Sarao Worked With Fund Network Now Under Investigation (WSJ)
  • 'Me? Rich?' U.S. presidential hopefuls play middle-class card (Reuters)
  • You’ve Been Warned: Central Bankers Turning Less Market-Friendly (BBG)
 
Tyler Durden's picture

Frontrunning: June 16





  • Greek PM sticks to hard line as contagion hits euro zone bonds (Reuters)
  • Greek Deadlock Has Leader Hoping for Miracle to Avoid Default (BBG)
  • Greek Showdown Puts Merkel's Teflon Legacy at Risk (BBG)
  • Greek standoff saps Europe, dollar swings ahead of Fed (Reuters)
  • Allianz Increased Holdings of Greek Debt as Its Largest Investor (BBG)
  • French Bonds Infected as Greek Crisis Swells Euro-Region Spreads (BBG)
  • Statoil to cut 1,500 more jobs as savings drive intensifies (FT)
  • UnitedHealth, Anthem Seek to Buy Smaller Rivals (WSJ)
  • Five Million Reasons Why China Could Go to War (BBG)
 
Tyler Durden's picture

In Dramatic Decision Judge Finds Fed Bailout Of AIG Was "Illegal", Government "Violated Federal Reserve Act"





"Starr alleges in its own right and on behalf of other AIG shareholders that the Government’s actions in acquiring control of AIG constituted a taking without just compensation and an illegal exaction, both in violation of the Fifth Amendment to the U.S. Constitution.... Having considered the entire record, the Court finds in Starr’s favor on the illegal exaction claim. As the Court noted during closing arguments, a troubling feature of this outcome is that the Government is able to avoid any damages notwithstanding its plain violations of the Federal Reserve Act. "

-  U.S. Court of Claims Judge Thomas Wheeler

 
Tyler Durden's picture

NY Fed Head Of Banking Supervision, And Person Who Handed Over Billions In AIG Profits To Goldman, Resigns





Just three questions here about Sarah Dahlgren's "resignation":

1. Why is she resigning now: is there a crackdown on just how corrupt the Goldman Sachs branch office at Liberty 33 truly is?
2. What will her salary at Goldman Sachs be once she joins the 200 West firm?
3. Which Goldman partner will replace her.

 

 
Tyler Durden's picture

Equity Futures Spooked By Second Day Of Bund Dumping, EUR Surges; Nikkei Slides





The biggest overnight story was neither out of China, where despite the ridiculous surge in new account openings and margin debt the SHCOMP dipped 08%, or out of Japan, where the Nikkei dropped 2.7%, the biggest drop in months, after the BOJ disappointed some by not monetizing more than 100% of net issuance and keeping QE unchanged, but Europe where for the second day in a row there was a furious selloff of Bunds at the open of trading, which briefly sent the yield on the 10Y to 0.38% (it was 0.6% two weeks ago), in turn sending the EURUSD soaring by almost 200 pips to a two month high of 1.1250, and weighing on US equity futures, before retracing some of the losses.

 
Tyler Durden's picture

Bank Of England Exposes US Cronyism: Questions Why Buffett's Berkshire Hathaway Is Not Too Big To Fail





If you thought currency-wars were a problem, just wait until crony-wars begin. In a stunning show of disagreement among the omnipotent, The FT reports that a Freedom of Information Act request has confirmed The Bank of England wrote to US authorities seeking clarity about Berkshire’s absence from a provisional list of "systemically import" (Too Big To Fail) financial institutions (SIFIs). The US Treasury declined to comment...

 
Tyler Durden's picture

Days Of Crony Capitalist Plunder - The Deplorable Truth About GE Capital





GE’s announcement that its getting out of the finance business should be a reminder of how crony capitalism is corrupting and debilitating the American economy. The ostensible reason the company is unceremoniously dumping its 25-year long build-up of the GE Capital mega-bank is that it doesn’t want to be regulated by Washington as a systematically important financial institution under Dodd-Frank. Oh, and that its core industrial businesses have better prospects. We will see soon enough about its oilfield equipment and wind turbine business, or indeed all of its capital goods oriented businesses in a radically deflationary world drowning in excess capacity. But at least you can say good riddance to GE Capital because it was based on a phony business model that was actually a menace to free market capitalism. Its deplorable raid on the public purse during the Lehman crisis had already demonstrated that in spades.

 
Tyler Durden's picture

Wall Street's Biggest Banks May Have To Make Good On $26 Billion In Oil Hedges





"The fair value of hedges held by 57 U.S. companies in the Bloomberg Intelligence North America Independent Explorers and Producers index rose to $26 billion as of Dec. 31, a fivefold increase from the end of September," Bloomberg writes, noting that the very same Wall Street banks on the hook for the hedges also financed the shale boom.

 
Tyler Durden's picture

Can't Wait To Read Bernanke's Memoirs? Here Are All The Timeless Statements By The Former Fed Chairman





We know it will be next to impossible to wait until October when this book of toner repair and printer cartridge replacement wisdom comes out, here is a sampling of timeless soundbites by the former Fed Chairman and current blogger, that should be enough to hold readers over.

 
Tyler Durden's picture

The "Revolver Raid" Arrives: A Wave Of Shale Bankruptcies Has Just Been Unleashed





Back in early 2007, just as the first cracks of the bursting housing and credit bubble were becoming visible, one of the primary harbingers of impending doom was banks slowly but surely yanking availability (aka dry powder) under secured revolving credit facilities to companies across America. This, in effect, was the first snowflake in what would ultimately become the lack of liquidity avalanche that swept away AIG and unleashed the biggest bailout of capitalism in history. Back then, analysts had a pet name for banks calling CFOs and telling them "so sorry, but your secured credit availability has been cut by 50%, 75% or worse" - revolver raids. Well, the infamous revolver raids are back.

 
Tyler Durden's picture

AIG Lite: Margin Call Claimed First Foreign Casualty Of Austrian "Black Swan"





While we wait to see which “well capitalized” bank will be the next to crumble under the weight of mountainous writedowns occasioned by the sudden souring of “riskless” assets, we get to read the DuesselHyp post-mortem, which shows that the bank was effectively AIG’d by Eurex.

 
Tyler Durden's picture

What Would Happen If ETF Holders Sold All At Once? Howard Marks Explains





What would happen, for example, if a large number of holders decided to sell a high yield bond ETF all at once? In theory, the ETF can always be sold. Buyers may be scarce, but there should be some price at which one will materialize.  But we can’t get away from depending on the liquidity of the underlying high yield bonds. The ETF can’t be more liquid than the underlying, and we know the underlying can become highly illiquid.... no investment vehicle should promise more liquidity than is afforded by its underlying assets. Do these recent promises represent real improvements, or merely the seeds for subsequent disappointment?

 
Tyler Durden's picture

A Match Made In Subprime Hell





Just in time for both total auto loans and total student debt outstanding to top the $1 trillion mark, we get a match made in FICO hell as the subprime lending unit of AIG Springleaf, has purchased OneMain, another subprime lender that’s been relegated to Citi’s Citi Holdings trash bin for years. The deal creates a subprime lending powerhouse with some $14 billion in possibly-not-toxic receivables.

 
Tyler Durden's picture

Crude Parallels: A River Of Denials





Recency bias no doubt once again playing a role, but more likely it is this new-ish trend to deny any damaging economic possibility as it might disrupt the balance of financialism. Any system that cannot even countenance just a small possibility of contrary thought is not robust or “resilient” at all. As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?

 
Syndicate content
Do NOT follow this link or you will be banned from the site!