American International Group
The updated Goldman Sachs 13F is out. With 10,244 security holdings, amounting to $180 billion in gross exposure, split among 7 institutional investment managers (Goldman Sachs & Co; Goldman Sachs Asset Management; Goldman Sachs International; Goldman Sachs AG; Goldman Sachs Execution and Clearing; The Ayco Company; Goldman Sachs Trust Company), it presents an interesting picture of Goldman's core equity positions. The bulk of the security holdings are held at GS & Co. ($94.5 billion of market value), followed by Goldman Sachs Asset Management ($80 billion of market value). Furthermore, Goldman breaks down holdings based on value of Calls and Puts, in addition to underlying stock.
Wherever his spirit rests, Benjamin Franklin must be livid. When the hardearned savings of ordinary people are looted to enrich greedy bankers, and when they are told that this process is necessary to make America prosperous again, no wonder so many citizens have displayed so much anger at “Tea Parties.” - Coxe Report
The one must read report this weekend.
Fed's Bill Dudley Explains Bank Runs, Discusses Collateral Risks, Suggests Way To Prevent Systemic CollapseSubmitted by Tyler Durden on 11/13/2009 21:58 -0500
An impressively comprehensive presentation by Bill Dudley before the Center for Economic Policy Studies Symposium earlier, discusses, and ties in, all the key concepts Zero Hedge has been discussing over the past several months, among these the tri-party repo system, bank runs (what and why), collateral, moral hazard, maturity mismatch, unsecured markets, Primary Dealer Credit Facility, Commercial Paper Funding Facility, and liquidity. In fact, at some points in the speech we get the feeling Mr. Dudley is indirectly refuting some of Zero Hedge's recent allegations vis-a-vis the Fed's actions and regulatory oversight. The presentation is largely devoid of bias except for some of the proposals on how to avoid future systemic meltdowns, which of course are moral hazard prevention lite and philosophy heavy. Not a lite piece of reading, yet recommended for all who want a grasp of the big picture from the Fed's perspective.
If anyone still cares about the equity market, here is a pretty good summary of what the computers did this week, courtesy of the holidaypartyless folks at Manhattan's southernmost skyscraper (something tells us the elves, contrary to disclosed information, will be there, and we will be whereever the elves are).
Let’s hope that Barofsky did not rely upon Blackrock for uncovering problems. Blackrock was involved in disturbing activity as a CDO manager. Among other things, Blackrock Financial Management was CDO manager in some horrific 2007 vintage CDOs such as Pacific Pinnacle CDO ($1 billion; closed 1/1/07; Event of Default 2/4/08); Pinnacle Point Funding ($2B closed 6/7/07; acceleration 12/13/07); Tenorite CDO I ($1 B closed 5/11/07; liquidation 2/7/08); or Tourmaline CDO III ($1.5 billion closed 4/5/07; Event of Default 3/31/08).
Technical Profiles of 8 Key Stocks: AIG, BIDU, CAT, CELG, DRYS, IBM, GS, SKF
Yesterday was pretty uneventful in the CDS world: all the black coloring indicates no material change from the prior day, with a few spots of red indicative some modest widening (notably in MET, XL, JCI, MAR, R and LUV) and a few blue names (AXP, BXP, GE, AIG). Today's data will be quite a bit redder as per the earlier Credit Market Update.
And another one for the idiot anals of the Obama administration. After taking over the biggest nationalization in history (with the exception of the GSE's but those are a special case), and being paid to run a zombie bankrupt company instead of saving everyone a few dollars and packing it in, Robert Benmosche, who became CEO of AIG a mere three months ago, has threatened to quit in protest to stern governmental compensation oversight. At least Benmosche made some very powerful enemies during his short time in the hot seat, including the NY AG. Perhaps Ken Lewis will consider the corner office position once Mr. Benmosche returns to his palatial Croatian estate. Unless, of course, the lawsuit against the former BofA CEO does not go quite as well as expected. Ironically, running AIG out of jail cell would be the crowning achievement of what the current version of capitalism is all about.
- Asian stocks, currencies rise on Japan, China economic data; gold advances.
- China's industrial production output grew 16.1% in October, its fastest pace in more than a year.
- Job openings in U.S. remain close to record-lows
- Oil prices fell $79 a barrel in Asia amid rising U.S. oil inventories and a weaker dollar
- Swiss rules to tie bonuses to profit will apply only to the nation’s 12 largest banks
- Unfilled positions climb to most since June as US companies delay hiring.
- USDA trimmed its production forecast and raised its price outlook for crops.
- Adobe to cut about 680 full-time positions or about 9% of its total work force.
Spreads were mixed to slightly tighter in the major indices today despite negative breadth in single-names. HY outperformed IG as both indices saw inside days amid low volumes pre-holiday tomorrow. Financials outperformed non-financials but the financials were off their best levels by the close (as we suspect some concerns over Bair's Basel II Bumblings started to be taken seriously).
Not So Paranoid Ramblings On Isolated Futures Gunning, And How HFT Has Cost The US Economy 22 Million JobsSubmitted by Tyler Durden on 11/10/2009 16:28 -0500
"The futures are getting gunned on massive volume without any coinciding volume in SPY. This means an institution is jamming the futures higher knowing that they can drive the market higher on no volume."
"The results of low transaction-cost Casino Capitalism are that short-term, high-frequency traders are squeezing out long-term investors, the listed market for public companies is in decline, and this decline is taking the U.S. economy with it."
Senator Dodd has Introduced a Sweeping Financial Reform Bill. Please Help Me Figure Out If Its Good or Bad, and What Its MissingSubmitted by George Washington on 11/10/2009 14:51 -0500
Is this bill good or bad? What's it missing?
"During AIG’s bailout, Goldman had influence over the decision to use public funds to pay 100 cents on the dollar for these CDOs (the underlying risk of the credit derivatives), but none of the information about the volume of Goldman’s trades with AIG—or the Goldman CDOs hedged by AIG’s other counterparties—was made public. Goldman’s public disclosures in September 2008 obscured its contribution to AIG’s near bankruptcy and the need to bailout Goldman’s trading partners in AIG related transactions. Goldman’s trading activities played a starring role in the near collapse of the global markets." - Janet Tavakoli
- SAC said to tell clients a review found no suspicious trading (Bloomberg)
- John Crudele destroys the fabricated data coming out of the BLS: real unemployment at 22% (Post)
- The Mishkin galatic stupidity trifecta:
- After destroying Iceland, finance "guru" Fred Mishkin says asset bubbles are a good thing (FT) - Where does the Fed find these sociopaths?
- And even more toxic filth out of the Iceland destructor: The Fed is Already Transparent (WSJ)
- As a reminder, Fred Mishkin, was left the Fed in disgrace in 2008, has credibility boredring on negative infinity (Zero Hedge)
- Charlie Gasparino on mollusks and purported credibility: Goldman Sachs doing god's work (HuffPo)
- Asian stocks gain on G-20 stimulus, Axa takeover; treasuries, dollar fall.
- China may “soon” issue measures to limit the use of debt in real-estate purchases.
- Crude oil rises above $78/bbl as Hurricane Ida entered the Gulf of Mexico.
- Gold surged to records (hits $1,105.11/oz) on a weakening dollar.
- House health bill unacceptable to many in Senate
- India will pull back on its easy fiscal stance next year, sees 7+% growth next year:PM
- Treasuries fall as Asian stocks rose, US prepares to sell record $81B of debt this week.