Barney's

Barney Frank Hypocrisy Hits New Record After Saying Republicans Ought To Be Embarrassed About Fannie And Freddie

The Mass legislator totally loses it after penning yet another angry letter (he is good at that; being unconflicted and actually passing sensible and Wall Street influence-free laws, not so much) in which he says that the $6 trillion extra toxic debt on the US Treasury's books from the GSEs (which the democrats refuse to recognize) is really the republicans' fault. The fact that Barney was instrumental to creating the parabolic phase of the housing bubble with his idiotic statements in 2005 that there is "no bubble", and that his commission currently refuses to deal with issues such as the GSEs and a repeat of the housing bubble is completely absent from his letter.

Richard Perry and Ron Burkle Preparing For Barney's Post-Christmas Bankruptcy

The Dubai collapse is about to claim its first domestic icon in the face of Barney's luxury store. The New York retail icon is set to file for bankruptcy after the Christmas season, or such at least are expectation of the company's key bondholders - Perry Capital and Ron Burkle's Yucaipa according to the NY Post. What the union-leveraged Burkle sees in the retailer is a big unknown (absent some firm principals' fascination with the firm's metrosexual merchandise), however, the firm, together with Richard Perry, is said to have accumulated virtually all the bonds in the name, at about 60 cents on the dollar, likely in advance expectations of a debt-to-equity conversion.

Daily Credit Summary: July 30 - Whither The Facts

Spreads were tighter in the US as all the indices improved (though leaking wider most of the day from a gap tight open, albeit with HY closing below 800bps). Indices typically underperformed single-names with skews mostly narrower (and this is becoming critical as IG is in mid single-digits and HY skew is very tight - perhaps signaling some room for HY-IG decompression or just single-name protection buying hedged via the index) as IG underperformed but narrowed the skew, HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO underperformed but compressed the skew, and HY's skew widened as it underperformed.

Paging Barney Frank: AIG Paid 3x More In Bonuses

Let's recall what the magical bonus number was that caused Barney Frank to almost get a lynch mob armed and ready to march on Wall Street: $165 million in retention bonuses.

The Push To Postpone the Inevitable Collapse Is Coming To An End

The only man with cojones to call the depression a depression, David Rosenberg, of what is now Bank of Countrywide Lynch, is reading behind the BS that was this morning's highly suspect GDP number, and expects the current quarter's annualized GDP decline to hit -6.3%! The two items that attract his attention are consumer and capital spending, declining 3.5% and 27.8%, respectively. So where did the fudging occur to result in the upside surprise: inventories.

Early Jan 30 Headlines

  • GDP: Q4 annualized report out at 8:30 am: Consensus at -5.5%, Actual at -3.8%: someone forget to carry the 1?

Barney's On Chopping Block

Dubai's Istithmar investing company, which purchased the Company for $942 million in 2007, says it is sick of this whole aspirational consumer bullshit and wants a refund...