Barney Frank Hypocrisy Hits New Record After Saying Republicans Ought To Be Embarrassed About Fannie And FreddieSubmitted by Tyler Durden on 04/28/2010 12:54 -0500
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.
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.
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.
The Committee on Agriculture set to nuke CDS trading, compliments of GE reincarnator Barney Frank
Need a quick boost to the market? Just clutch at Barney's straw.
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.
It was only three weeks ago that Istithmar had put Barney's on the chopping block expecting to get not less than its full cost of $942 million.
- GDP: Q4 annualized report out at 8:30 am: Consensus at -5.5%, Actual at -3.8%: someone forget to carry the 1?