• Sprott Money
    04/29/2016 - 05:58
    There is unfortunately no basis for renewed optimism that this current litigation will have any meaningful impact on precious metals manipulation – with respect to either silver or gold.

Credit Line

Tyler Durden's picture

Chesapeake Forced To Pledge Entire Company As Collateral To Preserve Existing Credit Facility





Today the stock of CHK is surging following the good news that contrary to some expectations, it did not lose access to its $4 billion line of credit. However, that came at a cost: to preserve its full $4 billion availability, Chesapeake was forced to pledge almost all of its natural gas fields, real estate and derivatives contracts. In addition to most of its gas and oil reserves, Chesapeake pledged as collateral all hedge contracts, property, deposit accounts and securities, subject to certain undisclosed carve-outs, according to the regulatory filing. In other words, the entire company.

 
Tyler Durden's picture

Impatient Banks: A Real Red Flag For The Oil Patch





“This has the makings of a gigantic funding crisis..."

 
Tyler Durden's picture

Valeant Throws Its Former CFO Under The Bus; Accuses Him Of Cooking The Books After Coming Over From Goldman Sachs





Back in October, we tried to "tie the Valeant roll-up together by presenting The Goldman "Missing Link" in which we showed that Howard Schiller, Valeant's CFO from December 2011 to June 2015, previously ran Goldman Sachs’ health-care practice until 2009, when he became the chief operating officer of Goldman’s investment bank. The next year, the bank advised Valeant on its breakout purchase of Biovail Corp. Today, as part of its stunning announcement earlier today, the company - in looking for easy scapegoats - also threw its former CFO under the bus and accused him of cooking the books.

 
Tyler Durden's picture

The Liquidity Endgame Begins: Whiting's Revolver Cut By $1.2 Billion As Banks Start Slashing Credit Lines





Whiting, the largest oil producer in North Dakota's Bakken shale formation, had $2.7 billion left on a loan revolver at the end of 2015. Its CEO Volcker said on Thursday he expects Whiting will have "at least $1.5 billion" left on the loan after the redetermination, implying a cut of $1.2 billion. What is most troubling is that as recently as late February, or just a few weeks ago, the company said it expected a cut of no more than 30%, which would have been roughly $800 million.

 
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The Next Cockroach Emerges: Including Undrawn Loans, Canadian Banks Exposure To Oil Doubles





One month ago we also wondered what other cockroaches may be hiding inside the uncharacteristically optimistic Canadian banks' balance sheets. The first answer was revealed today when Bloomberg reported that if one includes untapped credit loans Canadian banks’ exposure to the struggling oil-and-gas industry more than doubles from the current C$50 billion in outstanding loans generally highlighted by Royal Bank of Canada, Toronto-Dominion Bank and the country’s four other large lenders in quarterly earnings calls and presentations, to C$107 billion ($80 billion).

 
Tyler Durden's picture

Chesapeake's AIG Moment: Energy Giant Faces $1 Billion In Collateral Calls





"we have received requests to post approximately $220 million in collateral, of which we have posted approximately $92 million. We have posted the required collateral, primarily in the form of letters of credit and cash, or are otherwise complying with these contractual requests for collateral. We may be requested or required by other counterparties to post additional collateral in an aggregate amount of approximately $698 million."

 
Tyler Durden's picture

This Is Wall Street At Its Most Fatalistic: "Markets Are Now Coupled In A "Destructive” Way"





"The markets are not insulated from each other but are coupled in a “destructive” way, a mirror image of QE dynamics. Risks are becoming unpinpointable. Problems are global while politics remains inherently local allowing the existing trends to remain unchecked and self-reinforce. Any action causes further problems, which creates a quicksand effect -- everyone is both a victim and an accomplice."

 
Tyler Durden's picture

The "Trade Of The Year" Just Returned 30% In Two Days





CHESAPEAKE SAID PLANNING TO PAY $500 MILLION DEBT DUE IN MARCH

 
Tyler Durden's picture

Frontrunning: February 8





  • European stocks plunge as Lunar New Year offers no cheer (Reuters)
  • European Stocks Fall, Credit Weakens as Signs of Distress Abound (BBG)
  • Management trouble at world's biggest hedge fund: Bridgewater succession plan in flux as heir Greg Jensen steps back (FT)
  • U.S. athletes should consider not attending Olympics if fear Zika - officials (Reuters)
  • Geithner Gets JPMorgan Credit Line to Invest With Warburg Pincus (BBG)
  • Top Clinton Donor Wants a Law Against $1 Million Gifts Like His (BBG)
 
Tyler Durden's picture

John Paulson Puts Up Personal Holdings To Secure Credit Line As AUM Plunges





Back in August we noted that John Paulson managed to get himself and his investors involved in two rather dubious "firsts" in 2015: Puerto Rico became the first US commonwealth in history to default, and Greece became the first developed country to default to the IMF. Paulson had invested in Puerto Rican and Greek assets. Now, amid a client exodus, the billionaire is putting up his own holdings to secure a longstanding line of credit with HSBC.

 
Tyler Durden's picture

Bad Loans Pile Up In Alberta, As Oil Bust Weighs On State Lender





Just in case you needed another reason to fear for the worst in Alberta, Moody’s and DBRS are becoming increasingly concerned about crown corporation ATB Financial. “Alberta's debt situation was under the microscope last week, with [the] two rating agencies taking a look at the province's fiscal situation and economy and not liking what they saw,” CBC reports.

 
Tyler Durden's picture

S&P Enters The Latest European Scandal: Downgrades Poland From A- To BBB+





As so often happens, whenever there is a political spat in Europe, the rating agencies are quickly involved (thing S&P and Moody's downgrades and upgrades of Greece depending on how well the vassal nation is "behaving"), and moments ago S&P downgraded Poland from A- to BBB+ outlook negative, precisely due to Poland's new media law which has been the topic of so much consternation over the past week. In other words, S&P is now nothing more than a lackey for Brussels, threatening to send Polish yields higher if Poland does not fall in line.

 
Gold Standard Institute's picture

What Is Money Printing?





There is a populist idea of money printing. The idea is that banks can just print what they want, enriching themselves... does it really work this way?

 
Gold Standard Institute's picture

A Free Market in Interest Rates





Many people wonder why couldn’t we let the market set the interest rate. After all, we don’t have a Corn Control Agency or a Lumber Board. So why do we have a Federal Open Market Committee? It’s a very good question.

 
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