Jim Bianco

Watch Bernanke Debate Live

The Bernanke debate in the senate has started. Readers can watch it live on CSPAN. The latest Bernanke tally is as follows.

Guest Post: Bernanke Nomination By The Numbers And What Saves Him

A milestone in Bernanke’s nomination was reached this morning …. the Sunday political talk shows. John McCain came out this morning against Bernanke. So here’s what we know. As of this morning (noon CT, January 24) … Bernanke needs 60 votes to end a filibuster of his nomination (known as cloture). After cloture, he then needs 51 to be reappointed. So, the bogey is 60 for cloture.

Reverse Repo Failure Confirmation, Primary Dealers Want Exemption From Tier One Capital Requirements To Do Reverse Repos

A few weeks ago we speculated that the Federal Reserve's attempt to conduct a reverse repo test as part of a liquidity drainage failed. In a stunning piece of news, Zero Hedge friend Jim Bianco sent us the following. Little commentary is necessary: the banks are about to unleash the massive leverage ploy all over again, this time with the pretext that they are happy to soak up liquidity, yet in the same time, their stupidity and inability to gauge risk will blow up the financial system once again when Tier One ratios for dealers are allowed to go back to 100:1. Zero Hedge will forward this information to all of our correspondents in Washington as what the Primary Dealer community is doing is extortion, pure and simple, and it is likely to be endorsed by their cronies at the Federal Reserve (which, in turn, has already received a carte blanche to do so by its purported master, Goldman Sachs).

Citadel Calls Former Head Of HFT Trading's Current Venture, "A Veritable Pirate Ship Of Illegal Activity"

A peculiar escalation developing in Chicago (what is it about that city) was today's development in the Citadel - Teza Technologies lawsuit. As a reminder, Teza is the firm run by former Citadel head of HFT and quantitative trading, Misha Malyshev, who got unmasked when it was made clear that he had recruited Sergey Aleynikov from Goldman, and was preparing to launch a quant trading group despite his non-compete with Citadel (which may very well be the reason for the entire Aleynikov fiasco after all). What was surprising in today's hearing was the proclamation by Citadel lawyers that Teza is a "veritable pirate ship of illegal activity."

The Fed's 30 Minute Agency Monetization Window

Much has been said on Zero Hedge about the Fed's monetization of Treasuries, usually via the NY Fed's POMO activities, which on occasion buys back Treasuries as promptly as 5 days after any one given auction. Yet we were dumbfounded by this piece of information, presented to us by Jim Bianco, which demonstrates that the Fed's monetization of Agencies is far more blatant than anything even encountred in Treasuries.