• Pivotfarm
    08/03/2015 - 15:25
    The quest for perfection is man’s unattainable goal. Man can never be perfect if we are to believe the English philosopher Thomas Hobbes. Man is man’s wolf and all of that.

Stress Test

Tyler Durden's picture

Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender





Just days after Blythe Masters took up her role as Chairman of Santander Consumer - the world's largest subprime auto lenders; former FDIC head Sheila Bair has resigned her position on the board of Banco Santander citing excess "travel" as a reason. One cannot help but wonder if the clash of the titans was too much, if the embrassment of a failed stress test was unbearable, or if Ms. Bair sees the rapidly approach light at the end of the tunnel of subprime lending for what it is... a bigger train that 2008's.

 
Tyler Durden's picture

Frontrunning: July 23





  • Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
  • Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
  • Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
  • Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
  • Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
  • Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
  • Bank of America replaces CFO in management shake-up (Reuters)
  • The Financial Buzz? Pearson to sell Financial Times (Reuters)
 
Tyler Durden's picture

Attention Greek Bankers: Bridge In Brooklyn For Sale On The Cheap





If you were a shareholder of a Greek bank, you wouldn’t lose sleep over your relationship with your regulator. In that context, the statement of the 12 July Euro Summit may have come as a shock—particularly the bit about the new program for Greece having to include "the establishment of a buffer of EUR 10 to 25bn for the banking sector in order to address potential bank recapitalisation needs and resolution costs." You could be forgiven for thinking—where did that come from?

 
Tyler Durden's picture

Unholy Alliance: Blythe Masters Named Chairman Of Subprime Auto Lender





Today, an unholy alliance was born when Blythe Masters, the mother of the credit default swap and former member of the fabled "Morgan Mafia" was named chairman of Santander Consumer, the largest subprime auto lender in the US.

 
Tyler Durden's picture

Why Did Schauble Almost Use The "Nuclear Option" - Tim Geithner Explains





"The idea was that with Greece out, Germany would be more likely to provide the financial support the eurozone needed because the German people would no longer perceive aid to Europe as a bailout for the Greeks. At the same time, a Grexit would be traumatic enough that it would help scare the rest of Europe into giving up more sovereignty to a stronger banking and fiscal union."

 
Tyler Durden's picture

Greek Banks Not Out Of The Woods, May Impose Tougher Capital Controls, Barclays Says





Even with a deal in place and a new program for Greece on the horizon, the country's banks are by no means in the clear as deposit outflows, limited breathing room under ELA, and deteriorating asset quality present formidable stumbling blocks going forward.

 
Tyler Durden's picture

The Latest Out Of Europe: "Pretty Steady Level Of Shittiness"





Me: How are the talks going?
EU source: "Shitty."
Me: "Getting more shitty or less?"
Source: "Pretty steady level of shittiness

 
Tyler Durden's picture

Don't Tell Merkel: Greek Banks Need An Additional €10-14 Billion Bailout





"There is an estimated need of about 10 to 14 billion euros in new capital. Given the magnitude of the shock we have been through, regulators will take stock of the situation and the impact on non-performing loans."

 
Tyler Durden's picture

One Heretical, And Not-So-Simple, View On The Greek Referendum





... Greeks should be united in their fight for the rule of law and against the cleptocracy, and not divided over a referendum on an absurd question. That division, however, serves the cleptocrats well—they can go about their usual ways unnoticed. Whoever said “divide and rule” knew what they were talking about.

 
Tyler Durden's picture

Pre-Blame-Game Begins: Fed's Brainard Fingers HFT For "Amplifying Market Shocks"





We warned previously that when (not if) the market crashes next, The Fed is going to need a scapegoat (other than British traders living at home with their parents) and judging by The Fed's Lael Brainard's comments today, high-frequency-traders (HFT) are in the crosshairs. Crucially, Brainard warns that HFT "may amplify market shocks," and The Fed is "studying possible changes in liquidity resilience." 

 
Tyler Durden's picture

The ECB Suddenly Has A Huge Headache On Its Hands





As that €126 billion or so of total ECB/Eurosystem claims on Greek banks were "charged off" in case of a terminal Greek "event" then the entire ECB capital buffer would also be wiped out, leaving the ECB with negative equity. Translated: dear Eurosystem members: we need more cash.

 
Tyler Durden's picture

How BofA's Depositors Funded The Bank's "Fugazi P&L"





When we first exposed in February how yet another bank - Bank of America - has been quietly preserving the post Glass-Steagall world in which cash depositing taxpayers are on the hook for a bank's stupidity, some shrugged it off and looked to stress test to solve all the problems. However, it appears - for once - the SEC is not willing to just ignore the bank's actions. Just as JPMorgan's CIO Office, aka the London Whale, took advantage of fungible, taxpayer-insured funding in the form of excess US deposits over loans, to corner the US credit market (in what was clearly a directional prop trade); so, as WSJ reports, The SEC is investigating whether BofA broke rules designed to safeguard client accounts, potentially putting retail-brokerage funds at risk in order to generate more profits using large complex trades.

 
Tyler Durden's picture

David Einhorn Is "Adding More Shorts", Has A Question For Mario Draghi





"At the bottom of the cycle, firms cut labor faster than output. The higher productivity led to improving margins, earnings and stock prices. Now labor is being added faster than output, and with large companies like McDonalds, Walmart and Target announcing pay increases, unit labor costs are likely to increase further. All told, there is a good chance earnings will actually shrink this year. We think the market is too high if earnings have, in fact, peaked for the cycle, and we have reduced our net exposure by adding more shorts."

- David Einhorn

 
GoldCore's picture

Greek Debt Crisis Coming To Head - Contagion?





If and when Greece finally defaults it will be able to place the blame squarely at the feet of the European elites. If an agreement has not been reached by Friday when the Eurogroup of Finance Ministers meet in Riga it is quite likely that Greece will default.

 
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