Second Bank Scrambles To Defend Morgan Stanley Against Vicious "Blogger Attack"

Tyler Durden's picture

Earlier today some blog pulled up some factual data that suggested that Morgan Stanley had $39 billion in total exposure against French banks at the end of 2010, up $30 billion from the year prior, and enough to wipe out its entire market cap and then some should French banks be pulled under. Sure enough, the stock tanked even though as CNBC pointed out "there was absolutely no news." Since then, first Credit Suisse defended Morgan Stanley for its "European exposure" (we wonder how long before Morgan Stanley returns the favor and has to defend Credit Suisse for its US exposure: judging by Credit Suisse's maximum outlier 3M USD Libor rate, not too long). And now it is bank #2's turn, in this case Alliance Bernstein, whose conclusion is that "we estimate that total risk to France and its banks is less than $2 billion net of collateral and hedges." Ah yes, collateral and hedges, which, lest we recall incorrectly, did miracles when Lehman blew up and the very fabric of net hedging offset was threatened when the viability of the initiator in the "gross" CDS chain was put into question (thank you AIG). Naturally, if and when the 3 Big French banks go down, everyone will be perfectly normal and have no problem netting of hedges. Naturally. As for the coup de grace in the AB report, it is this piece of rhetorical brilliance: "Over the last six months, there have been 5,600+ articles published by the press on the subject of "French Banks" and "Credit Risk". We believe Morgan Stanley's risk management staff and its trading units are fully aware of the highly publicized risks emanating from Europe and warnings about the firm's potential exposure to a European Sovereign crisis." And there you have it: just because everyone is aware the bank is doomed, means the bank is ok. See, this is nothing like the logic that comedy entertainment icons such as Cramer and Dick Bove used to endorse Bear and Lehman days before both imploded. Then again, the downside for AB to actually tell the truth is substantially higher (as in contagion which takes down the entire banking system, AB included), than the upside from, well, prevaricating. As for abovementioned blog, we are just waiting for the third bank to come to Morgan Stanley's defense to know it was 100% correct.


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Things that go bump's picture

Why do you think they call him Chicken Little?

slewie the pi-rat's picture

why doya think they call her rosiescenario?

TheMerryPrankster's picture

Because she comes when you call her name?

rosiescenario's picture

Well, at least you have to give Brownell's management credit for figuring out the right audience for their ads....but where are Midway, Natchez, Cabella's and Cheaper than Dirt?Must be out of touch with reality.


Tyler...get your ad sales person on those other names immediately....just say that Brownell's is a customer....


,,,and on a final note to all the silver bugs, my ammo stash performed better today than gold or silver....

BoNeSxxx's picture

"First they ignore you, blah, blah, blah, then they attack you..."

"Methinks thou doth protest too much..."

Etc., etc., etc.,.

Keep it up Tyler(s)

max2205's picture

DICK bove.......whaaaaaaaat!!

Frog-And-Toad's picture

Thank you for posting that clip. It brought a huge smile to my face!


Tyler stated it best:


"Zero Hedge is not about personalities, goatees or glasses - it is about ideas, facts and opinions. People come to Zero Hedge not because of my chiseled washboard abs, but because they appreciate my insight into things financial and economic. My personality is not relevant when discussing critical concepts. Who knows - maybe I do not care for being recognized while having dinner at Campagnola."

slewie the pi-rat's picture
the zero hedge manifesto

from tomreagan's link (wld you believe no caps?  L0L!!!):

our mission:

  • to widen the scope of financial, economic and political information available to the professional investing public.
  • to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become.
  • to liberate oppressed knowledge.
  • to provide analysis uninhibited by political constraint.
  • to facilitate information's unending quest for freedom.

our method: pseudonymous speech...

anonymity is a shield from the tyranny of the majority. it thus exemplifies the purpose behind the bill of rights, and of the first amendment in particular: to protect unpopular individuals from retaliation-- and their ideas from suppression-- at the hand of an intolerant society.

   ...responsibly used.

the right to remain anonymous may be abused when it shields fraudulent conduct. but political speech by its nature will sometimes have unpalatable consequences, and, in general, our society accords greater weight to the value of free speech than to the dangers of its misuse.

- mcintyre v. ohio elections commission 514 u.s. 334 (1995) justice stevens writing for the majority

though often maligned (typically by those frustrated by an inability to engage in ad hominem attacks) anonymous speech has a long and storied history in the united states. used by the likes of mark twain (aka samuel langhorne clemens) to criticize common ignorance, and perhaps most famously by alexander hamilton, james madison and john jay (aka publius) to write the federalist papers, we think ourselves in good company in using one or another nom de plume. particularly in light of an emerging trend against vocalizing public dissent in the united states, we believe in the critical importance of anonymity and its role in dissident speech. like the economist magazine, we also believe that keeping authorship anonymous moves the focus of discussion to the content of speech and away from the speaker- as it should be. we believe not only that you should be comfortable with anonymous speech in such an environment, but that you should be suspicious of any speech that isn't.  (end paste)

read that last phrase again, and help me "suspect" the adbots and perpetually self-adveriZing shitforbrained trolls!   please junk them like you're NATO fighter jets killing, er..., protecting innocent civilians in libya! 

and thxz, tomreagan, whoever you are!  L0L!!!

Edward Fiatski's picture

Top is in. Enjoy Monday's open. LOL


wang's picture

you seem to have some special time warp dynamic on your side so if it's not breaking any laws here or on Alpha Centauri, perhaps you would be kind enough to share with your fellow ZHer the specifics of the closing numbers on Friday.

Edward Fiatski's picture

If you were my fellow ZHer, you would know the closing imbalanced on the buy side, which are a certainty today. I bet you will be one of the 90% of entities, who BTFB, a decision devoid of any reality.

wang's picture

the real question is; what day is today?

six to one eddy...  go for it


(Sincere apologies if you are in Japan)

tekhneek's picture

Prettty sure the market crashed several times in August without alot of help from the fed.

"BTFD" is a very, very good strategy... better than "BTFB" (buying the fucking bubble.) All that matters is what you're buying.'s picture

The GOP debate is starting, do we get a thread?



Ron Paul Explorer: The All Paul Search Engine

Yen Cross's picture  right corner of the page. You may already have another link.

caerus's picture

ron paul just got a 10th amendment question...right in his wheelhouse...audience seems pretty enthusiastic about his answer's picture

His concise answer was too short -- Wallace had to tell him he had more time to use. Ron is so used to getting shut out that he gets to the point real quick.

caerus's picture least he wasn't asked a "let's try and make this old guy look crazy" question

wisefool's picture

Wait till we get to foriegn policy. 

caerus's picture

is it me...or is this the fuckin perry vs romney show?  i'd like to see how much time they were given v the other candidates in this thing...'s picture

It does seem like it's Itchy and Scratchy's show. But it was a pleasure watching Huntsman knock back Santorum over the Global War on Terror.

caerus's picture

"government destroys jobs, the market creates jobs"

- dr. paul's picture

Ron's comment on abortion was fantastic -- the problem isn't the law it's the character of the people. That's one of the few statements anybody has every made about that contentious subject with which I can agree 100%.

Cursive's picture

Where's Electron Paul?'s picture

Vote for the winner of the debate here:

Current stats:

Mitt Romney 21.63% (2,063 votes)

Rick Perry 12.42% (1,184 votes)

Newt Gingrich 7.52% (717 votes)

Ron Paul 37.62% (3,587 votes)

Rick Santorum 1.75% (167 votes)

Gary Johnson 1.79% (171 votes)

Herman Cain 13.52% (1,289 votes)

Michele Bachmann 1.87% (178 votes)

Jon Huntsman 1.89% (180 votes)

Total Votes: 9,536

quasimodo's picture

Poor fucking hoo

Josh Randall's picture

Crying Towels monogramed with "JPM" will be arriving to the Morgue shortly. That and Credit Suisse is about as reliable as the weather in Texas, and as honest as Baghdad Bob evidently, they just made my list:

Nihilarian's picture

These are the rules for Liar's Poker. Game on!

bigwavedave's picture

Dont worry. Morgan Stanley won't need any extra capital what with their huge depositor base. That plus ZIRP, Flat as a Chinese whore yield curve and big average trading volumes will save this particular 'bank'

Dapper Dan's picture

It is true, this is "some blog"

Go getum Tyler!!

caerus's picture

damn those bloggers

gangland's picture

All your blogs are belong to us

SnobGobbler's picture

....i mean... enemy combatant.. i mean; ceo perspective.... ooh i give up....

Village Idiot's picture

Alliance Bernstein?  Let me tell you about Alliance Bernstein...crooks.  They paid like a slot machine when cornered with legal action, though.  Fuck you, Alliance Bernstein.  My deepest sympathy for their clients...if they still have any.

Cursive's picture

@Village Idiot

Where have you been?  FYI, refi in process for a 3% 5/1 ARM.

Village Idiot's picture

All is well my friend. Do you still have my contact info? Get in touch...

Cursive's picture

Good to hear!  I miss a lot of the oldtimers around here.  Just sent you an e-mail.

Cliff Claven Cheers's picture

Do you remember, Minasota Fats, Howard Beale, Project Mayhem, Cheeky Bastard.......

Cursive's picture

@Cliff Claven Cheers


Howard Beale, Project Mayhem, Cheeky Bastard...yes!  Although I never saw in Cheeky what others did.  I think I saw him post here last month.  I remember talk that he was terminally ill.  Howard Beale was here some months ago IIRC and I saw deadhead awhile back not to mention he was on Daneric's blog just last week.  I still see Cognative Dissonance and Jim in MN and Lizzy36 and MsCreant and Shameful and B9K9 and wisefool and Ben Bernanke (to name a few).  Phaesed even made an appearance a couple of weeks ago and he must be enjoying his beloved long bond trades right now....

Cliff Claven Cheers's picture

I forgot all about Dead Head. I still see Wise fool and Lizzy and MsCreant and B9K9 occasionally.  Last I remeber Pheased was ex milatary just getting into economics then he stopped posting.  

I forgot some usuals, Village Idiot, Hephastues, Escape Key, Anonnn, Hendrix, Chump666 etc. NMEWN is one of my favorites. Oh yeah and that cock blocker Buzzsaw99.

Edit: I also like Fuu and wise fool.  Those guys always crack me up.

TheMerryPrankster's picture

Romper room wants it's Magic Mirror back. I see all my friends had fun today. I see all my friends had fun at play.

There's Tyler, and the bernanke, and DoChen Roller Bearing, and Michael, and williamBanzai7 and Carlos the international Terrorist and Cramerica, and .. hey wait Carlos the international terrorist, isn't he in jail - oh wait that's just Timmy Geithner in his boxers with 3days stubble and a warm beer with cigarette butts floatin on top.

Time for bed Timmy....

Going Loco's picture

CDAD is good. Cracked me up with his horserace skit (Crocodile Algo leading Margin Call by a short head...) - best description of today's markets I ever read.'s picture

Hey, got any of that salmon and stuffed mushrooms?

Mr Lennon Hendrix's picture

[T]here you have it: just because everyone is aware the bank is doomed, means the bank is ok.

This must fall under the 'rational consumer' theory of Neo-Keynesian economics.

NumNutt's picture

Someone should tell MS that just because the people on the Titanic saw the iceburg before they hit it, that didn't stop them from sinking.

spiral_eyes's picture

You're nobody 'til they call you a terrorist.