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Which 'bank' I wonder did they 'offload' their bad Euro debt to...'Bank of Fed taxpayer' I presume?
Financial Three Card Monte!
Make your bet as to where Wall St has hidden the crappy derivatives.
My guess is, where ever the US tax payer is exposed the most!
"We undertook this reduction in our holdings solely to demonstrate the liquid nature of this market-making trading book"
They only did it to show that they could! No other reason.
The same reason that Charlie Sheen uses to bang seven gram rocks. That is just how they roll.
We could quit anytime we want!
Of course. Market Soars - it's a ponzi miracle!
That's my line...
"reduced by an aggregate of approximately $1.1 billion long and $1.1 billion short"
WTF? They reduced their net exposure by ... $0.00 ?
For someone who tries to make you believe that gross exposure doesn't matter, what are they really trying to tell us here? That gross speaks louder than net?
This does confuse people who don't hedge. Let me try.
The initial position was roughly 2.2 billion long bonds, more or less matched by 2.2 billion short bonds. They are/were market makers in this stuff, so a large inventory is not unusual. The problem is, either side of that mountain of paper can blow up, due to the well known piigs problems, counter-party failure to perform, or plain illiquidity. Bonds are niche markets and have lousy liquidity even in good times and the profit margins are thin.
Think of it as picking up nickels ahead of a steam roller;)
I smell the mother of all lawsuits coming out of this.
Well according to the markets something bullish must have happened in the last 30 minutes. Just about everything from here to Dubai is now green... what universe am I living in...
A Dubai Gigapan viewer http://gigapan.org/gigapans/fullscreen/48492/
Incredible architecture..search hard for any sign of life...
You living in the Bizzaro Market Universe where everyting is the opposite of what it should be. So don't worry, all the off-loading of debt and risk onto the taxpayer will actually be good for us in the long run ;-)
Not sure. But there are two of you in this one.
clever. I like it.
Yea no kidding, which bank took that extreme toxic junk.
Get it while its liquid
Could be a case of too much liquidity.
Like from bad sushi and a lot of wasabi.
mercury is very liquid with a fickle temperament, but kills its host slowly
LOL- keeping the music going....
The directors bought some more shares themselves (500k a piece that is) to appease the market about JEF's conditions as well. These guys are literally throwing everything they have to show the firm is fine...
Them and another dozen or so...
And so the sovereign exposure that was perfectly innocent according to three previous press releases from Jefferies, has just been offloaded to some other bank, which has a bigger market cap and won't be cause for major alarm.
Unless it's floating on a chunk of Styrofoam anchored in some Caribbean island harbor....
Enron style off-balance sheet? Surely, the regulators wouldn't allow that;)
Actually, it was no problem.
I took the short side, and Madhedgefundtrader took the longs.
I 'm having trouble making the number add up.
"This represents a 49.5% reduction in Jefferies’ gross holdings of these securities"
"Jefferies’ current net exposure to these sovereign securities is currently $59 million"
Thanks Kaiserhoff. +1
One of Tyler's Tweets explained it too.
I'm guessing that $59 million is the difference between "approximately $1.1 billion long and $1.1 billion short"
Note the words here... gross and net.
They reduced gross holdings.. which looking at the simple numbers there would have changed net exposure by zero. They're saying what they have left is not net 0, but net 59 million
Like the big spot that keeps spreading in Dr. Suess' The Cat in the Hat Comes Back.
I want a pop-corn shitting unicorn, these skittles are rotting my teeth.
You can't spell "bullshit" without "bullish"
More like you can't spell "bullish" without "bullshit".
You can't spell Spain without Pain.
I find the acronyms weirder by the day. BRICS and PIIGS. All very subtle programming. The BRICS will build the new structures while the PIIGS will go to slaughter.
Except that the BRICS are a bunch of Hollowponzi's themselves.
We hereby guarentee that our previous guarentee was warranted under the said guarentee...
Did I say "guaranteed"?
No, no ,no. I said 9% would be "rare, indeed".
Well, at least they are saying "substantially matched" instead of fully hedged. That has to be closer to the truth.
"substantially matched"... somehow safety matches comes to mind.
...bullish for equities...glad I BTFD in the overnight. Square and outta here!. Sell again at 1305
I wonder what kind of discount they sold it for. If they even sold it.
Hey, at least they put their money where their mouth is.....huge insider buying Friday afternoon....
The liars cup runneth over.
Gross, meet Net.
Euro/US equity peg suddenly snapped as Euro is down 1%, equities reverse and up 1%.
when are people going to start going to jail for all this b.s. lying.
hey - it's great that JEF was able to offload this shit, but i got long LEH b/c dicky fuld publicly said 'nothing was wrong' a hundred times and now JEF got away with it - but what if they hadn't and shareholders listened to these assholes!
just because every prime minister in europe and 'unofficial source' quoted by FT can get away saying whatever the fk they feel like at the moment, regardless of its correlation to the truth, does that mean that officers of public companies can now say whatever they want and get away with it?
So let me get this straight: Dick Handler offloaded into someone else's face?
Thank you Jefferies for offloading shareholder risk onto someone dumber.
Did they offload it to a SPV or a SIV?
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