Daily Archives: August 9, 2008

Banks Buying Back Auction-Rate Securities: More Write-Downs? (C)(WB)(UBS)(MER)(MS)

DataNow that Citigroup (C), UBS (UBS), and Merrill Lynch (MER) have agreed to buy back a total of about $40 billion in auction-rate securities, Wall St. will have to hazard a guess as to what value will be assigned to them as they shift onto the balance sheets of these firms. Several other big banks and brokerages, including Wachovia (WB) and Morgan Stanley (MS) will almost certainly pay cash to take back the auction-rates sold to their clients.

Read More »

Posted on: August 9, 2008 – 11:29 am in Banking, , , ,

MBIA (MBI) And Ackman: Killing The Messenger

MbiaMBIA’s (MBI) corporate slogan "Wisdom In Action" presents a monumental irony. Management’s gamble that derivatives were a good way to pop earnings nearly ruined the company. The firm was, after all, supposed to be the safest business in town, insuring municipal bonds meant to do things like build schools.

The people who run MBIA have decided to blame the misdeeds on their watch on someone else, a handy tool employed by executives everywhere.

Read More »

Posted on: August 9, 2008 – 8:34 am in Uncategorized,

Bank of America (BAC) Acquires SEC Investigation As Part Of Countrywide Deal

HouseThe SEC informal investigation of Bank of America’s (BAC) recently acquired Countrywide Financial has been in progress for months and now there’s a new development. And it’s not good for Bank of America: the investigation has gone formal, meaning that the SEC will now have the power to subpoena documents related to whatever it is that it’s looking into regarding Countrywide — no details have been made public, but it is known that there was an investigation into chairman and CEO’s Angelo Mozilo’s stock sales

Read More »

Posted on: August 9, 2008 – 5:49 am in Banking,