What Happens When Citigroup (C) Fails?
If the markets are to take bond guru Bill Gross at his word, the world’s financial markets could go through a cataclysmic failure. The head of fixed income fund operation Pimco says that a…
Banking, finance, and taxes
All Banking, finance, and taxes Articles
Newest first · Page 272A Bail-Out For China’s Biggest Bank, As Pimco Warns Global Markets Will Get Worse
Perhaps some day the Fed will run out of money. The equivalent is happening in China. The People’s Bank of China managed to put a truck-load of money into US mortgage-backed securities and paper…
Is Goldman Sachs Losing Its Trading Edge? (GS)
Goldman Sachs Group Inc. (NYSE: GS) has been an incredible performer among the bulge bracket investment banking firms during the entire credit meltdown and market malaise. Its shares had been holding up better than…
Legg Mason and the Coming Redemptions & Misses (LM, LMVTX)
Legg Mason Inc. (NYSE: LM) is having a rough morning to say the least. The investment manager’s shares are being hit after Credit Suisse took an already cautious Neutral rating down to an even…
AIG (AIG): Create New Company, Dump Bad Assets
AIG (AIG) may resort to a tactic that is as old as the hills. It is considering taking its worst assets and moving them into a new company. This would leave AIG with a…
Consumer Products Firms Join Banks At Screwing Customers
Banks have been taking money from the Fed for months. They can pledge dirty dishes and wall paper in exchange for real cash at low interest rates. The system has been hailed as the…
Wall St.’s Root Canal: Watching The Sale Of Lehman (LEH)
Drilling into the jaw bone without Novocaine. The competition to maybe buy or maybe not buy Lehman (LEH) picks up a new angle everyday. The latest is a report by Reuters that HSBC and…
Commerzbank And A Big American Bank Merger (JPM)(BAC)(WM)(WB)
The Commerzbank buy-out of Dresdner Bank was not a shotgun wedding. Neither institution was failing. The severe balance sheet problems facing may other global money center banks were not an important consideration. The Commerzbank…
Middle East Sovereign Funds May Invest In Lehman (LEH)
Through the weekend the management of Lehman (LEH) is desperately meeting with any investors who will hear its case. According to the Telegraph, these includes Korea Development Bank, Chinese broker Citic Securities, and "a…
Lehman (LEH) To Drop 6% Of Work Force, Not Enough
Lehman (LEH) will lay off about 6% of its work force according to The New York Times. That is about 1,500 people, but it is not nearly enough. Earlier in the day an analyst…
New Bank Write-Down From Auction-Rates (C)(WB)(MER)
The auction-rate fiasco is not over for banks. Having bought back about $55 billion of the paper, they are now faced with the reality that the bonds are only worth about $.80 on a…
A Coup De Grace For The Banking Industry
Aside from bad mortgage-backs securities bets, a dying LBO business, auction rate securities, and deteriorating credit card debt, the banks and brokerages may be up against their largest challenge yet. They have to pay…
Keeping Fannie Mae (FNM) And Freddie Mac (FRE) Private
The evidence is thin, but at least it is available. Freddie Mac (FRE) and Fannie Mae (FNM) could raise money on their own and without a government bail-out which would wipe out common stockholders…
Lehman (LEH): $14 Now, $10 Tomorrow
Lehman Bros (LEH) will edge closer to the gallows today. The stock is likely to move under $10 this week. It now trades at $14, and some pessimists think its theoretical value is zero.…
Evidence Of A Fannie Mae (FNM) And Freddie Mac (FRE) Resurrection
The collapse in the shares of Freddie Mac (FRE) and Fannie Mae (FNM) was arrested yesterday. At one point, both stocks were up and Fannie Mae ended the day in the plus column. It…