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Tag Archives: deleverage

witness the Romans, who had a constant succession of triumphs while they managed their Government on a certain plan

“It is not chance that rules the world, witness the Romans, who had a constant succession of triumphs while they managed their Government on a certain plan, and an uninterrupted series of reverses when it was conducted on another.
There are general causes, either moral or physical, at work in every monarchy, exalting, maintaining or overcoming it.”
The [...]

The Euro “big boy” view of the Obama plan

From Bloomberg… “Florian Esterer, a fund manager at Swisscanto Asset Management, and Dirk Becker, an analyst at Kepler Capital Markets, talk about President Barack Obama’s plan to curb U.S. banks. They also speak with Bloomberg’s Rishaad Salamat about today’s meeting of Group of Seven finance ministers in London. ”
Here is the press release from [...]

We’ve stuffed all the problems in the closet…

An unknown Wall Streeter says that Treasury Secretary Geithner and the Obama economic team are the Emperor with no clothes…  if this guy is saying it… everyone is saying it…
From Bloomberg… Doug Dachille, chief executive officer of First Principles Capital Management LLC, talks with  Pimm Fox about the U.S. government’s decision to provide additional aid to GMAC Inc., [...]

Household leverage and thin ice

I’m attending a conference at the IMF on “Financial Frictions and Macroeconomic Adjustment”
First panel:
Panel Chair: Jonathan D. Ostry (Deputy Director, Research Department, IMF)
First paper:
Household Leverage and the Recession of 2007 to 2009
Atif Mian (University of Chicago and NBER) and Amir Sufi (University of Chicago and NBER)
Discussant: Kevin Lansing (Federal Reserve Bank of San Francisco)
Kevin Lansing mentioned [...]

TBTF and stress test vignettes

  Mariner Kemper of UMB Financial, a regional bank, discusses “too big to fail” … he says “it’s not the size of the banks it’s their complexity…”  and  ”if banks are too big to fail they shouldn’t exist at all”…  (Bloomberg… running time = 4 minutes) Mr. Kemper epitomizes the type of bankers that we need [...]

Le le le leverage

Analysis and discussion with Brad Hintz ,Analyst of Sanford C Bernstein talking about financials. He talks about leverage levels at Goldman Sachs and Morgan Stanley running around 13 times versus the 30-40 times levered pre commercial bank mutation…. Mr. Hintz previously served as the CFO of Lehman Brothers so I’m always very interested in his [...]

Financial system stress…

EconomicPicData has a nice chart this morning on credit default swaps for financial firms…
See especially General Electric but all these firms have spreads that are signalling increased risk in owning their debt … instability is roaring back to these undercapitalized, overleveraged firms …
Now lets cross reference this to membership on the Board of Directors of [...]

Bank leverage

via the Libertarian Democrat… via Paul Kedrosky… via Option Armageddon

Banking comments

Christopher Mutascio, banks analyst at Stifel Nicolaus, discusses the US banking sector… he says… “we need deleveraging to occur faster not slower”… “unclear what the (sic Treasury Secretary Geithner’s) ’stress test’ represents”… “best strategy is to combine weak and strong banks and provide an insurance wrap on the poor assets”… “banking sector pretty much ‘uninvestable’ [...]

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