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Tag Archives: Lehman

Kite flying

From FT Alphaville some comments from Tullett Prebon economist Lena Komileva on the similarities and differences between the growing Euro sovereign contengion and Lehman’s collapse… Basically she’s saying it’s an order of magnitude bigger this time… or maybe two orders of magnitude… ~~~ “…The current episode of the global crisis is similar to the crisis mechanism […]

Lehman 2.0

The global financial system is a tight web of connections. While the US Congress debates financial reform the Euro system is being shaken down by its weakest member Greece… In the financial crisis of 2007-2009 everyone was taken by surprise by “mortgage repayment” default risk… The assumption had always been that RMBS were sufficiently varied by […]

Is the next global crisis beginning?

It’s very helpful to see this chart. Data points like this show the extra risk that investors believe Greek debt represents. In September, 2008 when Lehman failed the global credit markets froze. Note how that impacted the the risk premium for Greek debt. FT Alphaville pointed to comments made by the Bank of France governor, […]

Review and then reform…

I’m planning to write about the new Senate draft of legislation but I wanted to bring up the general lack of discussion in the Congress about the findings of the Lehman Examiner. The failure of Lehman represented the largest corporate failure ever (over $600 billion dollars), triggered a global financial meltdown and was exactly the […]

Lehman, AIG and repo… what an expensive mess…

More on Lehman, AIG and repo from Riski… I did want to point out that the Lehman Examiner (Jenner and Block) cost the estate $38 million dollars for their work… in contrast the Financial Crisis Inquiry Commission, which is tasked to examine the entire financial meltdown, has a budget of $8 million…. it is really shameful how […]

‘Too big to fail’ is too dumb to keep

An excellent opinion piece by John Kay, an economist, in the Financial Times … he begins by naming the litany of institutions that were brought down in the “Credit Crisis of 2007-2009″… He then describes the difficulty of regulating large, complex institutions with these words… “The variety of institutions is matched by the variety of […]

Proof of Trillin’s thesis

~~ OMG… Bird and Fortune prove Trillian’s thesis… and a few commonly held beliefs… (HT ZeroHedge) Link to Bird and Fortune video at the Financial Times…

Waiting for the light

The SEC approved additional rules for credit rating agencies yesterday. This follows on numerous rulemakings over the past several years… Kudos to the Commission and staff for their effort to shape rules for this space. Credit rating agencies lie at the nexus of credit markets. Their “opinions” determine pricing and credit availability  for all rated entities. […]

Ode to Jackson Hole

This is a repost from Shopyield, August 24, 2008 at the time of last year’s Jackson Hole conclave… here is Chairman Bernanke’s speech from the event this year … ~~ “None of them knew the color of the sky. Their eyes glanced level, and were fastened upon the waves that swept toward them. These waves […]

Regulating derivatives

I attended the House Committee on Financial Services Capital Markets Subcommittee hearing today… the topic was the oversight of derivatives… lots of discussion about the failure of AIG and what happened there too… It is more clear to me than before that legislators need systems to share information to effectively  legislate regulation for financial markets … yes […]