Skip to content

Tag Archives: Lehman

The silent CDS wreckage

The aftermath of the Credit Panic of 2007-2009 includes the destruction of large swaths of the global financial system. Good riddance to excessive leverage, the structured finance market and the shadow banking system… you brought us nothing and left us with an expensive pile of too-big-too-fail wreckage… A war to establish the contours of the […]

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]

ra ra ra rating shopping

Everyone has missed the main point of the problem of the Federal Reserve mandating the use of ratings from Moody’s, S&P and Fitch for the TALF program … the problem is rating shopping… Which means that issuers of the securities that the Federal Reserve is buying have shopped around for the best ratings… selectively disclosed […]

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 […]

Crowdsourcing ratings

From Fast Company… ~~~~ FreeRisk: Crowdsourcing Credit Ratings? BY Kermit Pattison  Fri Apr 3, 2009 at 11:00 AM The recent financial meltdown demonstrated that credit rating agencies were blind to the dangers ahead. Toby Segaran of Metaweb Technologies and Jesper Andersen of the Open Data Group hope that crowdsourcing and transparency can help fix this mess. They […]

The Board of Doges responds

The Doge (Venetian language, also Doxe, derived from Latin Dux military leader, duke) was the chief magistrate and leader of the Most Serene Republic of Venice for over a thousand years. The Venetian combination of elaborate monarchic pomp and a republican constitution with intricate checks and balances makes La serenissima a textbook example of a crowned republic. ~     ~     […]

Free markets made America strong

The SEC Chairman wrote in the Wall Street Journal today about the force of free markets and regulation. I hope that he continues to sing this song… (see his opinion piece after my comments…) I say similar things a little less diplomatically … I think history will look back at the actions of the Federal […]

Balancy sheets…

This is a clip from Aug 12th on Bloomberg News (running time ~~ 4 minutes)… it concerns the auction rate securities markets…analysis by Adam Dean, President of SVB Asset Management and Joe Mysak, Bloomberg columnist… Mr. Dean talks about the approx $ 200 billion dollars of ARS that the large banks had to bring back […]

Interdealerish

From WSJ.com ~~~ “…. Officials are looking for market players who, during August and September, may have spread false information to manipulate CDS prices, say the people familiar with the investigation. CDS prices have recently had strong influence over stock and bond prices of financial firms such as Morgan Stanley and American International Group Inc. The regulators […]

Postmortem

 Brilliant reporting on the demise of Lehman Brothers from Bloomberg… here is a snip about the very end… ~~~~ ” … On Sept. 12, one team of Lehman executives was camped out at the Lexington Avenue offices of New York-based law firm Simpson Thacher & Bartlett LLP, showing the firm’s books to Barclays. Another group was […]