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Tag Archives: Merrill

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 […]

the butterfly wings of market movement

Spreads have blown out in corporate bond markets… (thanks to EconompicData for the nice graph)… The big bank/broker dealers previously had used their giant balance sheets to dominate trading in these markets… think Citi, Morgan Stanley, Goldman, Merrill… Since the beginning of the Credit Crisis in August 2007 these dealers have had their position as […]

High and the low

The low … From CNBC …. ~~~ “When John Thain became Merrill Lynch’s CEO in early 2008, he hired Michael S. Smith Design to revamp his office suite, spending approximately $1.22 million according to documents. The following is a list of the items in the suite: Area Rug $87,784 Mahogany Pedestal Table $25,713 19th Century Credenza $68,179 Pendant […]

Collateral calls

From the Wall Street Journal we learn that AIG has become a pass-through to the major dealers for payment of CDS trades gone bad… the Federal Reserve is directly funneling money to its primary dealers for these failed AIG swaps… This outstanding reporting by Serena Ng, Carrick Mollenkamp and Michael Siconolfi tells us how the […]

Whither AIG$

From Dean Starkman writing in the Columbia Journalism Review (hattip to Chris Whalen)… ~~~~ “… On September 29 …. Bloomberg’s Mark Pittman published a story that blows away any inference that Goldman had no stake in the bailout. This story was brought to my attention after I wrote the earlier piece. Here are excerpts with my […]

Concentration…

      From Jesse’s Cafe American…  reprinted from the OCC’s report on bank’s exposure to derivatives… scary… Are these the parties that are resisting a move to exchange trading and central counterparty clearing?

Intertemporal intermediation

Before the deluge… Chart thanks to EconomPic Data

John White singing…

      John White, Director of the SEC’s Division of Corporation Finance Taxpayers will appreciate this…  WSJ.com reports…   ~~~ “… All U.S. companies, not just those in finance, should consider limiting compensation packages that reward excessive risk-taking by executives, a senior regulatory official said Tuesday. The comment by John White, director of the Securities and Exchange […]

Besieging the regulators…

Near the end of the Civil War Union forces beseiged Petersburg, VA for 9 months. Confederate forces could barely find food to eat. Starving,  with their numbers dwindling due to desertions, and with Sherman’s forces approaching from the south, Lee attempted a break out. It failed miserably, and on April 2nd, Union forces soon assaulted the Confederate lines. […]

Over levered and under supervised…

 Stephen Labaton of the New York Times wrote an excellent article today  about the approval of the Consolidated Supervisory Entity (CSE) program at the SEC in 2004 and the resulting lack of oversight of the major investment banks… He misses a number of essential points… including that the Federal Reserve has been supervising the major […]