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Tag Archives: Morgan Stanley

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 […]

Open Yucca Mountain

Analysis and report by Mark Pittman of Bloomberg News regarding another $1 trillion writedown for banks. (Bloomberg News) (Running time 4:00 minutes)/// Writedowns and asset sales…. how will these assets be purchased? Will it be an open and transparent process or a “rigged game”? From FT.com ~~~~ “US banks that have received government aid, including Citigroup, Goldman […]

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 […]

Bank leverage

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

having known Tim from the New York Fed

 John Mack of Morgan Stanley had a brief interview with Bloomberg following the House Financial Services Committee hearing last week… this short video highlights the extremely deep connection between Wall Street and Treasury Secretary Geithner… it’s  important that we question whether the shared Wall Street/Treasury/Federal Reserve nexus truly serves our nation… at a minimum more […]

boatload of supply

Kevin Flanagan, of Morgan Stanley Global  Wealth Management, talks about the flood of Treasury issuance needed to fund the stimulus package… “supply has been a huge force in 2009″… “a boatload of supply this year and next year”… Whither inflation? TIPS?  We are flying blind… and the tightrope that the US Treasury, the Federal Reserve and central banks are […]

America doesn’t trust you anymore

Representative Michael E. Capuano (D-Mass) shared his anger about the disaster our financial system has become at the House Financial Services Committee hearing today… he addressed the bank leaders who were the prime creators of the crisis… he told them that “America doesn’t trust you anymore” for creating CDOs, CDS, SIVs… this chorus will grow louder… (Running […]

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 […]