Comments on: "Superfund collapse ‘embarrassing’ to Treasury" http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html Mon, 23 Nov 2009 03:10:07 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Steve http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html#comment-2673 Steve Tue, 25 Dec 2007 04:27:00 +0000 http://www.nakedcapitalism.com/2007/12/superfund-collapse-%e2%80%98embarrassing%e2%80%99-to-treasury/#comment-2673 Yves,<br/><br/>Sorry for the repeat, I missed the earlier post. Maybe now that MLEC is dead, more of the details will come out and we'll find out what caused the Japanese to roll out their legendary politeness! Yves,

Sorry for the repeat, I missed the earlier post. Maybe now that MLEC is dead, more of the details will come out and we’ll find out what caused the Japanese to roll out their legendary politeness!

]]> By: Yves Smith http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html#comment-2671 Yves Smith Tue, 25 Dec 2007 03:57:00 +0000 http://www.nakedcapitalism.com/2007/12/superfund-collapse-%e2%80%98embarrassing%e2%80%99-to-treasury/#comment-2671 Steve,<br/><br/>That quote is a classic, and was featured <a HREF="http://www.nakedcapitalism.com/2007/11/bernanke-acting-as-shill-for-siv-rescue.html" REL="nofollow">in an earlier post</a>.<br/><br/>Moreover, the fact that the <a HREF="http://www.nakedcapitalism.com/2007/12/three-japanese-banks-asked-to-back-siv.html" REL="nofollow">Japanese had no intention of investing in the MLEC</a> was reported in Japan a good ten days-two weeks before the US. Gee, I wonder why. Steve,

That quote is a classic, and was featured in an earlier post.

Moreover, the fact that the Japanese had no intention of investing in the MLEC was reported in Japan a good ten days-two weeks before the US. Gee, I wonder why.

]]> By: Steve http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html#comment-2669 Steve Tue, 25 Dec 2007 02:27:00 +0000 http://www.nakedcapitalism.com/2007/12/superfund-collapse-%e2%80%98embarrassing%e2%80%99-to-treasury/#comment-2669 The MLEC failed because it tried to distribute risk to people who didn't want any. Frankly, Paulson and the sponsors seem to have underestimated the analytical abilities of potential outside participants ($15B from the Japanese? Sure, they'll go for it.) Back on Nov. 26th, Bloomberg ran this:<br/><br/>Loomis Sayles & Co. declined to invest [in the MLEC] after receiving one of 16 invitations for a meeting earlier this month with current Fed Chairman Ben Bernanke, said Daniel Fuss, who oversees $22 billion as chief investment officer at the Boston-based firm. <br/>[...]<br/>``It's so nice to get a personal invitation to go to Washington and have a one-hour visit with Ben Bernanke,'' said Fuss, who decided participating wasn't worth the risk to his firm. ``Oh, boy, did I feel important for about 27 seconds, and then you smell a rat.''<br/><br/>http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ae1Wu_t0jRdw The MLEC failed because it tried to distribute risk to people who didn’t want any. Frankly, Paulson and the sponsors seem to have underestimated the analytical abilities of potential outside participants ($15B from the Japanese? Sure, they’ll go for it.) Back on Nov. 26th, Bloomberg ran this:

Loomis Sayles & Co. declined to invest [in the MLEC] after receiving one of 16 invitations for a meeting earlier this month with current Fed Chairman Ben Bernanke, said Daniel Fuss, who oversees $22 billion as chief investment officer at the Boston-based firm.
[...]
“It’s so nice to get a personal invitation to go to Washington and have a one-hour visit with Ben Bernanke,” said Fuss, who decided participating wasn’t worth the risk to his firm. “Oh, boy, did I feel important for about 27 seconds, and then you smell a rat.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ae1Wu_t0jRdw

]]> By: mike http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html#comment-2656 mike Mon, 24 Dec 2007 17:43:00 +0000 http://www.nakedcapitalism.com/2007/12/superfund-collapse-%e2%80%98embarrassing%e2%80%99-to-treasury/#comment-2656 I had completely forgotten about the SuperSIV brainchild.<br/><br/>Let's see? The banks were going to create a fund to buy their own stuff. <br/><br/>Not a bad plan for sophomoric Paulson.<br/><br/>Then there is plan 'B,' to freeze interest rates. Paulson & his government are not parties to the mortgage interest rate agreements. <br/><br/>I guess that is irrelevant under authoritarian rule. I had completely forgotten about the SuperSIV brainchild.

Let’s see? The banks were going to create a fund to buy their own stuff.

Not a bad plan for sophomoric Paulson.

Then there is plan ‘B,’ to freeze interest rates. Paulson & his government are not parties to the mortgage interest rate agreements.

I guess that is irrelevant under authoritarian rule.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/12/superfund-collapse-embarrassing-to.html#comment-2654 Anonymous Mon, 24 Dec 2007 17:20:00 +0000 http://www.nakedcapitalism.com/2007/12/superfund-collapse-%e2%80%98embarrassing%e2%80%99-to-treasury/#comment-2654 From a few days ago:<br/><br/>SuperSIV'' fund, set up to provide cash to structured investment vehicles hurt by the collapse of the subprime-mortgage market, plans to start buying assets ``within weeks,'' its sponsors said today.<br/><br/>The fund's size, originally envisioned at about $80 billion, will be based on ``SIVs' needs and evolving market circumstances,'' Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement. The banks are raising money for the fund to buy assets from SIVs. BlackRock will be the manager. From a few days ago:

SuperSIV” fund, set up to provide cash to structured investment vehicles hurt by the collapse of the subprime-mortgage market, plans to start buying assets “within weeks,” its sponsors said today.

The fund’s size, originally envisioned at about $80 billion, will be based on “SIVs’ needs and evolving market circumstances,” Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement. The banks are raising money for the fund to buy assets from SIVs. BlackRock will be the manager.

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