Comments on: Goldman Recommends Shorting Wamu http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html Sun, 22 Nov 2009 11:45:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: S http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6731 S Sat, 12 Apr 2008 20:34:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6731 Richard,<br/><br/>That the stock has remianed ay 11ish suggests something doesnt it? Like this was a brokered deal which lets private equiyty gut it in private and then JP morgan or like to by it fr a nice embeedded gain once the cleanup is done. The equity was done at 8.75 which would in theory put a ceiling on the shares so the short call is kind of like downgrading a stock as the takeout date approaches. Thanks for the heads up! <br/><br/>The bigger issue is the crying by the ibanks about shorting which is exactly how they hedge themdselves. That no MSM has written an article on the glaring hypocrits (I have LEhman in mind) is mindboggling. Richard,

That the stock has remianed ay 11ish suggests something doesnt it? Like this was a brokered deal which lets private equiyty gut it in private and then JP morgan or like to by it fr a nice embeedded gain once the cleanup is done. The equity was done at 8.75 which would in theory put a ceiling on the shares so the short call is kind of like downgrading a stock as the takeout date approaches. Thanks for the heads up!

The bigger issue is the crying by the ibanks about shorting which is exactly how they hedge themdselves. That no MSM has written an article on the glaring hypocrits (I have LEhman in mind) is mindboggling.

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6716 Richard Kline Sat, 12 Apr 2008 11:20:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6716 To A. Anon, I've thought WaMu was gorked since November what with their exposure. If GS was crying "Short" now, I'd agree with the above posts that it was six months late; I feel confident that GS has been shorting them since _before_ November, they know their work. But taking the salt of the WaMu-TPG deal to shore up their position and _then_ kicking their equity price downstairs on the way out the door seems to me well on the wrong side of sharp practice. If that's par for the course, we're on a rifle range is how I see it. To A. Anon, I’ve thought WaMu was gorked since November what with their exposure. If GS was crying “Short” now, I’d agree with the above posts that it was six months late; I feel confident that GS has been shorting them since _before_ November, they know their work. But taking the salt of the WaMu-TPG deal to shore up their position and _then_ kicking their equity price downstairs on the way out the door seems to me well on the wrong side of sharp practice. If that’s par for the course, we’re on a rifle range is how I see it.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6713 Anonymous Sat, 12 Apr 2008 10:45:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6713 Richard,<br/><br/>Isn't hedging what the Street does it best? Not that I'm defending the GS' unethical strategy, but they are the best at hedging each&every possible direction.<br/><br/>As for WaMu, I think they're nearly toast, I don't know if they'd be lucky to find a taker going forward.<br/><br/>Regards,<br/><br/>A. Richard,

Isn’t hedging what the Street does it best? Not that I’m defending the GS’ unethical strategy, but they are the best at hedging each&every possible direction.

As for WaMu, I think they’re nearly toast, I don’t know if they’d be lucky to find a taker going forward.

Regards,

A.

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6706 Richard Kline Sat, 12 Apr 2008 07:10:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6706 In the Bloomberg article on this off of the post on WaMu at Calculated Risk [sorry, I'd link it, but], I read that GS 'facilitated the $7B placement' to TPG of new capital for WaMu---and then issued their short call for WaMu's equity! Absolutely frickin' unbuh-leeeeeevvable. Take a fee, and _then_ tell the Street they're garbage? I know it's a jungle out there, but this level of parasitism wriggles at a slime level down below primordial ooze. <br/><br/>Oh, and TPG: You don't eat the Blob, the Blob eats you. Unless you got a crypto-guarantee from the Powers that Be. <br/><br/>Woo-hoo WaMu?? Whoooooo-EEEEEEE!! Stay upwind, 's my advice. I live in Seattle, but they're not _my_ bank. (It'll be commercial re that gets my bank, more likely. Oh well.) In the Bloomberg article on this off of the post on WaMu at Calculated Risk [sorry, I'd link it, but], I read that GS ‘facilitated the $7B placement’ to TPG of new capital for WaMu—and then issued their short call for WaMu’s equity! Absolutely frickin’ unbuh-leeeeeevvable. Take a fee, and _then_ tell the Street they’re garbage? I know it’s a jungle out there, but this level of parasitism wriggles at a slime level down below primordial ooze.

Oh, and TPG: You don’t eat the Blob, the Blob eats you. Unless you got a crypto-guarantee from the Powers that Be.

Woo-hoo WaMu?? Whoooooo-EEEEEEE!! Stay upwind, ’s my advice. I live in Seattle, but they’re not _my_ bank. (It’ll be commercial re that gets my bank, more likely. Oh well.)

]]> By: S http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6683 S Fri, 11 Apr 2008 18:45:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6683 NCC: $2B allowance, $130B portfolio of which $7B of broker originated HE and $7B subprime mortgages vs. $5B tangible equity. 650 million shares. Oh wait $35B of commerical exposure. Rising credit costs and deposit trends (?)? Even if you assume they run off the portfolio, reduce the dividend (300% payout) and Add it all up and you get another short bus candidate<br/><br/>"As described above, originations of broker-sourced home equity lines of credit ceased in August 2007. Broker-sourced lines represented $7.5 billion of the home equity line of credit portfolio at December 31, 2007 with California (29%), New York (10%), Florida (6%), Maryland (5%), and Virginia (5%) representing the top five lending states." average run-off of this portfolio is expected to approximate $70-75 million per month in 2008 NCC: $2B allowance, $130B portfolio of which $7B of broker originated HE and $7B subprime mortgages vs. $5B tangible equity. 650 million shares. Oh wait $35B of commerical exposure. Rising credit costs and deposit trends (?)? Even if you assume they run off the portfolio, reduce the dividend (300% payout) and Add it all up and you get another short bus candidate

“As described above, originations of broker-sourced home equity lines of credit ceased in August 2007. Broker-sourced lines represented $7.5 billion of the home equity line of credit portfolio at December 31, 2007 with California (29%), New York (10%), Florida (6%), Maryland (5%), and Virginia (5%) representing the top five lending states.” average run-off of this portfolio is expected to approximate $70-75 million per month in 2008

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6682 Anonymous Fri, 11 Apr 2008 15:16:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6682 The signs of starvation is when they start eating their own. The signs of starvation is when they start eating their own.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu.html#comment-6680 Anonymous Fri, 11 Apr 2008 14:52:00 +0000 http://www.nakedcapitalism.com/2008/04/goldman-recommends-shorting-wamu/#comment-6680 This is a great way for Goldman to recoup loses on its own off balance sheet and add liquidity to Level 3 assets! Go Goldman! This is a great way for Goldman to recoup loses on its own off balance sheet and add liquidity to Level 3 assets! Go Goldman!

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