An interesting disconnect exists between Goldman’s public posture on the SEC’s suit against it over its Abacus 2007 AC1 deal and its private remarks. The firm has maintained that the charges are baseless and politically motivated, and hinted that if there is any dirt here, it must be the fault of Fabrice Tourre, the staffer […]
Read more...By Tom Adams, an attorney and former monoline executive The SEC’s complaint against Goldman Sachs on its Abacus 2007 AC1 transaction may have impact beyond just the facts in that particular deal. The case has touched off a firestorm of reaction across the globe now that a government enforcement agency has dared use words like […]
Read more...Goldman pointed avoided discussing its pending SEC lawsuit directly on its conference call earlier today, but other reports suggest it is taking an even more pugnacious stance than its initial press released indicated. From Politico: Goldman’s crisis strategy…is already clear: An attempt to discredit the Securities and Exchange Commission by painting the case as tainted […]
Read more...By Marshall Auerback, a fund manager and investment strategist who writes for New Deal 2.0. A recent poll by Douglas Schoen and Patrick Caddell suggests that swing voters in the US, who are key to the fate of the Democratic Party, care most about three things: reigniting the economy, reducing the deficit and creating jobs. […]
Read more...We met last week with a savvy German investor, one who unlike many of his peers, is well aware of the German bank exposure to Greek and other Club Med debt. He argued that Greece will default within six months. That view might have seemed extreme a week ago, but as Wolfgang Munchau points out […]
Read more...By John Bougearel, author of Riding the Storm Out and Director of Financial and Equity Research for Structural Logic “The whole intellectual edifice collapsed.” ~ Alan Greenspan “Blaming individuals [or a few institutions] is no substitute for acknowledging the failure of the whole system.” ~ ` BOE Mervyn King ~ Quotes excerpted from Yves Smith’s […]
Read more...A shocker in the news here (even my normally laid back host Richard Smith reacted strongly): the normally #3 party, the Lib Dems, have now been found to be in the lead by two reputable polls. Admittedly, it is a full three weeks before the election, and the Lib Dems’ unexpected assumption of the lead […]
Read more...We received a copy of the document via e-mail and assume this is being leaked broadly (which begs the question of whether this was by happenstance or deliberate. The proximity to the filing of the suit suggests the latter). Richard Smith published it on ScribD: Abacus-2007-AC1-INDICATIVE TERMS Update 8:15 PM: Several items jump out. First […]
Read more...A pair of articles, one at the Washington Post, the other at Politico, look at the significance of continuing slide in Obama’s poll ratings. At the WaPo, pollsters Douglas Schoen and Pat Caddell are firmly of the view that Obama is out of touch with the mood in the heartland, and needs a sharp course […]
Read more...Bloomberg reports that Senate Agriculture Committee Chairman Blanche Lincoln is expected to table a proposal to require commercial banks to separate their derivatives operations from their commercial banking activities. The intent is to prevent banks from using cheap deposits to subsidize risky derivatives businesses, and thus eliminate the government backstopping of these activities. This “no […]
Read more...Magnetar 1) A neutron star with an intense magnetic field, capable of emitting toxic radiation across galaxies 2) A hedge fund, the single market player most responsible for the severity of the 2008 financial crisis, through the toxic instruments it created Rahm Emanuel 1) White House Chief of Staff 2) Politician selected by Magnetar’s CEO […]
Read more...By Satyajit Das, a risk consultant and author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives Contained Again… The language is reminiscent of the start of the sub-prime mortgage problems. The problem is “small” and “contained”. Despite the “solution” announced by the European Union (“EU”), the problems of Greece […]
Read more...Yves is holed up at the Institute of New Economic Thinking (INET) conference in Cambridge. The effort, sponsored by George Soros, is a much needed collaboration of ideas to help prevent a crisis like the one we are now experiencing. She claims they are working hard of course. Hence, her lack of posts. Marshall Auerback […]
Read more...It seems the wheels are coming off the European experiment. Yesterday, we had a huge meltdown in Greek bonds. Media reports suggest that a recent article in German daily Frankfurter Rundschau are what triggered the latest selloffs in Greek sovereign debt (See the Telegraph’s account here; hat tip Swedish Lex). This article leaked portions of […]
Read more...Things are suddenly getting very interesting… Readers may have taken note that the Treasury has launched a son of HAMP, its ineffective program to get banks to provide undertake mortgage modifications, called 2MP. As far as I can tell, 2MP is a farce. It is simply another back door way to recapitalize troubled banks. Mike […]
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