17 September 2008 Russian Stock Market Halts Trading After a 17% One Day Decline
Shock and awe.
Russia halts trading after 17% share price fall
By Catherine Belton and Charles Clover in Moscow
and Rachel Morarjee in London
The Financial Times
September 16 2008 19:11
Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20 per cent, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell....
Russian Stock Markets Halts Trading After 17% Decline
Posted by Jesse at 12:37 AM
Russian stock market trading halted for second day :rolleyes report
7:12 AM ET, Sep 17, 2008
Trading on Russian markets suspended after sharp declines
7:12 AM ET, Sep 17, 2008
Russian RTS off 6.4 percent; Micex down 4.7 percent
7:12 AM ET, Sep 17, 2008
Fed to Make an $85 Billion Bridge Loan to AIG
AIG will receive its bridge loan, will have a limited time in which to sell assets to pay it back, the top management is replaced. Fed Considering Loan Package for AIG
We still don't quite understand the Fed's 79.9% stake in AIG. If AIG pays back the loan, with interest, does the Fed (Treasury?) still own 79.9% of the company? Is this a purchase or does that stake represent a kind of warrant should the terms of the loan not be met? Is this a purchase with an 'option to return' like a repo, or is the stake a form of collateral?
The obvious question is the amount of dilution to the shareholders. The details will like be released and clarified over time.
This may be a solution to the AIG crisis, but with regard to the US credit crisis it is more likely the end of the beginning.
"Regulators knew that if Lehman went down, the world wouldn't end," money manager Michael Lewitt wrote in an op-ed column Tuesday in The New York Times. "But Wall Street isn't remotely prepared for the inestimable damage the financial system would suffer if AIG collapsed."
Cash left world markets Monday like an outgoing tide. The interest rate banks charge each other for overnight loans soared as high as 6 percent -- far above the Fed's target rate of 2 percent and a sign banks didn't trust each other enough to make even 12-hour loans...
Posted by Jesse at 8:13 PM
09.15.08 -- 10:45PM
By Josh Marshall
Let me get this straight. John McCain's top economic advisor, former Sen. Phil Gramm, is the guy who authored the deregulation law that most agree is the ultimate cause of today's financial meltdown. Tomorrow's and probably next week's too. But let's not get ahead of ourselves. John Thain, CEO of Merrill Lynch, which swirled into brokerage oblivion today, is one of McCain's top economic advisors too. And now McCain says he's going to clean up the mess by putting in tighter regulations and oversight even though he's always supported lax oversight and his top economics guy is the one who loosened the rules in the first place.
:rolleyes London Fashion Show Shock
...auch die Mode rüstet sich für harte Zeiten :cool
Posted by Karl Denninger at 18:46
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AIG "Rescued" With Fed-Backed Bridge Loan
The market will roar tomorrow.
Now here's my advice - sell any and all financial stocks - anything that may have written CDS in the market - into the spike tomorrow.
Do it at the opening bell, and do not look back.
By getting warrants that massively dilute existing shareholders what Paulson has done is paint a target on the back of every financial firm in America.
All of them.
Let's say I'm a Hedge Fund. I want to make a billion dollars.
I pick on, oh, Goldman Sachs. I know they wrote a bunch of CDS. I, and a bunch of my hedge fund buddies, short the firm's stock into the ground.
Eventually, this will force a ratings downgrade. As soon as it does, Goldman can't make the capital calls on the CDS, and is forced to ask for help.
They get help and the common stockholders are wiped out.
I, Mr. Hedgie, say "thank you very much" and cover my short at a huge profit.
Then I repeat this with the next firm.
I get rich and buy me a new yacht, while the common stockholders in the firms are destroyed.
This will happen to every firm in America as soon as this is figured out by the Hedge Fund community, which, incidentally, will take less time than it took me to write this and record the attached video.
Sell your financial stocks into the spike tomorrow folks. No firm that is "seriously interconnected" in our financial system is safe from this, and this "risk" was wholly manufactured by the actions of our government this evening.
You've been warned!
PS: Here's the press release. 3 Month Libor (currently 2.88%) + 850 basis points (+8.5%)?! Wow! I have better rates than that on a credit card; that's slightly over 11%!
Video lohnt sich anzusehen :supi einziger Schönheitsfleck - bis jetzt sind die Futures down, von wegen verkaufen :rolleyes:schwitz aber vielleicht dreht das ja noch - falls überhaupt gewünscht von Hank & Co. :rolleyes :mad
hmmm.....ich weiss ja nicht, aber so viel Big Brother ist mir schon irgendwie nicht mehr geheuer :rolleyes
Remo7 Prince Waleed bin Tala Says Bye Bye To Wall Street
Translated Into English
1905 (GMT +04:00) - 17/09/08
الوليد بن طلال يلقي تحية الوداع على "وول ستريت"Alwaleed bin Talal places bid farewell to "Wall Street"
الوليد بن طلال لن يستثمر المزيد في وول ستريتAlwaleed Bin Talal will invest more in Wall Street
الرياض، المملكة العربية السعودية (CNN) -- إذا كان العاملون في "وول ستريت" يأملون في أن يتقدم الأمير السعودي، الوليد بن طلال، وينقذهم، فإنهم سيصابون بخيبة أمل هذه المرة، ذلك أن كلماته لهم هي: "شكراً لكنني لا أريد"، وذلك في مقابلة أجرتها معه مجلة "التايم" الأمريكية.Riyadh, Saudi Arabia (CNN) - If the workers in the "Wall Street" hope to make the Saudi prince, Alwaleed bin Talal, and rescue them, they will have disappointed this time, that they are the words: "Thank you, but I do not want" , In an interview with the magazine "Time" of America.
وفي المقابلة، قال الوليد إنه لم يتوقع حدوث الأزمة في وول ستريت، أو على الأقل بمثل هذا العمق، واقتبس عن المدير السابق للمصرف المركزي الأمريكي السابق، آلان غرينسبان، قوله إن هذا الأمر لا يحدث سوى مرة في العمر أو في القرن، ما يكشف عن مدى عمق المشكلة.In the interview, Alwaleed said he did not expect a crisis on Wall Street, or at least such a depth, quoting from a former director of the former U.S. central bank, Alan Greenspan, saying that this does not happen only once in life or in the century, reveals The depth of the problem.
وكان آخر مشاريع الوليد بن طلال في الولايات المتحدة، إعادة رسملة مصرف "سيتي بنك" أوائل العام الحالي معتبراً أن هذا النوع من الاستثمار طويل الأجل، وستظهر نتائجه لاحقاً، لكنه قال إن القطاع المالي الأمريكي يواجه أزمة حقيقية خانقة، ودليل ذلك انهيار مصرفي "بير ستيرنز" و"ليمان"، وبيع مصرف "ميريل لينش."The latest draft Alwaleed bin Talal in the United States, re-capitalization of the Bank "Citibank" early this year, saying that this kind of long-term investment, and whose results will show later, but he said that the U.S. financial sector is facing a real crisis crippling, and evidence that the collapse of a bank, "Bir Stearns "," Lehmann ", and the sale of the Bank," Merrill Lynch. "
روابط ذات علاقةRelated links
وحول ما إذا كان يعتقد أن هذه النهاية، قال الملياردير السعودي إنه كلما كانوا يعتقدون أنها النهاية، يكتشفون أنهم يتجهون نحو الأسوأ.Asked if he believed that this end, the billionaire Saudi whenever they believe that they end, they discover that they are heading for the worse.
وأوضح أنه لن يقوم بأي عملية شراء في القطاع المالي حالياً، معتبراً أن الاستثمار في مجموعة "سيتي غروب" تكفيه حالياً، موضحاً أن نسبة 4.9 في المائة التي يملكها كافية لأنه لا يمكنه تملك أكثر من 5 في المائة.He will not make any purchase in the financial sector now, considering that investment in the "Citigroup" have adequate, he said, noting that the rate of 4.9 per cent owned by inadequate because it can not have more than 5 per cent.
وكشف أنه يركز على الاستثمار في السعودية حالياً، وأن الأخيرة باتت تمر بـ"قفزة كبيرة"، وأن هناك الكثير من التركيز على قطاعي العقارات والشركات في السعودية.He revealed that he had focused on investing in Saudi Arabia now, and the latter is going through a "quantum leap", and there are a lot of focus on the sectors of real estate companies in Saudi Arabia.
وقال الأمير السعودي إن ما يحدث في الولايات المتحدة يؤثر على جميع أنحاء العالم، بما في ذلك السعودية، مشيراً إلى أنه لم تعد هناك "حصانة" أو مناعة ضد التأثيرات الخارجية، وذلك لأن العالم أصبح مترابطاً للغاية.He said Saudi Prince What is happening in the United States affects all parts of the world, including Saudi Arabia, pointing out that there is no "immunity" or immune to external influences, because the world has become very interdependent.
وكشف أن استثماراته في السعودية، وخصوصاً، في مجموعة "المملكة القابضة" والشركات الإعلامية "روتانا" و"إل بي سي" تعمل بشكل جيد، وأنها لم تتعرض لهزة جراء الهزة المالية الأمريكية.He disclosed that investments in Saudi Arabia, in particular, in the "Kingdom Holding" media companies "Rotana" and "LBC" is working well and has not been shaken by the quake financial America.
etwas vereinfacht hier ;):hihi ---> http://www.time.com/time/world/arti...=rss-topstories
auf seinem Video :supi
.....The SEC caused another problem, too, by not requiring more transparency at these struggling companies. So there was no way for investors to know what good and bad was lurking on the balance sheets on Lehman, AIG and others. That allowed the bears to spread fear-inducing rumors, which made driving down the stocks much easier.And what’s strange about all of this is that at one point this past summer the SEC reinstated these short-selling rules. And that’s when the financials bottomed. So if they were working then, when we needed them most, why not keep enforcing them? They were created in the first place – after the crash of 1929 – to stop the very problems short sellers caused to AIG.
...ist schon sehr erstaunlich - es wimmelt nur so von unfähigen Leuten an einflussreichen Posten :mad
“When we look back at the destruction of the financials during this great era,” Cramer said, “never forget the instrumental role the SEC played in both creating the chaos and doing nothing to stop it.”
Markets Getting A New Makeover
-> Posted by Farmboy @ 11:45 am on September 17, 2008
Too bad there is just so much lip stick to go around. Meanwhile, the ageless beauty of gold still shines above them all.
1. putting lipstick on a pig
A term used by many, generally in reference to someone who may be trying to make something or someone look appealing or attractive when it quite clearly will not work, or will only deceive the dumbest of people.
And then, there are some things even lipstick cant do much for…
Extraordinary Market Conditions Dry up Forex Liquidity
Wednesday, 17 September 2008 15:18:45 GMT
Written by David Rodriguez, Quantitative Analyst
Forex markets have seen historic volatility as of late, causing widespread panic in forex markets and drying up liquidity across a broad swath of asset classes. Indeed, our DailyFX 1-week volatility index is now at its highest since the inception of the euro—underlining financial market duress and fears that extreme price moves may continue through the coming days.
TED Spread Rises to New High for the Credit Crisis
For an explanation and analysis see: Demystifying the TED Spread
Posted by Jesse at 10:08 AM
The TED Spread is the difference between U.S. Treasury bill yields and yields for Euro deposit contracts of the same maturity, generally three months.
:bad...immer auf dem Buckel der andern Geld gescheffelt :bad
17 September 2008
Fed to Treasury: More Power!
The Treasury acts to put more 'top end' on the Fed's printing presses.
Treasury to Sell Bills to Bolster Fed Balance Sheet
By John Brinsley and Rebecca Christie
Sept. 17 (Bloomberg) -- The U.S. Treasury said it will sell bills to allow the Federal Reserve to expand its balance sheet, a day after the government agreed to take over American International Group Inc.
``The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve,'' the department said in a statement today. ``The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program.''
Yesterday the Fed announced an $85 billion loan to AIG, in exchange for a 79.9 percent government stake in the largest U.S. insurer. The Fed also has set up several other emergency lending programs to provide Wall Street firms with ready access to funding.
The new bill program ``will provide cash for use in the Federal Reserve initiatives,'' the Treasury said.
The Treasury said it will sell the new bills using its existing auction procedures, giving ``as much advance notification as possible.'' The bills will not have a uniform fixed term, giving the Treasury the same duration flexibility that it has with cash-management bills.
NY Federal Reserve Bank
Statement Regarding Supplementary Financing Program
September 17, 2008
Today, the Treasury Department announced the initiation of a temporary Supplementary Financing Program.
The program will consist of a series of Treasury bill auctions, separate from Treasury's current borrowing program, with the proceeds from these auctions to be maintained in an account at the Federal Reserve Bank of New York.
Funds in this account serve to drain reserves from the banking system, and will therefore offset the reserve impact of recent Federal Reserve lending and liquidity initiatives.
Posted by Jesse at 10:18 AM
by Michael Fox | September 17, 2008 - 3:03am
The bailout of AIG has exposed more than just the collapse of Casino Capitalism. It exposes the governmental system to be as much a sham as our economy has been! How is it that $85 billion can just materialize to bail out this one insurance company (insuring for the most part, opaque, enormously complicated and risky investments) without so much as a session of Congress? Where is the appropriations committee in this matter? Where were they when the Bear, Stearns/JP Morgan deal went down on a Sunday?
What has been exposed here is the complete absence of the United States Government as it is supposed to work. In its place are Treasury Sec. Henry Paulson and Federal Reserve Chairman Ben Bernanke making decisions about spending sums of money equal to the budgets of many small nations – money that will have to be paid back by the taxpayers, who have seen none of the gilded rewards. You have had no say – nor have your impotent representatives.
I don’t care if you’re a Republican or a Democrat or an Independent: you should be mighty pissed-off right now, because you’ve just been pissed on! And your “golden shower” didn’t come with the “golden parachute” that was given to Merrill Lynch CEO John Thain! Mr. Thain was hired 10 months ago by the venerable, 96-year old firm, and sold it to Bank of America (on Sunday, of course) for about a nickel on the dollar it had been worth a year ago. For his efforts, he will be receiving an estimated $34 million. I know what you’re thinking: Only $34 mil?
Well, I’m thinking I’ve seen enough of these guys walk away after bleeding huge companies, their investors and stockholders - and ultimately every taxpayer in the country dry, without the good old-fashioned Eleven o’clock News PERP WALK!
AIG is insuring some $600 billion in securities – most of which are backed by the real estate market (or, in the case of municipal bonds, the projected property taxes on homes that are losing value and/or being foreclosed upon, and therefore will not be redeemable from the then-penniless municipality). Because of the amount of claims AIG has had to pay, their credit worthiness has gone down. As Standard and Poor’s or Moody’s lowers the rating, AIG has been required to come up with more and more collateral to cover their potential losses. They have little left with which to collateralize, and their efforts (along with those of other downgraded companies like Merrill Lynch and Lehman Bros) have sent commodity markets through the floor as they have been urgently cashing out everything from oil futures to precious metals and realty holdings. Platinum, for example, has halved in three months, as it’s been dumped to cover margins.
With nothing left to liquidate, and their ratings continuing to tank, they would have had to start defaulting on claims. Enter the Fed - and the 85 billion Weimar Dollars.
If the past 10 months of the Depression are any indication, it will probably keep the market level for another week or so, as each such move seems to do, then another shoe will drop. It's reckless, and we're watching the whole system collapse – financial, governmental, and even judicial, as there appears to be not even any judge to step in and stop this corruption - nay, this utter perversion of our economic and legislative systems.
...ob die Amis jemals erwachen :confused wohl nicht wenn so was in ihrer Gunst steht :rolleyes:mad
H/T: Open Left
...ausgerechnet diese beiden Typen :kotz :kotz gehen zur SEC und beklagen sich, dass ihre Aktien durch Shortsellers gedrückt werden :dumm (eben auf CNBC)
:bad ...von GS sagt man, dass sie die grössten Shortsellers aller Zeiten seien und so dicke Kohle gemacht haben :bad die haben ja wohl null Ehrgefühl in ihren Köpfen/Är***en :bad
Citic Bank in talks with Morgan Stanley: report
Last update: 12:50 a.m. EDT Sept. 18, 2008
HONG KONG (MarketWatch) -- Morgan Stanley is holding talks over a possible merger with Chinese bank Citic, according to a media report......
full story: http://www.marketwatch.com/news/sto...}&dist=hplatest
investmentteller 1 hour ago
+3 Votes (3 Up / 0 Dn)
Morgan Stanley in talks to merge with a Chinese Bank, it's over - everything is now "Made in China". They flood our markets with everything from counterfeit food to counterfeit batteries to counterfeit hand bags, now were going to trust our 401k's and investments with them? I'd rather bury my cash in a coffee can in the back yard first!
Friggin CEO greed did more damage to our economy and financial system than any terrorist plot could ever dream of; we need to leave Iraq and deploy troops here to capture greedy CEO's :supi
The American dream will now be known as the "Number 3 with Egg Rolls"
Weiter die Kellertreppe runter
Wall Street - die Depots von Lehmann und Merrill Lynch werden geleert. Es wird alles auf den Markt geworfen. Das Debakel nimmt seinen Fortgang. Misstrauen überall, die giftige Saat wirkt.
US Finanzwerte - jeder redet mit jedem, alle suchen Schutz und Verstärkung. Die nächste Runde: es schwappt auf Europa über.
UBS - statt eines klaren Statements zur Lage will UBS das Malaise schweigend aussitzen. Die Börse gibt ihr täglich die Antwort! Inzwischen hat die wesentlich kleinere Credit Suisse die UBS in der Börsenkapitalisierung überholt! UBS in den USA mit neuer Zivilanklage (500 Millionen Dollar Schadenersatzanspruch): Peter Kurer, Martin Liechti und Bradly Birkenfeld (neben 30 weiteren UBS-Leuten) namentlich genannt! Reiseverbot nach den USA für alle Erwähnten!
Schweizer Banken - heute jährlicher Bankiertag. Böser Kommentar eines Profis: "Tag der aufgescheuchten, kopflosen und verängstigten so genannten Bankers". (....bei den Amis heissen sie Banksters :o)
:kotz Luzerner KB - "denkt nicht daran, Kunden schadlos zu halten, denen sie Lehmann-Produkte für 80 Millionen Franken (!) mit 100prozentigem Kapitalschutz andrehte." Berner Kantonalbank :supi (Engagement 50 Millionen Franken) wird ihre Kunden hingegen schadlos halten! Die Kunden werden es beiden Banken nicht vergessen...
...eine erholsame Morgendusche ;):hihi
Wallstreet Bankster :o
...muss man den Amis wirkich immer wieder in den Ar*** kriechen :mad
SNB: Repo-Auktionen in USD werden ausgeweitet - Zusammenarbeit mit Zentralbanken
Zürich (AWP) - Die wichtigsten internationalen Zentralbanken (Bank of Canada, Bank of England, EZB, Federal Reserve, Bank of Japan und SNB) wollen mit koordinierten Massnahmen den anhaltenden, erhöhten Anspannungen am US-Dollar-Geldmarkt entgegentreten. Zusammen mit anderen Schritten, die von einzelnen Zentralbanken in den letzten Tagen unternommen worden seien, seien diese Massnahmen dazu geeignet, die Liquiditätsverhältnisse an den internationalen Finanzmärkten zu verbessern, heisst es in einer Mitteilung der SNB vom Donnerstag. Die Zentralbanken würden weiterhin eng zusammenarbeiten und auf die anhaltende Anspannung mit geeigneten Massnahmen reagieren.
Die SNB wird als Massnahme ab heute ihre Repo-Auktionen in USD ausweiten. Sie habe dies in Absprache mit der Federal Reserve entschieden (Sie habe entschieden :rolleyes wohl eher - die Amis haben entschieden :bad) heisst es dazu. Neu wird die SNB täglich USD-Repo-Auktionen mit einer Laufzeit von 1 Tag (overnight) durchführen und die Volumen der bisherigen Auktionen mit einer Laufzeit von 28 bzw. 84 Tagen erhöhen. Die SNB plane, unter Berücksichtigung der Marktsituation Liquidität in US-Dollar zur Verfügung zu stellen, so lange sie dies als nötig erachtet, heisst es.
Das Volumen der 1-Tagesauktion soll einen Umfang von maximal 10 Mrd USD haben. Das Volumen der ausstehenden USD-Repo-Operationen mit einer Laufzeit von 28 Tagen wird von 6 auf 8 Mrd USD und dasjenige der Repo-Operationen mit einer Laufzeit von 84 Tagen von 6 Mrd auf 9 Mrd USD erhöht. Diese Auktionen werden wie bisher alle zwei Wochen alternierend durchgeführt. Der maximal ausstehende Gesamtbetrag für alle Laufzeiten beträgt neu 27 Mrd USD, verglichen mit bisher 12 Mrd USD.
Notenbanken pumpen weltweit Geld in die Märkte
Geballte Aktion gegen die Finanzkrise: Um die nervösen Börsen zu beruhigen, wollen die Notenbanken weltweit frisches Geld zur Verfügung stellen. Der Dax rutschte dennoch zeitweise ins Minus - inzwischen steigt er wieder. mehr... [ Forum ]
:schwitz ...ich weiss - bissle viel Lesestoff - aber irgendwie möche doch man mal nachvollziehen was/wie passiert ist :rolleyes
17 September 2008
Can Morgan Stanley and Goldman Sachs Survive?
"We need a merger partner or we’re not going to make it," Mr. Mack told Mr. Pandit...
Too bad Bush and Company were not able to 'privatize' Social Security a few years back. Wall Street could have ravaged the life savings of the nation for at least a few more years before the music stopped.
As Fears Grow, Wall St. Titans See Shares Fall
By BEN WHITE and ERIC DASH
September 18, 2008
Even Morgan Stanley and Goldman Sachs, the two last titans left standing on Wall Street, are no longer immune.
To the surprise of executives within those firms, and their rivals, the stocks of these powerful companies were drawn into the crisis of investor confidence on Wednesday. Morgan Stanley, whose stock fell almost 25 percent, was considering a merger with Wachovia or another bank to help shore up its finances. Goldman Sachs’s stock fell almost 14 percent, and it had to rebuff rumors that it was seeking a capital infusion.
The assault on these two companies underscored how quickly a sense of fear is spreading through Wall Street. Both firms just reported respectable profits on Tuesday, and were considered in a separate class from weaker banks like Bear Stearns and Lehman Brothers that saw the value of their businesses evaporate....
A tie-up with a bank would restore Morgan Stanley to its structure during the Depression, when the firm split from the Morgan banking empire. It would also leave Goldman Sachs as the last major American investment bank after a global financial crisis that has gripped markets for more than a year snowballed last week, forcing the most risk-taking industry in the world to get back to basics.
Only a day ago, Morgan Stanley defended itself from growing doubts about its future, issuing a fairly positive earnings report to ward off concerns about its health. But the fear that gripped markets after Lehman Brothers failed also enveloped the firm.
Seeking to avoid the kind fate that led Lehman and Bear Stearns to collapse, John J. Mack, Morgan Stanley’s chief executive, made an unsuccessful effort on Tuesday evening to persuade Citigroup’s chief executive, Vikram S. Pandit, to enter into a combination, according to people briefed on the talks.
“We need a merger partner or we’re not going to make it,” Mr. Mack told Mr. Pandit, according to two people briefed on the talks. Mr. Pandit, a former senior investment banker at Morgan Stanley, said Citigroup was not interested. It is thinking of deals it can strike with consumer banks, like buying the struggling Washington Mutual out of bankruptcy if its reported efforts to auction itself should fail, that would provide it with cheaper deposit funding. A Citigroup spokeswoman declined to comment.
Having failed at that, Mr. Mack entered into discussions on Wednesday with Wachovia and several other banks, people briefed on those discussions said. The talks with Wachovia are preliminary and a deal may not emerge. The banks declined to comment.
Goldman Sachs may be under less pressure given its recent history of outperforming its peers. The bank made $11.6 billion last year and has not posted a loss during the credit crisis. Morgan Stanley has also performed well, but has suffered more write-downs and had a loss of $3.6 billion in the fourth quarter of last year.
Still, many specialists say they believe that the monumental events of the last four days herald a new period of painful change for the American financial industry — one that speculators are rushing to pounce on. While Wall Street has gone through tough times before, only to emerge bigger and stronger, some financial specialists question whether the industry can rebound quickly after using high levels of leverage, or borrowed money, to binge on risky investments. Those investments have proved to be disastrous. Worldwide, financial companies have reported more than $500 billion in charges and losses stemming from the credit crisis — a figure some specialists say could eventually exceed $1 trillion.
Merrill Lynch rushed into the arms of Bank of America this week in a deal that in some ways harked back to the past. During the Depression, Congress separated commercial banks, which take deposits and make loans, from investment banks, which underwrite and trade securities. The investment banks were allowed to do business with less oversight, while commercial banks operated with tighter supervision.
But after Congress repealed those Depression-era laws in 1999, commercial banks began muscling in on Wall Street’s turf. As the new competition whittled down profit margins, investment banks used more of their capital to trade securities and also began developing financial derivatives to fuel profits.
Now, executives like John A. Thain, the chief executive of Merrill and a former Goldman executive, say investment banks will need large bases of deposits to shore up their capital....
:verbeug ---> http://jessescrossroadscafe.blogspot.com/
Goldman Sachs may be under less pressure given its recent history of outperforming its peers - tja das Netz und shorten (und jetzt bei der SEC jammern :bad) gibt Kohle :bad
...fresh money :confused:rolleyes
THE RISE OF THE PHOENIX!
Even as I finshed writing the previous post, the HSE (Hang Sang) which had dropped 1600( yes no spelling mistake here) recouped all the losses that it had made earlier in the day. The HSE is now down only 4 points at present. Obviously we cannot take this as an indication that the present crisis is done. Hardly, but it is an indication as to how volatile these markets are and how much they can affect the price of gold nad silver as well as treasuries. This is why I advice caution at present. We really have no idea what is going to happen in the next few hours. We can only speculate ( I really hate that word) that it is possible that NY and London may take cue from the rise of the phoneix from the ashes and literally that is what happened. Have a look at the one day graph below.
....Geld scheint wirklich über allem zu stehen :( :gomad
Weiteres Todesopfer im Babymilch-Skandal
17. September 2008, 08:54 Uhr
Die Zahl der Kinder, die durch verseuchtes Babymilchpulver in China krank geworden sind, ist auf mehr als 6000 gestiegen. Sie leiden unter ernsthaften Nierenproblemen. Mehrere namhafte Händler hatten das Produkt mit einer giftigen Chemikalie gepanscht. Drei Babys sind bereits gestorben.
In dem Skandal um verseuchtes Babymilchpulver in China sind inzwischen mehr als 6000 Säuglinge erkrankt.
.......Die Unternehmen Yashili aus der Südprovinz Guangdong und Qingdao Suokang in der ostchinesischen Hafenstadt Qingdao hätten in Länder wie Bangladesch, Jemen, Birma, Burundi und Gabon exportiert, berichtete Qualitätschef Li Changjiang. Die Produkte würden zurückgezogen, zitierte ihn die amtliche Nachrichtenagentur Xinhua.
Die Belastungen mit Melamin in Sanlu-Produkten waren nach diesen Angaben besonders hoch. Mit der gefährlichen Chemikalie, die in der Industrie als Bindemittel eingesetzt wird, wurde der Proteingehalt in qualitativ minderwertiger oder verdünnter Milch künstlich erhöht......
Der Skandal, der wochenlang vertuscht worden war,..... :dumm:dumm:dumm
ganzer Artikel: http://www.welt.de/vermischtes/arti...ch-Skandal.html
wer's glaubt :rolleyes und wer kontrolliert bei den kleinen Stinkern :confused:rolleyes
New SEC Rules Target 'Naked' Short-Selling
By Marcy Gordon
Thursday, September 18, 2008; Page D05
Federal regulators yesterday took measures aimed at reining in aggressive forms of short-selling that were blamed in part for the demise of Lehman Brothers and that some feared could be used against other vulnerable companies in a turbulent market.
The Securities and Exchange Commission adopted rules it said would provide permanent protections against abusive "naked" short-selling. Unlike the SEC's temporary emergency ban this summer covering naked short-selling in the stocks of mortgage finance giants Fannie Mae and Freddie Mac and 17 large investment banks, the new rules apply to trading in the broader market.
In a further move, SEC Chairman Christopher Cox said he planned to ask his four fellow commissioners to consider on an emergency basis a new rule that would require hedge funds and other large-scale investors to disclose their short positions -- the stocks they have borrowed and sold but not yet replaced.
The rule would be designed to ensure transparency in short-selling in general, beyond the practice of naked short-selling, Cox said in a statement last night. Investment managers with more than $100 million in securities would be required to promptly begin public reporting of their daily short positions.
full story: http://www.washingtonpost.com/wp-dy...631.html?sub=AR
SEC tightens rules on short sales
...Under a measure that takes effect Thursday, short sellers and their broker dealers must deliver securities by the close of business on the settlement date, three days after the sale.....
Morgan Stanley CEO's E-Mail to Employees
washingtonpost.com readers have posted 21 comments about this item.
View All Comments »
Wednesday, September 17, 2008; 7:15 PM
.....What's happening out there? It's very clear to me -- we're in the midst of a market controlled by fear and rumors, and short sellers are driving our stock down. You should know that the Management Committee and I are taking every step possible to stop this irresponsible action in the market. We have talked to Secretary Paulson and the Treasury. We have talked to Chairman Cox and the SEC. We also are communicating aggressively with our long-term shareholders, our counterparties and our clients. I would encourage all of you to communicate with your clients as well --make sure they know about our strong performance and strong capital position....
:kopf...der ehrenwerte Herr Mack hat wohl nie geshortet und sicher immer ehr und redlich gehandelt :ironie
Million $$ bonuses in danger? Yea right, that dude is so getting paid. That email was more on the lines of "just give me another 48hrs to draft an ironclad 8 figure severance package for myself" and with a little luck I'll be able to flog this company off for like 5% percent of what its worth and collect a nice little sellers fee to boot.
9/17/2008 9:04:29 PM
September 18, 2008
Senator Bunning Stands Tall Against AIG Bailout
Once again U.S. Senator Jim Bunning has to step up and show the rest of Congress what a senator with backbone looks like. For all the talk this year of putting government back on the side of the people, Jim Bunning proves once again that this is not a new concept with him, it is at his core.
In an article by Patrick Crowley this morning in the Kentucky Enquirer we have learned that Senator Bunning has "filed legislation that would strip the Federal Reserve of the authority to use taxpayer dollars to help unregulated companies such as insurer American Insurance Group (AIG), the latest company bailed out by the federal government".
Bunning's swift action in response to the AIG bailout is discussed by Senator Bunning with the exact kind of straight talk which has kept him on the side of ordinary Americans during his entire career:
"To say I am outraged by this would be an understatement. The greed on Wall Street is only exceeded by the stupidity of the Treasury secretary and the chairman of the Federal Reserve. :bangSenator Bunning has for years been very concerned about the handling of the Federal Reserve and very vocal about his concerns. Maybe now more in Congress will listen to him as an increasing number of ordinary Americans around the nation begin to voice their objections to their representatives and senators about the loan of their tax dollars to extremely wealthy businesses who find themselves unable to pay their debts.
Bunning ist übrigens Republikaner :o
18.09.2008 , 17:09 Uhr
Rasanter Kursanstieg VW-Kursrally ohne Ende: „Völlig überzogen“
Die VW-Aktie entwickelt sich zu einem Phänomen. Seit Wochenbeginn hat das Papier mehr als 40 Prozent zugelegt, während fast alle anderen Dax-Werte kräftig verloren haben. Allein heute kletterte die Aktie des Autobauers um zeitweise über 27 Prozent – und knackte damit eine magische Marke....
hmmmm......es pfeifen doch alle Spatzen von den Dächern, dass das mit Lehmann und short-covering zusammen hängt :rolleyes:rolleyes:rolleyes ausserdem sei der free-flow zwischen 10 - 15% :o ...also das habe ich so gehört bei n-tv ;)
...there ist still not enough confidence in the stock market :eek:eek:eek (CNBC - Bob Pisani :rolleyes)
ja - das ist wirklich nicht zu fassen :ironie
Home | Previous Page
SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
FOR IMMEDIATE RELEASE
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against "naked" short selling. The Commission's actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
Can Ya spare a Nickel?
-> Posted by Mr.Goldbug @ 12:07 pm on September 18, 2008
Putman Board votes to close its Institutional Prime Money Market Fund - is not due to
Credit Quality (...nee natürlich nicht :dumm) :eek :rolleyes
...gestern war das noch nicht möglich - doch oh Wunder Herr Paulson will es möglich machen :rolleyes
US Sen. Dodd: no time now to set up RTC-type fund
Wed Sep 17, 2008 1:21pm EDT
WASHINGTON, Sept 17 (Reuters) - There is not enough time left in the congressional session for U.S. lawmakers to consider setting up a Resolution Trust Corp-type fund to buy up toxic mortgage assets, Senate Banking Committee Chairman Chris Dodd said on Wednesday...
...und siehe da aus dem Stand ---> DJ 333.58 (3.14%)
.....und Gold natürlich the other way round :gomad
Stocks surge on report of entity for bad debt
Thursday September 18, 4:20 pm ET
By Tim Paradis, AP Business Writer
Stocks end sharply higher on report that government will create entity to hold banks' debt
NEW YORK (AP) -- Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government may create an entity that will take over banks' bad debt.
A report that Treasury Secretary Henry Paulson is considering the formation of an entity like the Resolution Trust Corp. that was set up during the savings and loan crisis of the late 1980s and early 1990s left investors ebullient. Investors hoped a huge federal intervention could help financial institutions (wie viel wollen die denn noch :confused das ist ja Hilfe ohne Ende :mad) jettison bad mortgage debt and stop the drain on capital that has already taken down companies including Bear Stearns Cos. and Lehman Brothers Holdings Inc.....
full story: http://biz.yahoo.com/ap/080918/wall_street.html?.v=44
....da werden sie geholfen :dumm
"THE MARKET IS AS CROOKED AS A DOG'S HIND LEG"
Yeah, I need to go take a shower. Wash all the slime off.
:verbeug @auratico - GoldseitenForum
Paulson ist ein unglaublich cleverer Psychologe, indem er jetzt die 80er Jahre wieder auferstehen lässt. Inzwischen bestimmen praktisch nur noch seine Aktionen die kurzfristigen Marktbewegungen. So etwas hätte sein blasser Vorgänger Snow nie und nimmer hinbekommen. Nach dem Muster der Sparkassenkrise also soll nun verfahren werden, ganz nach dem Motto: Das haben wir doch damals ganz gut hinbekommen ,und danach kamen doch gleich wieder die fetten Jahre. Damals wurden bekanntlich praktisch alle Schulden vom Steuerzahler übernommen. Und ausserdem muss diesmal ja die ganze Welt - ausser dem bösen Hugo - mithelfen und Dollar kaufen wie noch nie. Die Chinesen sind auch wieder mit an Bord und reden wieder mit Morgan Stanley über eine Kapitalaufstockung.
Jetzt ist die Katze endgültig aus dem Sack, und die Wall Street kann die Bankenwerte steigen lassen. Da sind jetzt kurzfristig sehr gute Zockerprofite zu machen, weil das ja einem Generalbailout gleicht. Punktgenau tritt der gewünschte Effekt ein und der Dow saust gen Himmel. Das wird wieder einmal sehr spannend zu sehen, wie lange diese Geschichte die Märkte bestimmen wird. Und vor allem, ob der US-Bevölkerung, die ja selbst bis über beide Ohren verschuldet ist, klar ist, was da auf sie zukommt. Denn die Zahlen der damaligen Sparkassenkrise hören sich heute wie die sprichwörtlichen Peanuts an:
The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts—which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse selection incentives compounded the system’s losses.
Juback todays post, this guys a genius, takes a conseravative sane view of the market, I like reading his posts.
-> Posted by goldielocks @ 2:13 am on September 19, 2008
By Jim JubakSave us and the financial markets from the folks at the U.S. Treasury and the Federal Reserve who are now riding to the rescue. They’re making a terrible mess even worse.
Nobody in the financial markets believes these guys. On Sept. 16, when the Federal Reserve’s Open Market Committee voted to hold interest rates steady at 2%, the federal funds rate fell to 1% in the markets, way below the 2% target.
Think the markets are convinced the Fed will have to cave and cut interest rates no matter what it said Sept. 16? Of course they are. And they’re almost certainly right. That’s why stocks rallied on what was bad news.
More importantly, for any of us who hope to see the economy start to deliver jobs and growth again, watching the Treasury and the Fed try to “save” us is a horribly graphic reminder of how they got us into this mess.
We can thank their addiction to flooding the market with liquidity and their inclination to look the other way when they should have used their regulatory powers for inflating the housing bubble. And we can thank their “solution” for making the damage worse.
By saying one thing one day and doing something else the next, they’ve left the financial markets without any reasonable guidance. Remember how they told American International Group (AIG, news, msgs) that there would be no bailout, then bailed out the company anyway? Anybody have any idea which companies the Fed and Treasury will save and which they won’t?
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