Trading Now

Trading Now

Thursday, August 20, 2009


*here is the FDIC at its best: they want private equity groups to come and HELP them by taking over failing banks, but their Tier 1 capital requirements are HIGHER than the banks that brought you this mess in the first place. Gee, maybe I should buy a bank.
Pension funds oppose proposed rules on lender takeovers
The private-equity industry is getting support from a group of large U.S. state pension funds in its opposition to regulators' rules for acquiring troubled banks. Funds from Oregon, New York and New Jersey warned that the proposals could have a "chilling effect" on efforts to bolster the banking system. The rules would require private-equity groups to maintain the Tier 1 capital ratio of the bank they acquired at 15% of its assets, which is three times the level other banks are required to keep. Financial Times (tiered subscription model) (19 Aug.)

OECD sees stabilization, beginnings of recovery
The world's 30 most developed economies are no longer contracting, the Organization for Economic Co-operation and Development said. The organization said the economies of its member countries stabilized as a whole from April to June. With 0.9% GDP growth, Japan is leading the global recovery, the OECD said. The Independent (London) (20 Aug.)

*I have been saying for a year now that 2010 will be the year of the default for companies. Who and when we just won't know.
Defaults on corporate debt soar to record high
This year, 201 issuers of corporate debt have defaulted on a total of $453.1 billion in debt, compared with 126 corporate defaults totaling $433 billion for all of 2008, Standard & Poor's said. The latest data also top figures for the comparable period in 2001, which had been the worst year for corporate-debt defaults. Financial Times (tiered subscription model) (19 Aug.)

*hahahahhahahahaahaha arrogant BofA
Mortgage-securities holders win case against Countrywide
Holders of mortgage-backed securities scored a big win when a federal judge in Manhattan ruled that U.S. legislation adopted last year does not shield Countrywide Financial from all investor lawsuits based on loan modification. Countywide had argued that the Helping Families Save Their Homes Act of 2009 relieved it from commitments to buy back loans from investors in the event that the loans are modified to help distressed borrowers. The New York Times (19 Aug.)

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