Tags: bailout, Barack Obama, Bonuses, Compensation, GE, Goldman Sachs, Henry Paulson, Jamie Dimon, JP Morgan, Lloyd Blankfein, Murders, Robert Kissel, Scandal, U.S.. Treasury
Tags: Gold, Henry Paulson, John Paulson, Paulson & Co, Private equity, Sovereign wealth funds, Temasek
Tags: Barclays, Ben Bernanke, Bob Diamon, Carlyle Group, David Rubinstein, Fed, Henry Paulson, Nouriel Roubini, Tim Geithner, U.S. Treasury
Ken Lewis’ February testimony to Andrew Cuomo et al: According to this morning’s WSJ, based on statements that Ben Bernanke and Hank Paulson were said to have been made to him, Ken Lewis believed that he was supposed to keep mum about Merrill Lynch’s financial woes, even though he risked not publicly disclosing material financial information about the increasingly risky merger to his shareholders. It was either that, or “impose a big risk to
the financial system”. But according to statements from Bernanke and Paulson, it’s not all that clear who said what and how Lewis’ arm might have been twisted….
Tags: Bank of America, Ben Bernanke, Fed, Henry Paulson, Merrill Lynch
Those $3.6 billion in Merrill Lynch bonuses that were paid out early seem to have disappeared from the front page thanks to the likes of AIG and the auto bailout. But Dennis Kucinich, chairman of a subcommittee of the House of Representatives' Oversight and Government Reform Committee, is all over it now:
Tags: Bank of America, Ben Bernanke, Bonuses, Compensation, Fed, Henry Paulson, John Thain, Ken Lewis, Merrill Lynch, Politics
NY Post Page Six sightings: "TREASURY Secretary Hank Paulson – unlike automotive moguls who fly on corporate jets – in first class on an LA-DC American Airlines red-eye"
Tags: Autos, Chrysler, Ford, GM, Henry Paulson, Private jets
This year there are quite a few choices, spanning entertainment, sports, media, politics and of course Wall Street. Just some of those represented: There's Eliot "Client 9" Spitzer and his high priced hooker Ashley Dupre. There's Obama, Biden, McCain, Palin. There's the usually substance-impaired Amy Winehouse and Olympic champ Michael Phelps. There's Ben Bernanke and Hank Paulson. And of course, the collection wouldn't be complete without Wall Street pariahs Jimmy Cayne and Dick Fuld.
Halloween Masks – The Scariest People of 2008 – Forbes
Tags: Ben Bernanke, Dick Fuld, Eliot Spitzer, Henry Paulson
“Treasury doesn’t want to prop up weak banks,” said an official who spoke on condition of anonymity, because of the sensitivity of the matter. “One purpose of this plan is to drive consolidation.”
“We think there will be pressure behind the scenes by Treasury to push together companies that should have merged months or years ago,” said Gerard Cassidy, a banking analyst at RBC Capital Markets in Portland, Me. “If you can create stronger companies, that is a positive.”
U.S. Is Said to Be Urging New Mergers in Banking – NY Times
Tags: Banks, Credit Crunch, Henry Paulson, M&A
Doesn’t that just create more confusion for the public?
Tags: CNBC, Credit Crunch, Economy, Henry Paulson
An excellent Wall Street Journal front page article explores the far reaching ramifications and pains of letting Lehman Brothers fail. We think that it was a terrible decision by the Fed and U.S. Treasury, which helped to put us where we are now, resulting in what we consider to be a rescue plan that amounts to nothing more than a $700 billion band-aid….
Tags: Barclays, Ben Bernanke, Credit Crunch, Fed, Henry Paulson, Lehman Brothers
All day we’ve been hearing that they were close to a deal in principal for the Hank Paulson’s $700 million plan to save the credit markets. Apparently, they’re not as close as they thought.
Negotiations on a $700 billion proposal
to inject new capital into the paralyzed credit markets stalled after House
Republicans offered a different solution to the financial crisis.Senate Banking Committee Chairman Christopher Dodd said the agreement in
principle he had reached earlier in the day with some Republicans was later
undermined by a proposal offered by House Republicans led by Representative Eric
Cantor.
Rescue Plan Talks Set Back by Republican Alternative – Bloomberg
Tags: Ben Bernanke, Credit Crunch, Economy, Fed, Henry Paulson, Politics
It was a wild day in the market. It started off rocky with the already battered financials again taking it on the chin, but when the news that the UK was banning short sales on financial stocks came out in the early afternoon, the market took off. And then later in the day, there was more news for the longs that was received enthusiastically — Hank Paulson had a plan to set up an agency to buy toxic waste debt from financial institutions (that sounded pretty similar to the Resolution Trust Corp), and as the story got more fleshed out, with Paulson and Ben Bernanke set to go before congressional leaders this evening to make their case, stocks took off again. Financials, like Goldman Sachs and Morgan Stanley that had tanked to shocking lows by mid-day – to $85.88 and $11.70 respectively, skyrocketed. Goldman traded as high as $120, closing at $108, while Morgan Stanley traded as high as $24.72, closing at $22.55. The DJIA closed up 410 points.
So you can get some idea of just how whippy trading was, below are 2 day intraday charts of the major indices, the VIX and some of the financials.
Tags: Ben Bernanke, Charts, Fed, FSA, Goldman Sachs, Henry Paulson, Morgan Stanley
Lehman Brothers equity holders’ worst nightmare may be coming true. According to a Washington Post story, the Fed and Treasury are actively working to get Lehman sold to a group of private equity firms with the goal of getting a deal signed, sealed and delivered by the time that Asian trading opens on Monday morning. The Post said that details haven’t yet been finalized, but it’s sounding an awful lot like Bear Stearns. If the story is true, and if the government is going to remain involved as a backstop as it did with Bear, it won’t be pretty for the common stock holders, 30% of which is owned by Lehman employees. Stay tuned. If this story is true, we’ll be listening to a sad conference call on Sunday evening….
U.S. Government to Arrange Sale of Lehman Brothers – Washington Post
Tags: Credit Crunch, Dick Fuld, Fed, Henry Paulson, Lehman Brothers
Statement by Chairman Bernanke on Fannie Mae and Freddie Mac
Release Date: September 7, 2008
For immediate release
Statement by Federal Reserve Board Chairman Ben S. Bernanke:
"I strongly endorse both the decision by FHFA Director Lockhart to
place Fannie Mae and Freddie Mac into conservatorship and the actions
taken by Treasury Secretary Paulson to ensure the financial soundness
of those two companies. These necessary steps will help to strengthen
the U.S. housing market and promote stability in our financial
markets. I also welcome the introduction of the Treasury’s new
purchase facility for mortgage-backed securities, which will provide
critical support for mortgage markets in this period of unusual
credit-market uncertainty."
Tags: Ben Bernanke, Credit Crunch, Fannie Mae / Freddie Mac, Fed, Henry Paulson
In an 11am press conference with "Bazooka Hank" Paulson and Jim Lockhart, Director of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac were put under conservatorship. While the CEOs of both firms will stay on in a consulting capacity, Herb Allison, formerly CEO of TIAA-CREF and former vice chairman of Merrill Lynch has been chosen to head Fannie Mae. David Moffett, former vice chairman of US Bancorp has been chosen to head Freddie Mac. Common and preferred dividends have been suspended. And while the common and preferred stocks aren’t being wiped out, they’re sitting way at the back of the bus with the bazooka wielding U.S. Treasury sitting in front of them.
Treasury has taken three additional
steps to complement FHFA’s decision to place both enterprises in
conservatorship. First, Treasury and FHFA have established Preferred Stock
Purchase Agreements, contractual agreements between the Treasury and the
conserved entities. Under these agreements, Treasury will ensure that each
company maintains a positive net worth. These agreements support market
stability by providing additional security and clarity to GSE debt holders –
senior and subordinated – and support mortgage availability by providing
additional confidence to investors in GSE mortgage backed securities. This
commitment will eliminate any mandatory triggering of receivership and will
ensure that the conserved entities have the ability to fulfill their financial
obligations. It is more efficient than a one-time equity injection, because it
will be used only as needed and on terms that Treasury has set. With this
agreement, Treasury receives senior preferred equity shares and warrants that
protect taxpayers. Additionally, under the terms of the agreement, common and
preferred shareholders bear losses ahead of the new government senior preferred
shares.
Paulson’s full statement, as well as fact sheets are below.
Tags: Credit Crunch, Fannie Mae / Freddie Mac, Fed, Henry Paulson
Tags: Credit Crunch, Fannie Mae / Freddie Mac, Henry Paulson
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