J.M. Hamilton - Blog
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BLOG.JMHAMILTONPUBLISHING.COM: Monthly Archives for June 2011

TOO BIG TO FAIL CHART...

"Geithner hasn’t made a final decision and won’t do so until the debt ceiling issue has been resolved, according to one of the people."

“There is nothing to stop buyers from putting the oil they have purchased into their own storage.”

“We are participating to enable Greece to get access to capital markets and to help stabilize the financial markets.”

“He conveyed an appropriate sense of urgency,” David Axelrod

“I do not detect one bit of actual remorse,” Judge Leonie M. Brinkema said to Mr. Farkas in a federal courtroom in Alexandria, Va., on Thursday. “You regret getting caught.”

"This one is the quarter's largest venture capital deals."

“I could buy an island. I could buy a private jet — but I have NetJets. I could get myself a 22-year-old!”

"While DealBook hates to ruin a good Wall Street betting pool, people familiar with Mr. Gorman’s thinking say he has no intention of filling the post anytime soon."

"Discover, Bank of America and Citigroup were the heaviest users of 0% balance transfer teasers at approximately 91% of offers."

John Savarese, a lawyer for JPMorgan Chase & Co said the matter had been "thoroughly investigated" and the parties had reached "a fair and reasonable agreement."

"The United States also finds that its biggest companies contribute a much larger share of the country’s exports than is the case in other developed nations."

"I would tell you I visited Apple, but officially, I didn’t."

"Industry lobbyists and Republican lawmakers led the push to delay the swap regulations."

"The Singapore sovereign wealth fund, known as GIC, says the five resorts are putting it and other creditors at risk by prolonging their bankruptcy case and should instead be put up for sale."

"Chinese banks are rushing to join global players such as Morgan Stanley in setting up China-focused private equity funds to tap the country's booming economy."

"...the settlement could make it easier for banks to bundle and sell mortgages again, a business that has been all but dead since the financial crisis."

"This is a reminder that the G20 process is unlikely to protect us from the risks posed by the current constellation of global imbalances and their disorderly unwinding."

“I can’t remember valuations ever being as low as they are now for major large-cap technology.”

“All these issues are going to determine what’s happening in the global sphere and all of these will impact on the Australian economy.”

"Nine Republican senators announced that they would object to a recess during the Fourth of July week."

“If a coal mine wants to keep two sets of books, that’s their own business.”

"Rare earth refineries in other countries make heavy use of costlier stainless steel or steel piping with ceramic or rubber liners."

"Congress lowered the penalties for some crack offenses and reduced the sentencing disparity between crack and powered cocaine from 100 to 1 to 18 to 1."

Beefing up online security is of paramount importance.

"The rules we are proposing today would level the playing field in the security-based swap market by bringing needed transparency..."

“Clients are suddenly realizing the world isn’t as rosy as it’s been,” said Ahmed Fattouh, a hedge fund executive. “It makes a lot of sense to have these tail protections on.”

“The Fed not only wants to stimulate the economy but also to recapitalize the banks, and this is a stealth technique to do it.”

“The longer the president denies these realities, the more difficult he makes this process,” Mr. Boehner said.

“What they’re voting on is exactly the opposite of what they were elected to do.”

"To cut the deficit, the government must end 'tax breaks for corporate jets,' oil companies and hedge funds."

"S&P put the U.S. government on notice in April that it risks losing its top AAA rating unless policy makers agree on and implement a plan by 2013 to reduce budget deficits and the national debt."

"It's hard to say if this is the last settlement BofA will have to reach, but it's certainly a step in the right direction."

"Rex W. Tillerson, recently told Congress that absent speculative trading, oil should cost only $60 to $70 a barrel, compared with the $90-to-$100 mark where it has hovered for several months."

"The likelihood of an SEC government solution working and working consistently in a difficult budget environment I think is low."

"We're pleased with the return of this money to the U.S. and believe it will help preserve these assets for the benefit of defrauded investors."

“The market no longer believes that Goldman should command a premium.”

"One reason Sprint is getting state regulators involved is because it’s being outspent in Washington more than 12-to-1."

"News Corp paid $580 million in 2005 for Myspace -- once a pioneer of the social networking space -- but soon lost ground to Facebook..."

"Those banks, along with GE Capital and Wells Fargo, also provided financing."

"It is plain to see that the French plan benefits and protects the banks and their profits."

"Bank of America has already paid out or set aside about $17 billion. So the settlement would bring the bank’s losses in line with those projections."

"The scenes were reminiscent of the 18 days of protests that toppled Mubarak's 29-year regime."

“Given the rapid growth of the shale gas industry and its growing importance for our country’s energy portfolio, I urge the S.E.C. to quickly investigate whether investors have been intentionally misled.”

"He also says that the comptroller is trying to ignore a provision of Dodd-Frank that would allow state attorneys general to enforce federal laws as well as state laws."

“They do have substantial exposure to European banks in the so-called core countries: Germany, France, etc."

"This policy mix failed in the U.S. in 1936-37, and it is failing 75 years later in the eurozone."

“Next term is going to be the term of the century,” said Thomas C. Goldstein

“Let me say this clearly: There is no Plan B to avoid default.”

"All but one of the directors are company executives, according to company records."

"The big news, however, was who wasn’t there: No Jamie Dimon, once referred to as the president’s 'favorite banker.' No Lloyd Blankfein of Goldman Sachs, a longtime Democratic supporter."

"Yet Ms. Lagarde also came under fire from critics who say she and other top European policy makers mishandled the crisis..."

"Meanwhile, Greek CDS tightened 40 basis points, to a still-huge 2025 basis points..."

"He used the example of an oil company that bought oil when prices lower and sells it when the price is higher, declaring its profit based on the higher price."

“The court has affirmed the constitutional rights of game developers, adults keep the right to decide what’s appropriate in their houses, and store owners can sell games without fear of criminal prosecution.”

“The army cannot do investigations for each individual person who joins,” said Gen. Zahir Azimi

“Qaddafi has made clear his determination to hang on,” said Richard Dicker of Human Rights Watch. “It defies belief that his arrest warrant is an obstacle to a negotiated settlement of the Libya crisis.”

“If it is now possible — and Mr. Bulger seriously questions whether it will be possible — for Mr. Bulger to receive a fair trial, law enforcement leaks of non-public information must end.”

“If Microsoft stumbles, it really opens the door to Google.”

"Mr. Guillard said that in some cases Google 'blacklisted' his sites over a period of four years, making them impossible to find on Google’s Web search engine."

"Wal-Mart didn't immediately respond to a request for comment."

“This does not protect against a political meltdown in Greece this week if the government can’t manage to get its austerity plan endorsed by Parliament.”

The I.S.S. report highlighted “the highly complementary businesses” of NYSE Euronext and Deutsche Börse.

“While registration and increased levels of oversight and disclosure do come with a price, particularly for small-to mid-sized managers, we expect greater legal and administrative costs to be manageable for them.”

"And now I find myself in the final stage, Acceptance. I will never be good."

"A spokesman for the company in London declined to comment."

"The move comes as RBS and Lloyds Banking Group PLC (LLOY.LN), both bailed out in the depths of the financial crisis, try to offload rotten property loans, it said."

Private Equity Still Suffering from Investments Made in the Last Bubble...

"Many of Germany's under-capitalized banks would be hard hit if they were forced to recognize that their books are in good part works of fiction, with IOUs of Greece and its banks and businesses recorded at values that have no relation to their true worth

“The most serious and immediate risk to the U.K. financial system stems from the worsening sovereign debt crisis in several euro area countries,” Mr. King said.

"Sidney Weinberg, Goldman's most powerful and longest serving CEO, started as a janitor."

Instead, “authorities are sticking to the status quo” and not “recognizing that there are fundamental flaws that need to be corrected,” Soros said.

"Germany’s biggest banks and insurers, including Deutsche Bank AG (DBK) and Allianz SE, also signaled a willingness to participate if governments offer guarantees and other European lenders also join in..."

"The extra capital requirements are 'probably not that big of a burden considering the funding advantage that banks have when the markets consider them too big to fail.'"

"Banks have already started to ramp up lobbying to limit how much capital they are required to hold. Individual banks are also trying to escape the 'too-big-to-fail' label..."

“Our recommendations included the idea of having third-party organizers with Egypt’s upcoming campaigns and elections,” Mr. McCain said

Energy Information Administration, with its mission of providing “independent and impartial energy information to promote sound policymaking” and “efficient markets,” was created in response to the energy crisis of the 1970s

"Mr. Breitbart, the conservative author and blogger who first published Mr. Weiner’s suggestive self-portraits..."

State Secrets Protection Act of 2009

"With youth unemployment running at around 40 percent, many of those who have taken to the streets in protest or camped in Syntagma over the last month are young people..."

"It is inevitable that Greece will have to restructure its debt. Europe has been kicking the can down the road, treating Greece's problem not as a solvency issue, but as a liquidity problem."

"All of the U.S.'s 71 (submarines) are nuclear-powered, with reactor fuel that lasts 20 years."

"Private mortgage insurers MGIC, Radian and PMI are under-reserved against future claims, with a new wave of foreclosures closing in."

“Reminds you of dot-coms.”

"Both men face potential trouble in Utah from Tea Party groups."

"Both men are Aggies."

"Amid aggressive lobbying by some of the largest banks for weaker capital requirements, international financial regulators have spent the last two years trying to strike the right balance."

"Lulz Security has been pursued by government agencies around the world, including the Federal Bureau of Investigation and Central Intelligence Agency."

"Truth is, businesses’ decisions to invest or increase employment depend on the state of the economy."

"...at least until, as Mr. Kissinger put it, no one gives a damn."

"The Greek Parliament still has to approve the deal agreed to by the cabinet and the EU-IMF benefactors."

"If Wall Street succeeds, we can expect more OTC derivatives-trading crises in the future, perhaps in inflation swaps or commodity swaps."

"IT PAYS TO MAKE A FRIEND OF FEAR in the financial sector, as implied volatility—the key to options prices—is high today due to concerns about a potential Greek default, the end of QE2 and pending federal regulations..."

"I fully understand the desire to use the debt-limit deadline to force some necessary and difficult fiscal-policy adjustments, but the debt limit is the wrong tool for that important job."

"Two months ago, Goldman Sachs projected that the economy would grow at a 4 percent annual rate in the quarter ending in June."

“It won’t matter where you are in the world or who you are in the world, you’re going to be able to authenticate everyone and everything.”

"A legendary crime boss who also served as an F.B.I. informant, Mr. Bulger reigned for years as the head of the fearsome Winter Hill Gang..."

"Federal prosecutors in New York filed a civil suit against Deutsche, claiming its MortgageIT subsidiary repeatedly lied about the quality of the mortgages it was issuing to obtain federal guarantees on those iffy home loans."

"But what about those at Tyson responsible for the bribery scheme?"

"But from the stock’s price at end of last year, the firm lost $562 million."

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