Ben on the Hill….

Poor  Ben Bernanke will be back on the Hill today, 10:00am EST

CNBC LIVE streaming Video when it begins

The GOLD bugs are with me in rejecting the baseless rally yesterday, now at 913.5 up 11.3 today…

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May 5, 2009. Tags: , , , , , . Economy, FDIC, Finance, Politics, TARP, Taxes, Uncategorized, Wall St. Comments off.

Update: Results will now be released Thursday…Market Mover Friday: Stress Test Results ‘delayed’ as Banks appeal findings…

Update: Results scheduled to be released Monday, now they say Thursday:

CNBC:

Results of the “stress tests” conducted on the nation’s 19 biggest financial institutions will be released late Thursday afternoon and include information on both the individual banks as well as aggregate data, CNBC has learned.

The results of the tests, which were conducted during April, will include estimated losses in certain loan categories as well as the banks’ resources to absorb potential losses, a source said. The source added that the information is not a solvency test….

Bloomberg:

The Federal Reserve will postpone the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.

The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as tomorrow, they said.

They really painted themselves into a corner on this:

At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said this week. While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said.

By pushing conversions, rather than federal assistance, the government would allow banks to shore themselves up without the political taint that has soured both Wall Street and Congress on the bailouts. The risk is that, along with diluting existing shareholders, the government action won’t seem strong enough.

Here is the best, most NO SHXT SHERLOCK line of the piece (and the process in fact):

Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.

You mean Uncle Sam is gonna tell us these guys cant survive a financial heart attack and investors might pull their money out? The hell you say! I AM SHOCKED! BWAAAAHAAAAAA frakkin maroons…..

May 1, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Wall St. Comments off.

Stress Test Leaks continue…which of the 5 or so Treasury employees is the source?

(more…)

April 29, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Music, Obama Administration, Politics, TARP, Uncategorized, Wall St. Comments off.

Breaking Update 5: Lewis keeps CEO/President role, Massey elected Chairman as roles split by shareholders…Too many votes to count..Market Movers Wednesday: Bank of America Shareholder Meeting…FED meeting day 2…

Breaking Update 5:- 5:40pm EST: Bloomberg: BofA announces Walter Massey elected as Chairman to replace Lewis;they have split the CEO Chairman roles…Lewis re elected as President/CEO ,…..I think it will be much harder for Treasury to oust Lewis now, the shareholders have acted and kept him as CEO, this loss of Chair ironically may be the thing that saves his job in the end..it would look like the Big Brother trampling shareholders that it is if they try to oust him now…I think this is good for Lewis, and good for the company in that we keep Lewis in this maelstrom of government intervention, Lewis wont get pushed around by Treasury as easily again as he was rolled by Paulson and Bernanke….

Andy Stern of SEIU will be pixxed he didnt get Lewis’ head, heh

Update 4: Hugh McColl says he wants Lewis to stay as CEO and Chariman and Finger who is recommending split also told McColl to merge with AIG when Hugh was CEO…heh….

Breaking Update 3:  – 1:22pm EST- CNBC Mary Thompson reporting- “Person ‘close to’ BofA reporting all 18 BofA board members re elected by comfortable margin”…no further word on Lewis Chairman role yet…

Breaking Update 2- 1:07pm EST: BofA reports it cannot report complete results of shareholder votes today at now..because of the volume of votes. CNBC reporting coming into the meeting BofA was reporting the vote on the proposal to split the CEO Chairman roles was too close to call…they will announce results in Press Release..no word when…

(more…)

April 29, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Entertainment, FDIC, Finance, Heavy Metal, Music, Politics, Popular Culture, TARP, Uncategorized, Wall St. 3 comments.

Update: Stress Test White Paper lacks detail…

Update: From WSJ:

Fed White Paper on Stress Testing Procedure pdf here: FED Press Release here;  Market averages back to their trend line of the day, Dow up 130 to 8086, S&P up 14 to 86 NAS up 39 to 1691

For release at 2:00 p.m. EDT

A white paper describing the process and methodologies employed by the federal banking supervisory agencies in their forward-looking capital assessment of large U.S. bank holding companies was published on Friday.

The white paper is intended to assist analysts and other interested members of the public in understanding the results of the Supervisory Capital Assessment Program, expected to be released in early May. All U.S. bank holding companies with year-end 2008 assets exceeding $100 billion were required to participate in the assessment, which began February 25. These institutions collectively hold two-thirds of the assets and more than half the loans in the U.S. banking system.

More than 150 examiners, supervisors and economists from the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation participated in this supervisory process. Starting from two economic scenarios–a consensus estimate of private-sector forecasters and an economic situation more severe than is generally anticipated–they developed a range of loss estimates and conducted an in-depth review of the banks’ lending portfolios, investment portfolios and trading-related exposures, and revenue opportunities. In doing so, they examined bank data and loss projections, compared loss projections across firms, and developed independent benchmarks against which to evaluate the banks’ estimates. From this analysis, supervisors determined the capital buffer needed to ensure that the firms would remain appropriately capitalized at the end of 2010 if the economy proves weaker than expected.

The Supervisory Capital Assessment Program: Design Summary (287 KB PDF)

Released now, the parameters were apparently already out there, they used Case Shiller Housing Value Futures in their projections…CITI already tested itself against that same metric…

they are not giving the Tangible Common Equity number they want from the banks is it 3%? 4%? and they are also not giving out the specific projected losses or the size of the capital buffer the regulators want…..meanwhile the NY Post is reporting Vikram Pandit is out as CITI CEO shortly….

They gave the categories of loans they looked at and the counterparty risk but not the other parameters, reporters asked on the conference call…..

Will get up the CNBC clip as soon as it’s available

It’s managing expectations they say..a whole lotta nothin’ just came out…they Put on the Ritz for us…they don’t want anyone running the numbers before the banks shore up capital..

Next words will be the results of the stress tests on May 4th, I think the banks will begin to leak their own inner results before that..

The markets are turning down now, were up over 100 now up 50 on the Dow….

Submitted by IrishC

Submitted by IrishC

April 24, 2009. Tags: , , , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Film, Finance, TARP, Uncategorized, Wall St. Comments off.

Market Update: TALF Program Loses Momentum and Insurers Await TARP Decision – Bloomberg

Midday DOW up 60 to 7850, S&P up 9 to 825 and NAS up 27 to 1589. Street happy about uptick restoration (in SEC comment period now) and possible elimination of naked shorts..

Insurers are the latest group to line up with their hands out to get taxpayer money. Maybe they feel safe since they have state regulators, good luck with that. (Bloomberg News)

Vodpod videos no longer available.

And the Federal Reserve’s TALF program fell FLAT. Gee wonder why no one wants to get in bed with this Administration and Congress? SHOCKAH!!!

TALF program is losing momentum that could spell trouble for the bank’s effort to revive consumer lending. (Bloomberg News)

Vodpod videos no longer available.

more about “Insurers Await TARP Decision – Bloomberg“, posted with vodpod

April 8, 2009. Tags: , , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. Comments off.

PIMCO’s Bill Gross sees a new paradigm with redistribution of profits and wealth and a ‘new’ normal…

Vodpod videos no longer available.

PIMCO is one of the managers running many of the programs of the FED, they know of what they speak. Bill here tells us life as we know it is over:

Bond guru Bill Gross sees the unemployment rate jumping to double digits before it improves, and even then the economy will evolve into something we haven’t seen before.”

We’re evolving into a ‘post-levered’ financial economy which will witness intense regulation, and a redistribution of profits and wealth, most importantly, to previously disadvantaged groups, and so that’s the ‘new normal’ that in no way resembles past experience.”

Even WalMart isn’t safe, listen to Bill. I just bought more gold, AEM to be specific.

more about “Bill Gross: Joblessness Will Get Wors…“, posted with vodpod

April 3, 2009. Tags: , , , , , , , , , , , , , , , , , . Obama Administration, Politics, Taxes, Uncategorized, Unemployment Statistics, Wall St. 4 comments.

Sheila Bair on Toxic Asset Plan…

Bloomberg: For the Record

Analysis and discussion with FDIC Chairman Sheila Bair. (For The Record)

March 31, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Housing, TARP, Uncategorized, Wall St. 1 comment.

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