Breaking: TARP Repayment by Banks…Teh Roolz…

Steve Liesman breaking it on CNBC now..Charlie Gasparino has been calling TARP The Roach Motel..

FED: Supervisors now having discussions with several banks to repay TARP

Supervisors are requesting supplemental information for TARP repayment (WTH do they need after stress tests!)

No TARP repayment announcements expected until after June 8th

Supervisor will make recommendations on TARP repayment to the Treasury in batches (so no bank stands alone)

TARP repayment recommendations will be made to Treasury on monthly basis

Source: Treasury to announce process for auctioning TARP warrants in next several days

Treasury plans to spread out auction of warrants over several months

TEH ROOLZ TO REPAY TARP:

1. After repayment, still have to be able to pass stress test

2. Issue unguaranteed debt (no FDIC backup for you!)

3. Demonstrate ability to self-fund in the market (raising private capital)

4. Approval of supervisor

Dilution from repaying TARP: (Gov’t shares controlled by warrants as % of shares outstanding):

JPM 2.35%

Morgan Stanley 5.22%  (OUCH!)

Golden Slacks 2.42%

May 19, 2009. Tags: , , , , , , , , , . Economy, FDIC, Finance, TARP, Uncategorized, Wall St. Comments off.

Market Mover Friday: April Jobs Report…

Breaking….

Unemployment rate is 8.9%, highest since 83

Smaller than expected 539,000 jobs lost in April….

But the revisions are bad for March …

CNBC:

..U.S. employers cut a smaller-than-expected 539,000 jobs in April, the smallest amount since October, according to government data on Friday that hinted at some improvement in the labor market and the recession-hit economy.

..However, the Labor Department said the unemployment rate soared to 8.9 percent, the highest since September 1983. March’s payrolls figure was revised to show a decline of 699,000, compared with a previously reported drop of 663,000. Job losses in February were bumped up to 681,000 from the previously estimated 651,000….

MiM expects next month they will revise these numbers higher…

Now that the Stress Tests are officially over and these jobs numbers came in better than expected there may be a killer rally today but MiM still considers it a Bear Market Rally and we aren’t playing…maybe if it were someone else’s money like it is for Congress we would be all smiley and enjoy the 30% jump this Rally has given the S&P Financials……..

PS Govt hired 66,000 Census workers, so this number is ya know, Government Cheese…

May 8, 2009. Tags: , , , , , . Economy, Labor Department, Obama Administration, Politics, Uncategorized, Unemployment Statistics, Wall St. 1 comment.

Stress Test Results: A Shot in the Dark….

Lies! Damned Lies and Statistics!

10 minutes to the ballyhooed Stress Tests, the results of which have already been leaked 6 ways to Sunday….

If there is anything you haven’t already heard, CNBC will cover it LIVE, and a Special Edition of Fast Money at 5:00pm EST…

PS AIG reported results MUCH worse than expectations…..

May 7, 2009. Tags: , , , , , , , , , . CITI, citigroup, Economy, Entertainment, Finance, Heavy Metal, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 1 comment.

Bank of America’s Converted Capital – CNBC.com

Vodpod videos no longer available.

Great plan. I won’t be diluted right away, I will always have the POTENTIAL to be diluted without warning going forward. Fabulous. Or sell the rest of the stake in CCB China Construction Bank one of our best investments….MAROONS!

Vodpod videos no longer available.

more about “Bank of America’s Converted Capital -…“, posted with vodpod

May 6, 2009. Tags: , , , , . CITI, citigroup, Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Wall St. 1 comment.

Market Mover Tuesday: Stress Test Havoc continues, 10 banks need more capital…

and the leaks go on…

CNBC:

..The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday.

The Federal Reserve and Treasury Department also will tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private….

..Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner are scheduled to present the findings of the regulatory stress tests on Thursday in a 150-page document, the source said.

Who Who Who!?!

Citigroup and Bank of America are expected to be among the companies needing to boost their reserves, Fred Dickson, chief market strategist at D.A. Davidson & Co said on Friday.  Wells Fargo and JPMorgan also are among the banks likely to need more capital, Dickson said.

Oh okay, it’s just all our biggest banks….and the market rallied in the face of this sending the S&P into the black for the year yesterday…D-E-N-I-A-L….

I have an idea, let’s subject the TOTUS Budget Forecasts to the SAME stress test scenarios and see what happens to the deficit! Pffft!

May 5, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Update: BofA refutes FT report, says not raising capital: Market Mover Monday: red-headed stepchildren of Stress Tests try to raise capital and save themselves from Government….goin’ down…

Update: 8:57am EST: CNBC Becky Quick live now talking to Buffett reporting BofA issued statement denying FT report that they are raising 10b in capital…..the fact that the banks are fighting it out with Team TOTUS bean-counters IN THE MEDIA is frightening..yeah I sold in May baby and I would go away could I afford a vacation in this economy, HA!!!

_____________________________________________________________________________________

Here they come, walking down the street, they get the funniest looks from the Treasury agents they meet..

Hey Hey they’re the Zombies, people say their capital’s down…

yada yada…they managed to get everyone but JPMC under their thumb here, they nabbed Wells Fargo and PNC too….

CNBC:

Bank of America is working on plans to raise more than $10 billion in fresh capital, even as it and Citigroup launch last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets, the Financial Times reported.

Citing people close to the situation, the paper said that Citi, Bank of America and at least two other lenders will on Monday attempt to convince the U.S. Treasury and Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.

Bank of America, which has had $45 billion in government aid, was found to need well in excess of $10 billion, the Financial Times reported on its website on Sunday, citing sources.

Regional lenders Wells Fargo and PNC Financial were also among the banks that would need to raise more capital unless they could persuade the authorities their findings were wrong, the paper reported, citing people close to the situation.

*Monkees courtesy of OrangeTabbyCat3

May 4, 2009. Tags: , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St. 1 comment.

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.

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