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…

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

Mixed Messages to Banks: Lend More *smack* Raise More Capital *smack* Lend More *smack* Raise More Capital…

Poor Bastards. It’s like Chinatown out there.

WOTS now is they will give BofA and CITI 30 days to dump Ken Lewis and Vikram Pandit and find more TOTUS Approved CEOs

Like Jamie Dimon who Obama seems to like thus JP Morgan Chase escaped the Naughty List of baaaad banks Timmeh put together….and Capital One of all people gets off with no more capital, how the hell is that possible with the charge offs rising??

Well we know how Chinatown ended..

Forget it Jake, it’s TOTUS-Town

May 7, 2009. Tags: , , , , , , , , , . Economy, Entertainment, FDIC, Film, Finance, Mystery, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 2 comments.

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.

Market Mover Monday: One bank needs more capital per stress tests..will the ‘Cheese’ stand alone?

Vodpod videos no longer available.

Airtime:
Fri. Apr. 24 2009 | 4:29 PM ET

Discussing the bank stress tests and more, with Robert McTeer, fmr. Dallas Fed Bank president; Bill Isaac, Secura Group of LECG; and CNBC’s Larry Kudlow

The cheese stands alone…but who is the cheese? DOW futures are down sharply, 141…

I say it’s CITI, any takers? The notion that our entire banking system is infected with TARP b/c Paulson and Geithner wanted to shield CITI by injecting capital into everyone, and now CITI is still a problem, if it is indeed CITI, well it sucks….

…if only the REGULATOR of CITI back then had KNOWN… who was that masked man?  it was Geithner in NY as head of the NY FED…..

CITI CEO Vikram Pandit, who has been cooperating like crazy, even agreeing to cramdowns with Durbin…well WOTS is his head will roll as the sacrificial lamb…yet Dick Parsons somehow got promoted out of it, this after he presided over the TimeWarner stock tanking, go figure…

CNBC:

One of the 19 financial institutions that received a government stress test would require additional capital, based on the initial findings, according to an industry source…Though the source did not identify the company, the government in its report Friday said results were “conveyed” to the participating firms at the end of April, so the bank in question would be aware of the Federal Reserve’s assessment….

…Banks found to have inadequate capital, will have six months to raise the money, through a variety of means in the private sector. If unsuccessful, the government has said the institutions will be eligible for a capital infusion through its Capital Access Program….

“There are two things that are terribly wrong,” former FDIC Chairman Bill Isaac told  CNBC.com. “First, that was publicly announced.  I can’t imagine what Treasury was thinking when it made that move. It has been causing incredible angst in the markets … The second big problem is that the Treasury is directing the stress testing, apparently with direct involvement of the White House at the highest levels. Bank regulation by law is supposed to be carried out by the independent banking agencies without any political interference.”..

citiboard

April 27, 2009. Tags: , , , , , , , , . Economy, FDIC, Finance, Housing, Politics, TARP, Uncategorized, Wall St. Comments off.

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 Mover Friday: Pressure – Treasury releases Stress Test Methodology…

Friday the White Paper on methodology used in the stress test of the 16 US financial firms to be released..

May 4th the results of the stress tests themselves will be announced..

Congress Critters mucking about in everything they can in our financial system, like a pressure cooker for the financials…

April 24, 2009. Tags: , , , , , , , , , , , , , , , , , , . CITI, citigroup, Economy, Entertainment, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St. Comments off.

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