Bloomberg

Stress Test: Throw Another Trillion Into The Woodchipper

Waiting with baited breath for the results of the US Government’s 19 bank stress tests?  Here’s an appetizer from the folks over at Keefe Bruyette & Woods, who’ve conducted their own stress test: From Bloomberg: U.S. banks may need another $1 trillion in capital to cushion against losses as unemployment rises and borrowers fall behind…

Goldman & Citi: The Pot and The Kettle

So Goldman Sachs (GS) doesn’t like how Citigroup (C) made it’s numbers last week.  Well neither do the rest of us, but we also don’t like how Goldman made their own numbers! From Bloomberg:  While Citigroup posted first-quarter net income of $1.6 billion last week, the New York-based bank suffered an “underlying” loss of 38 cents a…

Stress Test: Capitalism Without Competition?

We’ve removed competition from just about every facet of American life for our children: No dodgeball or football in elementary school for fear of the more aggressive kids dominating the meeker kids Everyone who shows up to a spelling bee or a sporting event gets a ‘participant” award, just for having a pulse There is…

When Its Time To Raise Rates, Will Bernanke Have The Stones?

An article in Bloomberg raises some very interesting questions and I though I’d open up the discussion on these three: 1.  Since Bernanke has clearly chosen Keynes over Friedman, pumping in liquidity with the belief that inflation will be held in check, will this “end in tears” as Fed historian Dr. Allan Meltzer believes? 2. …

Private Equity, Public Embarrasment

Apollo Management sure has made some awful deals recently… From Bloomberg: Apollo founder Leon Black, 57, is trying to salvage some of the $60 billion worth of companies he has acquired since 2006. Retailer Linens ‘n Things Inc. filed for bankruptcy last year. Casino operator Harrah’s Entertainment Inc. is restructuring debt to stave off default….

Dude, Where's My Hedge?

This morning, Bloomberg has an article about how hedge fund managers are no longer in the driver’s seat when dealing with clients.  They are now flying to visit with their accounts when they used to force them to come to Connecticut.  They are adjusting fees downward to keep assets from CALPERS and other large investors. …

Life After Wall Street?

What becomes of the broken bankers when their services are no longer required?  Does a man still look for work on Wall Street when even the guy who fired him has been let go as well?  Is there any incentive to even want to put in a 15 hour day now that the entire compensation…

Modern Day Gomorrah: Goodbye Greenwich Culture

If NYC’s Meatpacking District was Sodom, with it’s teeming masses of 20-something investment bankers running across cobblestone streets waving Amex Black Cards and puking off the side of luxury hotel rooftop bars, then surely, Greenwich, Connecticut was the modern-day equivalent of Gomorrah. One of the particularly offensive attributes of the 2003-2007 bull market was the rise…

The Rambo Fed

From Bloomberg: U.S. central bankers decided yesterday to buy as much as $300 billion of long-term Treasuries and more than double mortgage-debt purchases to $1.45 trillion, aiming to lower home- loan and other interest rates. The Fed kept its main rate at almost zero and may keep it there for an “extended” time. The moves…