Thursday, April 9, 2009

Frontrunning: April 9

  • Jonathan Weil: Obama stakes his fortunes on failed banksters (Bloomberg)
  • Wells Fargo profit jumps on 4% mortgage refis (Bloomberg)
  • All banks expected to pass "stress" tests (NYT)
  • Trade deficit falls to lowest since 1999 on plunge in imports, initial jobless claims at 654k after the usual upward prior revision (here and here)
  • The Textron rumor mill ploughs on: now $21 (Bloomberg)
  • Germany to fully nationalize Hypo (NYT)
  • Game theory exposes PPIP as fraudulent (RCM)
  • You can't rush an economic recovery (WSJ)
  • AIG to Fed: You pay us so we can pay you (The Deal)
  • The great recession vs. the great depression yet again (Curious Capitalist)
  • Humor: Short-sellers are looting the market (MarketWatch)
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Anonymous said...

Tyler kind of off topic for this post, sorry. But could you perhaps comment on the current situation with the Citi arb? I read this document:

but I am not sure I understood it - particularly: is the conversion ratio already known and fixed? (i.e., what is the 'premium to market' they referred to earlier?)

Are you still long C and if yes, will you hold until the conversion ratio is fixed or longer? Yesterday I heard C will file something ("S4") today which concerns the conversion - do you know anything about that?

Thank you so much!

Anonymous said...

"Game theory exposes PPIP as fraudulent"

for heavens sake, the PPIP will be used by the banks that made acquisitions and then used purchase accounting to mark down the book of the target companies down...aka WFC/WB. Why in jeebus' name would WFC not write WB loans down to nothing after the acquisition? That's what the treasury WANTED them to do with their TARP money.

So now WFC has a ton of stuff written down to nothing (~$40bn) from the WB purchase that they can sell for anything above $0 and make money.

its not hard to understand.

OMFG the blogsphere is pissing me off.