Bailout Real Time News items

• DB has EURO 3.2bln exposure to Italy Sovereigns; 500mln to Greece according to firm's CEOPosted:27/05/2010 17:16 GMT by NeedToKnowNews
• Much of Wolin's Speech reiterates sppt for Financial Regualtion Legislation; notes that SEC will "have explicit authority to prohibit/limit mandatory binding arbitration agreements"Posted:27/05/2010 17:06 GMT by NeedToKnowNews
  Much of Wolin's Speech reiterates sppt for Financial Regualtion Legislation; notes that SEC will "have explicit authority to prohibit/limit mandatory binding arbitration agreements"
• WFC Purchased 70.2mln of the Warrants Sold by TreasuryPosted:21/05/2010 13:43 GMT by NeedToKnowNews
• TSY Sells 110.262mln Warrants Of WFC at $7.70/eachPosted:21/05/2010 13:40 GMT by NeedToKnowNews
  This raises $840.4mln
• Philly FED reiterates - FED to hold only Tsy Securities to keep clear distinction between monetary and fiscal policiesPosted:05/05/2010 19:06 GMT by NeedToKnowNews
• Cayne ..."more equity would not have changed the picture at all"...Posted:05/05/2010 18:47 GMT by NeedToKnowNews
  Cayne ..."more equity would not have changed the picture at all"...
• Cayne, formerly of BSC, finishes his opening statement to Financial Crisis Inquiry CommissionPosted:05/05/2010 18:40 GMT by NeedToKnowNews
  The Committee released the statements of the former BSC execs this morning. The upshot is, the market ...and vicious rumors...caused the firm to fail because counterparties pulled their credit lines.
• TSY Statement on Sale of Comerica WarrantsPosted:04/05/2010 21:22 GMT by NeedToKnowNews
  WASHINGTON -- The U.S. Department of the Treasury today announced that it has commenced a secondary public offering of 11,479,592 warrants to purchase the common stock of Comerica Incorporated (the
• GS on 10 minute break - post mortem so far; All GS Employers did not regret anything they did and repeatedly told Panel samePosted:27/04/2010 20:36 GMT by NeedToKnowNews
• GS only Financial Stock in S&P higher today; up over $2.00 trading 154 and changePosted:27/04/2010 20:30 GMT by NeedToKnowNews
  GS only Financial Stock in S&P higher today; up over $2.00 trading 154 and change
• Sparks is again saying "as I managed risk" when asked about VAR; limits were not an issue - to Senator Levin who said VAR went from 20 to 100Posted:27/04/2010 20:20 GMT by NeedToKnowNews
  Sparks is again saying "as I managed risk" when asked about VAR; limits were not an issue - to Senator Levin who said VAR went from 20 to 100
• Sparks (former GS) says his former firm does not have to disclose opposite positions to clients; I don't think knowledge of counterparty position needs to be disclosedPosted:27/04/2010 18:22 GMT by NeedToKnowNews
• Lloyds Banking Group says returns to profitability in Q1, recovery to continuePosted:27/04/2010 7:26 GMT by NeedToKnowNews
• TSY Statement on Sale of Citi Common StockPosted:26/04/2010 12:55 GMT by NeedToKnowNews
  WASHINGTON - The U.S. Department of the Treasury today announced the next steps in its plan to sell approximately 7.7 billion shares of Citigroup common stock. To enable such sales, Citigroup has filed a prospectus supplement with the Securities and Exchange Commission covering Treasury
• Senate Sub-Cmte now has Moodys Employees front and center; S&P finished answering questionsPosted:23/04/2010 19:40 GMT by NeedToKnowNews
  The Senate Permanent Sub Cmte on Investigations has Moody's on the hot seat. Senator Kaufman...who wants and up or down vote on dismantling big banks...is dismantling Moody's folks. Moody's "we were aggressively monitoring the markets"; "the most important point in time was when we saw 2006 mortgages "depart" from normal number of delinquencies - mentions Q1, 2007. Kaufman...so no more AAA subprime ratings went out the door after that? Moody's ...uhm...we downgraded some subprime tranches in Feb and March 2007.
• Obama - 'sure that many of those lobbyist work for some you..but I am here to urge you to join us, instead of fighting this effort'Posted:22/04/2010 17:52 GMT by NeedToKnowNews
• TSY: GM Repays $4.7bln in TARP FundingPosted:21/04/2010 16:22 GMT by NeedToKnowNews
• Congressman Garrett - NY FED rife w/ Conflicts of InterestPosted:20/04/2010 17:42 GMT by NeedToKnowNews
• Geither - "flawed compensation practices"...gains w/ no downside...comp structures misaligned with w/ time horizon for risk; paid for s/t performance against l/t riskPosted:20/04/2010 16:44 GMT by NeedToKnowNews
  Geither - "flawed compensation practices"...gains w/ no downside...comp structures misaligned with w/ time horizon for risk; paid for s/t performance against l/t risk
• Geithner - LEH illustrates system gaps that allow firms to "optimize" regulatory and acctg rules (rules arbitrage)Posted:20/04/2010 16:38 GMT by NeedToKnowNews
  Geithner - LEH illustrates system gaps that allow firms to "optimize" regulatory and acctg rules (rules arbitrage)
• Geithner say LEH plunged into high risk lending..including subprime, CRE, structured products, lbo loans...LEH repeatedly broke its own risk rulesPosted:20/04/2010 16:35 GMT by NeedToKnowNews
• Geithner - uncertainty surrounded LEH's OTC derivatives positions highlight the opacity, complexity of this marketPosted:20/04/2010 16:28 GMT by NeedToKnowNews
• House Financial Services LEH Line-upPosted:20/04/2010 14:58 GMT by NeedToKnowNews
  11am EST Members of Congress Anna Eshoo, Ed Perlmutter Panel 2 - Geithner, Bernanke, Shapiro (SEC) Panel 3 - Anton Valukas (LEH Court Appointed Examiner) Panel 4 - Richard Fuld (former Chrmn, CEO LEH) - Thomas Cruickshank (former Bd of Directors and Chair LEH Audit Cmtee -William Black - professor of Econ and Law University MO. - Matthew Lee former SVP, LEH
• Shelia Bair at Washington conference says prevention of further crisis depends on financial reform; banker pay incentives put growth before risk mgmt; bailout option should be eliminatedPosted:12/04/2010 16:38 GMT by NeedToKnowNews
• FDIC Sheila Bair to Fin'l Literacy Group in GA. - critical time for U.S. Economy; more people now paying attention to economic, financial mattersPosted:07/04/2010 20:14 GMT by NeedToKnowNews
• Govt said to spurn offer by GS to sell Citi stake for free; Choose MS instead to sell off Citi StakePosted:31/03/2010 20:35 GMT by NeedToKnowNews
  WAPO reports that GS' offer to help the gov't wind down their Citi position was turned down because of media and govt officials criticism over GS role in the financial crisis. Apparently GS offered to sell the second largest stock offering in history --- 'for free'..which should have raised more suspicion than what "media and govt officals" might have said about GS in the fog of the crisis. MS has been chosen to divest the Government of their stake in Citi and while WAPO does not say how much MS will charge for the service it seems reasonable to say it won't be free. WAPO article here
• Mortgage Bankers sees continued pressure on CRE and Multi-Family Real Estate - reportPosted:31/03/2010 14:42 GMT by NeedToKnowNews
• Senate Regulatory Reform Bill may hit President's desk by end of May - White HousePosted:30/03/2010 21:33 GMT by NeedToKnowNews
• BAC Principle Forbearance will start in May 2010Posted:24/03/2010 18:28 GMT by NeedToKnowNews
• Allison: No Plans to Insert Government Representatives into Citi BoardPosted:04/03/2010 15:54 GMT by NeedToKnowNews
• Allison: TSY Plans to Sell Citi Holdings Within a YearPosted:04/03/2010 15:53 GMT by NeedToKnowNews
• Allison: No Plans for Further TARP Injections into CItiPosted:04/03/2010 15:53 GMT by NeedToKnowNews
• Bank Holding Company merge w/ Volcker Act - no prop trading ...with exceptionsPosted:04/03/2010 13:10 GMT by NeedToKnowNews
  PROHIBITION ON PROPRIETARY TRADING.
• Geithner: TARP has "outlived its basic usefulness"Posted:24/02/2010 16:00 GMT by NeedToKnowNews
  Geithner: TARP has "outlived its basic usefulness"
• Geithner: Fin'l firms are much stronger than a year agoPosted:24/02/2010 15:42 GMT by NeedToKnowNews
• Treasury Spokesman on Financial Reform Progress in SenatePosted:11/02/2010 16:35 GMT by NeedToKnowNews
  "We welcome Senator Corker's decision to work on a bipartisan basis with Chairman Dodd to pass financial reform that will end too big to fail and stop abusive practices that hurt American families."
• NY FED reports buying 1.49bln in Agency Debt; Dealers bid for $4.49blnPosted:11/02/2010 16:23 GMT by NeedToKnowNews
• Paulson: without TARP, US unemployment would have topped 25%Posted:09/02/2010 18:51 GMT by NeedToKnowNews
• Volcker - "curbing prop interest of comm'l banks is in the interest of fair and open competition and preserving essential fin'l svs"Posted:02/02/2010 19:21 GMT by NeedToKnowNews
  Volcker - "curbing prop interest of comm'l banks is in the interest of fair and open competition and preserving essential fin'l svs"
• Volcker - every banking I speak with knows very well what "proprietary trading" means and impliesPosted:02/02/2010 19:16 GMT by NeedToKnowNews
  Volcker - every banking I speak with knows very well what "proprietary trading" means and implies
• Volcker - functional definition fo hedge funds, p/e funds that comm'l banks would be forbidden from owning..is not difficultPosted:02/02/2010 19:15 GMT by NeedToKnowNews
• Volcker calls for a new "resolution authority"...saying the concept is widely supported internationallyPosted:02/02/2010 19:13 GMT by NeedToKnowNews
  Volcker calls for a new "resolution authority"...saying the concept is widely supported internationally
• Volcker chastises firms that "assumed the cloak of banking license to facilitate assistance" and the financial affiliate of of one our largest industrial comopanies was also extended privlegde of banking license..and granted large assistancePosted:02/02/2010 19:12 GMT by NeedToKnowNews
  Volcker chastises firms that "assumed the cloak of banking license to facilitate assistance" and the financial affiliate of of one our largest industrial comopanies was also extended privlegde of banking license..and granted large assistance
• Volcker - hedge funds, private equity, trading activities unrelated to customer needs ..should stand on their own..Posted:02/02/2010 19:07 GMT by NeedToKnowNews
• Volcker - There is not a similar rationale for public funds protecting, supporting essentially proprietary, speculative activitiesPosted:02/02/2010 19:05 GMT by NeedToKnowNews
• WH: FNM, FRE Expected to Pay TSY $6.73bln a Year from 2011-2020Posted:01/02/2010 15:15 GMT by NeedToKnowNews
• Budget Forecasts TARP Losses of $117bln vs. $141bln in DecemberPosted:01/02/2010 15:13 GMT by NeedToKnowNews
• Geithner does not recall ANY meetings w/ countreparties; did not direct NY FRB staff to seek concessionsPosted:27/01/2010 16:46 GMT by NeedToKnowNews
• Geithner - to Kaptur - you suggesting people were not acting in the public interest - that is not truePosted:27/01/2010 16:42 GMT by NeedToKnowNews
• Turner, R, OH - this may be the largest theft in historyPosted:27/01/2010 16:34 GMT by NeedToKnowNews
• Geithner Why would we have not separated the good compannies at AIG form the AIGFP; Insurance supervisors did not know extent of insurance companies intertwined w/ AIGFPPosted:27/01/2010 16:34 GMT by NeedToKnowNews
• Giethner - if you are prepared to default, you can get haircuts; we were not prepared to defaultPosted:27/01/2010 16:29 GMT by NeedToKnowNews
• Geithner says he would have made a better deal, I would havePosted:27/01/2010 16:29 GMT by NeedToKnowNews
• Geithner - to Kucinich - it is not true actions we took at AIG was to the benefit of anyone but the American people; the only motive was to prevent catastrophic failurePosted:27/01/2010 16:17 GMT by NeedToKnowNews
• Geithner - I was not aware of precise hedging strategies of all these firms; I asked GS what their exposure was....Posted:27/01/2010 16:14 GMT by NeedToKnowNews
• Congressman calls for Geithner's resignationPosted:27/01/2010 16:11 GMT by NeedToKnowNews
• Geithner - on why he should not resign - "it is a great priviledge to serve this President and will do so as long as he want sme to"Posted:27/01/2010 16:10 GMT by NeedToKnowNews
  Geithner - on why he should not resign - "it is a great priviledge to serve this President and will do so as long as he want sme to"
• Geithner defiant - I am not trying to distance myself from anythingPosted:27/01/2010 16:09 GMT by NeedToKnowNews
• Geithner - I was absolutely aware of 100 cents on the dollarPosted:27/01/2010 16:08 GMT by NeedToKnowNews
• To Geithner - it stretches credulity that you knew nothing about this (AIG decisions)Posted:27/01/2010 15:59 GMT by NeedToKnowNews
• Geithner withdrew from day to day mngmnt of NY FED on 24 November - the day Obama annc'd my nomiation for TSY SECPosted:27/01/2010 15:06 GMT by NeedToKnowNews
• Geithner - decision to stay on as NY FED Pres was to "protect independence of FD...and because I was going to be spending bulk of my time helping shape Pres' econ strategy'Posted:27/01/2010 15:06 GMT by NeedToKnowNews
  Geithner - decision to stay on as NY FED Pres was to "protect independence of FD...and because I was going to be spending bulk of my time helping shape Pres' econ strategy'
• Giethner "I had no role in making decisions regarding what to disclose about specific financial terms of Maiden Lane 2,3 or payments to AIG counterpartiesPosted:27/01/2010 15:05 GMT by NeedToKnowNews
  Giethner "I had no role in making decisions regarding what to disclose about specific financial terms of Maiden Lane 2,3 or payments to AIG counterparties
• Giethner - 'one firm said it would make concession...but only if other firms agreed to equal concessions on their prices'Posted:27/01/2010 15:05 GMT by NeedToKnowNews
• Giethner - FRBNY, AIG talked w/ counterparties about accepting concessions...'most firms would not make concessions'Posted:27/01/2010 15:05 GMT by NeedToKnowNews
• Geithner emphasizes AIG's regulators had no tools to meeting firm's funding needs; no mechanism to unwind firmPosted:27/01/2010 15:04 GMT by NeedToKnowNews
• Geithner - size of AIG failure, "force of storm developing in financial system"...there was no chance of putting together consortium to rescue AIGPosted:27/01/2010 15:04 GMT by NeedToKnowNews
  Geithner - size of AIG failure, "force of storm developing in financial system"...there was no chance of putting together consortium to rescue AIG
• Geithner - AIG failure would have spread to entire insurance industry, would have "dramatically amplified" financial crisisPosted:27/01/2010 15:04 GMT by NeedToKnowNews
  Geithner - AIG failure would have spread to entire insurance industry, would have "dramatically amplified" financial crisis
• Geitnner puts AIG collapse in context saying in part that WB, Wamu collapsed due to bank runs against backdrop of LEH bankruptcyPosted:27/01/2010 15:03 GMT by NeedToKnowNews
• Geithner - team of offcials from NYS Insurance Dept and FED concluded AIG failure would be "catastrophic" noting AIG much bigger than LEHPosted:27/01/2010 15:03 GMT by NeedToKnowNews
  Geithner - team of offcials from NYS Insurance Dept and FED concluded AIG failure would be "catastrophic" noting AIG much bigger than LEH
• Geithner on the Hill re AIG - FRBNY acted at direction of BOG and in cooperation w/ TSY and Executive BranchPosted:27/01/2010 15:03 GMT by NeedToKnowNews
• Geithner once again calls for limiting risk-taking among TBTF firms; says resolution regime is neededPosted:27/01/2010 15:02 GMT by NeedToKnowNews
• Geithner: Federal Reserve should make profits from Maiden Lane II and III; however, gov't will likely sustain losses from AIG investmentsPosted:27/01/2010 15:02 GMT by NeedToKnowNews
• Geithner: US gov't still exposed to "substantial risk of losses" on AIG investmentsPosted:27/01/2010 15:02 GMT by NeedToKnowNews
  Geithner: US gov't still exposed to "substantial risk of losses" on AIG investments
• Geithner: Profits from sale of AIG subsidiaries will first go to pay back gov't for supportPosted:27/01/2010 15:01 GMT by NeedToKnowNews