It's 11:30 AM

My brother who works for BNP PARIBAS sends me telegraph style news


Lehman Brothers to file for bankruptcy protection
BoA to buy Merrill for around USD 50 bio in shares
AIG seeking a USD 40 bio bridge loan from the FED
FED to lend to banks by taking stocks as collateral
A consortium of 10 banks creates a USD 70 bio fund to ensure liquidity

AIG got support from the FED even faster than I thought they would. Basically overnight!

FED takes STOCKS from banks as collateral??? Did you read that! This may be the best trade in the world, ever. FED is THE long term holder of last resort (LTH-LR), FED could be making a killing on this. This may have the capacity to completely stabilize the crisis. I am optimistic for this move.

I haven't read the consortium bit. I can understand it as a way to safeguard against future crises a la an LTCM fund but generalized. The FED doesn't have to broker agreement with all the heads of family at the last minute. The number sounds small, but if this is cash or cash equivalent, this is a significant draw for the banks involved. I need to read up on it.

Comments

Juha Lindfors said…
Re: stock -- so is that going to be the penny stock of GSEs, Lehman et al dumped on fed? Just another way to move bank losses to tax payer.

Anyway, it's going to be one ugly (and historic) Monday.
Marcf said…
Losses or ... gains. I think the point is that the Govt can be a long holder. It could be a great thing. Best deal EVER?
pcleddy said…
"the heads of family"

And let's all try to remember the difference between communal property and the state owning everything, the people nothing.
aarone said…
This comment has been removed by the author.
Daniel Brum said…
This is a good summary of the weekend's events and some of the consequences to come:

http://www.economist.com/finance/displaystory.cfm?story_id=12231236&fsrc=rss
Anonymous said…
Anonymous said…
視訊交友網 080視訊聊天室 ※免費視訊聊天室※ ※免費視訊聊天室※ 視訊聊天室 成人影音視訊聊天室 ut影音視訊聊天室 ※免費視訊聊天室※ 視訊ukiss聊天室視訊ukiss聊天室 視訊交友90739 視訊交友90739 情人視訊網 168視訊美女 168視訊美女 168視訊美女 視訊美女館 視訊美女館 免費視訊美女網 小高聊天室 小高聊天室 aio交友聊天室 aio交友聊天室 交友聊天室 交友聊天室 線上a片 線上a片 線上a片 線上a片 線上a片 免費線上a片 免費線上a片 嘟嘟成人網站 成人漫畫 情色文學 嘟嘟成人網 成人貼圖區 情色文學成人小說 微風成人區 情色貼圖區 免費視訊聊天 免費成人圖片區 愛情公寓 愛情公寓聊天室 寄情築園小遊戲 免費aa片線上看 aa片免費看 情色SXE聊天室 SEX情色遊戲 色情A片 免費下載 av女優 俱樂部 情色論壇 辣妹視訊 情色貼圖網 免費色情 聊天室 情人視訊聊天室 免費a片成人影城 免費a片-aa片免費看 0204貼圖區 SEX情色 交友聊天-線上免費 女優天堂 成人交友網 成人情色貼圖區 18禁 -女優王國 080視訊美女聊天室 080視訊聊天室 視訊交友90739 免費a片 aio 視訊交友網 成人影城-免費a片※免費視訊聊天※85cc免費影片日本線上免費a片 免費色咪咪影片免費色咪咪影片aaa片免費看影片aaa片免費看成人影城情人視訊高雄網sex520免費影片080聊天室080聊天室aa的滿18歲影片免費av18禁影片免費av18禁影片免費av18禁影片aa的滿18歲影片聊天室ut愛情公寓尋夢園聊天室

Popular posts from this blog

The Dollar is an Asset Backed Token.

The Brotherhood is Displeased

I visit ApacheCon.