Thread: A note of caution for those with deposits in US Banks

Isn't the Carlyle group the neocon investment private fund that financed heavily companies for the Iraq war outsourcing ?

if that's the case, fucking OWNED !!!

Originally Posted by Butterfly

Isn't the Carlyle group the neocon investment private fund that financed heavily companies for the Iraq war outsourcing ?

if that's the case, fucking OWNED !!!

That will the one...

Looks like Bear Stearns will pip all-comers to the post in the race to be the first to go bust!

FT Alphaville » Blog Archive » This Bear market

This Bear market

The Bear rumours are back. As in Bear Stearns - stock down 12 per cent in New York on Thursday, while the five year CDS has gapped 120bp to 700bp. All sorts of uncorroborated rumours are flying.

The Times Today:

Alistair Darling ignores the looming collapse of financial institutions - Times Online

Alistair Darling ignores the looming collapse of financial institutions

Alistair Darling's footling initiatives yesterday were a sideshow. There is one overwhelming challenge facing the business world and it is not going to be addressed by £10 million more for science teachers or £12 million for women entrepreneurs.

Western capitalism is, bluntly, being haunted by the spectre of a catastrophic domino-like collapse of financial institutions, one that if not prevented would without question lead to an economic ice age.

Mr Darling did at least acknowledge that a number of credit markets were “barely functioning” but then moved on to more trifling matters. Outside Westminster, however, fears remain that a major financial institution is close to collapse, or that policymakers at least believe it could be. Nothing else explains Tuesday's co-ordinated campaign by central banks and their increasingly desperate measures to pump more liquidity into a system showing fresh signs of paralysis. As one senior City figure put it yesterday: “There's the smell of death all right but no one can locate the corpse.”

En masse, the world is de-leveraging. On an individual level, moves by banks to call in debt and tighten loan conditions make perfect sense. Collectively, they could be devastating. Asset fire sales lead to falling prices which lead to shrinking collateral values and the need for more fire sales. It would not take all that much to tip the credit markets from the current state of paralysis (bad) to panic (much worse).

...And so it continues. Maybe I should start a poll - which Bank to go bust first (obviously excluding NR and the ones that already have...)

Originally Posted by bkkandrew

Looks like Bear Stearns will pip all-comers to the post in the race to be the first to go bust!

FT Alphaville » Blog Archive » This Bear market

This Bear market

The Bear rumours are back. As in Bear Stearns - stock down 12 per cent in New York on Thursday, while the five year CDS has gapped 120bp to 700bp. All sorts of uncorroborated rumours are flying.

And so it passes...

Bear Stearns | Stripped Bear | Economist.com

Bear Stearns
Stripped Bear

Mar 14th 2008 | NEW YORK
From Economist.com
Rescuing a Wall Street bank



AP
A CENTURY after John Pierpont Morgan bailed out Wall Street, his bank is at it again. In a dramatic move on Friday March 14th, the Federal Reserve Bank of New York and JPMorgan Chase made emergency funding available to Bear Stearns after other market players lost confidence in the beleaguered investment bank as a trading partner. As the credit crunch has deepened and broadened, the worst fear of many on Wall Street has been the collapse or forced rescue of a big bank or broker. That moment is now upon them.

JPMorgan Chase is Bear’s clearing bank and will act as a conduit for Fed funding. In a special vote, the central bank’s governors chose to allow JP Morgan Chase to bring collateral from Bear, including mortgage assets, to the Fed discount window in return for 28-day loans. Bear does not have direct access to the window because it is not a depository institution. The Fed has agreed not to hold JPMorgan Chase liable for any losses on the collateral posted. The central bank has resorted to such an arrangement only twice before, in the depression of the 1930s and in the 1960s.

...Cont...

And, who next? My money is on Lehmen Brothers or Citigroup to go bust. UK-wise Alliance and Leicester, Bradford and Bingley, HBOS and Barclays look like the betting-man's candidate...

Anyone still hold accounts with them?

Originally Posted by bkkandrew

And, who next? My money is on Lehmen Brothers or Citigroup to go bust. UK-wise Alliance and Leicester, Bradford and Bingley, HBOS and Barclays look like the betting-man's candidate...

Anyone still hold accounts with them?

Forgot, any European account holders should beware UBS (already insolvent) and without a Sovereign Central Bank for bail-out....

Meanwhile back in the UK, HBOS looks down the back of the sofa for some spare cash...:

HBOS raises £750m of new capital in a bid to beat credit crunch - Times Online

HBOS raises £750m of new capital in a bid to beat credit crunch


Iain Dey, The Sunday Times


HBOS has raised £750m of new capital at a staggering interest rate of almost 9.5%, in a clear sign of the funding crisis facing the world’s banks.

...Cont...

9.5%....!!!!!!!!!!!!!!

Why didn't they just put the dosh on someone's credit card? They would have got a better rate than 9.5%... Maybe all the Director's cards were maxed out.