Shrinking Balance Sheets, Falling Bankers as lies exposed
If you happen to run a large bank heavily exposed to SIV's and a big book on mortgages for double wides in Georgia swamplands keep away from the office on Sundays.
1.Warren J. Spector CEO of Bear Stearns resigned on a Sunday afternoon ,August 4th after the shares took a bath.
2. Chairman and chief executive Stan O'Neal having told the shareholders of Merrill Lynch he was writing off US$8.4 Bn of their funds didn't make it to this weekend - but shed no tears - 5 years with the bank he walks away with a modest US$161 Mn.
3. Meanwhile at Citigroup with over US$55 billion exposure to CDO's and having written off some US$6.4 Bn previously the Board sacked accepted the resignation of lawyer and Chief Executive Charles Prince over the weekend and wrote off another huge chunk on the Balance sheet ... so big they haven't added it all up yet .. it's between US$8BN and ..er... US$11Bn....ish.
It's evident now that Citigroup will post a loss in Q4 and the dividend is threatened.
On August 5th when we borough Citigroup's woes to you attention they were trading at US$46 - today ahead of opening they are making US$37.00 and will dive on the bell.
4. Over the weekend Sunday Times reports (without claiming source that £14 BN (US$29 Bn) has been withdrawn from Northern Rock Plc by savers (60% of deposits) since the Bank of England unwisely sarted lending them unlimited funds - now totalling an eye watering £29 Bn.
Gormless Chairman Matt Ridley fell on his sword two weekends ago - can CEO Applegarth be far behind ?
On BBC's "Today" program this am the bone headed Chancellor of the Exchequer said ..." The banking system is basically strong and in addition to that we have a very strong economy.''
He also told us that Northern Rock was "solvent".
"To be absolutely clear, if we believed that Northern Rock was not solvent, we would not have allowed it to remain open for business. " said Callum McCarthy, chairman of the FSA another one who should bne spending more time improving his golf.
3 comments:
"Michael O'Higgins thinks the country is heading into a slump that could be worse than the Great Depression"
http://tinyurl.com/2p5agn
"Last month, the US Treasury Department, with the blessing of the Federal Reserve Board, brokered a scheme to raise $80-$100 billion to prevent the collapse of the SIVs—a plan devised in the first instance to forestall a potentially disastrous crisis at Citigroup. There are growing indications that the scheme may fail."...
http://tinyurl.com/2elexm
"One million pay mortgage with credit card"
"More than a million households have had to pay their mortgage or rent using a credit card in the last year alone, new research shows"
"According to housing charity Shelter, around six per cent of people have had to use credit to pay for the roof over their heads, with younger people the most likely to fall into the trap"...
http://tinyurl.com/3bdk3n
To understand what is happening you have to go back to who was responsible for it all in the first place...The EVIL ones...and the two words that caused it all..."Deregulation"..."Globalisation"...The insanity off free market' economics, or should that read GREED of the few at the expense of the many.
"Milton Friedman, free-market economist who inspired Reagan and Thatcher, dies aged 94"...
http://tinyurl.com/srzs3
"The deflation of Friedman"...
http://tinyurl.com/2pnql8
"What do we owe to Thatcherite economics?"...
http://tinyurl.com/ysnrce
The influence that Thatcher had over Reagan as regards economic thinking (or lack off) was key to todays events.
"They really respected each other's views, and if that is not influence, I don't know what is".
"President Reagan said: "We met before she became prime minister and I became president, and the moment we met, we discovered that we shared quite similar views of government and freedom. Margaret ended our first meeting by telling me that we must stand together, and that is exactly what we have done ever since"...
http://tinyurl.com/2266eb
"Mervyn King shifts blame to chancellor"...
http://tinyurl.com/2ekfwm
"More bankers will walk the plank"...
http://tinyurl.com/2yojyq
"One earth, three planets' worth of damage"...
http://tinyurl.com/2tnmdg
"Ian Gilmour served as defence secretary during Edward Heath's administration, before becoming Lord Privy Seal in Margaret Thatcher's first government"
"In September 1981 he was sacked by Mrs Thatcher and remained a prominent critic of what he regarded as extreme Thatcherite policies"
"He responded to his sacking by Mrs Thatcher by issuing a statement declaring that she was steering "full speed ahead for the rocks"...
http://tinyurl.com/3cwyru
"It is 25 years since Margaret Thatcher became prime minister. Click on an individual in the image or use the drop-down menu below to find out more about the members of her first cabinet, and what has happened to them since"...
http://tinyurl.com/3ca5ml
"A Fed Panic and a Massive Bailout of American Banks Paid for by the Entire World"...
http://tinyurl.com/3bfbxy
"Capitalism and Freedom" Unmasked"...
http://tinyurl.com/36zxwe
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