Bernard Madoff was sentenced to 150 years in federal prison for masterminding the largest Ponzi scheme in history, a penalty six times longer than those meted out to the chief executives of WorldCom Inc. and Enron Corp.
Monday, June 29, 2009
Sunday, June 28, 2009
Hedge Fund Fun
For those who are big Entourage fans, writer Doug Ellin, along with Brian Koppelman and David Levien to write a new show based around the life of a forty-something hedge fund manager. As the New York Times noted, Hedge Funds have become a true cultural phenomenon with the media obsessively following the notoriously tight-lipped and haute classe investment vehicles.
Wednesday, June 3, 2009
Government Motors-Powered by subsidies
Government Motors new CEO Barack Obama says the taxpayer will back the warranties of the failing automaker, well isn’t that just dandy? So not only is the government in the banking business and the mortgage business and the insurance business and the automakers business it’s also in the business of auto warranties too and we get to pay for it all, great huh?
Tuesday, June 2, 2009
GM Bankruptcy
General Motors Corp. won court approval on its first day in bankruptcy to sell assets as soon as next month after collapsing under $172.8 billion in debt and failing to adapt to consumer demands for smaller cars.
The automaker, the largest manufacturer to seek protection from creditors, also won permission yesterday from Judge Robert Gerber in Manhattan to draw $15 billion from a $33.3 billion bankruptcy loan.
Detroit-based GM plans to form a new company in 60 to 90 days, built around its Cadillac, Chevrolet, Buick and GMC brands in the U.S. The lead bidder for the assets is the U.S. Treasury, which will provide the 100-year-old company with billions in loans that would be converted into a 60 percent equity stake. GM today said it has an agreement with a buyer for its Hummer sport-utility vehicle unit.
The automaker, the largest manufacturer to seek protection from creditors, also won permission yesterday from Judge Robert Gerber in Manhattan to draw $15 billion from a $33.3 billion bankruptcy loan.
Detroit-based GM plans to form a new company in 60 to 90 days, built around its Cadillac, Chevrolet, Buick and GMC brands in the U.S. The lead bidder for the assets is the U.S. Treasury, which will provide the 100-year-old company with billions in loans that would be converted into a 60 percent equity stake. GM today said it has an agreement with a buyer for its Hummer sport-utility vehicle unit.
Saturday, May 30, 2009
EU to hit Microsoft, again
Every few years, the European Union takes another bite out of Microsoft's (MSFT) business in the region. All of the actions are based on antitrust laws, and most have to do with the bundling of the company's Internet Explorer with the Windows operating system. The belief among EU antitrust officials is that this shuts other browsers like Firefox out of the market.
The EU does not appear to be happy with Microsoft's efforts to date to cooperate on the browser issue so it is getting ready for another round of sanctions. According to The Wall Street Journal. "Rather than forcing Microsoft to strip its Internet Explorer from Windows, people close to the case say, the EU is now ready to try the opposite measure: Forcing a bunch of browsers into Windows, thus diluting Microsoft's advantage."
The punishment does not make much sense given the inroads that Firefox and Google's (GOOG) Chrome product are already making. Microsoft is losing browser market share every year.
The EU ought to let the free markets take their own course. Whatever advantage IE had at one time, it is being eaten away by the natural course of competition.
The EU does not appear to be happy with Microsoft's efforts to date to cooperate on the browser issue so it is getting ready for another round of sanctions. According to The Wall Street Journal. "Rather than forcing Microsoft to strip its Internet Explorer from Windows, people close to the case say, the EU is now ready to try the opposite measure: Forcing a bunch of browsers into Windows, thus diluting Microsoft's advantage."
The punishment does not make much sense given the inroads that Firefox and Google's (GOOG) Chrome product are already making. Microsoft is losing browser market share every year.
The EU ought to let the free markets take their own course. Whatever advantage IE had at one time, it is being eaten away by the natural course of competition.
Wednesday, May 20, 2009
VIX
VIX volatility index moves below 30 for the first time since 9/19/08 - according to CNBC, historically the S&P has gained an average of 3% and 6% respectively over the 3 and 6 months that follow a crossover below 30.
- the peak in late Oct was at 89.53.
Friday, May 8, 2009
Stress Test Results
American Express Company (AXP) $30.4 Billion Market Cap
NO NEW CAPITAL NEEDED…. $10.1 billion in tier-1 capital and total estimates losses in a more adverse scenario are $11.2 billion. Total Risk Weighted Assets were $104.4 billion.
Bank of America Corporation (BAC) $86.5 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $33.9 billion. B of A could have $173.2 billion in Tier-1 capital and could have $136.6 billion in total losses in a more adverse scenario. Total Risk Weighted Assets were $1.6338 trillion.
BB&T Corporation (BBT) $14.2 Billion Market Cap
NO NEW CAPITAL NEEDED. Tier-1 capital was listed as $13.4 billion and its total estimate losses in a more adverse scenario are $8.7 billion. Total Risk Weighted Assets were $109.8 billion.
Bank of New York Mellon Corporation (BK) $34 Billion Market Cap
NO NEW CAPITAL NEEDED. Its tier-1 capital was listed as $15.4 billion and its total estimate losses in a more adverse scenario are $5.4 billion. Total Risk Weighted Assets were $115.8 billion.
Capital One Financial Corp. (COF) $10.3 Billion Market Cap
NO NEW CAPITAL NEEDED… Tier 1 Capital was $16.8 billion and the total estimate losses in a more adverse scenario are $13.4 billion. Total Risk Weighted Assets were $131.8 billion.
Citigroup, Inc. (C) $21.3 Billion Market Cap
Its SCAP BUFFER, or capital needed to be raised, is $5.5 billion. Tier 1 capital was $118.8 billion and total estimate losses in a more adverse scenario are $104.7 billion. Total Risk Weighted Assets were $996.2 billion.
Fifth Third Bancorp (FITB) $3.08 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $1.1 billion. That is smaller than many thought. Tier-1 capital was $11.9 billion and its total estimate losses in a more adverse scenario are $9.1 billion. Total Risk Weighted Assets were $112.6 billion.
GMAC LLC (private)
SCAP BUFFER, or amount needed to be raised, is $11.5 billion. Its Tier 1 capital was $17.4 billion and total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $172.7 billion.
Goldman Sachs Group Inc. (GS) $63.6 Billion Market Cap
NO CAPITAL NEEDED…. Tier-1 capital was $55.9 billion and total estimate losses in a more adverse scenario are $17.8 billion. Total Risk Weighted Assets were $444.8 billion.
JPMorgan Chase & Co. (JPM) $132.4 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 capital $136.2 billion and total estimate losses in a more adverse scenario are $97.4 billion. Total Risk Weighted Assets were $1.3375 billion.
KeyCorp (KEY) $3.8 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was $11.6 billion and total estimate losses in a more adverse scenario are $6.7 billion. Total Risk Weighted Assets were $106.7 billion.
MetLife Inc. (MET) $25.9 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 Capital was $30.1 billion and the total estimate losses in a more adverse scenario are $9.6 billion. Total Risk Weighted Assets were $326.4 billion.
Morgan Stanley (MS) $29.1 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was listed as $47.2 billion and the total estimate losses in a more adverse scenario are $19.7 billion. Total Risk Weighted Assets were $310.6 billion. After the close, Morgan Stanley said it will offer $2 billion in common stock and will sell $3 billion worth of non-FDIC guaranteed debt. That non-FDIC is key, because this allows the company to pay back the TARP if those rules have not changed.
PNC Financial Services Group (PNC) $21.1 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $0.6 billion. Tier 1 capital was listed as $24.1 billion and total estimate losses in a more adverse scenario are $18.8 billion. Total Risk Weighted Assets were $250.9 billion.
Regions Financial Corporation (RF) $3.6 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $2.5 billion. Tier 1 capital was $12.1 billion and its total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $116.3 billion.
State Street Corp. (STT) $16.43 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 Capital was $14.1 billion and its total estimate losses in a more adverse scenario are $8.2 billion. Total Risk Weighted Assets were $69.6 billion.
SunTrust Banks, Inc. (STI) $6.61 Billion Market Cap
SCAP BUFFER, or Capital needed to be raised $2.2 billion; Tier 1 capital was $17.6 billion and its total estimate losses in a more adverse scenario are $11.8 billion. Total Risk Weighted Assets were $162 billion.
US Bancorp (USB) $34.4 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 capital was $24.4 billion and total estimate losses in a more adverse scenario are $15.7 billion. Total Risk Weighted Assets were $230.6 billion.
Wells Fargo & Company (WFC) $105.5 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $13.7 billion. Tier 1 capital was $86.4 billion and its total estimate losses in a more adverse scenario are $86.1 billion. After the close, Wells Fargo filed to raise $6 billion via stock sale. Total Risk Weighted Assets were $1.0823 trillion.
NO NEW CAPITAL NEEDED…. $10.1 billion in tier-1 capital and total estimates losses in a more adverse scenario are $11.2 billion. Total Risk Weighted Assets were $104.4 billion.
Bank of America Corporation (BAC) $86.5 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $33.9 billion. B of A could have $173.2 billion in Tier-1 capital and could have $136.6 billion in total losses in a more adverse scenario. Total Risk Weighted Assets were $1.6338 trillion.
BB&T Corporation (BBT) $14.2 Billion Market Cap
NO NEW CAPITAL NEEDED. Tier-1 capital was listed as $13.4 billion and its total estimate losses in a more adverse scenario are $8.7 billion. Total Risk Weighted Assets were $109.8 billion.
Bank of New York Mellon Corporation (BK) $34 Billion Market Cap
NO NEW CAPITAL NEEDED. Its tier-1 capital was listed as $15.4 billion and its total estimate losses in a more adverse scenario are $5.4 billion. Total Risk Weighted Assets were $115.8 billion.
Capital One Financial Corp. (COF) $10.3 Billion Market Cap
NO NEW CAPITAL NEEDED… Tier 1 Capital was $16.8 billion and the total estimate losses in a more adverse scenario are $13.4 billion. Total Risk Weighted Assets were $131.8 billion.
Citigroup, Inc. (C) $21.3 Billion Market Cap
Its SCAP BUFFER, or capital needed to be raised, is $5.5 billion. Tier 1 capital was $118.8 billion and total estimate losses in a more adverse scenario are $104.7 billion. Total Risk Weighted Assets were $996.2 billion.
Fifth Third Bancorp (FITB) $3.08 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $1.1 billion. That is smaller than many thought. Tier-1 capital was $11.9 billion and its total estimate losses in a more adverse scenario are $9.1 billion. Total Risk Weighted Assets were $112.6 billion.
GMAC LLC (private)
SCAP BUFFER, or amount needed to be raised, is $11.5 billion. Its Tier 1 capital was $17.4 billion and total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $172.7 billion.
Goldman Sachs Group Inc. (GS) $63.6 Billion Market Cap
NO CAPITAL NEEDED…. Tier-1 capital was $55.9 billion and total estimate losses in a more adverse scenario are $17.8 billion. Total Risk Weighted Assets were $444.8 billion.
JPMorgan Chase & Co. (JPM) $132.4 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 capital $136.2 billion and total estimate losses in a more adverse scenario are $97.4 billion. Total Risk Weighted Assets were $1.3375 billion.
KeyCorp (KEY) $3.8 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was $11.6 billion and total estimate losses in a more adverse scenario are $6.7 billion. Total Risk Weighted Assets were $106.7 billion.
MetLife Inc. (MET) $25.9 Billion Market Cap
NO CAPITAL NEEDED… Tier 1 Capital was $30.1 billion and the total estimate losses in a more adverse scenario are $9.6 billion. Total Risk Weighted Assets were $326.4 billion.
Morgan Stanley (MS) $29.1 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $1.8 billion. Tier 1 capital was listed as $47.2 billion and the total estimate losses in a more adverse scenario are $19.7 billion. Total Risk Weighted Assets were $310.6 billion. After the close, Morgan Stanley said it will offer $2 billion in common stock and will sell $3 billion worth of non-FDIC guaranteed debt. That non-FDIC is key, because this allows the company to pay back the TARP if those rules have not changed.
PNC Financial Services Group (PNC) $21.1 Billion Market Cap
SCAP BUFFER, or capital need to be raised, is $0.6 billion. Tier 1 capital was listed as $24.1 billion and total estimate losses in a more adverse scenario are $18.8 billion. Total Risk Weighted Assets were $250.9 billion.
Regions Financial Corporation (RF) $3.6 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $2.5 billion. Tier 1 capital was $12.1 billion and its total estimate losses in a more adverse scenario are $9.2 billion. Total Risk Weighted Assets were $116.3 billion.
State Street Corp. (STT) $16.43 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 Capital was $14.1 billion and its total estimate losses in a more adverse scenario are $8.2 billion. Total Risk Weighted Assets were $69.6 billion.
SunTrust Banks, Inc. (STI) $6.61 Billion Market Cap
SCAP BUFFER, or Capital needed to be raised $2.2 billion; Tier 1 capital was $17.6 billion and its total estimate losses in a more adverse scenario are $11.8 billion. Total Risk Weighted Assets were $162 billion.
US Bancorp (USB) $34.4 Billion Market Cap
NO CAPITAL NEEDED. Tier 1 capital was $24.4 billion and total estimate losses in a more adverse scenario are $15.7 billion. Total Risk Weighted Assets were $230.6 billion.
Wells Fargo & Company (WFC) $105.5 Billion Market Cap
SCAP BUFFER, or capital needed to be raised, is $13.7 billion. Tier 1 capital was $86.4 billion and its total estimate losses in a more adverse scenario are $86.1 billion. After the close, Wells Fargo filed to raise $6 billion via stock sale. Total Risk Weighted Assets were $1.0823 trillion.
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