Stacy Summary: Are you surprised? Negotiating privately with the banks?
Beginning late in the week of Nov. 3, the New York Fed, led by President Timothy Geithner, took over negotiations with the banks from AIG, together with the Treasury Department and Chairman Ben S. Bernanke’s Federal Reserve. Geithner’s team circulated a draft term sheet outlining how the New York Fed wanted to deal with the swaps — insurance-like contracts that backed soured collateralized-debt obligations….
Part of a sentence in the document was crossed out. It contained a blank space that was intended to show the amount of the haircut the banks would take, according to people who saw the term sheet. After less than a week of private negotiations with the banks, the New York Fed instructed AIG to pay them par, or 100 cents on the dollar. The content of its deliberations has never been made public.
Tags: aig · bernanke · cds · geithner99 Comments
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If at first you don’t succeed try, try, again!
In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said.
The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government’s 35.4% stake in the company could increase if existing shares eventually are converted into common equity.
GMAC Asks for Fresh Lifeline
Lender in Advanced Talks for Third Slug of Taxpayer Cash — at Least $2.8 Billion More
The willingness by Treasury officials to deepen taxpayer exposure to GMAC reflects the troubled company’s importance to the revival of the auto industry. Founded in 1919, GMAC has $181 billion in assets and is a major financier for 15 million borrowers and thousands of General Motors and Chrysler car dealerships.
The Fed awarded GMAC status as a bank-holding company and Treasury injected $5 billion in December 2008. It came back with an additional $7.5 billion on May 21. The Fed also waived rules to allow the bank to pass assets down into its bank division, and the FDIC reluctantly agreed to issue “up to” $7.4 billion in government-backed debt. The FDIC approval issued Tuesday brings GMAC to the full amount authorized in May.
In another defining moment, GMAC entered into an agreement with Chrysler in April 2009 to provide auto financing and services to Chrysler dealers and customers. This allowed GMAC to leverage its core strength of auto financing and become part of a solution with the U.S. government to restructure the auto industry.
In May, GMAC also launched a new brand for its online bank, called Ally Bank. Its pursuit of deposits at high rates became a key leg of its strategy, since deposits provide a cheap form of funding, but the taxpayer-assisted approach rankled competitors and the FDIC.
The dispute nearly cost GMAC its chance at the final $2.9 billion in FDIC debt guarantees. The two sides were able to hammer out an agreement that asks GMAC to keep its rates at certain amounts in exchange for the support.
http://online.wsj.com/article/SB125668489932511683.html?mod=WSJ_hps_LEFTWhatsNews
@WL .. Quite entertaining. No work in the UK though
http://www.youtube.com/watch?v=xz1TM9y8vN8&feature=player_embedded
It seems more and more comments on blogs become like statements of dictators, so here goes..
Joe Lieberman is a Douchebag. He should retire before the vote.
Algae grow around the US because there is so much fertilizer being dumped because that stuff sells so well to the dumb farmers. There is at the same time very little life because the algae take the oxygen. The seas around the US are practially dead. The solution is to pump up deep seawater to provide the algae with the nutrients they lack so the whole ocean trives and can feed on the algae instead of choking from them.
Those global warming slides are conjecture and the guy should be shot for taking that position. There is no need to slam on the brakes with respect to climate action, because nothing is being done.
-Plankton becomes oil,
-Peet becomes coal
-Methane developes in anairobic circumstances mostly swamps.
Good night to y’all (who are not there really so who cares but anyway)..
LOL
torturing your loan modification agent..
http://www.reuters.com/article/newsOne/idUSTRE59Q03Q20091027
Joe Lieberman is a Douchebag. He should retire before the vote.
YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
@Fibon11235
Depends on what you buy for food and what the ECB have put in their inflation basket have to find out about it more myself. Think it’s mainly oil reflected in the graph.
But yourright, I know some products are at an all-time high: tea for instance, coffee is on an 11, sugar on a 29 year and cacao on a 30 year all-time high. Orange Juice also got more expensive and is on a 15 month all-time high.
But maybe the only drink Champagne at the Euro top with kaviar and we had some good summers and the roebel went down…..
Peter Schiff vid today
On Real Estate
http://www.youtube.com/watch?v=GCiFjkgZM3k
@Richard:
Mother Earth explained it on the other side of this thread! But I still don’t know what laid down all the plankton….
@Youri:
Yes! This is the companion to the cotton picking reach-down-pick-a-bail. I especially like the family scene. Good Lordy! What a stack of offspring!
greetings young one
@Sakes Richard!
GEEGums…don’t I take par-ti-coo-lur nice in my photo? Yes’an I look like a spring chicken set ready to sprout me my first tail feather and fly the coop! Sure as!
Monetary statistics Eurozone: M3 Growth rates declined. M1 went up but is going down steadily now. http://sdw.ecb.europa.eu/reports.do?node=100000141
@Youri:
From Porgy:
“Friends with you, low-life, I fearz I must de-cline.”
Served that asshole right to get a face-full of that knife.
Cynthia McKinney comes to my mind after watching that vid/link!
http://www.911truth.org/osamas/mckinney.html
@frances snoot
Yep, I am a great fan of the Porgy & Bess Opera, probably the only opera I like. Even saw Porgy & Bess live in Amsterdam….great show with a live orchestra without any sound equipment…pure stuff.
@frances snoot
Is she holding spongebob?
Celente on AJ 4 dys ago. Always good for a laugh
1 of 7 parts
http://www.youtube.com/watch?v=co-G7KQRaes
Cynthia Mckinney is beyond reproach!
Here’s how the small banks trust Obama:
http://www.reuters.com/article/smallBusinessNews/idUSTRE59Q4JO20091027
However, he said, the government has not smoothly distributed funds from the Troubled Asset Relief Program and he is not sure the newly announced plans will do any better.
“There’s no incentive for me to take TARP money,” he said. “Unless these initiatives really accomplish what they’re designed to do, we may lose a lot of small businesses.”
Hmmm. This doesn’t sound good.
@frances snoot: sorry gal..I missed the photo..please repost…have looked up and down and can’t find it
Richard! It’s my avantar. sorry!!!
You know: my favorite Lunch Lady pose…voila! Here’s your grease-laden tray coy look.
Here I am! Stunning and offering a choice of an extra scoop of mash or a cookie. Can’t have both.
http://www.lunchlady.us/Mom-Lunch_Lady.jpg
@frances snoot: OH!!!!!!!!!!!!!!!!!
@WL
Its funny cause Schiff is buying a house now cause he was renting before and has to get a Morgage and a friend of mine has to renew the morgage cause it was for 10 years. So what to do? Or get the variable short term morgage or the long one but than the banksters ask 5.8 % (It was 4.8%). It is a repayment mortgage.
The question is not deflation/ inflation
The question is not dollar,euro.yen or carry trade related
The question is not the price of gold,silver,oil,property
Because the game is played.
No bets while the wheel is turning
The question is Why Derivates? 500,0 tr and counting.
They make and brake everthing. NO Bets!
The question is who is the winner in this casino game.
Keynes will not give you the answer (sorry bernanke), my guess WB will.It is all about Salomon and LTCM back in the good old years.
On his stone,
Far the well,and if for ever,
Still for ever, fare the well
(Byron)
http://www.youtube.com/watch?v=JYLceKOaw_Y
Are you SURE Marijuana should be LEGAL?
BTW shes hot
I’ll go you one better: all the Dual-Citizens in the US government should be “retired”.
Gratuitous Tito pic #649
Same news, Different Headlines….
Inflation rose in Australia but Bloomberg says one thing and ‘The Age’ Australian Newspaper says another.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVB6NpWN3fNA
http://www.theage.com.au/business/green-light-for-rate-hike-20091028-hjwl.html
Sorry to bore you with Aussie News, But here is another article on Rate Rise next week by RBA.
http://au.biz.yahoo.com/091028/31/29fdk.html
“AHMED Wali Karzai, the brother of the embattled Afghan president and a suspected drug trafficker, has been on the CIA payroll for most of the past eight years.”
http://www.theaustralian.news.com.au/story/0,25197,26271989-601,00.html
I was a pawn, but I made it to the eighth rank. Little does my king know that I will exercise free will. My next move may be his undoing . . .
Previous post was paraphrased by . . . ?
Peter Schiff on CNBC.
Say Bernie Madoff should have his picture on USD, not Washington, to show the true value of the stuff.
Plus CIT blah blah from the CNBC Crew.
http://www.youtube.com/user/PeterSchiffChannel#p/u
@ Mini – I’m wondering if the NYT piece is a propaganda piece. What better way to turn the Afghans against Karzai and toward the next stooge we want to put in place but to publish that his brother is on the take from the CIA?
Peter Who?
Go for thr FED !
@Mep
Agreed. Thats not the sort of info you give to the press without a reason. And, lets face it, this info wouldn’t have been ‘investigated’ it was given freely, probably sent through as a news release
@ Mini – Right. I don’t doubt that the story is true, but I’m skeptical on why it was published now. (How much do you wanna bet that Faux News covers this by saying the liberal media is out to get the CIA?)
Seems like we will see another big bonuses in banking industry
paid with the taxpayer’s money.
It’s the perfect way to allow banks clean their balances. They get the money for stupid investments without any LIABILITY to buy it back.
But, who will bailout the AIG and the FED?
http://davegranlund.com/cartoons/wp-content/uploads/color-taxpayer-sap-web.jpg
It’s perfect illustration
Paul Craig Roberts on the next crisis:
http://www.vdare.com/roberts/091025_next_crisis.htm
@ Emiliyan – Great cartoon!
Fun fact I discovered..
In the middle of St. Peters square stands a 3800 year old oblisk in honour of the sun god Ra. In all likelyhood sun worship is the oldest religion..
Calling Houston !
http://science.nasa.gov/headlines/y2009/images/deepsolarminimum/irradiance.jpg
PS@Houston
http://science.nasa.gov/headlines/y2009/27oct_eve.htm
The new businessman
’50c’ on Business practices.
Tip: Take a gun to meetings.
http://news.bbc.co.uk/today/hi/today/newsid_8327000/8327575.stm
I think he’s been mentored by Hank Paulson.
Is the U.S. dollar carry trade replacing the one in Japanese yen?
http://www.creditwritedowns.com/2009/10/is-the-u-s-dollar-carry-trade-replacing-the-one-in-japanese-yen.html
Gold.
C’mon China.
Fight Back!
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Quote
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I’ll go you one better: all the Dual-Citizens in the US government should be “retired”.
===========
Not the solution, as most of the problem comes from the 4th and 5th generation nepots in government at he Federal, State and Local level.
Most of these people are US passport holding people, and beyond totally corrupt.
There are very few if almost no 2nd Citizenship persons in government in the US at any level — that is one of the reasons why the US has become a totally and completely failed nation state.
The USSR was partly consigned to oblivion by Stalin’s purges of anyone that could work or think coupled with a similarly bad set of arrangements in the way the government is run to the US of the present day.
The US is as much a non-state as the USSR, but may remain together politically — as there is nowhere to go as most of the population cannot even find their own state on a map.
Foreign speculation on our currency is a bubble set to burst
http://www.smh.com.au/opinion/foreign-speculation-on-our-currency-is-a-bubble-set-to-burst-20091025-heo5.html
This article basically highlights the same dynamics you guys pointed out in the film “Money Geysers” way back when!
Karzai’s brother said to be on CIA payroll: report
http://www.reuters.com/article/topNews/idUSTRE59R07T20091028
No surprises here !
@Bill
There are very few if almost no 2nd Citizenship persons in government in the US at any level
ummm…
David Axelrod Senior Advisor to the President
Jared Bernstein Chief Economist and Economic Policy Advisor to the Vice President
Rahm Emanuel Chief of Staff
Lee Feinstein Foreign Policy Advisor
Gary Gensler Chair of the Commodity Futures Trading Commission
Elena Kagan Solicitor General of the United States
Ronald Klain Chief of Staff to the Vice President
Jack Lew Deputy Secretary of State
Eric Lynn Middle East Policy Advisor
Peter Orszag Director of the Office of Management and Budget
Dennis Ross Special Advisor for the Gulf and Southwest Asia to the Secretary of State
Mara Rudman Foreign Policy Advisor
Mary Schapiro Chair of the Securities and Exchange Commission
Dan Shapiro Head of Middle East desk at the National Security Council
James B. Steinberg Deputy Secretary of State
Lawrence Summers Director National Economic Council
Mona Sutphen Deputy White House Chief of Staff
Not to mention Geithner, Bernanke, Paulson, etc, I could go on and on and on if you really want me to…. All of these people have Israeli passports. Considering there far more Muslims in the US, and far more Eastern Orthodox, where are their names in the Hopey McChange administration?
Sorry, I’m not “anti” anyone, but there is a clear and indisputable trend here.