tyb
from July 2010
Bear Stearns Failure-Throw me a Life-Ring
Like the U.S. Government did under The Troubled Assets Relief Program (TARP), signed by President George W. Bush, we rescued failing financial institutions; Europe’s banks have been bailed out by their governments as well. TARP allocations of $700 billion toward bank bailouts have been partly successful. The larger banks have repaid their funds, and so far, the repayments made have exceeded what has been loaned. Smaller financial institutions are still in recovery mode, but by the end of May 2010, a total of $190 billion had been loaned under TARP, and $194 billion had been repaid.
In February of this year, at the Greater Omaha Chamber of Commerce’s annual meeting, Henry Paulson, former U.S. Treasury Chief, and Warren Buffett, investor billionaire, said America will recover every cent paid out to banks, and we may even turn a profit. Paulson went on to say that the United States is better off today than most countries. “Every other major economy has many more significant challenges than we do,” Paulson said. But he said several significant challenges remain. Paulson’s 500-page book, “On the Brink: Inside the Race to Stop the Collapse of the Global Financial System,” chronicles his account of the rush to prevent an economic disaster as Lehman Brothers and American International Group (AIG) spun toward collapse in September 2008. Paulson served as Treasury Secretary from June 2006 to January 2009. I’m glad they are optimistic.
Parallel to what occurred in our nation, large annual bonus payments to bank executives drained much of a bank’s capital, and now the European governments have said, “Enough”. Capping of bankers’ bonuses by the European Union is sure to have the other European leaders following quickly in line. Starting in 2011, bankers will only be able to get part of their yearly bonuses in cash upfront. The other seventy percent will be kept in reserve, and will only be paid out if the bank performs well. Also, European banks will be required to keep a minimum amount of capital to ensure they are covering risk from their trading book and complex security investments (like mortgage-backed securities), to avoid a repeat of what occurred worldwide during the financial meltdown. Many European financial institutions are not taking a liking to these requirements, because it could force banks to hold three to four times more capital against their trading risk than they do presently.
Similar to what occurred in the U.S., there is now public outcry over the amount in bonuses paid not only to bank execs, but over the hundreds of millions of dollars lost due to the Goldman Sachs fraud case. Inflated prices, bad investing decisions and marketing—all on the part of Goldman, has caused an uprising not only in the United States, but in Europe too. Britain’s Prime Minister, Gordon Brown, has called for authorities there to investigate the “moral bankruptcy” of the public by Goldman Sachs. Germany has also said they will follow suit, as both their government and Great Britain lost millions on investments marketed by Goldman. In Britain’s case, the Royal Bank of Scotland paid Goldman $841 million to unwind ABN Amro transactions. Like many U.S. banks, the Royal Bank of Scotland is now 84% owned by its government due to propping up by “bailout money”. ABN Amro, a Dutch bank, which from 1991-2007, was one of Europe’s largest banks operating in 63 countries. Now, after the financial crisis and bad investments made by Goldman’s marketing, is now owned by RSF Holdings BV, comprised of the Netherlands government, the Royal Bank of Scotland Group, and Banco Santander (made up of a consortium of a banking group in Spain).
moar here
https://thesmartalaskan.wordpress.com/tag/bear-stearns/
The current President of the World Bank Group, David Malpass was the Chief Economist at Bear Stearns and Larry Kudlow did a stint at that POS too. They also had the legacy short position in the silver markets that has been tossed back and forth from one institution to another. It;s been at Saloman Bro's, Drexel, HSBC, Merril Lynch and several other places. When Bear failed it was carved up and the legacy short pistion in Ag was placed at JP Morgan. All the shitty assets-most of them- were placed in the aforementioned Maiden Lane holding Co's at the Federal Reserve.
When bear failed the CEO, Jimmy Cayne was at a bridge tournament and could not be bothered to deal with.
Epstein also worked at Bear and apparently "trained" the chairman of the executive committee of The Bear Stearns Companies Alan "Ace" Greenberg's son. Trained him in what I don't know because Epstein's released trading records show an average trader at best.
SAM675 USAF Clipper from JBA over the continent and heading for Ramstein AFB
RSAF MEDVC5A G5 continues on after a ground stop in Dublin from it's stop at the Mayo Clinic in Rochester, MN and it's departure from LAX prior to that.
it was never going to go anywhere as Holder was the AG at the time.
That was a great find anon. Prop's to you-still living the high life
nothing pissed me off moar than those assholes getting bailed out. Lost upwards of $65K on that "stunt" alone as I was loaded short. It's not the money as you win some, lose some-that is life. It's what they did to everyone in the process.
And then it got worse with the continued bailouts and the 'green shoots' bullshit.
Nothing makes me happier then watching these pukes getting paid back for all that largresse.
In slow motion of course-kek
The book is better than the movie and the other book to read is Flash Boys by Lewis. It's dry but details the rise of the Algo-trading.
Saw most of it transpire in the OpEx markets-they tested all of it there
A must read imo