Analysis Topic: Companies Analysis
The analysis published under this topic are as follows.
Wednesday, September 17, 2008
AIG Bailout and Federal Reserve Act Loophole 13.3 / Companies / Nationalization
By: Mike_Shedlock
In light of the Fed sponsorship of AIG to the tune of $85 billion or more at taxpayer risk (See Nationalization of AIG: Treasury to get 80% stake in return for $85 billion ), inquiring minds just might be asking "By what authority can the Fed lend to insurance companies?" It's a good question given that the Fed is widely thought to be authorized to lend only to banks. It turns out the Fed can lend to pizza parlors if it wants to, with a questionable interpretation of the Federal Reserve Act.
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Wednesday, September 17, 2008
Nationalization of AIG, US Treasury Get 80% Stake for $85 billion / Companies / Nationalization
By: Mike_Shedlock
Why don't we just do it all now and get it done with? Why piece by piece? Let's have the government run insurance companies, auto companies, banks, mortgage companies, home builders, brokerages, gas stations, and for good measure let's throw in pizza parlors.
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Wednesday, September 17, 2008
Surviving the Credit Crisis Chaos / Companies / Credit Crisis 2008
By: Kurt_Kasun
Last week when I wrote, “ Extraordinary Measures Today, a Financial Funeral Tomorrow ,” I didn't literally think that the funeral would actually occur ‘tomorrow'. Someone started the financial Armageddon clock when the ratings agencies downgraded AIG this evening and the Fed told AIG that they were on their own to raise capital. It was reported on CNBC that they have until Wednesday to secure $75 billion or risk being forced to declare bankruptcy--setting off the most nightmarish of scenarios. Read full article... Read full article...
Wednesday, September 17, 2008
The Billion Dollar Domain Name Babies / Companies / Tech Stocks
By: Naseem_Javed
The latest ICANN plan to allow the global populace to assemble an entire domain name like www.yourname.yourname as their free-choice is a revolutionary and timely decision. This now open doors to cyber-brands like my.ibm, hotel.dubai, it.jobs, play.poker, fly.gulf or go.dell and applicants will submit a non-refundable fee of $100-500K USD for each name idea and the businesses are already jumping to get started. Read full article... Read full article...
Tuesday, September 16, 2008
Fed Plans $200 Billion Bailout of AIG To Prevent Financial Collapse / Companies / Nationalization
By: Mike_Shedlock
The Fed held firm today as noted in Bernanke Breaks From Greenspan Fed: No Change . Futures sold off on the news then came roaring back when the Fed decided to consider to extend its moral hazard policy on a case by case basis.
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Tuesday, September 16, 2008
Wall Street Bargains Amongst Decimated and Bankrupt Banks / Companies / Banking Stocks
By: Money_Morning
William Patalon III writes: In one of its wildest and weirdest stretches ever, Wall Street entered a weekend awaiting a government bailout of Lehman Brothers Holdings Inc. ( LEH ) and exited with Merrill Lynch & Co. Inc. ( MER ) agreeing to sell itself to Bank of America Corp. ( BAC ) for nearly $50 billion – and Lehman announcing it will seek bankruptcy in a bid to avoid a total liquidation after it was unable to find a buyer. Read full article... Read full article...
Tuesday, September 16, 2008
AIG Insurer Flirting with Bankruptcy Seeks Bailout Cash / Companies / Financial Crash
By: Mike_Shedlock
American International Group (AIG) is on the verge of bankruptcy. It needs to raise $75 billion dollars quickly. That is a tough task in any market and a Herculean task in this one. Fitch compounded AIG's woes on Monday with a downgrade of AIG to "A" .
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Monday, September 15, 2008
The Fall of Lehman and the Terrible Lessons of Bear Stearns / Companies / Credit Crisis 2008
By: John_Mauldin
The weekend has brought us events that can only be described in large, over-the-top terms. The Fed agreeing to take equity on its balance sheet? How bad can things really be? Clearly much worse than most people thought last Friday. Moral Hazard has been re-introduced as Lehman is allowed to go down. I will admit to being surprised. I thought Paulson and Bernanke would put it in the too big too fail category. I think they did the right thing by refusing taxpayer money for a bailout, but it is clearly going to roil the credit markets for weeks and months. It will be interesting to see how long it lasts. Read full article... Read full article...
Monday, September 15, 2008
Hedge Funds Target Halifax, HBOS as Shares Crash 30% / Companies / UK Banking
By: Nadeem_Walayat
Following on from the collapse of Lehman Brothers during the weekend, the financial sector was expected to be hit hard and to drag the overall market lower by some 5%. Whilst most of the big UK banks experienced falls in the order of 15%, Britain's biggest mortgage bank, Halifax Bank of Scotland (HBOS) crashed by over 30% as clearly hedge funds targeted the bank as a candidate for financial collapse, along the lines of Northern Rocks bank bust in Sept 07.Read full article... Read full article...
Monday, September 15, 2008
Bank of America, Merrill Bailout Disguised as Buyout? / Companies / Credit Crisis 2008
By: Mike_Stathis
Bank of America's buyout of Merrill Lynch seemed laughable to me - that is until I realized the full picture. With a $50 billion all-stock deal valued at $29 per share, at first glance it might appear that Bank of America doesn't stand to lose much considering its stock is at least 50% overvalued by my analysis. However, even at an adjusted price of $25 billion, Bank of America will be responsible for absorbing all of Merrill's losses. Good luck. But wait. They don't need luck, they have the Fed. Read full article... Read full article...
Monday, September 15, 2008
Bank of America and Merrill Lynch: Another Fed Sponsored Shotgun Marriage / Companies / Credit Crisis 2008
By: Mike_Shedlock
It's all over for Lehman. Action in the main poker room action has stopped. None of the players wants to bet a penny on the Lehman pot. Indeed, Lehman Prepare For Bankruptcy as Buyers Withdraw .This is a realization the pot is worthless. Nonetheless, expect to hear clowns screaming about "naked shorts" wrecking Lehman just as they screamed the same nonsense about Bear Stearns.
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Monday, September 15, 2008
AIG Insurer Struggling To Stay Alive, Begs Fed For Bailout Cash / Companies / Credit Crisis 2008
By: Mike_Shedlock
The high stakes poker game has shifted to another side room. This room has AIG one on one with the Fed begging for assistance. Here is the background: Battered insurer AIG's $20bn asset sale .
AIG, the world's largest insurer, is planning a $20 billion (£11 billion) asset sell-off as it fights to correct a record slump in its share price and braces for the impact of Hurricane Ike.
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Sunday, September 14, 2008
No Bailout for Lehman as Fed Awakens to Bond Market Crash Risk / Companies / Credit Crisis 2008
By: Nadeem_Walayat
My Fridays commentary closed with expectations that the weekend would see the formerly worlds fourth largest investment bank, Lehman's Brothers taken over by one or a consortium of bidders at mere peanuts of its former valuation further sweetened by a healthy subsidy from the US government / central bank. However the noises emanating from Hank Paulson at the US Treasury department over the weekend of having drawn a line against an effective bailout of the bankrupt investment bank, this will not live up to bidder expectations of providing tens of billions of tax payers money so as to enable a relatively risk free takeover by other banks, this therefore results in suitors in advanced talks such as Barclays now declaring their withdrawal from a possible weekend bid for the bank and indicates that Lehman's is now heading directly towards bankruptcy.Read full article... Read full article...
Sunday, September 14, 2008
Fourth Largest Investment Bank Bankrupt as Barclays Pulls Out From Lehman's Bet / Companies / Financial Crash
By: Mike_Shedlock
High Stakes Poker Update: Barclays Refuses To Go "All In" - Following is an update on the High Stakes Poker Game involving Lehman (LEH), Merrill Lynch (MER), J.P. Morgan Chase (JPM), Goldman Sachs (GS), Citigroup (C), Bank of America (BAC), Barclays, and others. Read full article... Read full article...
Sunday, September 14, 2008
Lehman High Stakes Poker Game in Play / Companies / Credit Crisis 2008
By: Mike_Shedlock
The Wall Street Journal is reporting Lehman Deal Could Come Soon As High-Level Talks Continue .Talks continued Saturday between federal officials and top Wall Street executives aimed at resolving the crisis swirling around Lehman Brothers Holdings Inc. and soothing jittery U.S. financial markets.
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Saturday, September 13, 2008
Boeing Under Pressure From Union Strike Action as Recession Looms / Companies / Corporate News
By: Mike_Shedlock
Going on strike just as the global economy is headed into a recession is simply not a good idea. But that is exactly what happened to Boeing. On September 6th Boeing Machinists Start Strike, Jeopardizing 787 Plan .Sept. 6 (Bloomberg) -- Boeing Co.'s machinists went on strike today, seeking improved pay and job security as the planemaker benefits from record orders and tries to keep its 787 Dreamliner schedule from slipping further.
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Friday, September 12, 2008
Lehman Brothers Dead Bank Walking Seeking Rescue / Companies / Credit Crisis 2008
By: Nadeem_Walayat
Following the bust off Bear Stearns back in March 2008, the US investment bank that next topped the list of most likely to follow Bear Stearns into financial oblivion was Lehman Brothers. Lehman Brothers was America's 4th biggest bank that has seen its share price collapse by more than 70% in recent days, and more than 90% over the last 12 months. The bank over the last few weeks has been desperately seeking to sell off many of its assets ahead of this weeks results so as to reinforce its balance sheet, however losses still came in at the worst end of expectations with a further write down of $8 billion of assets resulting in a loss of $4 billion. Read full article... Read full article...
Wednesday, September 10, 2008
How to Profit from the Fannie and Freddie Bailout / Companies / Nationalization
By: Money_Morning
Martin Hutchinson writes: The second of two parts analyzing the upside and downside of the Fannie Mae/Freddie Mac bailout. Part I appeared yesterday (Tuesday).]
Between the U.S. Treasury Department's weekend bailout of Government Sponsored Enterprises (GSEs) Fannie Mae ( FNM ) and Freddie Mac ( FRE ) – and Monday's bullish market reaction – you'd think the $5.4 trillion deal had no downside risk at all.
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Wednesday, September 10, 2008
Thoughts On Credit Default Swaps / Companies / Corporate Bonds
By: Mike_Shedlock
Credit Default Swaps (CDS) on Lehman (LEH) and Washington Mutual(WM) were soaring on Tuesday. This should not be surprising given that both stocks were hammered today. Lehman was down a whopping 45% and Washington Mutual was down 20%. Also of note, Wachovia (WB) was down 14%. For more on Lehman, please see Lehman Worth A Big Zero?
Tuesday, September 09, 2008
Lehman Brothers Worth A Big Fat ZERO? / Companies / Credit Crisis 2008
By: Mike_Shedlock
Lehman is getting crushed today. It may not be long for this world. Bloomberg is reporting Lehman Shares Fall After Talks With Korean Bank End . Lehman Brothers Holdings Inc. fell 35 percent in New York trading after talks about a capital infusion from Korea Development Bank ended. The Wall Street firm is continuing to negotiate with other potential investors, a person briefed on the matter said.
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