September 28, 2008

Ctrl BG: A Shortcut to Financial News 9/28

Since I enjoyed writing the last post so much, I've decided to continue to do so. It has proven to be a great way to help me put everything into perspective and it's been fascinating reading what everyone else thinks as well. Again, feel free to correct me and put in your two cents, as obviously, I am no expert. I'm just a girl who happens to be interested in the current state of the economy.

Last Sunday night, Goldman Sachs (GS) and Morgan Stanley (MS) were approved by the Fed to become bank holding firms, officially ending the era of the independent investment banking model on Wall Street. They will now be able to open their own commercial banking arms and take in deposits, which they can then use to back up their investment banking operations- as JP Morgan, Bank of America (BofA) etc already does- thus ending investor concerns about the sustainability of their business model model. They now also have permanent access to borrow federal money (instead of within the window temporarily opened for them) and can become a FDIC insured bank, which insures indivisuals up to $100,000 of bank deposits. The following day, MS announced that they were getting as much as $8.5 billion of cash injection from Japan's Mitsubishi UFJ Financial Group (MUFG) in exchange for up to 20% equity stake in MS, further fortifying their position. I guess the deal with China fell through (or were the Chinese getting too greedy and the US govt didn't like that?). This is probably a better move anyway, since MUFG is the world's No. 2 bank by deposits, so surely it will help MS's transition into commercial banking go more smoothly. MS apparently already has about $36 billion in bank deposits from their private wealth management (PWM) business and are looking to expand into Asia. Or so, that's what CNBC said, but I didn't know PWM deposits count as bank deposits, but if they do, I guess this means that MS are looking to expand their PWM business in Asia. Or perhaps this $36 billion comes from their Utah-base industrial bank, which will be converting into a national banking association, names the Morgan Stanley Bank, National Association? Goldman Sachs' approach is must easier to understand (or so I think). They currently already have two deposit taking subsidiaries, with about $20 billion in deposits, and plan to create a new one called GS Bank USA, that will have more than $150 billion of assets.

This conversion is not all good and dandy though. Becoming a bank holding also puts both banks under more intense scrutiny and regulations from the Fed, which will probably limit their proprietary trading capacities (the division where they trade company assets like a hedge fund, taking on great risks), which happens to be one of their most lucrative divisions. I don't know about MS but personally I'm feeling quite optimistic about GS. On Tuesday, Warren Buffet invested $5 billion in GS preferred stocks and will also recieved warrants to purchase another $5 billion in common stock within the next 5 years- effectively give him about a 10% stake in GS. They also raised another $5 billion from a public stock offering, all within a few days. This and Buffet's approval, which in the investment world is the equivalent of getting Anna Wintour's approval in the fashion world, make me quite optimistic. Besides, I have always had great confidence in the power of brand image, Buffet just likes to call it "franchise."

On Thursday, Washington Mutual (WaMu), was seized by the FDIC, making it the biggest banking failure ever. Within 9 days, customers withdrew about $16.7 million in deposits from WaMu, literally breaking the bank. JP Morgan picked up WaMu's banking assets for only $1.9 billion. JP has had its eye on WaMu's operations in CA and FL for a while, and had offered for them in March, but was rejected in favor of a capital injection from TPG private equity (whoops!). It seems like JP got yet another bargain. JP is not the only one who got a sweet deal in all this however. It appears that Mr. Alan Fishman, WaMu's CEO for only 2 weeks, is eligible for $11.6 million in cash severance AND get's to keep his $7.5 million signing bonus. Not bad for two weeks worth of work.

It seems that the financial tsunami is expanding abroad too. Fortis,
the largest Belgian financial-services firm, just received an $11.2 billion euro bailout from Belgium, the Netherlands and Luxembourg in exchange for 49% stakes in the Fortis in their respective countries. It's almost like the European version of AIG.

The next bank on the chopping block is Wachovia- funny since a week ago they were in talks to merge with MS. Citigroup and Wells Fargo are currently in a bidding war over a possible emergency takeover of Wachovia, since it's stocks dropped dramatically on Friday.

While all this was going on, politicians were hard at "work" trying to get the $700 billion bailout bill to pass Congress. I'm not that into politics, but even I tuned in Wednesday morning to hear Paulson and Bernanke defend their case to the people at Congress. I'm not sure how politics usually go, but to my untrained ears, it sounded like a verbal merry-go-around, placing blames and trying to trick each other into saying something wrong. A members ask a simple yes/no question, Paulson/Bernanke would answer in a very roundabout way which prompts the member to ask, "so was that a yes or a no?" to which they'd repeat what they'd just said again. This would go on until the time is up or someone finally gives up from the frustration of it all. No wonder it takes them months to get a bill to past.
I'd imagined it to be more diplomatic and sophisticated. Anyway, I think the gist was that people didn't think taxpayers should have to bailout Wall Street (and individual homeowners) for taking too on stupid risks. But they had to do something. So they moved onto putting clauses on the plan, for oversight to monitor the use of the money, a cap on CEO pays and for warrants in companies who will be using this plan, so taxpayers would at least get something back for the $700 billion they spent. There was a gliche, when a bunch of Republicans rejected the plan and proposed some other plan to privately insure mortgage backed securities (there was shouting involved!), but it sounds like they're back on track now and a bill will be voted on Monday.

Personally I don't know what to think about this bill. On one hand, I don't think tax payers should have to bail out people who took on unnecessary stupid risks and expect everyone else to wipe up their mess when things go down just because the mess is big enough. As if our future generations didn't already have a big enough debt to clear up already, with the war and the social security problem etc. but now we have this. On the other hand, just like a bad trend, someone has to step in and put a stop to it before it spreads through the population. With the newly added clauses, it's the next best step there is. By taking the distressed debts out of "weak" hands and into "strong" hands, they might even make money in the future when the housing prices go back up! Besides, if the likes of Paulson, Bernanke and Buffet, says this is a sound plan, who am I to gainsay the experts?


Anonymous Anonymous said...

I believe that when the moral fabric of society unravels, everything unravels. Sadly, innocent people suffer along with everyone else.

9/29/2008 11:54 AM  
Blogger I'm a *HOT TOPIC* said...

That's just sad :( Write up another update soon - I'm interested :)
I agree about taxpayers' money being put to a stupid use like that, there's so much more they could do with it. They'll figure out another way surely. Anyway, new update soon?


P.S- I've linked you on my page at
Link us? kisses <33

9/29/2008 2:23 PM  
Blogger gold N turquoise said...

I agree that taxpayer's money shouldn't be used to "bail out" companies who took huge risks. However, they ARE including regulations/language to help prevent further foreclosures of homes. As a result, this bill is much needed.

With hope (and according to logic), the market will rebound and go up. The assets taken by the government should increase and value and everyone should get their money back.

9/29/2008 8:24 PM  
Anonymous Anonymous said...

Don't you think it's kind of fishy that wamu wouldn't sell to JP and then the goverment comes and seize them only to turn around and sell it to JP....?

9/30/2008 4:45 AM  
Anonymous Anonymous said...

Well, the bailout failed, of course. I agree with Rep. Sensenbrenner of Wisconsin, when he said:

"I am voting ‘NO’ on the bill the House will vote on later today because it will subsidize Wall Street on the backs of hard working taxpayers and small businesses on Main Street.

"To put it plainly, this legislation will not work. It will put an unbelievable amount of taxpayer money at risk, and penalize those who used common sense during a time when others elected to ignore reason by making decisions that led them to live beyond their means. It is unfair and irresponsible to ask conscientious taxpayers to now shoulder the burden and debt of those with poor foresight.

"Moreover, the federal government has no business injecting itself into the free market system, and essentially, taking it over. This completely defeats the purpose of such a system, and will have a chilling effect on future businesses that may think twice about entering the market if they have to compete with the American government. This is contrary to the spirit of American entrepreneurialism that is the foundation of our nation, and would turn our American Dream into an American Nightmare."

9/30/2008 5:01 AM  
Blogger Kelly said...

The three "experts" you mentioned in your final sentence all have a vested interest in seeing the government get its way. If you look at the words of economists, however, you will find that they overwhelmingly believe the government should stay out.

166 top economists (meaning senior professors at Harvard, Stanford, etc.) signed a petition to make sure the Bailout Bill did not pass, with good reason. We do not want to create a welfare economy for Wall Street, or suggest to other industries that they can make poor decisions and expect a bailout.

I think if you want to "listen to the experts," look at people who aren't trying to promote their own agenda (like Bernanke)and who have studied economies and markets for years. If you do so, you will find that most of the politicians are extremely misguided on the issue.

My two cents :)

9/30/2008 5:44 AM  
Blogger Angela said...

it's the experts that go us into this the first place. it's depressiong for me everyday. but i agree that it's important for the government to do something about it but there is got to be a better plan instead of just scaring the public about the consequence of not passing the bill. we do need to liquidity in the market place but at the same time i also need to be convinced.

9/30/2008 5:59 AM  
Anonymous Anonymous said...

I think your WAMU numbers are wrong. I think customers pulled out 16.7 Billion and they were worth 19 Billion.

9/30/2008 6:36 AM  
Anonymous Anonymous said...

This blog is start turning into a political/Financial Blog. Nvm, it is still a personal blog after all...

9/30/2008 11:36 AM  
Anonymous Anonymous said...

Yes, innocent civilians will have to pay for Wallstreet's mistakes, however, the bailout plan is the best chance the economy has right now. Just, because so-called "experts" signed a petition to reject the plan does not mean that they know what is best for the economy. Most people want to protect their own interests and it is no different for these "experts" either. Look at it this way: A senator wants to build a highway to the city so people can drive to work more easily. However, it will cost 5 million dollars and the civilians do not want to pay for it. What will the senator do? Approve the highway or listen to the civilians? The senator will probably listen to the people. Why? Reelection, of course. What neither of these "groups" now realize is that there is now no easy way to travel to the city. This is a hypothetical situation of course.

This is why the Bailout plan was rejected yesterday. Reelection. About 25-35 senators are in a competitive race this year; this means that there is competition within their state for the position of senator. The other state senators pretty much have their job guaranteed for them. What was the difference in the for/against vote for the Bailout Plan? About 25-35. See the pattern? Unfortunately, many of these senators probably rationalized that if they did what the people wanted, then they could get reelected and "fix" the problem later.

Yes, people will have to suffer in the short run, but, the problem will disapear much quicker if there is money circulating in the economy. But, now that the bill was rejected, people have to suffer more for their (increasing amount) of mistakes. That means a certain longer, deeper Recession and a possible second Depression if the problem is not fixed.

What the economy needs is people with fortitude; they need to stop listening to their own interests even though it may hurt their pocketbooks. Isn't it better to suffer a little now than to suffer in the long run?

10/01/2008 2:51 AM  
Anonymous Anonymous said...

The Senator will probably listen to the people, because that is the Senator's JOB, to represent the PEOPLE! And, by the way, the U.S. does not have a military government; congressman are "civilians" just like everyone else who is not currently serving in one of the branches of the U.S. military.

10/01/2008 10:10 AM  
Anonymous Anonymous said...

Hmm. The Bailout Plan was rejected. I suppose america will wait to tell if this was the best choice to make. As my Government teacher would say, "Only time will tell if this bailout will put Hank Paulson in the Hall of Fame or the Hall of Shame"

his website is:

10/01/2008 10:41 AM  
Anonymous Anonymous said...

Just letting other fashion fans know about the new great taste magazine, it's a free online magazine community for all of the arts, including fashion. Thought you may be interested. If this sounds like someing you would like visit Thanks :)

10/02/2008 12:15 AM  
Anonymous Anonymous said...



9/25/2009 8:04 PM  
Anonymous Anonymous said...

Free Ringback Tones
Mineral Supplements
Vitamin Shoppe
Value City Furniture

10/11/2009 10:19 PM  
Anonymous Anonymous said...

Бивис и Батт-Хед / Beavis and Butt-Head
Фантастическая четверка / Fantastic Four
Человек паук / Spider Man
Кот в сапогах
Червяк Джим / Earthworm Jim
Стюи Гриффин / Family Guy - 1 Season
Стюи Гриффин / Family Guy - 2 Season
Стюи Гриффин / Family Guy - 3 Season
Стюи Гриффин / Family Guy - 4 Season
Стюи Гриффин / Family Guy - 5 Season
Стюи Гриффин / Family Guy - 6 Season
Стюи Гриффин / Family Guy - 7 Season
Братья Пилоты готовят на завтрак макарончики
Джеймс и гигантский персик / James and the Giant Peach
Супермен: Последний сын Криптона / Superman: The Last Son of Krypton
Губка Боб Квадратные Штаны - 2 сезон / SpongeBob SquarePants
Незнайка на Луне 2
Стюарт Литтл / Stuart Little
Спанч Боб - 5 сезон / SpongeBob SquarePants
Спанч Боб - 6 сезон / SpongeBob SquarePants
Южный Парк Сезон 12 / South park season 12
Люди Икс: Эволюция / X-Men: Evolution
Побег из курятника / Chicken Run
Титан: После гибели земли / Titan A.E.
Кошки против собак / Cats & Dogs
Обезьянья кость / Monkeybone

2/01/2010 3:40 AM  
Anonymous Anonymous said...


3/03/2010 1:59 PM  
Anonymous gih said...

I'm not go for that.

3/18/2010 10:56 AM  
Anonymous Jeans said...

Buy Jeans and Fashion Jeans online only at our clothing store!
JeansPilot blogspot

9/26/2010 9:42 PM  
Blogger mmjiaxin said...

coach outlet store
swarovski jewelry
michael kors outlet
christian louboutin shoes
michael kors uk outlet
ugg boots
nike running shoes
michael kors outlet sale
ray-ban sunglasses
cheap soccer jerseys
nike air max uk
prada sneakers
michael kors outlet online
nike roshe
swarovski crystal
oakley sunglasses
ralph lauren uk
nobis jacket
north face outlet
roshe run men

11/30/2015 9:22 AM  
Anonymous Anonymous said... small girls see, that there's a Female while in the movie, who has precisely the same age, the like it Increasingly more. So, we predict, that Inside of Out Games will likely be appreciated really! The spending budget of Within Out was $a hundred seventy five million, but authors commercialized much more, than they had invested! They have got obtained $ million from sales in all over the entire world. From that we could understand, that this film attracts each and every men and women, it doesn't subject he / she are going to be Female, or boy, teenager or experienced. The individuals like Inside of Out Game titles too, obviously. The film has received this sort of an interesting story, that non ofit's watchers will stay indifferent following viewing it. In it we are able to begin to see the thoughts, which have received Everyone. This can be just a lovely story, which has bought very talked-about everywhere in the environment. This movie appeared in gaming sector in 2015 way too. Our administration has decided on the top of these Inside Out Game titles and geared up it in your case! I believe, these video games will make movie An increasing number of common.

3/16/2016 12:44 AM  
Blogger mmjiaxin said...

michael kors outlet online store
kobe shoes
chrome hearts
cheap real jordans
Michael Kors Outlet Online
ray ban sunglasses,ray ban outlet,ray ban sale,cheap ray bans,cheap ray ban sunglasses,ray ban sunglasses outlet,ray ban,rayban,ray bans,ray-ban,raybans,ray ban wayfarer,ray-ban sunglasses,,rayban sunglasses,cheap ray ban
tiffany and co uk
tiffany and co outlet
huaraches shoes
oakley sunglasses,oakley vault,oakley sunglasses cheap,oakleys,,sunglasses outlet,cheap oakley
toms outlet store
chrome hearts online
tiffany jewelry
fitflop shoes
cheap oakley sunglasses
huaraches sale
tiffany jewelry
christian louboutin outlet

3/16/2016 1:53 PM  
Blogger elkamaal said...

شركة تنظيف بالدمام
مؤسسة تنظيف بالدمام
شركات النظافة بالدمام
ارقام شركات التنظيف بالدمام
شركة تنظيف بالجبيل
المثالية للتنظيف بالجبيل
شركة نظافة بالجبيل
شركة تنظيف بالاحساء
المثالية للتنظيف بالاحساء
ارقام شركات التنظيف بالاحساء
افضل شركة تنظيف بالاحساء
شركة تنظيف بالخبر
شركة تنظيف بالخبر
شركة تنظيف فلل بالخبر
شركة تنظيف شقق بالخبر

6/23/2018 5:29 AM  
Blogger elkamaal said...

معالج بالقران فى الكويت
معالج بالقران
معالج بالقران فى مصر
معالج بالقران فى السعودية
معالج بالقران فى الامارات
ارقام الشيوخ المعالجين بالقران فى مصر
شيخ معالج بالقران فى مصر
معالج بالقران فى الاسكندرية
اشهر المعالجين بالقران فى مصر
ارقام شيوخ لفك السحر فى مصر

6/23/2018 5:47 AM  
Blogger elkamaal said...

شركة مكافحة الصراصير بدبى
شركة مكافحة حشرات بدبى
شركة مبيدات حشرية في دبي
افضل شركة مكافحة الحشرات في الامارات
مكافحة بق الفراش فى دبى
شركة مكافحة الفئران بدبى
شركة مكافحة النمل الأبيض بدبى
شركة مكافحة الرمة بدبى
شركة مكافحة حشرات دبى
مكافحة حشرات فى دبى

6/23/2018 5:48 AM  
Blogger elkamaal said...

شركة تسليك مجارى بالاحساء
تسليك مجارى بالاحساء
نفخ المجارى بالاحساء
رقم مصلحة المجارى بالاحساء
طوارىء الصرف الصحى بالاحساء
المثالية لتسليك المجارى بالاحساء
شركة عزل اسطح بالاحساء
شركة عزل حرارى بالاحساء
شركة عزل فوم بالاحساء

6/23/2018 5:51 AM  
Blogger elkamaal said...

شركة تنظيف بالمدينة المنورة
شركة نظافة بالمدينة المنورة
شركة تنظيف شقق بالمدينة المنورة
شركة تنظيف منازل بالمدينة المنورة
افضل شركة تنظيف الشقق بالمدينة المنورة
شركة غسيل شقق بالمدينة المنورة
شركة تنظيف بيوت بالمدينة المنورة
شركة تنظيف مجالس بالمدينة المنورة
تنظيف مجالس بالمدينة المنورة
تنظيف مسابح بالمدينة المنورة
شركة تنظيف مسابح بالمدينة المنورة

6/23/2018 5:52 AM  
Blogger elkamaal said...

شركة مكافحة حشرات بجازان
شركة رش مبيدات بجازان
شركة مكافحة النمل الابيض بجازان
شركة مكافحة الفئران بجازان
شركة مكافحة القوارض بجاران
شركة كشف تسربات بجازان
شركة كشف تسربات المياه بجازان
كشف تسربات المياه بجازان بدون تكسير
شركة تنظيف خزانات بجازان
تنظيف خزانات بجازان
شركة عزل خزانات بجازان
غسيل خزانات بجازان
شركة تنظيف بجازان
شركة تنظيف منازل بجازان
شركة تنظيف شقق بجازان
شركة تنظيف موكيت بجازان
شركة تنظيف مجالس بجازان
شركة تنظيف فلل بجازان

6/23/2018 5:54 AM  
Blogger elkamaal said...

افضل شركة مكافحة حشرات ابو ظبى
شركة مكافحة حشرات ابو ظبى
شركة مكافحة الرمة ابو ظبى
شركة مكافحة الصراصير ابو ظبى
شركة مكافحة الفئران ابو ظبى
شركة مكافحة البق ابو ظبى
شركة مكافحة النمل الابيض ابو ظبى
مكافحة حشرات ابو ظبى
شركة تنظف فلل ابو ظبى
شركة تنظيف منازل ابو ظبى
شركات تنظيف المبانى ابو ظبى
شركة تنظيف ابو ظبى
شركة تنظيف بالبخار ابو ظبى

6/23/2018 5:55 AM  
Blogger elkamaal said...

مكافحة حشرات ابو ظبى
افضل شركة مكافحة حشرات ابو ظبى
شركة مكافحة حشرات ابو ظبى
شركة مكافحة الرمة ابو ظبى
شركة مكافحة الصراصير ابو ظبى
شركة مكافحة الفئران ابو ظبى
شركة مكافحة البق ابو ظبى
شركة مكافحة النمل الابيض ابو ظبى
شركة تنظيف شقق ابو ظبى
شركة تنظف فلل ابو ظبى
شركة تنظيف منازل ابو ظبى
شركات تنظيف المبانى ابو ظبى
شركة تنظيف ابو ظبى
شركة تنظيف بالبخار ابو ظبى
شركة تنظيف كنب بالبخار ابو ظبى
شركة تنظيف موكيت بالبخار ابو ظبى
شركة تنظيف سجاد بالبخار بابو ظبى
شركة تنظيف بالبخار العين

6/23/2018 5:57 AM  
Blogger elkamaal said...

التنظيف من المشكلة التي تواجة معظم النساء خاصة إذا كانت سيدة تعمل فلا يوجد لديها وقت كافي لإتمام عملية التنظيف، فلابد بالأستعانة حيث تعتبر شركة التاج الملكي أكبر شركة تنظيف دبى
، فالشركة تعمل في العديد من المجالات ولكنها تختص في مجال التنظيف، حيث تستخدم شركة تنظيف المنازل دبي أحدث المعدات والألات لتنظيف جميع أنواع التنظيف سواء أكانت تنظيف سجاد أو غرف نوم أو مطابخ أو دورات مياة، فتعتبر شركات تنظيف المبانى دبى
أرخص شركة تعمل في هذا المجال، فتقوم بخصم نصف الثمن لجميع عملاء شركة تنظيف البيوت دبي مع جذب ثقة العملاء وتقديم أفضل خدمة للتنظيف وجودة رائعة في هذا المجال.

افضل شركة تنظيف دبى
التاج الملكى

تعتمد الشركة الأفضل على أنها تحتوي على أمكانيات عالية من حيث المعدات والألات وتمتلك التاج الملكى ل خدمات تنظيف دبى
عمالة يعملون في الشركة على أساس الخبرة المكتسبة على الأقل خمسة سنوات خبرة، فالعمالة في شركة تنظيف دبى
شركة تنظف فلل دبى
تكون مدربة على جميع أنواع التنظيف.
فيوجد في بعض المنازل والشقق العديد من البقع التي لا يمكن إزالتها بواسطة المساحيق العادية ولكن مع شركة تنظيف شقق دبى
تمتلك أكثر المساحيق الغير عادية التي تعمل على إزالة البقع بسهولة تامة وتعقيم البقع وإزالتها نهائياً من البيوت، لذا تعتبر من أفضل الشركات التي تعمل في هذا المجال.

تقوم شركات تنظيف المنازل دبى
بعمل تعقيم على جميع البقع، فيوجد العديد من الفيروسات والبكتريا التي لا تري بالعين المجردة ولكن مع شركة تنظيف موكيت بالبخار دبى
وايضا شركة تنظيف كنب بالبخار دبى
لديها المعدات والأجهزة التي يمكن من خلالها رؤية هذه البكتريا والفيروسات ولديها أفضل المعدات والمساحيق التي تعمل على إزالة هذه البقع نهائياً.

6/23/2018 5:58 AM  
Blogger Unknown said...

شركة تنظيف مجالس بالمدينة

تسليك المجاري بالمدينة

شركة تنظيف عمائر بالمدينة

شركة غسيل شقق

مؤسسة النسر الذهبي للخدمات المنزلية

شركة تنظيف سيراميك بالمدينة المنورة

7/04/2018 9:30 PM  
Blogger yanmaneee said...

yeezy boost
retro jordans
air jordans
yeezy shoes
supreme outlet

8/12/2021 3:14 PM  

Post a Comment

<< Home