Comments on: “PAULSON’S GIFT” ; A Review of the Bailout — What is to be Done Now?? http://www.ritholtz.com/blog/2009/01/paulsons-gift-a-review-of-the-bailout-what-is-to-be-done-now/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Wed, 15 Feb 2012 00:33:57 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: murph http://www.ritholtz.com/blog/2009/01/paulsons-gift-a-review-of-the-bailout-what-is-to-be-done-now/comment-page-1/#comment-138220 murph Fri, 09 Jan 2009 17:56:36 +0000 http://www.ritholtz.com/blog/?p=15400#comment-138220 While I could certainly believe that these ten banks would be major players in the CDS market, I'd be hard pressed to believe that there aren't dozens of other entities just as eager to buy into CDS's. I just can't believe that all the other selfish financial types add up to a meager 3% of the CDS market. While I could certainly believe that these ten banks would be major players in the CDS market, I’d be hard pressed to believe that there aren’t dozens of other entities just as eager to buy into CDS’s.

I just can’t believe that all the other selfish financial types add up to a meager 3% of the CDS market.

]]> By: gloppie http://www.ritholtz.com/blog/2009/01/paulsons-gift-a-review-of-the-bailout-what-is-to-be-done-now/comment-page-1/#comment-138146 gloppie Fri, 09 Jan 2009 13:10:30 +0000 http://www.ritholtz.com/blog/?p=15400#comment-138146 @Murph, I do not have factual evidence for this, but it seems rather obvious that the Credit Default Swap players would be the same bunch of most over leveraged, risk-taking, me first ya'll later crooks wouldn't it ? There is a French saying...Apres moi, les mouches. "After me, the flies". Utter contempt and selfishness, when I'm gone all that is left is rotten and useless. @Murph,
I do not have factual evidence for this, but it seems rather obvious that the Credit Default Swap players would be the same bunch of most over leveraged, risk-taking, me first ya’ll later crooks wouldn’t it ?
There is a French saying…Apres moi, les mouches. “After me, the flies”. Utter contempt and selfishness, when I’m gone all that is left is rotten and useless.

]]> By: murph http://www.ritholtz.com/blog/2009/01/paulsons-gift-a-review-of-the-bailout-what-is-to-be-done-now/comment-page-1/#comment-138057 murph Thu, 08 Jan 2009 20:21:41 +0000 http://www.ritholtz.com/blog/?p=15400#comment-138057 Minor questions on the Paulson's Gift paper. On page 10 - they are saying that the CDS liabilities of the ten big banks (that received federal cash injections) will not affect their overall conclusions because "as reported by the Controller of the Currency, 97% [of the CDS's] are held by these [same banks]." Two questions: 1) I thought that CDS's were not disclosed to outside parties (part of the reason the banks were so unsure about who was solvent) - has the Controller of the Currency been compiling a true list of the existing CDS liabilities out there? If they weren't in the past, are they now? 2) Is it really possible that 97% of the CDS market is in the hands of ten banks? Is the Controller of the Currency's listing a sub-set of the domestic CDS market? Baffled. Minor questions on the Paulson’s Gift paper.

On page 10 – they are saying that the CDS liabilities of the ten big banks (that received federal cash injections) will not affect their overall conclusions because “as reported by the Controller of the Currency, 97% [of the CDS's] are held by these [same banks].”

Two questions:
1) I thought that CDS’s were not disclosed to outside parties (part of the reason the banks were so unsure about who was solvent) – has the Controller of the Currency been compiling a true list of the existing CDS liabilities out there? If they weren’t in the past, are they now?

2) Is it really possible that 97% of the CDS market is in the hands of ten banks? Is the Controller of the Currency’s listing a sub-set of the domestic CDS market?

Baffled.

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