Posts filed under “Bailouts”
If you missed last night’s discussion on the "vote of confidence" deal from Warren Buffett, you are missing the big picture. Go read: Berkshire to GS: "I Got $5 Billion, but Its Gonna Cost Ya."
The headline writers of both the NYT and the WSJ missed the numbers involved:
Doug Kass goes last night’s analysis one better, and notes that using a Black Scholes produces a valuation of $2.8 billion dollars for the warrants. That makes the effective yield over 20% on the preferred purchase.
As we noted last night, this is terrific for Buffett, who smelled blood in the water. Its a tough deal for Goldman, who were a) obviously in a bind for capital; and 2) smart enough to learn from Lehman Brothers mistakes.
With Congress recognizing the public’s dismay over this massive taxpayer giveaway, we are starting to see some serious questions about the folks who drove the financial ship of state aground. Hence, its time to take a closer look at pay and severance packages for CEOs at investment houses, banks and mortgage lenders, who perversely stand…Read More
This was a full page advert in today’s New York Times, paid for by Bill Perkins > UPDATE: September 24, 2008 9:44am The WSJ picked up the advert in this morning’s paper: The president has run into a wall of skepticism over his plan. Troubled voters are calling their congressmen. Academic economists are churning out…Read More
All of the bad loans made by various banks and mortgage underwriters are now being accepted by the Fed, or are potentially going to be bought by the Treasury Department. Why not us? We can’t we all turn in our crappy paper, stock in Exodus Communications or Pets.Com, and even old lawn furniture to the…Read More