Posts filed under “Financial Press”

Afternoon Reading List

Items of note worth reading:

Best Quarter Since ’98 for Dow (WSJ) And the Dow only had to get cut in half to make it happen!

Should Volcker be Fired? (Brown Brothers Harriman)

Greenspan Sees Growth Slowing as Stocks ‘Flatten Out’ (Bloomberg) Greenie Bearish? I am tempted to say this is a bullish indicator!

• Martin Wolf: Why narrow banking alone is not the finance solution (FT)

Rebuilding Our Economic Engine (Dow Jones Market Talk)

American history of the automobile and car salesman (The Believer)

US giant bunker-buster bomb project rushed since Iran’s Qom site discovered (Debka)

Newsmax Suggests Military Coup Against Obama (TPM)

What are you reading?

Category: Financial Press, Markets

Tuesday Links

Some interesting reading for a sleepy Tuesday afternoon: • As Subprime Lending Crisis Unfolded, Watchdog Fed Didn’t Bother Barking (WaPo) • How Bank of America Used Merrill Losses to Bully the Government (Law.com) • FDIC Proposes Banks Prepay Deposit Fees Through 2012 (Bloomberg) • A risky revival (FT) • Earnings Revisions at a Two Year…Read More

Category: Financial Press

Why Does Bloomberg Keep Getting the FDIC Story WRONG?

Barry emailed me this AM to ask about the commentary last week by Jonathan Weil of Bloomberg News regarding the FDIC:

FDIC Is Broke, Taxpayers at Risk, Bair Muses: Jonathan Weil

http://www.bloomberg.com/apps/news?pid=20601039&sid=aEKc7Yh8ogXw

The thrust of the piece is that “FDIC’s insurance fund is going broke, and Sheila Bair is wondering aloud about how to replenish it. This means one thing for taxpayers: Watch your wallets.”

This makes for sensational and salacious copy. Unfortunately, the entire thesis of the article is wrong.

I have gotten used to the media butchering stories about the FDIC’s deposit insurance fund, but this piece from a writer an intelligent  and thoughtful as Weil demands rebuke.  As Barry said to me, we all expect Bloomberg to get stories right.  When they miss something as basic as this, it makes both of us scratch our heads.

Let’s first look at the lead of the comment quoted above. Last week, in an open blast to the media taking Bloomberg to task, I said the following:

“Repeat after me: The FDIC does not run out of cash.  The FDIC does not run out of cash. FDIC can confiscate all of the net assets and earnings of all FDIC insured banks. That is trillions in total liquidity.  FDIC can borrow from Treasury, the Fed and even from FDIC insured banks. They can also issue notes.”

I then reminded Weil et al that the BANKING INDUSTRY pays for not only the operations of the FDIC, but for the deposit insurance fund (“DIF”) as well. So Weil’s comment that taxpayers should reach for their wallets is just scare mongering.

I continued to spank Weil: “Our worst case loss to the FDIC fund is $300-400bn THROUGH THE CYCLE. Where is the problem? It is in your minds and the minds of your editors. If you can’t get your collective minds at Bloomberg News around the nuances of federal finance and the workings of the FDIC, THEN STOP WRITING ABOUT IT.”

Read More

Category: Credit, Financial Press, Regulation

The Death of the Newspaper

Category: Financial Press, Think Tank

Friday Reading

Some afternoon reading for a lazy Friday: • King Says British Banks Got Within Hours of Collapse (Bloomberg) “Two of our major banks which had had difficulty in obtaining funding could raise money only for one week then only for one day, and then on that Monday and Tuesday it was not possible even for…Read More

Category: Financial Press

Thursday Reading

Wow, a little travel and suddenly, the week is nearly over. Here are a few interesting items that caught my eye: • Rosenberg: Equities carry too much risk (FT) • Five Scenarios for the S&P 500 (Singer) • Imagine If Lehman Brothers Had a Football Team (Crossing Wall Street) • Emerging Markets Have Room for…Read More

Category: Financial Press

If its Tuesday, This Must Be Afternoon Reading

By the time you read this, I will (hopefully) be airborne somewhere over the mid-west. I’m on my way to a WSJ panel discussion in Chicago tomorrow. Its for investment advisors, and I am speaking on the panel with Jack Ablin and Pete Najarian, and WSJ managing editor Dave Kansas. Meanwhile, some reading for your…Read More

Category: Financial Press

Afternoon Readings

Some quick links for your afternoon pleasure: • $30 billion home loan time bomb set for 2010 (SF Chronicle) • Ready…Aim…Chase!?!? (Lindzon) • Fed not acting like there’s a recovery (CNN/Money) • Interview: Five Questions for William K. Black (Bearish News) • The Fed’s phony war on bonuses (Reuters) • Kedrosky’s NYT OpEd on Tennis…Read More

Category: Financial Press, Markets

Friday Reading

A few quickies before I head home to stuff myself for the holidays. For those of you who are not Jewish,  I can briefly sum up pretty much every holiday we have thusly: They tried to kill us, we escaped, let’s eat. Until then, here is some afternoon reading: • CNN Poll: U.S. still in…Read More

Category: Financial Press

Afternoon Reading

A few articles worth reading: • Mortgage problems are walloping Americans’ credit scores (LA Times) • U.S. Economy May See Its Slowest Recovery Since 1945 (Bloomberg) • Asian Growth Revives ‘Decoupling’ Concept (WSJ) • A Vote for Bonds Over U.S. Stocks Barron’s Interview with David Rosenberg • This one seems to be going viral: Priceless: How…Read More

Category: Financial Press