So far, I have Bank of America, Wells Fargo and Chase saying they will honor the California IOUs until Friday.
There are criminal investigations into the events of the recent financial crisis. The two managers of the Bear Stearns hedge funds that blew up in the summer of 2007 have been indicted in Brooklyn, and more cases in other venues and more charges against executives will certainly be brought.
The Wall Street Journal has the rundown on how old-fashioned trading and underwriting is likely to give big banks like JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America their best quarter yet since “the credit crisis erupted” (not sure when they’re dating that exactly though since you could go back to June or Aug 2007 on that one.)
Over at The Big Picture, Jack McHugh makes some interesting comparisons between the calm seen in the markets now as banks and investors wrap and the quarter and a year ago. His takeaway though is don’t expect a repeat of last year’s second half meltdown.
For all the stabilization in the financial markets and talk about the ECB and Federal Reserve weighing exit strategies from the massive amount of stimulus they’ve pumped into the system, the U.S. still hasn’t come up with a viable solution for the toxic plague on bank balance sheets. Though markets don’t seem too bothered since the big banks have been able to raise tens of billions of dollars, it’s the fate of smaller banks that are exposed to construction and development loans that are a real worry.
David Bodamer over at Clusterstock has some interesting color from a commercial real estate conference where the mood was decidedly grim. Rather than being cheered by the hope that the Fed’s inclusion to commercial mortgage bonds its TALF program will alleviate the stress, participants seem resigned that the worst is yet to come.