Opinion

Felix Salmon

Counterparties

By Nick Rizzo
August 22, 2011

It appears Muammar Gaddafi’s regime in Libya has more or less fallen. Right now, I’m thinking about Mahdi Ziu (from this great April Times article on the Libyan revolution), and wishing that Tim Hetherington and Chris Hondros were taking pictures in Tripoli today.

Manhattan District Attorney Cy Vance, Jr. will apparently ask a judge to dismiss all charges against former IMF head Dominique Strauss-Kahn.

“Groupon is the invisible hand of capitalism sucker punching good restaurants that deserve to succeed and helping out mediocre venues that deserve to fail.” – Bloomberg critic Ryan Sutton on his new crusade against bad restaurant deals.

Representatives from the Obama administration are said to be pressuring New York Attorney General Eric Schneiderman into settling with major banks over “dubious foreclosure practices.” And Bloomberg reports that the largest banks have received as much as $1.2 trillion in loans from the Fed.

Skype will acquire group messaging startup GroupMe for a reported $85 million. GroupMe’s been around less than eighteen months; angel investors like Lerer Ventures have made quite a bit of money, while Series B leader Khosla has almost tripled its investment in barely nine months. One expects founders Jared Hecht and Steve Martocchi also came out nicely, though still a far cry from Zuckerberg money.

The boy was 13 when a dawn immigration raid abruptly ended his father’s four-year quest for political asylum in Britain. By nightfall of that day in 2005, father and son were hundreds of miles from home, locked in the privately run Yarl’s Wood Immigration Removal Center here, scheduled for deportation to their native Angola in the morning.

Instead, shortly after midnight, the despondent father, Manuel Bravo, 35, walked to a stairwell with a bed sheet and hanged himself. The note he left said why: so that his orphaned boy could stay in Britain.

-Yesterday’s incredible, front page NYT piece on a particularly awful British asylum situation is like a cross between Charles Dickens and Zadie Smith. If you haven’t already, please, please read it.

Comments
10 comments so far | RSS Comments RSS

Obama’s gone Right? Oh wait, that’s not news.

Posted by GRRR | Report as abusive
 

“When a bank does it, that means it is not illegal”

-Barack Obama

Posted by johnhhaskell | Report as abusive
 

I yearn for the day that people with single digit IQs are no longer able to become “journalists”. Maybe then we wont have people thinking that lending 10 dollars ten days in a row is the same as lending 100 dollars. We might even one day have someone who realises that providing emergency liquidity is what the Fed was created for. Truly I have a dream.

PS Mr Salmon, given you are a fan of people not paying their debts back what exactly is your issue with banks being lent money at the discount window and paying back every penny?

Posted by Danny_Black | Report as abusive
 

As for Gaddafi going, guess they only have to look at the treatment Syria and Iran got and see that giving up your nuclear weapons programme, stopping the sponsoring of terrorists, not getting heavily involved in drug dealing and extortion and most importantly not tilting towards the West is not such a great idea after all….

Posted by Danny_Black | Report as abusive
 

And Libor is unsecured, TAF is collateralised. I am sure the dumbass who wrote the article is paying the exact same rate on his O/D as his mortgage.

Posted by Danny_Black | Report as abusive
 

TAF may have provided loans secured by collateral, but of course the collateral was close-to-worthless-at-the-time securitized mortgage paper.

The Fed shouldn’t have provided these loans, but if it was going to, it should have attached much more stringent conditions on providing it. But arrogant Wall Street trader types will never understand how warped capitalism is from outside the narrow lens that the finance sector looks through. Heads, Wall St. wins; Tails, Main Street provides bailouts so that arrogant Wall Street types can get their multimillion dollar bonuses!

Posted by Strych09 | Report as abusive
 

Strych09, I am just one of those crazy people who think journalists should get basic facts right but apparently I am deeply in the minority. People like you think no facts should get in the way of inchoate rage.

TAF was a wierd bailout, no losses and 13bn profit on collateralised loans. Maybe you are confusing banks with say GM?

Posted by Danny_Black | Report as abusive
 

Ok, re-read the piece and the Bloomberg reporters do know the TAF is collateralised so that were basically lying when they made the fake comparison between an uncollateralised rate and a collateralised one. Why let the truth get in the way of a story right? Not like any other reporter is going to fact check you

Posted by Danny_Black | Report as abusive
 

@Danny_Black thanks for once again proving all you are is a bank apologist… and of course your first line… admitting you are crazed …

*Most people would have read the piece once to see the the concern for what was considered collateral and see that it got it’s own paragraph titled ‘Acceptable Collateral’ with a followup paragraph entitled ‘Willingness to Lend’ which discusses the banks willingness to lend without proper… you know… collateral.

*80% of the collateral was given an unknown rating and this has been discussed here several times with you having been shut down … but of course you attack Felix and his knowledge of the Fed because you have been shut down many times … and well… how dare he…

*The Fed was providing loans using the same garbage for collateral that was suspect in helping cause the financial crisis and giving S&P nightmares.

*The Fed was providing liquidity to many Global Institutions who were somehow able to take advantage of the funds. Is that truly what the Fed was created for? SO you are saying the tinhatters are correct and that you are one of them?

Why let facts and actually reading the piece get in the way of your bank apologist agenda?

Posted by hsvkitty | Report as abusive
 

One more thing …Danny_Black … WAS all that money paid back? I had trouble finding info that said it was. Perhaps you can find a source to back up what always seems to be “your take” and opinion rather than facts.

http://www.prwatch.org/news/2011/08/1092 4/money-still-owed-federal-bailout-15-tr illion-still-owed-treasury-federal-reser ve

Posted by hsvkitty | Report as abusive
 

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