Comments on: Counterparties: Catch and release, board of directors edition http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TFF http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38177 Sat, 21 Apr 2012 23:15:54 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38177 Danny_Black, the losses at Frannie were socialized (once the shareholders were wiped out). I understand why it needed to be done, of course, but that doesn’t change the facts.

Admittedly they aren’t really banks.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38176 Sat, 21 Apr 2012 22:10:52 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38176 Just to be clear, I think Geithner, Bernanke and, in particular, Paulson did a superb job under extreme pressure. One only has to look at the results of the brain trust at the BoE, FSA and Brown/Darling to see how badly it could have gone if these group of f*ckwits had been in charge in the US. It is not a surprise to me that given the cold hard facts that people attacking Paulson have to resort to lying about some mythical backhander to GS.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38173 Sat, 21 Apr 2012 22:00:31 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38173 TFF, there is an argument to be made about whether it was the best use of the money or whether it represented a decent risk-adjusted return or whether it should have been more onerous to the financial institutions but the fact remains that anyone who claims that losses at banks were socialised either lives in Iceland or the UK or if he/she lives in the US is a bare-faced liar.

Frannie had to be bailed out and one of the reasons it had to be bailed out the way it was that the major holders of its commercial paper were also major holders of US govviesand a default would have caused them to dump those holdings. The Chinese were explicit in making this threat. So maybe in that context, 150bn for the privilege of borrowing at the low rates is cheap, no?

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By: TFF http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38161 Sat, 21 Apr 2012 13:26:23 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38161 @MrRFox, he was correcting a typo. :) Presumably not just adding emphasis!

From my perspective, both sides have a point. Counting the Fed remission to the Treasury as “profit” from the bailout is justified on one level, but neglects the broader implications of QE. Moreover, rose-colored glasses are required to see Fannie/Freddie as anything less than a royal disaster!

That said, the direct bailout of the BANKS didn’t turn out to be costly at all. Which is typically Danny_Black’s point.

Personally? I would have gladly forgone the crisis and the “profits” claimed by the Treasury. I’m glad that the bailouts weren’t as (directly) costly as initially thought they might be, but suggesting it is a profit?!?

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38158 Sat, 21 Apr 2012 11:50:54 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38158 Poor Danny – he has to answer his own questions now. Seems nobody else will give him the answers he craves.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38153 Sat, 21 Apr 2012 09:57:56 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38153 everyone

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2012/04/20/counterparties-catch-and-release-board-of-directors-edition/comment-page-1/#comment-38152 Sat, 21 Apr 2012 09:57:41 +0000 http://blogs.reuters.com/felix-salmon/?p=13377#comment-38152 Did Bloomberg fire everone with an IQ of over 5?

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