Rolfe Winkler

BlogArt: Do Away with (Public) Deposit Insurance

By Reuters Staff
February 28, 2009

This is why publicly-funded deposit insurance should be banned.  GMAC’s ad for high-yield bank CD…

Lunchtime Links 2-28

By Reuters Staff
February 28, 2009

(Send links, videos, pics to optionarmageddon at gmail with subject “link” … Thanks to Dan C.—$25—for the tip!)

GE cuts dividend

By Reuters Staff
February 27, 2009

Breaking news on WSJ.com:

“General Electric to cut dividend to 10 cents a share from 31 cents a share.”

Lunchtime Links 2-27

By Reuters Staff
February 27, 2009

(Send links, videos, pics to optionarmageddon at gmail with subject “link”)

Rocky Mountain News shuts down (Rocky Mountain News)  CEO of parent company Scripps told the staff of the decision himself: “I could say stupid things like ‘I know how you feel.’  I don’t.  We are just deeply sorry. I hope you will accept that.”  The paper was 150 years old.

The Citi Deal: This Solves Nothing

By Reuters Staff
February 27, 2009

Treasury and Citi announced their deal this morning by which the government and other preferred stockholders will convert their shares to common equity.  No more money is being spent by the government, but shareholders are having their stakes cut to 26% and the government now gets a 36% ownership stake in the common.  This solves nothing as the BIG PROBLEM is still on the asset side of the bank’s balance sheet. This does nothing to address that.  (WSJ)

Fannie posts $25.2 billion Q4 loss

By Reuters Staff
February 26, 2009

Anyone taking bets on which company will be the single largest money sink for taxpayer cash between now and 2012?  Fannie, Freddie, AIG, Citi, BofA, GE, others?  WSJ:

Lunchtime Links 2-26

By Reuters Staff
February 26, 2009

(Send links, videos, pics to optionarmageddon at gmail with subject “link” … Thanks to Anonymous—$7—and Vijay C.—$15—for the tips!)

Deficit now projected at $1.75 trillion

By Reuters Staff
February 26, 2009

So much for the CBO’s estimate of $1.3 trillion for this year’s estimate.  Including the stimulus bill and Obama’s new budget, the deficit is not projected to be much higher  (Reuters)

JP Morgan cuts dividend, preserves tangible common equity

By Reuters Staff
February 26, 2009

This move was greeted very positively by the market as bank stocks were up on the open.  It is long overdue.  (Marketwatch)

Ron Paul: “We Can’t Reinflate the Bubble”

By Reuters Staff
February 25, 2009

Truth-telling in Congress (hat tip Ronbot)

BlogArt: Dilbert

By Reuters Staff
February 25, 2009

hat tip Nick Gogerty (via Financial Rounds)

Lunchtime Links 2-25

By Reuters Staff
February 25, 2009

(Send links, videos, pics to optionarmageddon at gmail with subject “link” … Thanks to Wendie N.—$20—for the tip!)

Insurers: The Next $0 Trade?

By Reuters Staff
February 25, 2009

Two weeks ago I wrote “With Allstate You’re Not in Good Hands.”  The company had convinced regulators to change capital adequacy requirements to allow, among other things, the inclusion of deferred tax assets as regulatory capital.  I did some digging and, sure enough, Allstate’s story is not unusual.  Lincoln National and Hartford also sought, and received, regulatory dispensation to include DTAs as capital.

Lunchtime Links 2-24

By Reuters Staff
February 24, 2009

(Send links, videos, pics to optionarmageddon at gmail with subject “link” … Thanks to Doug D.—$37—for the tip!)

House Prices Down 27% From Peak (includes charts)

By Reuters Staff
February 24, 2009

Now that unemployment has kicked into a higher gear, more folks will be defaulting on mortgages, meaning house prices are likely to continue their slide in coming months.  As they do, household and bank balance sheets will continue to deteriorate.  Said another way, their leverage ratios will continue to increase as the falling value of their assets wipes out their equity.