Rolfe Winkler

Lunchtime Links 8-31

August 31, 2009

Raft of failed banks put U.S. on hook for billions (WSJ) This article notes that loss-share agreements FDIC has signed with healthy banks that acquire failing banks put it on the hook for $80 billion. I think that’s the total figure FDIC could conceivably lose if the loss rate on the assets in question was 100%. That’s fairly unlikely. In any case, bank failure press releases include estimates for losses FDIC expects from each deal, so they’re reserving for them. Of course many bank failures have ended up costing significantly more than FDIC’s initial estimate…

Better late than never

August 30, 2009

FDIC shut down three banks on Friday evening. Still waiting on Corus (& First Fed).

Sunday links 8-30

August 30, 2009

(Sorry for the scarcity of posts the last couple days. I was moving and didn’t have internet access.)

Peering into our future…

August 28, 2009

A WSJ article on Japanese elections comes with the following table.

japan-stats

Japan has spent 20 years fighting deflation with loose monetary policy and deficit spending. To what end?

Evening Links

August 27, 2009

Fed says disclosing loans will hurt banks (Bloomberg) That’s sorta the point…

For FDIC, a long tunnel and little light

August 27, 2009

There’s good news and bad news in the FDIC’s quarterly profile of the banking sector. The good news is that FDIC has more resources than you think to handle the problem banks on its radar. The bad news is that the too-big-to-fail banks aren’t on it.

Sheila’s slides

August 27, 2009

Lots of news out of FDIC these last two days. Yesterday they announced rules for private equity investors that want to buy failed banks. They also extended the “temporary” insurance program for transaction accounts to June 30th of 2010. This program insured $736 billion as of June 30th.

FDIC lowers capital rule, but there’s a twist

August 26, 2009

FDIC concluded its quarterly board meeting earlier this afternoon and the big news is it approved lower capital requirements for private equity shops looking to buy failed banks.*

Daily linkage

August 26, 2009

(Reader note: it occurs to me that referring to my links as “lunchtime” links probably discriminates against readers on the West Coast and in Europe who aren’t operating on EST. I’m trying to think of another name. Would love to hear ideas from readers. Send me an e-mail or leave a comment)

Money market funds aren’t cash!

August 26, 2009

Paul Volcker wants to kill money market funds. He says that investors don’t understand them and that the funds could crash the financial system. He’s right.

Pew: How we should regulate derivatives markets

August 25, 2009

For those interested in the subject, this 20-pager by Stanford Professor of Finance Darrell Duffie provides a decent primer on issues surrounding derivatives regulation. (Those who prefer to read in pdf format can click here)

Talking Bernanke

August 25, 2009

The title of the video is a little unfortunate. I don’t think Volcker would be a realistic option, I just wish we could find someone like him.

Lunchtime Links 8-25

August 25, 2009

The boy who heard too much (Rolling Stone) “He was a 14-year-old blind kid, angry and alone. Then he discovered that he possessed a strange and fearsome superpower — one that put him in the cross hairs of the FBI.”

Larry Summers is not happy…

August 25, 2009

He wanted Ben Bernanke’s job, but he’s not going to get it.  Reuters:

The infamous “disclosure schedule”

August 24, 2009

At the bottom is the SEC’s latest brief for Judge Rakoff.

Having gone through BofA’s, one finds –publicly disclosed for the first time — the “disclosure schedule” that outlined bonuses BofA had agreed Merrill could pay: