Afternoon Links 10-29
(Reader note: from here on out, instead of citing the publication in which a piece appears, I plan to cite the writer….where possible anyway.)
Goldman sends back some collateral to AIG (Liam Pleven) Interesting. Recall that AIG served as a slush fund through which the Fed sent money to banks that had been AIG’s counterparties. Goldman was the biggest recipient of this cash with $13 billion (though as Barry Ritholtz would be quick to point out, they got additional collateral before the government takeover). With asset prices climbing, some of the collateral has returned to AIG.
A three-way split is most logical (John Gapper) A very good column adding color to the argument that banks need to split according to their various functions: commercial banking, investment banking (and trading), asset management. Also insurance should be separated probably.
San Francisco Fed sees FHA reviving subprime (Diana Golobay, ht ML)
Motor Vehicles add 1.66% to Q3’s 3.5% growth (EconompicData) A very interesting chart…
Mutual funds getting in on TALF party (Miles Weiss) Like the PPIP program sponsored by FDIC (which never really got off the ground), TALF provides non-recourse debt to investors that want to buy toxic assets. Investors can put up a sliver of equity and take a flier on some busted assets. If it doesn’t work out, the Fed is left holding the bag. As of 9/30, the Fed had lent $43 billion under the program.
And then there were none… (NY Fed) After today’s purchase of $1.9 billion, the Fed has completed its program to buy $300 billion worth of Treasuries. Quantitative easing isn’t done, however. There’s still plenty of agency MBS and agency debt left to buy.
The $10 phone bill (Scott Woolley) Fighting to deflate your cell phone bill.
How basketball star blew $100 million (Shira Springer) “Bankrupted Boston Celtics player kept entourage of 70, spent wildly on cars, watches, gambling, mansions.”