Lunchtime Links 12-9
Volcker criticizes bankers (Dealbook) “Wake up gentlemen.” Indeed.
Geithner extends TARP to next October (Treasury) He buries the lead near the bottom of his letter. It had been scheduled to expire in December. Nothing so permanent as a temporary government program….
50% bonus tax would hit 20,000 London bankers (Aldrick/Armitstead, Telegraph) What’s to stop banks from boosting salaries in response? This is a backwards way to shrink the banking sector. Recapping balance sheets (i.e. bankruptcy) is the way to go.
Greek finance minister says no risk of default (Lacqua/Petrakis, Bloomberg) Reminds me of last year when every troubled bank reassured us that liquidity and capital were solid. When they have to make that comment publicly, you know the run is already on.
MUST READ—Greek debt could be timebomb for euro (Reuter, Spiegel)
Gerry Corrigan’s case for large integrated financials (Johnson, Baseline Scenario) Corrigan is one of the more responsible folks in the banking sector, yet he’s repeating the same old tripe that we “need” large banks.
Fed keeps testing the exit (NY Fed) It’s third tri-party reverse repo test in the last week. This, again, is one of the mechanisms that the Fed says it will deploy to pull liquidity out of the system, when and if it decides to.
Hillary ex-pollster Mark Penn got $6m of stimulus funds (Bolton, The Hill)
Drug dealer takes a snowday (imgur) Clever…
Tiger, lion, bear form unusual friendship (Telegraph) see below…