Morning Links 1-7

January 7, 2010

Tim Geithner covered up AIG’s payments to counterparties (DealBook) Timmy G. knew it looked bad for AIG to pay out 100ยข on the dollar to counterparties like Goldman. So he told AIG to shut up.

Obama buget will raise “carried interest” tax (Comstock, Business Insider) Awesome proposal from the Prez. Recall that hedge-funders and PE guys can treat their partnership income as capital gains. As a result they’re only taxed at 15% instead of normal income tax rates of 35%. Last time this came up, Chuck Schumer killed it. This time it’s likely to happen.

Obama OKs taxing high-end health plans (Werner, AP) Another good move. It’s Republicans who’ve argued that such health plans should be taxed so this will get bipartisan support if Dems get on board. Unions oppose it so this demonstrates some backbone from Obama.

New Japanese finance minister calls for more stimulus, weaker yen (Kajomoto/White, Reuters) Debt surpassing 200% of GDP doesn’t faze the new guy…

Redrado fight roils Argentina’s markets (Cowley, WSJ) Argentina’s president wants to fire the central bank chief for refusing to release reserves to pay down debt. He says he won’t go. He has the backing of Congress too. RBS says it’s an opportunity to buy Argie debt.

Banks favorite Dem set to replace Dodd (Grim, HuffPo) Tim Johnson is from SD, the home of credit card processors. He’s the only Dem who voted against credit card reform. He also opposes cramdowns and is a supporter of pay-day lenders…

Fed conflicted on MBS purchase program (Aversa, AP) The Fed has promised to stop printing money to buy mortgage-backed securities this March, after buying $1.25 trillion total. There are many who think the Fed is trapped and can’t step away. Not only will they never sell what they bought (effectively monetizing mortgage debt) but they’ll continue buying to support the housing market. Minutes from the latest Fed meeting suggest that some officials indeed think the program will have to keep going…

Schwarzenegger seeks U.S. funds (Woo/Carlton, WSJ) He says the nation’s taxpayers owe California money…

H&M says it will no longer destroy unworn garments (Dwyer, NYT) Jim put a good article in yesterday’s Times criticizing H&M for this practice. They responded quickly.

Lucky climbers (YouTube) Watch all 29 seconds…

Puppy glasses…



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is that securities fraud? not so sure Geithner’s long for this White House… systems need scapegoats.

Posted by million | Report as abusive

It’s not securities fraud, quite. It’s just very bad politics.

Posted by Justin | Report as abusive