Lunchtime Links 4-8
Greenspan: Lehman would have needed $68 billion more capital (Nasiripour, HuffPo) Great find from Shahien. Greenspan said in written testimony that “with 15% tangible equity capital, neither Bear Sterns nor Lehman Brothers would have been in trouble.” 15% is a boat load. As of May 31st 2008, Lehman had just 4.3%. They’d have needed an additional $68 billion of capital to be at 15%!
Gold hits record high — in euros (Pleven/Whittaker, WSJ)
How Visa predicts divorce (Ciarelli, Daily Beast) The article fails to answer that question, but it’s still pretty interesting…
California’s $500 billion pension time bomb (Crane, LA Times)
DOC — FDIC rebuts WSJ op-ed (FDIC) This was in response to an op-ed yesterday that said FDIC has no experience resolving large institutions and therefore the resolution regime in the Dodd bill doesn’t make sense. I’m sensitive to arguments that FDIC may get in over its head, and yet, FDIC resolutions are the best way we know how to close failed financials. Losses are imposed on shareholders and creditors and the integrity of the financial system is protected.
Verily, Volcker avers VAT in vicinity (Pethokoukis, Reuters Breakingviews) Worth linking to just for the alliteration in the headline.
Bernanke sounds warning on deficit (Irwin/Montgomery, WaPo)
Tourists (imgur) This reminds me of Times Square, where folks think it’s interesting to be photographed in front of an Applebee’s marquee.
The first thing for trig (imgur) For math geeks!
Taiwanese boy does Whitney Houston (YouTube) Mind. Blown.