Rolfe Winkler

Morning links 12-14

December 14, 2009

No shortage of news this morning….

Dubai gets bailout from Abu Dhabi (Reuters)

Exxon to buy XTO for $41 billion (Reuters) $41 billion is the enterprise valuation. It’s incomplete to say the Exxon is only paying $31 billion for the stock when it is also assuming $10 billion of debt.

Bank failure Friday

December 11, 2009


    Failed bank: Republic Federal N.A., Miami FL Acquiring bank: 1st United Bank, Boca Raton FL Vitals: at 9/30, assets of $433m, deposits of $352.7m DIF damage: $122.6m


Lunchtime Links 12-11

December 11, 2009

Jamie gets a deal! (Bloomberg) Prof. Linus Wilson had been estimated that warrants the government got as part of its TARP bailout for JP Morgan were worth $11-$37.  They ended up selling for $10.75. The lower price is most likely because these are not common securities, are illiquid, and therefore worth less than we all thought. Can’t really complain. The market spoke. Dimon looks smart for refusing to negotiate bilaterally with Treasury to repurchase them. Treasury was driving too hard a bargain. IIn retrospect, that means the deals on TARP warrants for the likes of AmEx and Goldman ended up going off much better for taxpayers. But Hank Paulson still did far worse negotiating with banks for emergency capital than Warren Buffett. Shame.

Evening Links 12-10

December 11, 2009

Loopholes lurk in bank bill (Paletta/Enrich, WSJ) Companies with connections get to buy exemptions…

AOL’s got independence – and issues

December 11, 2009

The AOL-Time Warner merger was the crowning deal of the new millennium. The spin-off on Thursday of the internet business from Time Warner is an appropriate bookend to a lost decade in the stock market. There may be value left in the online operation, but it won’t be easy for chief executive Tim Armstrong to extract it.

Households cut debt, have long way to go

December 10, 2009

U.S. households are slowly repairing their (private) balance sheet. We’ve a long way to go, but according to the latest Flow of Funds report, we’re making progress.

Parsons says Citi can repay TARP

December 9, 2009

I’ve got a question below…but first the story: “Citi positioned to repay TARP, report” (Eder/Wilchins, Reuters) —

Lunchtime Links 12-9

December 9, 2009

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….

Ireland, ahead of the curve

December 9, 2009

At least one country is making tough choices. From John Murray Brown (FT): Ireland poised for harsh budget

Calling all design feedback!

December 8, 2009

Now that readers have had a few days to see the new Reuters blog format, we want to hear from you. What do you like? What do you hate? Send me an e-mail or leave a comment. I’ve been asked by the design team to compile feedback so now’s your chance. Please don’t be shy.

CIT to emerge from bankruptcy

December 8, 2009

CIT expects to exit bankruptcy protection on December 10, having filed for it only 40 days previously on November 1. (Chasan, Reuters)

Lunchtime Links 12-8

December 8, 2009

(Reader note: still working on the bugs….please click “continue reading” to see all the links)

Politics and bank regulation don’t mix

December 8, 2009

The Federal Deposit Insurance Corp tried to seize and sell Cleveland thrift AmTrust last January but local politicians intervened. In the end, the bank still went bust 11 months later – a delay that may have increased losses to the U.S. regulator’s funds. As Congress debates banking reform, AmTrust provides a useful warning that the regulatory apparatus needs to be kept free from politics.

Are videogamers Hollywood takeover bait?

December 8, 2009

(Reader note: as part of the new Reuters BreakingViews team, my beat now includes covering stocks, investments and corporate finance. It’s a bit of a change of pace from the macro, Fed, banking stuff I normally write about, but have no fear: I will keep opining on those topics in blogs and the occasional column. In the meantime, excited to be tackling some new topics.)