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Monetary System
Why is this blog named Credit Writedowns?
I named my blog "Credit Writedowns" because I anticipated an historic wave of credit writedowns in the global banking system which would lead to a wave of deleveraging, systemic risk, and bank failures -- in short, a massive financial and…
Bradford & Bingley is being shopped by the FSA
Just in case you thought the crisis was over, I have to remind you that there are still firms out there that are very concerned about their futures. Principal among them is the UK buy-to-let specialist Bradford & Bingley.The word on the…
Goldman and Morgan Stanley are now banks
The Federal Reserve is pulling out all the stops to stop the spread of the financial meltdown contagion that claimed Lehman Brothers, Merrill Lynch and AIG. The latest move is to allow both Goldman Sachs and Morgan Stanley to become bank…
How safe are your assets?
Recently I wrote a post on the safety of investment assets in the wake of the Lehman and AIG meltdowns. Even still, retail and individual investors are noticeably nervous about the safety of their funds.Last night on the radio, I heard a…
Fundamentally insolvent
Marshall Auerback here.Equity investors, perhaps unlike credit investors, don't get the fundamental insolvency of the financial sector, an artifact of mega-leverage.This is a culture that responds to visual clues and marketing jingles.…
Ameribank: the latest FDIC bankruptcy takeover
Today, after the markets closed, in another Friday Night Special, the FDIC announced the failure of Ameribank. This represents the 12th bank failure this year and the 14th since the credit crisis began last August.See my list of Bankrupt…
Disappearance of capital sources is true cause of Lehman failure and AIG rescue
Why did Lehman really fail? The equity window is effectively closed for most financial services companies. This fact was the true trigger for the meltdown in AIG and Lehman and the problems at WaMu, HBOS and Merrill Lynch.
Moreover, it…
AIG: a short post-mortem
The meltdown of the world's largest insurer AIG (AIG) makes the stakes of this credit crisis plain to all.
In my view, the AIG situation and the subsequent turmoil in financial markets could have been avoided. The markets were clearly on…
Dick Fuld feels horrible about Lehman collapse
Dick Fuld, the Chief Executive of the beleaguered and now bankrupt investment bank Lehman Brothers, finally addressed staff after the worlds largest bankruptcy in history. He told staff he felt horrible for their personal and financial…
Lloyds gets HBOS for a song
Lloyds TSB has announced that it will buy rival HBOS for 232 pence a share. Back in May 2007, just over a year ago, HBOS shares were trading for almost £17 each. However, HBOS closed trading today at £1.47, sustaining a loss of over 90% in…