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Citigroup grabs Wachovia on the cheap
Wachovia Corporation has agreed to be bought out by Citigroup in a deal supported by the U.S. government. Exact terms of the deal are still forthcoming, but this could be seen as a best case scenario for a bank which was increasingly under…
Stephen Roach has a bone to pick with Congress
Echoing my sentiments in the last post, "The U.S. banking crisis: where are we?," Stephen Roach, the head of Morgan Stanley Asia has made a blistering attack on the U.S. Congress. He has labeled Congress's response to crisis…
The U.S. banking crisis: where are we?
This morning Chris Whalen made some comments on CNBC that hit the nail on the head regarding the U.S. banking crisis: there is a huge wave of old-fashioned loan losses coming down the pike. The writedowns we have seen to date are largely…
European banking collapse including nationalisation of three banks
UPDATE: 9:30 AM ET: This post has been updated to reflect the events surrounding Fortis.
On Friday, I warned that European government officials like Peer Steinbrück of Germany should refrain from chastising the U.S. and the U.K. over…
U.S. Bailout: the mother of all carry trades?
There are some great ideas out there about what the U.S. bailout is all about. Earlier, I mentioned my belief that it had everything to do with marking to market. Just a while ago, I caught a post that has a very intriguing angle on the…
Bradford & Bingley may suffer Northern Rock’s fate
Earlier today I highlighted a number of banks that were under severe selling pressure in their respective home markets. This list included Fortis, Macquarie, NCC, Wachovia and CIT. The UK's Bradford & Bingley is certainly on that list…
Fortis to speed asset sales
The Dutch-Belgian bank Fortis has come under pressure in the aftermath of the WaMu bankruptcy. With the credit markets seized up globally, weaker banks are being attacked regardless of nationality - Wachovia, NCC and CIT Group in the US,…
How the Bailout deal unraveled yesterday
The NY Times has a story on how yesterday's bailout deal failed. This is an insider's tale with blow by blow detail. It is a fascinating view into how the U.S. conducts government policy. Below is a snippet from the post and a link to the…
$700 Billion? Try $5 Trilion – So says Marc Faber
Faber thinks that the U.S. needs a lot more money than the Paulson Economic Patriot Act suggests. I agree 100%. His figure is $5 trillion! That's a lot of dosh.Here is how he is quoted on Bloomberg:"The $700 billion is really nothing,''…
New Zealand in recession: who’s next in Asia?
Last night, on Bloomberg TV I heard that New Zealand had become the first Asian economy to officially slip into recession. Today, I have seen the stats confirming this. Jim O'Neill, Chief Economist at Goldman Sachs, says the chance of…