crisis

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…

Update 04 Mar 2009: Marshall Auerback sent me a story about Dresdner bankers suing to get tens of millons in bonuses. Obviously the house in Kent and the private clubs and schools have to be paid for. His story here reminded me of this…

Risk in the financial markets is high. I know, that's an obvious point. But, seriously, risk is very high. The TED spread is now at its highest since October 1987. And you remember October 1987, right?The TED in TED spread stands for…

As we plan for another day in financial turmoil, I have to admit to preferring financial services industry consolidation through merger to bankruptcy. I was just reading FT Alphaville's post on a proposed Lloyds TSB takeover of HBOS (the…

It's been bothering me for some time -- the fact that Lehman failed and Merrill was taken out at a deal time value that was a significant premium to both book value and the prevailing price of its shares in the market. It seems rather…

In yet another move by ratings agencies likely to roil markets, HBOS has been cut by S&P. Given the fact that HBOS is the biggest loser to date in the European banking sector in the wake of Lehman's collapse. This cannot be seen as…

One reason I came out this morning against the Fed and the U.S. Treasury's decision to allow Lehman Brothers to go bankrupt is the arbitrariness of its decision-making process. Lehman is easily more of a systemic risk than Bear Stearns and…

It's 8AM on the morning after a 500 point loss on the Dow. It could have been a lot worse, honestly. So I'm happy to have gotten away with that. Nevertheless, trading in Asia was not exactly confidence building with the Nikkei 225 down…

Update Mar 2009: There is a pernicious little piece of historical revisionism going around that the Lehman bankuptcy did not matter. I am reposting this as a retort. Note the piece by James Suriowiecki which induced me to re-post: In…

Apparently the U.S. House of Representatives is looking to get another stimulus package going. In the wake of a financial meltdown, the U.S. Government has decided to act forcefully and take a stand against the forces buffeting the U.S.…