Month: April, 2008

Anatomy of a coup: Part 3, Sunday

30 April, 2008 (10:38) | Banking, Markets, Subprime, US News | No comments

[Continued from yesterday's Part 2 and Part 1.]  
I know what Scott’s attitude on the restructuring is, what’s yours? I agree with Scott, sir.  I think we’re being played for suckers.  But I think it’s really your business. Yours and the Treasury’s.  You did it, and they agreed so, well, I don’t see how we can [...]

Anatomy of a coup: Part 2, Friday and Saturday

29 April, 2008 (08:33) | Banking, Markets, Subprime, US News | No comments

[Continued from yesterday's Part 1.]  
I think the invention of global securitization is at best an act of naivete, and at worst an unsupportable negligence. We’ve stayed financially solvent because we’ve built up an equity, and we’ve kept the liquidity and credit markets because we’ve dealt with counterparties who knew we would take that equity.  [...]

Anatomy of a coup: Part 1, Thursday

28 April, 2008 (10:38) | Banking, Markets, Subprime, US News | No comments

All right, Colonel. Let’s sum it up, shall we? You’re suggesting what? I’m not sure, Mr. President: just some possibilities, what we call, uh “capabilities” in military intelligence… You got something against the English language, Colonel? I’m suggesting, Mr. President, there’s a military plot to take over the government. This may occur some time this [...]

Negotiating your rating: Part 3, the circumstantial evidence

25 April, 2008 (09:52) | Finance markets, Rating agencies, Subprime, Theory, US News | No comments

[Continued from the previous Part 1 and Part 2.]
 

For the previous two days, we’ve been delving into whether, as implied by a Wall Street Journal article on the rating agencies, Moody’s got so cozy with the issuers it was rating, and who were paying its fees, that it succumbed to grade inflation.
 
 [For background on the [...]

Negotiating your rating: Part 2, the rough and tumble

24 April, 2008 (09:10) | Finance markets, Rating agencies, Subprime, Theory, US News | 1 comment

[Continued from yesterday's Part 1.]

 
Yesterday we tackled a tough subject — how much opportunity should an issuer have to work with a rating agency to achieve a target result?
 
[For background on the rating agencies, see my five-part post from last August, A Symbiote's Life is Not a Happy One, Part 1, Part 2, Part 3, Part [...]