Archive for the ‘bankruptcy’ Category
Monday, June 8th, 2009
The Supreme Court is holding up the transaction with Fiat. WSJ:
The future of Chrysler LLC may be in jeopardy after the U.S. Supreme Court Monday delayed the auto maker's sale to Fiat SpA at the request of several Indiana pension funds and consumer groups opposed to the transaction.
Ahead of the ...
Posted in autos, bailout, bankruptcy | 3 Comments »
Thursday, May 21st, 2009
This afternoon, FDIC took BKUNA's assets into receivership. It is the 34th bank to fail in 2009. The Deposit Insurance Fund will absorb an estimated $4.9 billion in losses, which represents 57% of the total deposits BKUNA had as of May 2nd. With total assets of $12.8 billion, BKUNA ...
Posted in banking, bankruptcy, FDIC, housing | 7 Comments »
Monday, May 18th, 2009
Reader Note: Last fall, OA told the story of BankUnited in the pages of Housing Wire Magazine. With the bank's future likely to be settled over the next week, we thought readers might appreciate a look at the piece. Thanks to HW's Paul Jackson for allowing us to re-publish.
October 2008
No ...
Posted in banking, bankruptcy, housing | 3 Comments »
Thursday, April 30th, 2009
In an odd twist, enough of Chrysler's creditors voted against the administration's reorganization & recapitalization plan to force the automaker into bankruptcy. The filing is expected today. Credit default swaps may be playing a supporting role in this drama, as I'll get to at the bottom...
Yesterday, the reorganization plan seemed ...
Posted in autos, bankruptcy, credit default swaps, politics | 22 Comments »
Monday, April 27th, 2009
To survive, GM needs to shrink itself to a manageable size. It's new viability plan intends to do just that. The key provision of the plan is to reduce debt, swapping 225 shares of equity for each $1,000 outstanding principal of its unsecured public notes. $27 billion of unsecured notes ...
Posted in autos, bailout, bankruptcy, debt, stocks | 6 Comments »
Wednesday, April 22nd, 2009
AP:
General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, three people briefed on the plan said Wednesday....
The exact dates of the closures are not known, but the people said ...
Posted in autos, bankruptcy | No Comments »
Tuesday, March 31st, 2009
According to the Boston Globe, the Pension Benefit Guaranty Corporation approved a more aggressive allocation of fund assets at just about the worst possible moment. (HT Michael W.)
Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans ...
Posted in bankruptcy, government spending, taxpayer issues | 4 Comments »
Tuesday, March 31st, 2009
Chicago's #2 paper is aiming to keep its print and online operations going, but it has one problematic creditor (Sun-Times):
[Chairman Jeremy Halbreich's] overriding goals are to sustain the company’s print and online news operations while “preserving as many jobs as possible," he said.
The company has one significant creditor -- the ...
Posted in bankruptcy, media | 1 Comment »
Friday, March 20th, 2009
WSJ is reporting that regulators seized the two largest corporate credit unions this evening.
In the latest move by federal authorities to prop up the nation's banking system, regulators late Friday seized control of the two largest wholesale credit unions in the U.S. after finding that their losses on mortgage-related securities ...
Posted in banking, bankruptcy, FDIC, Uncategorized | 2 Comments »
Saturday, March 14th, 2009
Over the weekend, you may want to carve out 20 minutes for this video, an interview with former IMF Chief Economist Ken Rogoff. Rogoff is one of the foremost experts on financial crises. He says the "endgame...for most of our large banks" has to be an "accelerated bankruptcy" process.
It's been ...
Posted in banking, bankruptcy, Economy | 11 Comments »
Friday, March 6th, 2009
Reader Joe Pomykala, an Asst Prof. of Economics at Towson University, followed up regarding a question of mine in a recent post. Given the likelihood that FDIC will have to resolve far larger and more complicated banks going forward, how will derivative counterparties fit into the receivership equation? Will their ...
Posted in banking, bankruptcy, credit default swaps | 4 Comments »
Friday, March 6th, 2009
Martin Wolf's latest column is a fantastic analysis of our thus-far-impotent bank "rescue" strategy...
Much of the debate [about "nationalization"] is semantic. But underneath it are at least two big issues. Who bears losses? How does one best restructure banks?
Banks are us. Often the debate is conducted as if they can ...
Posted in banking, bankruptcy, credit crunch | 1 Comment »
Tuesday, March 3rd, 2009
The Bad Bank plan just won't die; instead it gets recycled in ever-more complex jargon that confuses everyone. Late last night the Obama administration leaked new details of Geithner's "private-public" partnership plan announced last month. Turns out it's a "bad bank" wolf in sheep's clothing. That is to say, it's ...
Posted in bailout, banking, bankruptcy, credit crunch, debt, leverage, taxpayer issues | 9 Comments »
Monday, February 23rd, 2009
------------------
Tangible Common Equity Ratio = Tangible Common Equity / Tangible Assets
Tangible Assets = Total Assets - Intangible Assets - Goodwill
Tangible Common Equity = Shareholder's Equity - Preferred - Intangible Assets - Goodwill
An explanation of the TCE ratio is here. The latest data for banks' tangible common equity (3/31/09) is here. ...
Posted in banking, bankruptcy, debt, leverage | 9 Comments »
Sunday, February 22nd, 2009
Another newspaper company goes under... (WSJ)
Journal Register Co., the debt-strapped owner of the New Haven Register and 19 other daily papers, filed for Chapter 11 bankruptcy protection Saturday, at least the third newspaper publisher to tip into bankruptcy court in recent months.
Journal Register has been plagued for more than a ...
Posted in bankruptcy | No Comments »
Saturday, February 14th, 2009
It was pretty clear when GM and Chrysler got their first chunk of cash in late December that they'd be back for more shortly. (WSJ)
General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money ...
Posted in bailout, bankruptcy, stocks, taxpayer issues | 4 Comments »
Wednesday, February 11th, 2009
An absolute must-read column from FT's chief economics commentator, Martin Wolf. He asks, quite rationally, if Obama's presidency is already a failure. He came in with a huge amount of political capital, with the freedom to propose bold moves that might take control of events. And yet he is clearly ...
Posted in bailout, banking, bankruptcy, credit crunch, Economy | 4 Comments »
Thursday, February 5th, 2009
As I noted in my post on The Paradox of Gluttony, PIMCO's Bill Gross---the world's largest bond fund manager---has emerged as the investment community's loudest proponent of government intervention to support asset prices. Naturally, he's also in favor of shock-&-awe stimulus (Bloomberg):
“This economy needs support from the government, a check ...
Posted in accounting, bailout, bankruptcy, government spending, taxpayer issues | 2 Comments »
Tuesday, January 27th, 2009
Buried at the bottom of an SEC filing made tonight, BankUnited of Florida dropped another bombshell. To get you caught up, in their last interim filing they offered a preliminary estimate of their fourth quarter loss: $327 million. Well turns out they were a tad low on that estimate...
Additional review ...
Posted in banking, bankruptcy | 3 Comments »
Wednesday, January 21st, 2009
(n) chutzpah---Yiddish---unbelievable gall; insolence; audacity (via wordnet)
Two days ago, Chrysler worked out a venture with Italy's Fiat SpA to make itself "viable" and thus worthy of the second, $3 billion tranche of government loans offered last month. It's an odd deal. WSJ (emphasis mine):
On Tuesday, Chrysler and Italy's Fiat confirmed ...
Posted in bailout, bankruptcy, taxpayer issues | 1 Comment »
Tuesday, January 20th, 2009
Fresh bearish commentary from Dr. Doom. Bloomberg:
U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is “effectively insolvent,” said New York University Professor Nouriel Roubini, who predicted last year’s economic crisis.
“I’ve found that credit losses could peak at a level of $3.6 trillion for ...
Posted in banking, bankruptcy, credit crunch, Economy, stocks, Wall Street | 7 Comments »
Friday, January 16th, 2009
Good news for Best Buy:
Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed."This is the only possible path for our ...
Posted in bankruptcy, Economy | 1 Comment »
Friday, January 16th, 2009
Today the Minneapolis Star-Tribune declared bankruptcy. Reuters:
[Chairman Chris] Harte said the filing would allow Minnesota's largest newspaper to continue business as usual as it restructures.
The filing came a week after the Star Tribune and the Newspaper Guild ended talks, saying they were unable to agree on management's request for concessions...
[Guild ...
Posted in bankruptcy, media | 6 Comments »
Thursday, January 15th, 2009
Iceland, Bulgaria and now Latvia. According to the NYT (via Patrick.net):
Violent protests over political grievances and mounting economic woes shook the Latvian capital, Riga, late Tuesday, leaving around 25 people injured and leading to 106 arrests.
In the wake of the demonstrations, President Valdis Zatlers threatened Wednesday to call for a referendum ...
Posted in bankruptcy, credit crunch | 3 Comments »
Monday, January 12th, 2009
...for the next bailout request. WSJ headline:
GM's CEO says company has sufficient liquidity through March 31 but its survival isn't certain.
When Barack moves to spend the rest of the TARP money, the automakers are likely to want another piece.
Giving money to them is throwing it down a pit. The auto ...
Posted in bailout, bankruptcy, credit crunch, debt, government spending, politics, taxpayer issues | 1 Comment »
