28JAN09:
Q1-09 DOW: 8900
Q2-09 DOW: 7250
Q3-09 DOW: 5810
Q4-09 DOW: 3960
CITI NATIONALIZED
OBAMA GETS SICK 27AUG09:
Mini Crash 21SEP09 Predicted correctly:
Bailout=Bonuses
Demise of Bear Stearns
Demise of Lehman Bros.
Demise of AIG
Subprime would cause problems
Date of 2007 crash
CRAs were to blame
G20 riots were a party
Northern Rock run
Northern Rock Nationalization
HBOS and RBS demise
UBS really was Useless
The right thing is to not write any lead today. My risk ramblings bored that pants off you so I am redacting my comments in line with UK policy. Until next week when the right thing will be start off again as if it was business as usual.
Today we don't look at the mini crash that is ready to befall us all. Debt, tax, unemployment, fall in retail sales, that sort of economic data doesn't really imply company earnings are on the whole going to rise and given stock prices are a function of future earnings then a mini crash is due. Isn't it?
For those interested, I came back and found Winston's wife had used my hat at Ascot yesterday. He is such a funny chap.
In the wake of the greatest financial crisis since the 1930s, President Obama's Administration is preparing sweeping changes to banking regulation. Not so Alistair Darling. Even though UK financial regulators presided over the first run on a British bank (Northern Rock) for more than a century, the Chancellor insists that the regulatory system was not to blame for the credit crunch. Rather, the culprits were to be found in bank boardrooms.
“Too many people did not understand the risks to which they were being exposed,” said Mr Darling yesterday. This sounds like special pleading by an embattled Government looking for someone else to unload on. But Mr Darling is essentially right. While there is much blame to go round in the collapse of the Western financial system, the problem is not one of regulation.
Fintag says Way hey. Good to see my old term of abuse, "incompetent bankers" being taken up the mainstream. Good to be of service.
EU LEADERS EXPECTED TO AGREE MAIN OUTLINE OF NEW FINANCIAL SUPERVISION SYSTEM
EU leaders are expected to agree today on the main outline of a new financial supervision system in response to the current crisis.
On Thursday, at the summit in Brussels, a day after President Obama announced sweeping reforms of US financial regulation, German Chancellor Angela Merkel said.: Setting “binding common European rules” would “be a major step forward qualitatively.”
Fintag says Good luck to them. The FSA has lost a trick there due to its incompetence over the past few years. I look forward to being regulated by my cousins overseas. Not. If the EU Directive on bringing funds onshore, and here we are talking about Ireland or Malta, then I and my fellow hedgies will be off to Switzerland like in the good old days.
After years of unprecedented growth in the hedge fund industry, tough market conditions and investor defections are pushing some funds into closure while others may be forced to merge to survive, industry experts say.
Increased investor expectations and a higher regulatory burden will have the greatest impact on smaller funds, whose only source of income this year is likely to be a management fee of one or two percent of assets.
Fintag says It is very sad and it is very true. I know most of you have no idea what is going on in hedge fund space which is why you read this but most, and that is a big most, Fund of Hedge Funds and single managers have had a torrid time in the last year.
Sales people have gone to sleep and COO's have been hatching plans to survive. There are a couple of M&A boutiques who are hoovering up work. But this is good because we need a flexible and nimble industry, however painful.
Sir Fred Goodwin, the former Royal Bank of Scotland chief executive who led the company to the brink of collapse and whose £16m pension provoked national outrage, has agreed to a £200,000 reduction in his annual payout.
The 50-year-old, who was in charge of RBS when it recorded the worst losses ever seen by a British company, has volunteered to have his pension reduced from £555,000 a year to £342,500 - a cut of 38 per cent.
His decision was welcomed by the Chancellor, Alistair Darling, who said: "I'm very glad that RBS have now resolved the matter with Sir Fred Goodwin. I think that Sir Fred is doing the right thing.
Fintag says What is it with this phrase "the right thing". It really irritates. This UK government say it all the time. I mean who says it is the right thing? God?
He has bargained to get out of being censured by the authorities for his greedy RBS debacle. It is as simple as that.
We have suspicions about” whether Echevarria did the due diligence Optimal claimed in its documents.,” Zanni told The Wall Street Journal. “We are not sure he was doing his job compliant with his duties.”
“We have two kinds of suspicion,” Zanni added. “Whether he knew that there was something wrong with Bernard Madoff, or he did not do the due diligence.”
Vincent Tchenguiz, the UK property entrepreneur, has overthrown the board of Bramdean Alternatives, the listed hedge fund and private equity fund of funds, in a move that is likely to see the liquidation of its assets. Proposals to replace the board were put forward by Elsina, a company controlled by Tchenguiz, which on Thursday won a narrow majority of shareholder votes. The board was immediately replaced with new directors who are expected to push for a restructuring and workout of the company's assets. Bramdean had a net asset value of $178m in April.
Fintag says One step closer to that big fight in Vegas.
HEDGE FUND INVESTORS REGAIN 'WHIP HAND' AFTER 2008'S LOSSES
Hedge fund managers gathering in Monaco this week said they have work to do to regain investors' confidence after the industry's record losses last year.
“We have to prove as an industry that we can provide absolute returns again,” Pierre Lagrange, co-founder of hedge fund GLG Partners Inc., told some of the 750 delegates at the GAIM International hedge fund conference in Monte Carlo. “We have to show that in the next year or two we can strike back.”
Fintag says I prefer it if some else is doing the whipping ... [Editor: Steady]
UK BORROWING REACHES RECORD IN MAY AS THE RED INK GETS DEEPER
Public sector net borrowing dwarfed May 2008's £12.2bn and was the highest monthly sum since records began in 1993. As the recession hits home, lower tax receipts and higher benefit payments have pushed net debt to 54.7pc of GDP - a vast jump on the 43.6pc only 12 months earlier.
The Office for National Statistics (ONS) figures were issued the day after Mervyn King, the Governor of the Bank of England, publicly rebuked Chancellor Alistair Darling over his handling of the public finances. "Fiscal policy... will have to change," Mr King told the annual Mansion House banquet in a speech delivered in the Chancellor's presence.
Fintag says Because they are doing the right thing. It is right that the UK should be bankrupted. After all these years we are truly turning Japanese. We are the new grass-eaters of Europe (Google it and find out what I mean ....)
HEDGE FUND WIVES BEING FORCED TO DROWN SORROWS IN CHEAP BOOZE, AND OTHER HORROR STORIES YOU CANNOT IMAGINE
Since his hedge fund closed, one trader's wife has been slumming it among the masses, telling writer, Tatiana Boncompagni, "Do you know I have to take the subway now? I didn't get married for this." Fuck no she didn't! (Sadly, unless she cuts her losses, Jenny from the Block will be riding the 6 for the foreseeable future, on account of the fact that, in her opinion, Meal Ticket hasn't been trying hard enough to find a new job.) Thanks to her worthless hedge hub, another victim is downgrading to $60 bottles of wine at dinner. Tomorrow it'll probably be Old English. One wife is actually being forced to pimp it out (her house on Mustique, for $40,000 a week, not her body but presumably that's next). And there are the women whose situations are so bad they're not even allowed to get into it at all.
Fintag says It is the right thing to do. Throw the masses off the scent. Pretend its all bad.
FEDERAL RESERVE WILL LEAD CENTRAL BANKS OUT OF THEIR IVORY TOWERS AND INTO THE REAL WORLD
It used to be so simple. Central banks were responsible, cautious and politically independent. But during the credit boom, they were neither responsible nor cautious. In the aftermath, at least one central bank - the US Federal Reserve - could end up less independent.
President Barack Obama wants to give a non-political Fed a new power - to regulate all systemically important institutions. Many members of Congress are balking at this “macroprudential” mission. They're afraid of a Fed that makes politically significant decisions without any political oversight. They may also be worried about the ambitions of Larry Summers, Obama's economic guru. He is widely thought to have his eyes on the top Fed job.
Fintag says Obama is doing the right thing. Although that is an oxymoron because he is really doing the left thing.
19 comments
Munch the Greatest said ...
FIRST!
Mutha Phukkuz!
BWAHAHAHAHAHAHA!
Moron, time for you to LEAVE, boyo!
Springboks are going to MESS the British Lions UP!
It's just going to be Lions arms and legs lying ALL over the field, come Saturday!
BWAHAHAHAHAHAHHA
Munch
19 Jun 09 - 07:19 gmt
anonymous said ...
Thanks for that trenchant contribution to the debate about the future of Britain's Financial Services industry.
Please call again.
19 Jun 09 - 08:36 gmt
anonymous said ...
what an plonker....
19 Jun 09 - 08:41 gmt
Grenville said ...
Fin I like your blog but one thing worries me: why is it only read by 17-year-olds?
19 Jun 09 - 08:56 gmt
MsR said ...
Re: The phrase 'the right thing.' It's from the same hymn sheet as 'honest working families'. It's a patently transparent tactic politicians use to show they have empathy and that they speak for us.
19 Jun 09 - 09:34 gmt
Moron said ...
ATTACK KILL DESTROY.....SHOOT THEM ALL!!!!
19 Jun 09 - 09:40 gmt
Farrqhuar Hollingsfield said ...
Anonymous, I told you chaps that he is a spoiler, he had me going years ago, MAN. What do you want to debate about the future of Britains Financial Services Industry? It is disintegrating around you and will be non-existant in a few years time. Rather pin your hopes on the British Lions, maybe they can give the hairy backs a good going over, NOT. Moron - I see you are a man of few words.
19 Jun 09 - 10:10 gmt
Moron said ...
I AM NOT A MAN.....I AM A WILD ANIMAL!!!!
19 Jun 09 - 10:11 gmt
the prophet said ...
i fear Fin is actually Max Mosley in disguise
19 Jun 09 - 10:17 gmt
Farrqhuar Hollingsfield said ...
I see, I see, good for you...
19 Jun 09 - 10:19 gmt
anonymous said ...
Hollingsfield, moron has been short for the last 3 months... he has, quite frankly, lost the plot.
19 Jun 09 - 11:10 gmt
Moron said ...
2 months mate....and there is a method in my madness....u will see:)))
19 Jun 09 - 11:17 gmt
Munch the Greatest said ...
Britain's Financial Services industry is finished, kaput, gone ... in all but name!
There is no future for you - reinvent yourself!
Thanks fer asking!
Regards
19 Jun 09 - 13:50 gmt
Farrqhuar Hollingsfield said ...
anonymous, its Farrqhuar Hollingsfield. Thank you.
19 Jun 09 - 14:27 gmt
ProblemChild said ...
Is it me, or did yesterdays picture of Finbar look like Gordon Ramsay?
19 Jun 09 - 14:41 gmt
anonymous said ...
Hollingsfield, get back in your box old boy.
19 Jun 09 - 15:52 gmt
anonymous said ...
what!
19 Jun 09 - 15:52 gmt
Richardlogo said ...
for one moment I thought that the 'leave your comment' confirmation security anti bot word was:
moronS 'change image' Type in what you see above (case sensitive)
20 Jun 09 - 00:20 gmt
anonymous said ...
@Grenvile, I don' think it's 17 year olds who read this, it's w@nkers. Like Moron.
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