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
I know most of you want to read about the fake markets and what the trends are but my mind is elsewhere, most notably that EU Directive.
The FSA are running a seminar today and I shall be sending an intern to twitter on my behalf. The lectures will be about how the FSA is lobbying hard and throwing this socialist restrictive piece of legislation out of the window.
But they won't be so I shall instead hopefully glean from my gorgeous 22 year old multi lingual freebie some insightful comments from lawyers and politicians and other interested practitioners. The problem is there are too many lobbying and there isn't one voice. It should come from Gordon Brown but I believe he is currently in the Priory counting his meds.
How is it possible a draft document of few pages written by a couple of academics cause such chaos? If we were French we would burn down branches of Ikea, pour paint stripper on peugeots and put curry powder into the vents of BMWs? But alas, us Brits take it lying down and try and take the diplomatic route. It is pathetic.
Well if I don't hear the right answers at the Barbican, I may well just well ....I don't know ....cry perhaps?
US AND UK REGULATORS AGREE TO WORK TOGETHER ON HEDGE FUNDS
The Financial Services Authority has agreed to work with the Securities and Exchange Commission, the leading US financial regulator, in an effort to better regulate the work of cross-border hedge funds. Both regulators are members of the Financial Stability Board, which earlier this week said it intends to submit guidelines to the G20 suggesting banks with low levels of capital should not be allowed to pay large bonuses.
Fintag says After all these years ...with the FSA going to be abolished by the next Tory government, it makes sense for the SEC to check its rival and maybe steal a few ideas.
The return of one of the City's oldest takeover rumours - a bid for the London Stock Exchange (LSE) by Deutsche Börse, its German counterpart - helped drive the blue-chip index to its highest level in almost a year.
Fintag says Dont' forget the big crash is either side of this weekend.
telegraph says " Gordon Brown's 'costs of failure' will reach £256 billion "
guardian says " UK economy 'lurching back to the 1970s', says thinktank "
US CREDIT SHRINKS AT GREAT DEPRESSION RATE PROMPTING FEARS OF DOUBLE-DIP RECESSION
Professor Tim Congdon from International Monetary Research said US bank loans have fallen at an annual pace of almost 14pc in the three months to August (from $7,147bn to $6,886bn).
"There has been nothing like this in the USA since the 1930s," he said. "The rapid destruction of money balances is madness.... For the first time in the post-WW2 [Second World War] era, we have deflation in credit, wages and rents and, from our lens, this is a toxic brew," he said.
Fintag says And the markets really don't care at all. Until Friday or next Monday when they will wake up realize they have been smoking dope all year long.
bloomberg says " Volcker Says 'Long Way to Go' for Full U.S. Recovery "
Interdealer broker Icap has launched a new service to take advantage of a more balanced market for buying and selling of hedge fund stakes - with the number of investors trying to exit the asset class increasingly being matched by those seeking to buy in at bargain prices.
Fintag says Another ebay for hedge funds. Nice.
EX-BARCLAYS BANKERS STAND TO MAKE $400M FOR MANAGING TOXIC ASSETS
A group of 45 bankers at Barclays yesterday bypassed potential curbs on pay and bonuses by jumping ship to set up a Cayman Islands company and manage $12.3 billion of Barclays' most toxic debt. They will be paid at least $400 million over ten years.
In an exotic piece of financial engineering, the bank will lend $12.6 billion to Protium, a newly created Cayman Islands-registered hedge fund, to buy the toxic assets.
The bankers, led by Stephen King and Michael Keeley, both British, are setting up C12 Capital Management, a management company that will be paid management fees of $40 million a year for a decade by Protium and could make much more if the impaired assets recover in value.
Fintag says Nice trade indeed. And they have done what any other sensible person would do and set up a hedge fund. Banks are dead, They are history.
CITADEL SET TO FILL ALL '08 REDEMPTIONS AMIDST MAJOR CHANGES FOR FIRM
Citadel Investment Group expects to fill all of the redemptions it received last year by the end of this year, as the hedge fund giant seeks to close a difficult chapter in its history.
Chicago-based Citadel's flagship Kensington and Wellington funds lost more than half their value last year, leading to an avalanche of withdrawal requests that eventually totaled about $1.5 billion. Citadel suspended redemptions from the funds in December, warning that it could take years to meet all of the withdrawal notices. But 2009 has proven the firm's best year ever, so far, allowing the firm to get investors their money back by the end of the year, Reuters reports.
Fintag says Citadel was once touted as the next Goldman Sachs. What went wrong?
“TWO and twenty” — three words that long held the key to transforming fledgling hedge fund managers into instant tycoons — may be due for a pruning.
The phrase, shorthand for a formula in which hedge funds collected 2 percent of the assets they managed and 20 percent of the profits they reaped, has been tarnished because of a 2008 marred by losses. Now many clients who had long countenanced the hefty payouts so long as they garnered outsize returns are getting antsy.
Fintag says Next...
So what? These fees are negotiable and if you are earning 15% YTD then so what? At least these are transparent - so many investments have fees on fees you never get to hear about. This is very old news.
French bankers have warned that European financial institutions will be unfairly penalised compared with their US competitors by new capital requirement rules on the agenda at the G20 summit of leading industrial nations this month.
Baudouin Prot, the French Banking Federation's chairman and chief executive of BNP Paribas, the country's biggest bank, said the impact would be especially unjust as the financial crisis was caused in large part by failures in the US.
Fintag says What he is saying is he won't get a bonus. He should be glad he isn't Dutch. Of course he is correct and it is so obvious that it amazes me it has taken so long for us to hear this sort of disention. Why doesn't he look at the EU Directive too? BNP makes a lot of money from London based Hedge Funds and may soon not. Europe cannot act in a vacuum. Let us face it, the US banks have always been better than the European and always will be.
Of course the recent turmoil was 100% the fault of the Americans (AIG, Bear Stearns, Moodys, Fortress, Amaranth, Madoff just to name a few). Us Europeans just got greedy.
11 comments
catsick said ...
I find strategically hidden prawns is a much better way to sew mayhem, of course you need to wait a couple of days but the effects can never be forgotten ..... a trip to brussels with a couple of kilos and who knooows ....
17 Sep 09 - 06:34 gmt
Munch the Greatest said ...
FIRST!!!
PEASANTS!!!
SERFS!!!
SLAVES!!!
Even when The Munch is not ACTUALLY first, The Munch is First! Does that make sense to you, yet? Think about it carefully. Soon, you will understand. It is just a matter of WANTING to understand, then you will.
See?
Now you have a nice day, y'hear?
Regards
The Munch
17 Sep 09 - 07:32 gmt
Top Cat said ...
@Fin - I think you are fibbing, I think you will be at the FSA conference. I recall you took a photo there last year. I wish I had decided to go and I would have finally figured out who you are.
17 Sep 09 - 07:40 gmt
Bobdiamondsteeth said ...
Absolutely correct Catsick. There's a famous case where a husband filled the curtain poles with prawns as revenge for his cheating wife, her house had to be torn down as they could not locate the smell. I might try that on my current employer...
17 Sep 09 - 07:42 gmt
catsick said ...
Yes bobs teeth , hide them in bobs anus and he will have to be torn down to make way for jerry Delmisier to run the show, just like he always has ......
17 Sep 09 - 08:31 gmt
GalwayBoy said ...
Does anyone else find that Jerry Del Missier bears an unnerving resemblance to Chucky from Child's Play
Lets hope the C12 boys dont suffer the same fate as R3 Capital Partners who span out of Lehman
17 Sep 09 - 09:13 gmt
damiendamien said ...
The SEC and FSA together at last. Nothing can stop them.
17 Sep 09 - 09:13 gmt
Top Cat said ...
@GalwayBoy - brilliant!
17 Sep 09 - 10:19 gmt
anonymous said ...
you can tell fin is of a certain age -- he still thinks triple witching matters! what a cock!
17 Sep 09 - 12:50 gmt
author of a blog said ...
Triple witching can cause erratic behaviour in the market. It all depends on your trading style/strategy
17 Sep 09 - 12:57 gmt
TJ said ...
@Finbar- Where do you get your interns from? Stringfellows?
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