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
Today I chaired my first meeting as a non founder. Weird. It didn't have much to do except review the workings of other committees that do the real work. I have set the next meeting to just after Christmas so I can do some worthwhile work like giving homeless bankers some soup, clearing up discarded drink bottles from the River Thames and report cyclists who drive on the pavement and wear brightly colored latex to the police, during this time when I am not running a meeting.
As you can see, I won't last long in this state of non productivity and will push hard to launch my new venture, Catnip Capital, RagStiff Capital, Funtugger Capital or whatever it is going to be called when it has obtained its FSA authorisation. The last time I did this, the FSA didn't exist and we were authorised by IMRO. We had a lunch, filled in a form and we were off. Today, the form is hundreds of pages long, its MIFID that, BIPRU this, ICAAP all about and we have to write out a cheque for thousands of pounds and wait over 3 months for those hallowed civil servants to say "yes, you are a threshold competent person who can make money for your investors but be warned we are watching you and will make life difficult".
In the meantime, I will be wearing jeans all day long. [Editor: weak]
THE Financial Services Authority (FSA) was told yesterday that its new liquidity rules could put London at a competitive disadvantage.
The FSA unveiled plans to force UK banks to hold an extra £110bn in government bonds, in a bid to prevent a repeat of the banking crisis.
Liquidity requirements will be delayed to allow banks time to prepare, FSA director of prudential policy Paul Sharma said, in order to “mitigate the knock-on effects to bank lending”.
Fintag says Eerrrr, London already has one big disadvantage and that is the FSA. Roll on the next election and goodbye to the FSA ...
NEW PWC SCHEME TO RETURN LEHMAN ASSETS TO CREDITORS
The administrator for Lehman Brothers is drawing up a plan to give $17 billion (£10.6 billion) of the defunct bank's assets directly to creditors.
The original application by PricewaterhouseCoopers' (PwC) to implement a scheme to return assets was turned down by the High Court at the end of August. Pending an appeal this month, PwC is drawing up a “plan B” to return billions of dollars of assets to hedge funds and other investors by coming to a contractual agreement with the bank's creditors.
A PwC spokesman said: “At the moment we have been able to return about $13 billion of $30 billion on a claim-by-claim basis, but this process will take a lot of time. We are getting people to sign up for contracts, instead. We are looking to return house assets — such as shares — that Lehman were holding on behalf of hedge funds and the like, and to get people to come forward and tell us what they are owed, so we can sort out the mess.”
Fintag says My problem no more. But my heart goes out there to those stuck in the mire of a PWC fee frenzy. PWC should be renamed to Parasitic Wasters Collective.
AUSTRALIA RAISES BENCHMARK INTEREST RATE TO 3.25% - - FIRST G-20 CENTRAL BANK TO HIKE; ECONOMISTS SEE SUBTLE SHIFT TO MONETARY TIGHTENING
Australia's central bank on Tuesday raised its benchmark interest rate 25 basis points to 3.25%, saying it was prudent to gradually take back policy accommodation since the worst danger for the economy had passed. The rate hike coincides with commentary from economists at US investment bank Morgan Stanley, which sees a subtle but undeniable shift underway in the central bank community towards eyeing not only the end of easing, but the beginning of tightening. The Reserve Bank of Australia (RBA) announced its decision in a brief statement today, following its monthly policy meeting, making it the first of the G-20 central banks to hike.
Fintag says Inflation, deflation, who cares. Here comes the hot money - out of the dollar, yen and euro and into nice and Australian bank accounts.
Investors must demand greater risk transparency and use more sophisticated portfolio construction techniques in order to make the most of their investments in hedge funds, according to Ken Phillips, CEO of HedgeMark.
This year Phillips launched HedgeMark, an open architecture separately managed account (SMA) platform for investors in hedge funds.
As part of its service, HedgeMark is giving its clients access to an integrated set of portfolio construction and risk analytics and monitoring tools that Phillips said would help investors to build better portfolios and manage them more effectively.
Funds on the HedgeMark platform are required to provide position level transparency on a weekly basis. HedgeMark has signed a deal with JP Morgan's Measurisk service which will analyse the data and provide investors with regular risk and exposure reports about their holdings.
Fintag says Step by step Hedge Funds are turning into mutual funds. Mind you this managed account platform has Bear Stearns risk system overseeing the risk. Not good.
bloomberg says " Bear Stearns Fund Judge to Weigh Lawyer's Conflict "
Global hedge-fund assets declined 8.5 percent to $1.67 trillion in the first half of 2009, although returns rose, according to HedgeFund Intelligence.
The drop extends last year's decline, when global hedge funds posted record losses, according to the London-based industry research firm. Assets declined about 38 percent from a peak of $2.7 trillion reached during the first half of 2008, the firm said in an e-mailed statement.
Hedge funds had a median return of more than 5 percent in the first half, the statement said. The decline in asset values has slowed since July, HedgeFund Intelligence said. Assets may rise by at least 10 percent by the end of this year, it said. Hedge funds lost 19 percent last year amid the worst market rout since the Depression, according to data compiled by Hedge Fund Research Inc., the most since the Chicago-based firm began tracking returns in 1990.
Fintag says New York - 47% of aum and London has a pathetic 15%. And this ratio is going to get worse for the UK thanks to the FSA and that EU Directive.
dealbook says " Top Cadogan Executives Said to Quit After Talks Stall "
U.S. stocks rebounded today, aided by a rally in financials. Why was the group strong? Because a team of analysts at a well-known Wall Street firm upgraded the large banks sector. And why did they do that? Bloomberg gives us the lowdown in "Wells Fargo, Biggest U.S. Banks Raised by Goldman":
Fintag says I love it. Goldman pump their own stock up by telling the markets that their competitors are undervalued. You couldn't make this stuff up.
finance asia says " Nomura raises $4.4 billion from second share sale this year "
10 comments
anonymous said ...
Dear Finbar,
Good luck in your endaviour
Kind Regards
06 Oct 09 - 09:49 gmt
author of a blog said ...
Hey Fintag now that your semi-retired why not throw wild/lavish parties
06 Oct 09 - 09:57 gmt
anonymous said ...
First at 10am?
06 Oct 09 - 09:58 gmt
MsR said ...
@aoab: He does and they are lavish:so lavish I can't remember anything
06 Oct 09 - 13:28 gmt
author of a blog said ...
@MsR does Fintag frequent the clubs around Mayfair / south Ken?? Might bump into him by chance
06 Oct 09 - 14:55 gmt
anonymous said ...
hey fintag/moron are you seeing this nice melt-up...very painful for you
06 Oct 09 - 16:52 gmt
Moron said ...
i see only what i wish to see...bcos i am above the markets....in my infinite wisdom...now bow before the great master peasants!!!!!!
06 Oct 09 - 18:46 gmt
anonymous said ...
Fintag, in france they have an expression for your situation "you have been put in the closet"
06 Oct 09 - 20:27 gmt
R Kelly said ...
And I took out my GUN!
06 Oct 09 - 21:04 gmt
Moron said ...
mark my words .....in 10 years the dow will still be struggling at 10000.....the western world is over finished kaput!!!!!!!!!!!...........short tis mofo of a market!!!!!!!!
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