Posts Tagged ‘WaMu’

Goldman’s Hit List: Bear, Moody’s, NatCity, PMI, WaMu And Capital One

Goodfellas’ Hit Scene 

 

Goldman’s Hit List: Bear, Moody’s, NatCity, PMI, WaMu And Capital One

Courtesy of Tyler Durden

As Bruce Krasting disclosed yesterday, Goldman’s Josh Birnbaum "slipped" when disclosing the firm’s prop equity positions, in listing the companies his firm was actively shorting. We hope none of these were naked shorts as that would not reinforce the case of prudent risk management by Goldman’s discount window-accessible hedge fund (in other words, the entire firm). Today, via the full exhibit list, we learn that in addition to Bear Stearns, in July 2007 the firm, via Josh, was also actively shorting a variety of other mortgage-related firms at the Structured Products Group via puts, which in addition to Bear, included Moody’s, National City, PMI, WaMu, and Capital One. The firm only had a micro S&P long offset. As the list demonstrates, the firm had a big delta short in fins offset with no financial longs, thus refuting Josh’s testimony that this was a "hedge" when in reality this was nothing than a directional short bet on fins. What is more troubling is that Josh was planning on expanding the list to a whole slew of other firms, and specifically competitors, most of which eventually going under: including Lehman, Merrill, and Morgan Stanley.

We are confident that sooner or later AIG made the list, if not so much on the equity short side, as long CDS. If anyone wants to make the conspiratorial case that Goldman may have had the upper hand on these firms by knowing their liquidity situation and profited from it by shorting them as each bank in turn experienced a bank run, this could be a good place to start. It also begs the question if Dodd’s worthless bill has anything to see about predatory practices by Wall Street firms which actively short each other, potentially leading to a destabilization of the system.


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The FDIC Takes on JP Morgan

The FDIC Takes on JP Morgan

Courtesy of Jr. Deputy Accountant 

 

Did JP Morgan really think WaMu was going to go down without a fight?

If you believe what some of us believe, WaMu was a murder. In broad daylight. Now it’s starting to look like JP Morgan should have considered its potential prey more carefully.

Now wait a second, not that long ago Washington Mutual, JP Morgan, and the FDIC had reached this cozy little settlement whereupon JPM would give up the $4 billion in WaMu deposits it was holding hostage (easy) and in return would receive $6 billion in "other" assets which could probably be your crap mortgages and other risky bullsh*t. WaMu’s bankrupt parent was supposed to get $2 billion in tax breaks, with $1.5 billion in refunds (on top of that) due to the FDIC. This satiated WaMu’s thirst for JP Morgan’s ass[ets] but apparently the FDIC isn’t happy with the deal. Run, WaMu, run! It’s JP Morgan’s problem now!

WSJ:

The Federal Deposit Insurance Corp. backed away from its support for a $1.4 billion tax break benefiting J.P. Morgan Chase & Co., setting up a battle between the regulator and the nation’s second-largest bank.

The tax benefit stems from J.P. Morgan’s acquisition of Washington Mutual and is part of the bankruptcy proceedings of the failed Seattle thrift’s parent company. Washington Mutual is eligible for $2.7 billion to $2.8 billion in refunds based on a 2009 economic stimulus bill that allowed companies to apply losses from 2008 and 2009 against taxes paid in the previous five years…

[Holders of Washington Mutual Bank bonds have been arguing J.P. Morgan should be denied any refunds because of the government aid


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Truth is Stranger than Fiction

 

Truth is Stranger than Fiction

Courtesy of 

Imagine Jamie Dimon made a killing shorting J.P. Morgan stock during the Great Financial Recession? And imagine he didn’t get in any trouble for it?

This actually happened 90 years ago at Chase Manhattan Bank, while Albert Wiggin was at the helm. This story was marvelously told in Once in Golconda, by John Brooks.

...

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Zero Hedge

National Economic Disparity Could Spell Political Shifts

Courtesy of ZeroHedge. View original post here.

Authored by Ben Isaac via Free Market Shooter blog,

In the years following the housing crash of 2008, most local housing markets have made a full rebound from the dire straits that befell a huge portion of the population and took the economy with it. Many markets are now even stronger than they were in that time. The recent tax deductions passed by Congress and signed by ...



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Insider Scoop

PayPal's $2.2-Billion iZettle Acquisition Reassures A Sell-Side Bull

Courtesy of Benzinga.

Related PYPL Cantor's CoinDesk Consensus Conference Takeaways The Key To A Successful Fintech Partnership ...

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Chart School

Bulls Step In - Easing Bearish Concerns as Small Caps Breakout

Courtesy of Declan

Monday offered the bearish doji / swing high set up which had looked like it was going to create the 3-day bearish evening star set up across markets; this pattern did present itself Tuesday with the gap downs but today (Wednesday) saw rallies which were enough to close these gaps but not enough to negate the 'bearish evening star' setups. However, the bearish 'evening star' is typically a reliable setup and the lack of follow through lower suggests more upside is to come

The S&P had its breakout last week with supporting technicals all bullish, with the exception of relative performance. Despite this, look for a continuation of this rally.
 

...

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Biotech

Studying poop samples, scientists find clues on health and disease

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Studying poop samples, scientists find clues on health and disease

Though examining poop samples scientists working on the American Gut Project are getting a new perspective on the microbes in our guts. By Christos Georghiou/Shutterstock.com

Courtesy of Daniel McDonald, University of California San Diego

Have you ever wondered what’s going on in your poop? Perhaps not. But thi...



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Digital Currencies

HSBC Completes First Trade-Finance Deal Using Blockchain, Opening $9 Trillion Market For Mass Adoption

Courtesy of ZeroHedge. View original post here.

Just a few hours after German online bank Bitbond announced it now allows users to transfer loans anywhere in the world using bitcoin and other cryptos, a move which we said would result in a rapid adoption of blockchain technologies within the bank-disintermediation space, the FT reported that in a somewhat parallel ...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

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All About Trends

Mid-Day Update

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Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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