Friday, April 9, 2010

Repo 105 Etc.


Big Banks Mask Risk Levels Quarter-End Loan Figures Sit 42% Below Peak, Then Rise as New Period Progresses; SEC Review

A group of 18 banks—which includes Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. and Citigroup Inc.—understated the debt levels used to fund securities trades by lowering them an average of 42% at the end of each of the past five quarterly periods, the data show. The banks, which publicly release debt data each quarter, then boosted the ...

Zero Hedge:
click to enlarge

I thought parking trades was illegal. Oh sorry, that's just on the floor.
See my rant on this topic from Feb.18

Greece NOT Unique

The recent hidden swaps that turned up in the Greek portfolio (lol) reminded me a lot of Enron. Or was it B of A? Could of been Citi.  Anyway back in the Enron days I knew that this method of hiding losses could not be unique to Enron. In fact, if Wall Street was pushing such an approach, they themselves had to be well into it just to compete. I mean why just rake in fees on such a creative solution when you could employ it to "free up" capital yourself. Not that you had to of course..
So once again the thought occurs ..Greece probably NOT UNIQUE ......   see  Dubai Not Unique
(from Nov. 30).  I mean why help out just one struggling nation when so many others are equally in need?
 
And  the SP is of course up this morning (for now).


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