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Citi hopes support Asia stocks but China weighs
Wall Street jumped 6 percent in heavy volume overnight, helped by Citi and comments from an influential U.S. congressman that rules against short selling stocks may be re-implemented in a month.
Asia's equity rally by comparison tempered, as questions remained about the nature of Citi's profits.
"With the U.S. government still examining ways to stabilize the bank if needed, we remain somewhat skeptical and are wary of the rally we have seen today in the equity markets which reminds us of the previous rounds of DEAD CAT BOUNCES we have witnessed," economists with United Overseas Bank in Singapore said in a note.
For Real...and it damm well better fold-up into a Briefcase!!!
I like it though, I'm still wanting my flying car though, they are about 9 years behind schedule.
New 'Bear Trap' for Markets: Credit Is Tightening Again
While Wall Street enjoys its relief rally Tuesday, stocks face looming danger from a familiar foe: tightening of credit.
Several metrics that market analysts use to gauge the availability of credit have been signaling trouble in recent days, throwing up a caution flag that tougher times could lie ahead for the availability of cash.
That's a formula that always spells trouble for investors.
"Unless we start seeing a reversal of the widening of a lot of these credit spreads, any equity rally is going to be short-lived," says David Lutz, managing director of institutional trading at Stifel Nicolaus. "Unless the credit markets are cooperating, it's going to be very hard for equities to rise."
Can anyone say...Details???
Geithner May Use Capital Injections to Help U.S. Banks Sell `Bad' Assets
March 11 (Bloomberg) -- The Obama administration plans to use capital injections as an incentive to get U.S. banks to sell distressed securities to investors.
The private investors will also get federal loans to buy the assets, in a two-pronged strategy intended to revive trading in mortgage-backed debt. Treasury Secretary Timothy Geithner said in an interview with PBS’s Charlie Rose show yesterday “it requires making sure there’s capital available to the system, that these banks have the incentive to start to move this stuff, that there’s a mechanism available” to finance investors.
“In conception, it’s reasonably well designed; the question is in the execution,” said Randal Quarles, a former Treasury undersecretary who now works at the Carlyle Group in Washington. “There are a lot of details that remain to be worked out in pushing things in these two directions.”
...And I got up for this!!!
Citigroup, Bank of America Bondholders May Be Next to Share Bailout Pain
March 11 (Bloomberg) -- Citigroup Inc. and Bank of America Corp.’s bond prices are sliding on concern that owners of debt issued by U.S. financial firms will be forced to swallow losses if the industry needs another bailout.
U.S. bank debt has lost 7.8 percent and yields have jumped to record levels compared with benchmark rates in the past month, even after taxpayers committed more than $11.6 trillion to prop up financial firms. With shareholders almost wiped out at banks like Citigroup and lawmakers resisting more rescues, holders may be asked to swap bonds for new debt that offers reduced interest rates or lower face values, analysts said.
“The bond market is getting more scared every day,” said Gary Austin of PDR Advisors in Charlotte, North Carolina, who manages $450 million in fixed-income securities. “At some time, the government is going to say enough is enough, the only way we will give you more cash is if the bondholders have to be hit.”
UBS Has $18 Billion Loss for 2008, Wider Than Reported, on U.S. Settlement
March 11 (Bloomberg) -- UBS AG posted a 20.9 billion Swiss franc ($18 billion) loss for 2008, more than initially reported, after including costs for a settlement with the U.S. Department of Justice and valuation adjustments on securities.
...Does this ever stop!!! DANG!!!
Japan's Regulator `Pulling Out All Stops' on Loans to Avert Bankruptcies
March 11 (Bloomberg) -- Japan’s financial regulator will make unprecedented inspections of banks to avert a loan drought that would increase bankruptcies, as real estate manager Pacific Holdings Co. collapsed after failing to raise funds.
The Financial Services Agency will visit Japan’s biggest lenders including Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. and examine their records to ensure they provide credit and don’t force borrowers to repay loans early as the recession deepens, the regulator said yesterday.
“The new measures include some drastic steps which leave the impression the agency is pulling out all the stops,” said Shinichi Ina, an analyst at Credit Suisse Group AG in a report. “It underlines the government’s commitment to avoid bankruptcies.”
Originally posted by Hx3_1963
Yeah this isn't over yet...Seattle Fed Regional Bank was going to or did default earlier today...
...Alrighty then...I must be a glutton fer punishment to keep looking at these...
Citigroup Will Have To Sell More Assets: Whitney
Citigroup will have to sell more of its assets to stay in business, well-known banking analyst Meredith Whitney told CNBC Tuesday.
Whitney made her comment after being asked about Citi's Chief Executive Vikram Pandit saying he was confident about the troubled bank's survival prospects.
"Citi's capital position is stronger relative to how it was," said Whitney. "But I wouldn’t call it strong."
Whitney, who is founder of Meredith Whitney Advisors, said that the bank has exposures across the board and said that "I'm not optimistic about them."
"Trillions of dollars of loans have been mispriced by Citi", said Whitney. "By my math, they don’t make money in any of their businesses."
Whitney says Citigroup [C 1.45 0.40 (+38.1%)] will be forced to sell their "crown jewels" if they are going to get any more bailout money from the government. "They're going to have a 'yard sale.' They will be a smaller and less of an international business going forward," says Whitney.
The head of the civil service, Sir Gus said the handover to President Barack Obama's administration was severely hindering preparations for next month's G20 summit.
In an extraordinary blunder, the usually-guarded Sir Gus said no-one in the U.S. Treasury department was answering telephone calls.
He said it meant the Government was finding it 'unbelievably difficult' to hold discussions ahead of the meeting of world leaders in London.
Even though the world was in the grip of the worst economic crisis in decades - top of the G20 agenda - Number 10 was having trouble getting in touch with key personnel, said the Cabinet Secretary.
'There is nobody there,' he told a civil service conference in Gateshead.
'You cannot believe how difficult it is'
"Some bankers say the conditions have become so onerous that they want to give the bailout money back. The list includes small banks like TCF Financial of Wayzata, Minnesota, and Iberiabank of Lafayette, Louisiana, as well as giants like Goldman Sachs, Wells Fargo and U.S. Bank in San Francisco. They say they plan to return the money as quickly as possible, or as soon as regulators set up a process to accept the repayments."