No SEC models take into account “the possibility that secured funding, even that backed by high-quality collateral such as U.S. Treasury and agency securities, could become unavailable.”
Prepared remarks to the Senate Banking Committee by SEC Chairman Christopher Cox in U.S. regulators say Bear collapse showed weaknesses
“Nobody would argue that the lifting of the uptick rule has much to do with the credit crisis. But the astonishing collapse of Bear Stearns makes one wonder if the rule would have slowed its eventual demise.” (Deal Journal) ...
Unfortunately, there will be a brief delay in service while I dry off my undergarments and descend into the plateaued euphoria of the newly minted Icahn Report.
Louise Bagshawe repeats what is becoming quite a common theme in the Westminster village - that David Miliband is not acting like the next Labour leader. There might be a good reason for this - there’s not much point being...
They still believe The classic definition of a gaffe is when someone accidentally tells the truth. Phil Gramm committed a slightly different sin: he accidentally said what he, and most of the conservative movement, really believe. What you have to ...
Just in time to avoid the aftermath of the dreadful Merrill results, I'm off on holiday. (Although it's worth noting that the shares "sinking" 9% in after-hours trade only brings them back to where they closed yesterday.) There won't be ...
Comment and Analysis in Friday's FT, Analysis: America braces itself for a second dip The economy is in increasing danger of deteriorating again later this year. While there have been occasional glimpses of hope, negative forces intensified over the past ...
Mouarf... Et sinon, pour tout le reste, je suis plutôt mitterrando-chiraquien. Qu'est-ce qu'on rigole l'été......
contact
jck [at]
aleablog [dot] com
© 2008 Alea | Powered by Wordpress
April 5th, 2008 at 11:48 am
I think again this gives a pretty good indication of how Bears went under. Agency spreads over Treasuries widened, allowing European banks to demand other collateral than Agencies be put up. Bear didn’t have it, the Fed facility to swap Agencies hadn’t begun yet, so Bear didn’t have enough of the right liquidity, i.e. Treasuries.