Posted on August 07, 2012
“The new General Motors Co. (GM) could be undone by a lawsuit that pits general creditors against hedge funds including Elliott Management Corp. and Fortress Investment Group LLC (FIG) over $3 billion, the car company said in a lawsuit that went to trial today...
Posted on July 31, 2012
“As the LIBOR scandal continues to encircle global banks, an All-American version of banks manipulating a key lending rate may be unfolding.
The municipal bond industry’s self-regulator the Municipal Securities Rulemaking Board is “concerned about the transparency” of the Municipal Market Data (MMD), a benchmark rate for state and local government debt, The NY Times reports...
Posted on July 25, 2012
Congress is investigating whether regulators (specifically, teh New York Fed) did enough to protect the public when it discovered that some were mis-stating interest rates to boost the bottom line.
“But Mr. Geithner on Wednesday also acknowledged that he did not alert federal prosecutors to the wrongdoing...
Posted on July 19, 2012
Individuals in Chapter 7 can discharge old debts, with exceptions. One exception to the discharge is listed under section 523(a)(2)(A). Specifically, credit obtained by a false representation is nondischargeable in bankruptcy. However, an exception (to the exception) actually allows for the discharge of the debt if the misrepresentation is considered [...
Posted on July 16, 2012
The LIBOR scandal is huge and not over and not getting much press.
Here is an interview which is very informative on the LIBOR scandal: http://finance.yahoo.com/blogs/daily-ticker/libor-scandal-huge-eliot-spitzer-132610929.html
Posted on July 11, 2012
“San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million [...
Posted on July 10, 2012
“The LIBOR-rigging scandal that has engulfed London in the past week is now lapping at America’s shores.
On Monday, an oversight panel of the House Financial Services Committee sent a letter to the New York Fed asking for transcripts of phone calls between Fed officials and Barclays (BARC...
Posted on June 28, 2012
“Losses on JPMorgan Chase?s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.
“When Jamie Dimon, the bank?s chief executive, announced in May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could [...
Posted on June 27, 2012
In what is no doubt a trend for things to come, the city of Stockton California has filed for bankruptcy. There is a specific chapter of the Code for cases like this: chapter 9.
“Stockton’s city council voted six to one in favor of the 2012-2013 budget after a contentious five-hour meeting where angry retired [...
Posted on June 14, 2012
One billion a day…. “Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro.
Bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said [...
Posted on June 01, 2012
US May sales are up and up for car makers. Chrysler is up 30%, Ford up 13% and GM 11%. I will now make the bold prediction that within 1 year, at least 3 manufacturers will no longer sell new cars in the US. I am thinking: Mitsubishi, Susuki and I hope not Mazda! PS [...
Posted on May 31, 2012
?Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.
Spain is the next country in the firing line of the euro zone’s debt crisis, with spendthrift regions and shaky banks threatening to [...
Posted on May 25, 2012
“Today is like 2000 and 2007, only more dangerous. We are not tentative….We did not have the “Great Recession” that is over, we are in a depression. We did not just start a multi-decade bull market, we are ending a bear market rally…...
Posted on May 23, 2012
Long time readers know that I read various publications by the folks at The Elliott Wave. Their recent Finanical Forcast has the following observations about the recent IPO of Carlyle group which matches the IPO of KKR and Blackstone group, all done at tops of the markets: “Still, the launch of a third private-equity [...
Posted on May 14, 2012
“In the filing, the company said it started exploring strategic alternatives including a sale in January. The following month, it enlisted the help of Morpheus Capital and Advisors LLC to help it find new equity investors or sell the company, the filing said...
Posted on May 11, 2012
“Let Greece go. It’s a possibility that’s being considered more and more publicly in Europe.There have been two and a half years of bailouts and broken promises by Greece to reform. The result: a fifth year of recession and, this week, political chaos...
Posted on April 18, 2012
A city official with a new 2 million dollar motor home might have given it away!
“The chief financial officer of a small Illinois city — a woman who had a lavish lifestyle that included a $2.1 million motor home and a horse farm — is under arrest, accused of embezzling $30 million from the city...
Posted on April 11, 2012
CHICAGO (CN) - Former Chicago Bears quarterback Jim McMahon is one of nine former directors and officers of Broadway Bank the FDIC sued in Federal Court, claiming reckless lending led to the bank’s collapse and cost the FDIC $104 million. The Federal Deposit Insurance Corp...
Posted on April 09, 2012
FORT LAUDERDALE, Fla. ? Former NFL star Warren Sapp owes more than $6.7 million to creditors and back child support and alimony, according to a Chapter 7 bankruptcy filing in South Florida.
Sapp?s $6.45 million in assets includes 240 pairs of Jordan athletic shoes worth almost $6,500, a $2,250 watch and a lion skin rug worth [...
Posted on April 04, 2012
Here is a link to an Interview with Robert Prechter: Forecasting the Presidential Election.
Robert Prechter talks to Fox Business News host Neil Cavuto about his latest research on how social mood affects presidential re-election bids. In the interview, he reveals what is the most reliable indicator in predicting incumbent re-election.
Posted on April 02, 2012
Strange but true, how ?Door Closing? statutes can affect you
Many States including Texas have ?Door Closing? statutes. Texas? statute is T.B.O.C. § 9.051. These provisions restrict foreign entities that: 1) are required to register and 2) have failed to register, from maintaining an action in a court of that state...
Posted on February 27, 2012
Here is a great article for understanding a difficult subject:
“A Primer: Understanding Derivatives
Heidi is the
proprietor of a bar.
She realizes that a good deal of her customers are
unemployed alcoholics and, as such, cannot afford to have all the drinks they
would like to have at her bar...
Posted on February 21, 2012
Dow tops, it is time to sell.
Quote: The Dow Jones Industrial Average pierced the 13000 level for the first time in
almost four years, but traded largely below the mark and ended the day in
The Dow broke 13000 before noon on Tuesday and a handful of other times
throughout the day, but ended the day [...
Posted on February 08, 2012
Entourage star Gary Busey has filed for
The 67-year-old actor submitted documents in
California yesterday, according to celebrity website TMZ.
Despite starring in more than 70 movies over
his career, the actor has less than $50,000 to his name and owes more than
$500,000 in various debts, the court papers show...
Posted on January 30, 2012
Would one list this topic under: biting the hand that feeds you? or: how to take bailout money without looking like a peon and thus lessening your grip on power?
“Greece?s finance minister angrily rejected a German plan for the eurozone to impose a budget overseer onto Athens in return for a new ?130bn bail-out, saying [...
Posted on January 16, 2012
In what is something of a pattern, the most wealthy have been known to “lose it all” and file for bankruptcy protection. This is happening now in Ireland. This can happen if that person’s “wealth” is mainly on a balance sheet, made up of illiquid assets or stock in a volatile company or is based [...
Posted on January 06, 2012
In a recess appointment, President Obama thwarted the Republicans who have successfully blocked the appointment of Richard Cordray to direct the consumer protection bureau set up in part by Professor Elizabeth Warren. The opposition to the appointment is less about Cordray’s qualifications and more about opposition to the bureau itself, according to reports...