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Bad Bank? Bad Idea
While President Obama's proposal to enact a massive fiscal stimulus package is working its way relatively quickly through Congress, a government plan to get the nation's banks back on their feet seems to have stalled. Some experts believe that the federal government should buy all the "toxic assets" on financial institutions' balance sheets and transfer them to a so-called "bad bank," while others have suggested it would be enough to bail out just four of the country's top-tier banks. The idea ...
The Bad Bank Assets Proposal: Worse Than You Imagined
nakedcapitalism.com — Dear God, let's just kiss the US economy goodbye. It may take a few years before the... loyalists and permabulls throw in the towel, but the handwriting is on the wall. The Obama Administration, if the Washington Post's latest report is accurate, is ... (more) The Bad Bank Assets Proposal: Worse Than You Imagined
Bank Stress Testing: Less Than Meets the Eye
nakedcapitalism.com — We are supposed to be impressed with the speed and scale of government action on the bank... front. As reported in the New York Times : Nearly 100 federal banking regulators descended on Citigroup in New York on Wednesday morning. Dozens more fanned ... (more) Bank Stress Testing: Less Than Meets the Eye
Soros: Doing Better Than a 'Bad Bank'
online.wsj.com — GEORGE SOROS The Obama administration should come out of the gate with a comprehensive economic program that... has two pillars in addition to a fiscal stimulus package. One would prevent housing prices from overshooting on the downside by making ... (more) Soros: Doing Better Than a 'Bad Bank'
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Wednesday links: high water markdowns
Abnormal Returns — ... lead to better portfolio diversification.  (SSRN.com) Just how little can you pay in expenses for a globally diversified ETF portfolio?  (IndexUniverse.com) Modeling the term structure of inflation expectations.  (Alea) The bank rescue plan is coming together.  Should it advance in its current form?    (WashingtonPost.com also The Big Money, Big Picture, Baseline Scenario ...

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Bad Bank/Worse Bank
accruedint.blogspot.com 2/3/2009 — So what do we think of Geithner's Bad Bank idea? Is this the solution that will finally fix the economy? Will this mark a Bottom (tm)? First of all, the universal bad bank idea is much better than how the TARP is currently being utilized, namely ...
More on the bad bank
krugman.blogs.nytimes.com 1/18/2009 — OK, I've been doing more homework on the "bad" or "aggregator" bank idea that seems to be gaining ground. And here's what I think: it's mainly based on a false analogy. What people are thinking about, it's pretty clear, is the Resolution Trust ...
Bad Bank Resurrection
optionarmageddon.ml-implode.com 3/9/2009 — The Bad Bank plan just won’t die; instead it gets recycled in ever-more complex jargon that confuses everyone. Late last night the Obama administration leaked new details of Geithner’s “private-public” partnership plan ...
Editorial: A profoundly bad idea; you can bank on it
ocregister.com 1/27/2009 — Nationalizing banks would be even worse than the government's current foray into finance
Bad bank bafflement
krugman.blogs.nytimes.com 1/18/2009 — The idea of setting up a “bad bank” or “aggregator bank” to take over the financial system’s troubled assets seems to be gaining steam . So let me go on record as saying that I don’t understand the proposal. It comes back to the original questions ...
The Bad Bank: We're only going to have one shot at this
accruedint.blogspot.com 3/12/2009 — I've written several times about the Bad Bank plan . I believe its critical to restoring confidence in our financial system, and while I don't expect it to " fix " the recession, I do think its a necessary ingredient to the U.S. economy finally moving ...
Good Bank, Bad Bank by Dr. Seuss
thereformedbroker.com 1/29/2009 — Good Bank Bad Bank Wood Bank Fad Bank Red Bank Blue Bank  ...
‘Bad Bank’ versus ‘Insurance Wrap’
ritholtz.com 2/5/2009 — Some people are suggesting that the bad idea of a bad bank is gaining momentum in the Obama administration; Others are suggesting that an insurance wrap around the toxic assets is the better approach: “The Obama administration, aiming to ...
Citigroup: Bad Bank to Create Bad Bank
paul.kedrosky.com 11/30/2008 — I know it isn't precisely what this headline means -- "bad bank" is a euphemism in bailout circles for walling off from one another functional and non-functional parts of banks -– but I still like this headline from the WSJ today. To ...
The Bad Bank won’t die
optionarmageddon.ml-implode.com 3/23/2009 — Two weeks ago OA wrote about Geithner’s “public-private partnerships” as essentially a resurrection of the bad bank plan. The asset side of banks’ balance sheets are so tattered, injecting more equity on the right side in ...