baselinescenario.com - 2/26/2009
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There is nothing inherently wrong with convertible preferred stock. In Silicon Valley, for example, venture capitalists almost always invest by buying convertible preferred. The idea is that in the case of a bad outcome, the VCs are protected, because their shares have priority over the common ...
bloomberg.com - 2/22/2009
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bloomberg.com —
Feb. 21 (Bloomberg) -- Bank of America Corp.
Chief Executive Officer Kenneth Lewis , under siege from...
investors on concern the company may be taken over by the U.S. government, said he doesn’t need any more federal assistance and can “make it through ...
(more)
Bank of America’s Lewis Says He Can Go It Alone as Stock ...
chartingstocks.net - 2/20/2009
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chartingstocks.net —
bac77 Citigroup (C) and Bank of America (BAC)
won’t live to see May. The government will take...
them over within the next 60 days. The announcement may come as soon as tomorrow evening. If there’s one thing our readers know, it’s that ChartingStocks.net ...
(more)
Gone in 60 Days: Citi and Bank of America Won't Live to ...
bloomberg.com - 3/2/2009
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bloomberg.com —
March 2 (Bloomberg) -- Pacific Investment Management Co.
was hired to advise the U.S. government on the...
value of $118 billion of assets guaranteed in the bailout of Bank of America Corp. , said two people with knowledge of the decision. Pimco will ...
(more)
Pimco Said to Advise Bank of America as It Raises Debt Funds
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How to fund financial system stablization
interfluidity —
... , have been intentionally back-dated in order to give taxpayers a raw deal. In an astonishing abuse of the customary language of finance, the "convertible preferred" shares the government intends to purchase, in addition to mandatory conversion after seven years, are convertible to common stock at the option of the the banks, rather than at the option of the taxpayers holding the securities . James Kwak unearthed this bit of chicanery in the must read piece of the day . In addition, existing bank shareholders would be protected upon any conversion by "customary anti-dilution ...
links for 2009-02-27
Economist's View —
... How did Japan get lost? - Free exchange
The silence of the keynesian econ-bloggers - Nick Rowe
Words for a Shaken People - Michael Kinsley - washingtonpost.com
Asian success mythology - William Easterly
Nationalizing Citi may be the least-bad option. - Daniel Gross
The
frequent trade-off of "politeness" and "civility"... - Richard Serlin
No, Wait! You Got It Backwards! - The Baseline Scenario
Three links on the deficit at ...
Should Your Tax Dollars Be Spent on Common or Preferred Stock?
Conglomerate —
... . Preferred stock usually doesn't come with voting rights, often comes with a guaranteed dividend, and gets paid first. Here's James Kwak with a nice overview. ...
Lunchtime Links 2-27
Rolfe Winkler —
... No, Wait! You got it backwards! (Baseline Scenario) A great tutorial on Treasury’s new “Capital Assistance Program.” ...
the daily eastern europe update
Decline and Fall of Western Civilization —
... Treasury is constructing an elaborate transfer mechanism through which big banks can be kept in business, thanks to the public purse, without the taxpayer acquiring a majority of the common stock. The contortions required are striking. But this entire approach is predicated on a rosy stress scenario, which assumes the global economy cannot get much worse, at least in the short run. ...
Related Content
Bank of America Goes Public on Back Door Politics of Merill Deal
economicdiscourse.com 2/5/2009 — Bank of America broke the critical $5/per share level today on renewed concerns about their financial stability. The markets are fearing the worst, and as the ship begins to sink, new information on the politics of the merger are beginning to bubble up. Bank of America is essentially declaring ...
Did Bank of America Mislead Investors?
dealbook.blogs.nytimes.com 1/16/2009 — Bank's of America's not-so-surprising announcement on Friday that it is being bailed out by the federal government because of excessive losses at its new Merrill Lynch subsidiary raises a number of questions. The most significant of these is what did ...
More on Bank of America
baselinescenario.com 9/28/2009 — Last Wednesday I wrote a highly critical post about the agreement between Bank of America(BAC) and the government (Treasury, the Fed, and the FDIC) to terminate BAC’s asset guarantee agreement in exchange for a payment of $425 million. I’ve learned some more about this and I think ...
Ken Lewis, the Master Government Negotiator
dealbook.blogs.nytimes.com 5/15/2009 — Bank of America's Kenneth Lewis has made some questionable private deals, but he is a master at negotiating with the government and leveraging a weak hand to cover his missteps, The Deal Professor says.
Bank of America: Growth Takes a Back Seat
blog.ockhamresearch.com 5/12/2009 — Bank of America ( BAC ) has undoubtedly been one of the most active stocks in the market over the last couple of weeks. Last week alone, the bank’s stock was up more than 60% after results of the stress tests revealed that the bank will need to raise as much as $34 billion. It was ...
Bank of America Threatens Fed, Demands More Cash From Taxpayers
globaleconomicanalysis.blogspot.com 1/16/2009 — Bank of America fell a whopping 18.43% today, hitting a new 52 week intraday low of $7.35 on concerns it is not going to easily be able to digest the merger with Merrill Lynch. I suggest Bank of America has easily bitten off more than it can chew and ...
Opportunities in Bank Bonds, Part 2
alephblog.com 3/12/2009 —
Thinking about Citigroup and Bank of America — Given to Fincorp Clients 3/4/09
When the government gets involved in business, the rules of the game change. Creditworthiness becomes less of an “analyze the metrics” affair, and more of a “how strong of a guarantee” affair. ...
In Bank of America Mess, Whither Wachtell?
dealbook.blogs.nytimes.com 10/16/2009 — Deal Professors Steven Davidoff and Peter Henning mull over the potential dilemma facing Wachtell, Lipton, Rosen & Katz after Bank of America agreed to waive its attorney-client privilege for documents related to its Merrill Lynch deal.
No Sleep for Citi —
The Big Money 2/23/2009
The prospect of Uncle Sam nationalizing the country's most vulnerable banks is once again the big concern today as The Wall Street Journal reveals Citigroup is seeking more federal backing to cushion against the blow of further mortgage-related ...
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