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Links: 2009-04-21

BBC NEWS – Detroit’s long road to ruinThis is a fairly good look at what Detroit faces for itself, its schools and its citizens. Very sobering. Jesse’s Café Américain: Break The Big Banks Up, and Let the Insolvent Parts FailThis will only happen in another period of acute crisis. Zero Hedge: Open Letter To The SEC Regarding Wall Street’s REIT […]

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Statements on Capitol Hill by Geithner and Warren

Below you can watch a video clip of Congressional Oversight Chairperson Elizabeth Warren‘s introductory remarks at a hearing today on Capitol Hill. Afterward, Treasury Secretary Tim Geithner responds in a 10-minute open statement.

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Simon Johnson: Too big to fail is “too big to exist”

Simon Johnson, a former IMF Chief Economist, who blogs over at the Baseline Scenario, is testifying before Congress today about ‘Too big to fail’ financial institutions.  Below is a video in which he tells Bloomberg his thoughts on the subject before his testimony. His overall message is that the government needs to deal with the fundamental weakness of banking more […]

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GM and Chrysler to get more bailout money

Apparently the Obama Administration was just bluffing about bankruptcy for the automakers, because when push came to shove, they blinked.  The automakers are to get yet more bailout funds and the dates for restructuring plans hae been pushed back. General Motors (GM) and Chrysler are to get more loans from the US treasury as the troubled carmakers work on plans […]

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Britain gets deflation

An increasing number of countries are recording negative year-on-year inflation numbers. I reported first on Spain, then on Switzerland.  Add the U.K. to the list as well. Deflation returned to Britain for the first time in nearly five decades last month as prices measured by the retail price index (RPI) were lower than the same time a year ago. The […]

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Meredith Whitney: Regardless of stress tests, banks will still need more capital

The Bloomberg video below makes it seem that Whitney believes the stress tests are a sham. She says the tests are a theoretical exercise whereby banks ask: “what will our earnings power be in two years after we sell off these ‘toxic’ assets?” She goes on to suggest that the answer to this question will be a self-serving, upbeat response […]

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Links: 2009-04-20

Willem Buiter’s Maverecon – Remembering Eddie George Willem Buiter recounts some personal tales from the late Bank of Egland Governor’s life. Fujitsu’s Self-Desctructing USB Drive for Leak-Proof Secrets » My Digital Life This is some serious James Bond technology, mate! Heavyweights Kohn,Volcker Spar Over Inflation Goal – WSJ.com By setting 2% as an inflation objective, the Fed is “telling people […]

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Links: 2009-04-19

Nearing 100- Katrina Vanden Hevel, The Nation This is a fairly even-handed look back at Barack Obama’s first months as President and his prospects going forward Financial Innovation for Beginners – James Kwak How the CDS market makes restructurings more difficult – Felix Salmon Richard Bernstein: 10 guidelines learned in 20 years – Prieur de Plessis How Do You Spell […]

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Links: 2009-04-18

Lifehacker – Gmail Adds Suggested Recipients – Gmail The significance of Obama’s decision to release the torture memos – Glenn Greenwald – Salon.com Libor Caps Longest Drop Since November on Bank Gains – Bloomberg.com A.I.G. Chief Owns Goldman Stake Worth More Than $3 Million – NYTimes.com Personal tales: Saved from foreclosure – MSN Money Starwood sues Hilton, alleges corporate espionage […]

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FDIC moves in at Great Basin Bank

From the FDIC website. More information available here: Great Basin Bank of Nevada, Elko, Nevada, was closed today by the Nevada Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Nevada State Bank, Las Vegas, Nevada, to assume all of the deposits […]

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FDIC Friday Night Special: American Sterling Bank

Small banks are going bust at a pretty good clip.  Apparently, there is no free ride for the likes of American Sterling Bank.  Its deposits were acquired by Metcalf Bank as the FDIC took it into receivership a.k.a nationalized it.  But, of course, this process does not apply for big banks.  Their executives get to keep their jobs, their equity […]

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Links: 2009-04-17

Bring In The Antitrust Division (On Banking) « The Baseline Scenario Obama won’t charge CIA interrogators – Josh Gerstein – POLITICO.com Unconscious thought precedes conscious | Incognito | The Economist Bringing up baby bilingually | Twice blessed | The Economist The link between autism and extraordinary ability | Genius locus | The Economist The costs and benefits of home ownership […]

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