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Lone Star Funds
Latest Headlines
Latest Headlines
TARP reversal hits Citigroup
While we have voiced support for the change in how Troubled Asset Relief Program (TARP) funds will be used, it's fair to say that the news is not good for all banks. Case in point: Citigroup. By one report, Citigroup had $80 billion in toxic securities that might have been sold to the government.
Valuations are the big issue in bailout
Let's say that the government agrees to some sort of bailout. At some point, the RTC-like entity will use taxpayer money to buy distressed securities. And therein lies the big challenge. How do you value the securities? It's a bit like an IPO. Price it too high--and the buyers (taxpayers in our ca
Bank of America to succeed where Citi failed?
What more can be said about Bank of America? In one deal, it has re-created itself as a megafirm. It looms as a superpower across many key business lines: retail banking, retail brokerage, wealth management, investment banking and all institutional businesses. (Granted there is no major insura
Man in the middle: Ken Lewis
The CEO of Bank of America is not shy about laying big bets, despite the conservative image he wants for his bank. People have been saying for a while now that the Countrywide deal would be his legacy. Now it appears that the Merrill Lynch deal will be. Lewis is buying on the dips, not unlike so m
Lehman Bad Bank idea a bad one?
Lehman's announcement that it would spin off a bad bank was widely expected, and to many it seemed like a reasonable move. But not so fast. The issue of how the bad bank will be financed long-term has come up, of course. Breakingviews says until Lehman can spin off the bad bank, it assumes lia
A look at Merrill's deal on CDSs
We've heard a lot about how Merrill Lynch's deal with Lone Star valued its collateralized debt obligations at 22 cents on the dollar--and the implications that it might have for Citigroup and others that will likely try to offload their portfolios. The New York Times takes a look at another Me
More certainty on toxic credit valuations?
The truth hurts; at least it can when it comes to valuations of structured credit products. We're seeing a host of activity these days that seems to be placing a more realistic valuation on certain mortgage-related securities, notes the Financial Times . The sale of various residential mortgage
Merrill Lynch's deal-making prowess at issue
Merrill Lynch has been beaten up profoundly in the press. Most of the criticism has been pointed at John Thain's several pronouncements that the firm's capital position was solid, which seemed to always precede major capital moves. Now another source of criticism is emerging: his deal-making p
Lehman in talks with BlackRock again
Back in June, it was reported that Lehman Brothers was in talks with BlackRock about various mortgage-related securities. No deal ever emerged. Now comes word from CNBC that the two are once again in talks. It may be that Lehman Brothers is yearning for a Merrill Lynch-like deal to get rid of
Lehman Brothers in need of massive surgery?
"When gangrene strikes, amputation is sometimes the only sure remedy. Lehman Brothers may need to lop off two limbs." So says Breakingviews. All the attention was being paid to Fannie and Freddie and then Merrill Lynch has taken the spotlight off the firm. Which must be a relief. But the r
