Tag:

toxic assets

Latest Headlines

Latest Headlines

Goldman prioritizes toxic assets over dividends

When it comes to dividends, Goldman Sachs seems to be thinking a bit differently than other Wall Street firms. It is stocking up cash and near-cash securities--to the tune of $170 billion in excess capital--to be able to move quickly when it sees toxic assets at the right price, reports the

PPIP update: Market recovery complicates starts

We've gotten used to some government-run programs getting off to a slow start. So we shouldn't be shocked that the PPIP, the public private investment program, isn't exactly storming out of the gate. That doesn't mean it will not eventually be successful.  The issue seems to be the recovering

Bank/auditor relationship a bit testy these days

When it comes to bank audits--at banks small and large--the bean-counters are taking an even more conservative tack than usual, which has forced more than a few to restate earnings. The Los Angeles

Should TARP banks be buying toxic assets?

Big banks accepted TARP funds to help them deal with the losses stemming from their illiquid portfolios of toxic assets. Now, some of them also want to buy some of those very same assets via the taxpayer-funded PPIP program. To some politicians, this amounts to raw absurdity. One senator, Spencer

The essence of the toxic asset plan

In a nut shell, the Treasury's plans to ease toxic assets off the books of big banks will require private investors to put up some equity that will be matched by the government. That provides a down payment of sorts. The rest of the funds to buy assets will come in the form of non-recourse loans f

Government to tackle thorny valuation issue

In the bailout mania that has engulfed the industry, one of the thorniest questions has been how the government--or anyone else--can accurately value toxic securities. Many thought the reason Paulson's Treasury gave up on its original idea to buy securities directly was because of valuation challe

Valuation resurfaces as the 'big issue'

It seems we've come full circle. Back when the Treasury was first formulating its buyout plans, it appeared bent on buying up toxic assets. That lasted all of about a month, as it became clear that running a massive bond management operation wasn't going to be feasible, though some big name firms

The real reason JP Morgan Chase bought Bear Stearns?

Here's an intriguing thought on why JP Morgan Chase  bought Bear Stearns : because it had to. Seeking Alpha  notes that the idea make sense when you consider that JP Morgan Chase's credit exposure to capital ratio hovers around 50 percent (a lot of which is in derivatives), which is qu