Financial plan won’t include “bad bank”

According to a report on Reuters, the new “TARP 2.0” bailout package won’t include a provision for a “bad bank”. A so called “bad bank” is an idea that has recently been floated.  In effect, the bad bank would buy up all the toxic crap from other banks, leaving them with nice clean balance sheets.  […]

Bank of America going down?

Just ran across this while taking a quick scan of the news headlines before going to bed.  The headline on CNN says “BofA may need billions for Merrill“. In reading the story, I saw this nugget: Bank of America, which had been viewed as one of the strongest banks in the country, may be buckling […]

Benanke is looking for a big rug

“Helicopter Ben” Benanke gave a speech yesterday (Jan 13th, 2009) at the London School of Economics. You can read the whole text of it here if you’d like. I’d like to comment on part of the speech near the end, where Bernanke says this:  Public purchases of troubled assets are one possibility.  Another is to […]

The return of Mark to Myth

Want to know the real reason financial stocks rose so much today?  The SEC loosened the accounting rule called “Mark to Market” today.  This accounting rule is blamed for the financial problems of banks and other financial institutions, because it requires companies to value assets on their books at the price they could actually bring […]