Blog Roll — Coming Up Short
Posted by MarketBeat Staff
The upshot of the SEC’s ban on naked shorting was to get the 19 protected stocks, as of yesterday at least, back to their combined market cap on March 19, the day J.P. Morgan and the Fed bailed out Bear Stearns, FT’s Alphaville notes. “Though the hedgies complained predictably, few were expecting the ban to do much other than increase transaction costs and paperwork,” FT writes. “It will be interesting to see then, what happens to the financials at U.S. open today.” All are currently lower right now. – Paul Vigna
“Remember Merrill’s dumping of mortgage products to Lone Star for 22 cents on the dollar? It is now coming home to roost at the rest of the banks,” Todd Sullivan writes at ValuePlays. Bankers say July was the worst month for mortgage-backed bonds since the beginning of the credit crisis, as a combination of cut-price sales and waning demand from large investors hurt prices, Sullivan says. “This is the problem with ‘mark to market’ accounting when the market is so dislocated,” he says. “Mark-to-market is exacerbating the current banks problem because it is forcing actions that without it in the extremity of the current market, would not be necessary.” –Steven Russolillo
Blogs We’re Reading:
Ft Alphaville
Value Plays
Naked Capitalism
IndexUniverse
DealBreaker
Permalink | Trackback URL: blogs.wsj.com
Save & Share: Yahoo! Buzz| Share on Facebook | Del.icio.us | Digg this | Email This | Print
Read more: Blog Roll
Comments
Report offensive comments to marketbeat@wsj.com
PV, oh the shame of the control of greed, is (IT) not just a great way to run an old rail road into the ground in search of the “ABYSS”… where is Craming Cramer’s Bottom… NOW! I think it wraping todays fish catch or is (IT) like shooting fish in a barrel… YUP!
Comment by "What (underwater) Fortress (Fish)... sounds more like the Fed and Treasuary to me... YOU THINK!" - August 13, 2008 at 11:11 am |
