thanks...I knew it was a female and we dont have many of those here...
do they have a website?
HiTech...
on the 5 day trin
this market is freaky right now..
the first signal was a buy for the day of the 23rd and we got a BIG run up...so what you see now may just be residual trin and have no effect...
you know what I mean...
I tend to look at it this way...if I didnt get in on the first day for a long..and the first day was the day we had a big run up..then I sit it out as far as that indicator
btw, the trin gave a sell signal for the 17th....and we went down....
like Don said...alot of the technical indicators are causing people to get whipsawed
FOCUS-Fear of wider damage fueled Long-Term
bailout
(New throughout, changes byline)
By Apu Sikri
biz.yahoo.com
NEW YORK, Sept 24 (Reuters) - Long-Term Capital Management LP, plucked from the
brink of collapse by a $3.5 billion bailout, has a six-month reprieve, but with $80 billion in
investments, its survival is not certain and the fallout from its failure could be vast.
''This could start to have a domino effect on U.S. institutions and abroad. There is a real, systemic risk. The Federal Reserve is
clearly worried, that is why they got involved,'' Tanya Azarchs, a director at Standard & Poor's Ratings Group, said.
At least 15 of the world's largest financial institutions put up capital to give breathing space to the 6-year-old Greenwich,
Conn.-based hedge fund at the behest of the Federal Reserve Bank of New York, which hosted the meeting of bankers.
The equity infusion gives banks a 90 percent stake in the fund, run by John Meriwether, former vice chairman and bond trading
chief at Salomon Brothers Inc.
''It is a watershed event. The Fed is pressuring commercial and investment banks to bail out a hedge fund because of concern
about a financial market meltdown,'' said Joan Solotar, securities analyst at Donaldson, Lufkin & Jenrette Securities Corp.
Bankers said this will give other financial institutions time to examine their exposure to Long-Term Capital and work out
amicable arrangements to settle contracts.
Many of the investments held by the free-wheeling hedge fund are in derivatives, complex financial contracts that cannot be
easily bought or sold in the market.
''This will take quite some time to work out, at least six months to a year,'' a banker involved with the negotiations said. A
group of banks will oversee the sale and reorganization of the fund's investments.
Analysts said the impact of Long-Term Capital's problems will vary among banks. Union Bank of Switzerland , a unit of UBS
AG, said Thursday it has already recorded a loss of $685 million from its direct stake in Long-Term Capital.
Other banks could face losses from loans to the hedge fund, which are often secured by collateral, usually bonds or other
securities.
''Most exposure that securities firms have to hedge funds is secured, but the quality of collateral is going to vary from firm to
firm,'' said John Otis, a banking analyst at Bear Stearns & Co. ''Firms that have strict management of collateral situations will
come out okay. Those that are not diligent may have problems.''
As bankers rummage through the rubble, calls are growing for regulation of hedge funds, which have invested billions with
borrowed money.
''Maybe we need regulation of these institutions, otherwise we end up bailing them out,'' said Isaac Lustgarten, a partner at the
law firm of Schulte, Roth and Zabel LLP and a bank regulatory lawyer.
Hedge funds are exempt from regulatory requirements generally imposed on financial institutions by the Securities & Exchange
Commission, which regulates broker-dealers. They are also exempt from oversight of bank regulators such as the New York
Fed.
Top government officials downplayed the threat of a wider risk to the financial system from the near-collapse of Long-Term
Capital.
''I don't know if anything in that area that rises to the level of a systemic risk at this time,'' Treasury Secretary Robert Rubin
said.
U.S. banks and brokers that lined up to provide equity to Long-Term Capital included Merrill Lynch and Co. (NYSE:MER -
news), Morgan Stanley Dean Witter & Co. (NYSE:MWD - news), Travelers Group Inc. (NYSE:TRV - news), Goldman
Sachs, J.P. Morgan & Co. Inc. (NYSE:JPM - news), Bankers Trust Corp. (NYSE:BT - news) and Chase Manhattan Corp.,
(NYSE:CMB - news) each of which provided $300 million in capital.
Foreign banks included Deutsche Bank AG(quote from Yahoo! UK & Ireland: DBKG.F), CS Group , Union Bank of Switzerland
and Barclays Plc (quote from Yahoo! UK & Ireland: BARC.L).
Among banks that provided $100 million each were Lehman Bros. Holdings Inc. (NYSE:LEH - news), Paribas and Societe
Generale , according to sources.
Long-Term Capital, a hedge fund that boasts Nobel laureates Myron Scholes and Robert Merton among its partners, suffered
huge losses from bad bets on a variety of global markets that got hit during the recent flight to quality after Russia defaulted on
its domestic debt more than a month ago.
Bankers said the timing and pace of an orderly reworking of Long-Term Capital's investments will depend on how quickly the
financial environment improves.
The hedge fund's capital, nearly $5 billion at the start of the year, stood at a mere $600 million before the bailout by banks, said
people familiar with the situation.
''Right now, many countries and many markets are facing a liquidity crunch,'' S&P's Azarchs said.
Long-Term Capital chief Meriwether said the hedge fund he founded after leaving Salomon Brothers in 1991 ''greatly
appreciates the willingness of the consortium to provide capital which we are confident will stabilize our funds and enable us to
continue to be active in the market place.'' |
