Items of Interest:
Fraud Starts Dominos Falling?
Gary Matsumoto / Bloomberg:
Naked Short Sales Hint Fraud in Bringing Down Lehman -- The biggest bankruptcy in history might have been avoided if Wall Street had been prevented from practicing one of its darkest arts.
As Lehman Brothers Holdings Inc. struggled to survive last year, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of Sept. 11, according to data compiled by the Securities and Exchange Commission and Bloomberg. That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30.
The SEC has linked such so-called fails-to-deliver to naked short selling, a strategy that can be used to manipulate markets. A fail-to-deliver is a trade that doesn’t settle within three days.
“We had another word for this in Brooklyn,” said Harvey Pitt, a former SEC chairman. “The word was ‘fraud.’” ...
discussion:Michaelscherer / Swampland: Citibank's Free Hot Dogs and Premium MillworkKerry Howley / The XX Factor: The People's Sub-Zero Fridge
Stephen Ohlemacher / Associated Press:
Conor Clarke / The Atlantic Business Channel: House passes AIG tax bill. What now?Glenn Thrush / Glenn Thrush's Blog: House GOP split on AIG taxSusan Davis / Washington Wire: House Passes Tax Measure to Recoup AIG BonusesWall Street Journal: Some Will Pay Back AIG BonusesRyan J. Donmoyer / Bloomberg: Dodd Blames Obama Administration for Bonus AmendmentAlex Isenstadt / The Politico: GOP honchos slam tax on AIG bonusesSteve Benen / Washington Monthly: AIG MEASURE CLEARS HOUSE.... The House passed its measure today …GINA COBB: I Feel As If I'm Living Under CommunismZachary A. Goldfarb / Washington Post: Fannie Plans Retention Bonuses As Outlined by the Government
No New Taxes — I deplore this confiscatory tax aimed …
House OKs 90 percent tax on bailout bonsues
discussion:Frank James / The Swamp: House cracks down on AIG bonusesSteve Benen / Washington Monthly: THE REPUBLICAN ‘ALTERNATIVE’ ON AIG BONUSES.... House Minority …Jeremy P. Jacobs / The Hill's Blog Briefing Room: House OKs 90 percent tax on bailout bonsues
Banks warned on commercial property ‘black hole’ -- A “black hole” in the US commercial property market is set to put further pressure on troubled banks, the head of leading private equity firm Apollo Management has warned.
Leon Black, founder of the firm, said the extra costs of cleaning up the US banking industry could total as much as $2,000bn, putting further strain on the economy. He said the woes of the commercial property had not yet been reflected fully on bank balance sheets....
Inner Workings: Commercial mortgages and the “black hole”
- A Defining Moment for Tim Geithner - Jackie Calmes, New York Times
- AIG Is a Tale Right Out of 'Atlas Shrugged' - Caroline Baum, Bloomberg
- What to Do About AIG? - Greenberg/Seidman/Holtz-Eakin, Washington Post
- We Must Stop Rewarding the Financial Rogues - Robert Scheer, The Nation
- AIG Bashing Is a Political Smokescreen - Diana Furchtgott-Roth, RCM
- The Crisis Invalidates Economic Prognostication - Steve Hanke, Globe Asia
- Economic Populism Is a Virtue - E.J. Dionne, The New Republic
- The Fed's Futile Move - Dick Morris & Eileen McGann, New York Post
- An Ugly View From the Countries 'Below' Us - Amity Shlaes, Forbes