The FBI, SEC and Ringing Bells

Posted: February 14, 2008 at 2:35 pm by Chuck

The FBI is investigating two additional firms, for a total of 16, in the subprime mortgage industry crackdown.

The SEC says investment banks have adequate capital and liquidity to deal with any bond insurer problems. But, he also says some large investment banks’ exposure to bond insurer risk is material. Huh?!

Governor Spitzer says there are no plans for a government bailout of bond insurers, but a Federal guarantee for them is a "very worthy" idea. Again, huh?

"Transparency" is the big word of the year. It’s so transparent no one can find it.

Mr. Ben Bernanke says any new erosion in credit markets would be a warning bell. What do you think that sound is? The dinner bell?

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Comments

4 Responses to “The FBI, SEC and Ringing Bells”

Noel Thomas on February 14th, 2008 5:13 pm

Lisa,

You make some excellent points in your Commentaries
today. Paulsen and Bernanke both were talking out of
both sides of their mouths today. Wednesday’s municipal
bond auctions brought ZERO takers. None of the major
investment banks from Citigroup to Goldman stepped
up to the plate. This is totally unheard of. The story
is going to get much worse. Took a position in the
SKF today. Alarm bells are ringing not just in New York
or DC., but all over the country.

Take Care Lisa,

Noel
Lisa on February 14th, 2008 7:09 pm

Thanks, Noel. You’re right on the auction, and it’s only going to get worse, in my opinion.
Dave on February 15th, 2008 1:21 am

Hey Noel -

Good luck on the SKF trade. I was in the one a while back. Be ready for lots of volatility. Looks like SKF is still in a nice up trend. You might add to your position on pullbacks. Be sure to put in your stops.
Noel Thomas on February 15th, 2008 9:24 pm

Thanks for the SKF ideas. Stops are in place.

Much volatility, but SKF over 2008 is going much higher.

Have a great weekend.

Noel