Operating at the Intersection of Technology and the Capital Markets
Category: Corporate Governance
UBS agreed to acquire CSFB. Sure, $17 billion in high yield debt was wiped out (perhaps we will see high yield downgrades as a result elsewhere across the landscape of financial issuers?) Despite the writedown of $17 billion in high yield debt, I hesitate to characterize this deal as a "bail in" because the Swiss … Continue reading The Latest Bank Bail Out: UBS To Acquire CSFB.
Fed Chairman Powell should lob calls into Andy Jassy (AMZN CEO), Tim Cook (AAPL CEO), Sundar Pichai (GOOGL CEO), Satya Nadella (MSFT CEO) and Doug McMillon (WMT CEO) in an effort to persuade them to consider acquiring a bank. To hell with potential pushback from the FTC. AMZN, AAPL, GOOGL, MSFT and WMT already dabble … Continue reading Amazon Bank, Apple Bank, Google Bank…
Nobody overdoes it like the Fed, except maybe the fiscal side of Government. Not only does the Bank Term Funding Program (BTFP) make bank collateral owned as of March 12th whole, the BTFP has a more attractive rate (at today's rate), compared to the Fed's discount window. When a bank borrows from the Fed's discount … Continue reading Expect Banks To Borrow Heavily from BTFP
It would be a mistake to believe that the prices of goods and services can't accelerate from here. Look at the trend (chart below) in Core CPI - it has headed in precisely the wrong direction since November 2022. Some of the Core CPI momentum is due to the Shelter category which carries a heavy … Continue reading The Fed Must Fight Inflation
If the U.S. was to experience a widespread bank run, that would be the time for the Federal Reserve to expand the money supply, thereby providing liquidity to commercial banks such that they may meet depositor withdrawals. Thus far SVIB and SBNY have been closed by the FDIC. Apparently that was too much for Fed … Continue reading Bail Out
I'm thinking of the venture capital community today as SVB Financial goes down for the count. I feel bad for the bank's employees, but could not care less about the bank's clients - the venture capital community at large. How did the FTX fraud come to be? There were two key components to the FTX … Continue reading Fraud Preys On A Lack of Due Diligence
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The WSJ reports that the Justice Department and the SEC will pursue insider trading activity that is disguised by 10b5-1 plans. It's about time. We wrote about Moderna (MRNA), on July 28th 2020 whereby 10b5-1 plans were amended ahead of selling activity HERE. This looks suspicious. We went into great detail. I recall companies amending … Continue reading Insider-Trading Through 10b5-1 Plans
Some random thoughts on Google.. Google has an IR problem. For a company that grew constant currency revenues by 7% in the December quarter GOOGL shares ought to be trading higher. It's clear that investors don't fully understand the story. Google can simplify the story with a smarter IR effort. If the cloud around Google … Continue reading Random Thoughts On Google
Short-term Treasuries look attractive. The 1-month T-Bill offers a 4.67% yield. Beats cash and beats holding an equity index fund or ETF. I'm always a fan of owning Quality companies at an attractive price. However, I don't value equities as most investors do - I don't bucket stocks into "Value" "GARP" and "Growth" buckets. I … Continue reading Short-Term Paper, Quality Names and Gold
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