Some of you may recall a discussion in this thread (or a similar one) a while back... SS2K5 and I were discussing the Chicago exchanges, and their consolidations and purchases - looking like they were trying to make a run at New York as the trading capitol of the west.

 

Well, the CME Group made a big move today - they are buying Nymex. Nymex is the largest derivatives exchange in NY, trading futures and options on all kinds of products. Nymex has, over the years, absorbed other exchanges like Comex. The biggest prize in the pot here is, Nymex is the premier trading floor for energies - oil and gas.

 

The deal is worth just short of $10B.

 

Linky.

 

NPR said today that the Fed will be cutting interest rates a full percentage point tomorrow, or at least its expected to do so.

Some of you may recall a discussion in this thread (or a similar one) a while back... SS2K5 and I were discussing the Chicago exchanges, and their consolidations and purchases - looking like they were trying to make a run at New York as the trading capitol of the west.

 

Well, the CME Group made a big move today - they are buying Nymex. Nymex is the largest derivatives exchange in NY, trading futures and options on all kinds of products. Nymex has, over the years, absorbed other exchanges like Comex. The biggest prize in the pot here is, Nymex is the premier trading floor for energies - oil and gas.

 

The deal is worth just short of $10B.

 

Linky.

 

I am surprised they are continuing with this. It didn't sounds like they would approve it because of monopoly concerns. This is a HUGE step forward for Chicago if it is allowed. it will also bring the f***ing New York futures markets into the 21st century technology wise, because they are THE WORST! Now I really want to see them incoroporate some of the other types of market places (stock, options, SSFs etc) and make it a one stop shopping for all possible trading. It would be a great niche market that no one else in the world offers.

NPR said today that the Fed will be cutting interest rates a full percentage point tomorrow, or at least its expected to do so.

Man. What a trainwreck. And it is getting worse by the hour it seems.

 

Man. What a trainwreck. And it is getting worse by the hour it seems.

The wise old man, Alan "Mr. Bubble" Greenspan, chimes in with another round of "Oh, it's not my fault, I did great work, it's the models that are inadequate".

What no mention of the 400 point plus day?

 

If the Fed really did bail out banks, buy Citibank, because you will NEVEr see it that cheap again.

Citigroup is down about 9% on the day and is about 15% down from the high at the end of the day last Tuesday.

 

If people start getting the sense that Citigroup is the going to go belly up (I believe someone called Lehman brothers as being next in line last week, and they're turning out to be right) please let me know. I've got a bunch of credit card points built up with them that I was going to cash in for hotel rooms in a few weeks, I was just sort of hoping that a couple more price cuts would appear before I booked them, and I don't want them becoming worthless overnight.

Edited March 17, 200818 yr by Balta1701

Reportedly, the value of Bear Stearns' building in Manhattan is about $1B.

 

What does that say about the rest of their assets?

Reportedly, the value of Bear Stearns' building in Manhattan is about $1B.

 

What does that say about the rest of their assets?

-$750 million.

-$750 million.

I was asking rhetorically, actually.

 

But it's far worse than that once you add the $30B in loan guarantees that the Fed provided.

I was asking rhetorically, actually.

 

But it's far worse than that once you add the $30B in loan guarantees that the Fed provided.

Well, I figured they were sold for $250 million, if their building is worth $1 billion...

Well, I figured they were sold for $250 million, if their building is worth $1 billion...

I hear you, but it has to be worse than -$750M. Far worse.

 

I hear you, but it has to be worse than -$750M. Far worse.

True. I'm sure they owe their execs a couple billion.

Reportedly, the value of Bear Stearns' building in Manhattan is about $1B.

 

What does that say about the rest of their assets?

$1 bil, huh? Sure that's not a Bear Stearns real estate value?

The financial world is going through a massive de-leveraging process, right? So how does LEH do it? The lever their books to an all-time high of 31.7 to 1.

I am a seller of LEH. They are the next to go, maybe Barclay's?...I still want to know how much level 3 garbage is still on thheir sheets. And where did they mark that garbage? Only when these guys actually mark their bonds to market will we see a bottom IMO. It may also result in a few less firms on the street.

Edited March 18, 200818 yr by Cknolls

Link.

Back in November, when Bear's shares traded at around $153, the market value of unvested equity awarded to Chairman James "Jimmy" Cayne was $47.5 million, while shares awarded to CEO Alan Schwartz were valued at $44.9 million, the proxy said.

 

Schwartz replaced Cayne as CEO in January as shareholders, upset by Cayne's hands-off approach during a serious financial crisis, pushed the long-time chief to step aside.

 

That said, JPMorgan Chief Financial Officer Mike Cavanagh late Sunday said taking over Bear would generate about $6 billion in merger-related costs.

 

JPMorgan has not broken down those figures, but much of that will be earmarked for severance pay and potential exit packages for top executives like Schwartz.

 

A person familiar with the transaction told Reuters that roughly $1 billion of those costs would be earmarked for severance and retention.

I love when people who run companies into the ground because of their poor management and leadership get to walk away with tens of millions of dollars instead of being fired for incompetence and walking away with squat like they should be.

75 basis point cut by the Fed Bank. Stocks were up about 250, now only up about 150. i wouldn't be surprised if we finishd down on the day.

75 basis point cut by the Fed Bank. Stocks were up about 250, now only up about 150. i wouldn't be surprised if we finishd down on the day.

What the hell were they expecting if they are reacting negatively?

 

What the hell were they expecting if they are reacting negatively?

Now they've zoomed back up. A lot of people were hoping for a full point. Not everyone, but there was speculation of anything from half to a full point.

100 basis points, if what I'm hearing is right.

Yea, I just read the article. If LEH would have given a s***ty report this morning, you bet it would have been 100 BPS. But IN MY OPINION LEH is lying their asses off. I'll just leave that where it is.

 

Now they've zoomed back up. A lot of people were hoping for a full point. Not everyone, but there was speculation of anything from half to a full point.

 

Yes it did. I bought VIX in my account. I get the feeling they are going to blow this thing up soon.

Yes it did. I bought VIX in my account. I get the feeling they are going to blow this thing up soon.

You're sounding like CKnolls. English please?

 

 

http://www.investopedia.com/terms/v/vix.asp

 

The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".

 

There are three variations of volatility indexes: the VIX tracks the S&P 500, the VXN tracks the Nasdaq 100 and the VXD tracks the Dow Jones Industrial Average.

 

Investopedia Says... The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.

 

By its very natures down days create volatility, because it is changed divided by total index price. When you go down, you are dividing into a smaller number, so the VIX goes up. When it goes up, you are diving into a bigger number, so the VIX usually falls. It is down from 35 to 26 in the last two days reflecting the big rally's of this week. So I basically bought a lottery ticket that we have some big off days in the next month.

Yea, I just read the article. If LEH would have given a s***ty report this morning, you bet it would have been 100 BPS. But IN MY OPINION LEH is lying their asses off. I'll just leave that where it is.

 

 

^^^^^^. And MER C MS JPM BAC GS.

 

74 of 80 AAA Bonds in the ABX Indexes fail tests for investment grade.

 

Why is it so important to know that the AAA ABX are really junk?

 

AAA 2007 ABX trades around 56 cents on the dollar. The market is clearly telling us that by marking these down 44% from 100, the underlying loans are not performing, which is indeed the case.

 

So what happens when S&P, Fitch or Moody's gets with the program and marks down all this garbage to BBB? Or less?

 

Well, BBB- ABX trades at 9 CENTS on the dollar.

 

Thats why it matters..

 

And why is LEH crowing about owning lota of AAA stuff?

 

That is why it matters