ES -- DX/CL -- isee -- cboe put/call -- specialist/public short ratio -- trinq -- trin -- aaii bull ratio -- abx -- cmbx -- cdx -- vxo p&f -- SPX volatility curve -- VIX:VXO skew -- commodity screen -- cot -- conference board

Tuesday, October 07, 2008

 

uk to inject capital directly into banks


via calculated risk.

UPDATE: the ft:

- First - we are extending the SLS at the Bank of England, allowing £200bn available.
- Second - helping banks recapitalise. Britain’s biggest banks have agreed to increase capital by £25bn. There is a further £25bn should they want it.
- Third - we have agreed to guarantee interbank lending.


right out of the roubini playbook. jpmorgan analysis is positive.

trouble is, of course, that recapitalization will not halt delevering, which has taken on a life of its own -- and asset prices may have much further to go to the downside. if so, this may be just the first british bank recapitalization.

UPDATE: more helpful analysis from minyan peter:

As I read it, what the UK is proposing to buy is preferred stock. And while this is technically Tier 1 capital (the best kind), in a liquidation scenario, preferred stock is senior to common. And by going in at this more senior level, the UK government is essentially admitting that bank liquidation is still a possibility. To me, that's not a helpful market message.

Labels: , ,



This page is powered by Blogger. Isn't yours?