Lloyd & Jamie’s Smoke & Mirrors

By MICHAEL GRAY Lloyd Blankfein’s Goldman Sachs and Jamie Dimon’s JPMorgan Chase are two leaders of troubled banks who have come out to say they want to pay back Uncle Sam the TARP money. Goldman has $10 billion and JPMorgan’s rang up $25 billion in capital injections even though both said it did not need […]

Paulson and Bernanke: Mum’s The Word

By MICHAEL GRAY According to BofA chief Ken Lewis’s testimony, Ben Bernanke and Hank Paulson, suspended all financial reporting rules to BofA shareholders by the CEO. Lewis in a deposition before NYS AG Andrew Cuomo’s office said he was told by Bernanke and Paulson the they wanted no public disclosure on the Merrill Lynch deal […]

Earning’s Hocus Pocus

By MICHAEL GRAY So Vikram Pandit pulls off the weekly trifecta on bank earnings and perhaps saves his job for another quarter. All three of this week’s earning’s reports –– Goldman Sachs, JPM Chase and Citi –– showed tremendous profits coming from their investment and trading accounts. Part of the answer could be AIG and […]

Not So Well(s)

By MICHAEL GRAY Wells Fargo’s pre-announced earnings gave a sunny side of the street view without mentioning with any clarity what resides on the debit side of the ledger and how much will be needed to cover those losses. Treasury is telling the banks not to comment on the stress test results only adds to […]

Inflating Bank Vaults and Stock Prices

By MICHAEL GRAY The Obama administration believes its plan is working to re-inflate the banking system with trillions in cheap money, which most of the large banks are depositing back into the Fed’s coffers at higher interest. This asset raise mechanism along with the highly favorable unwinding of credit-default swaps with AIG, allow the banks […]

AIG: Obama’s Stooge Firm

By MICHAEL GRAY Despite the alphabet soup of bailouts, whether its TARP, TALF or TALC (which is the powder you want to keep dry) there is a huge amount of stealth rescues going on in the process. The Obama Administration –– specifically Larry Summers –– has taken the tack, that since Congress has the populous […]