Remember the Long-Term Capital Bailout? This Is Much Worse

"Credit crisis worse than LTCM - Lehman's Malvey"

Reuters link

"This is the deepest correction we've ever seen in structured finance," Malvey said in an interview on Friday. "This is now worse than Long-Term Capital.

"This is so dispersed, so interlocked and the relationships among the various entities are not as evident," Malvey said. "This is a painful lesson in financial engineering."
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Some of you may recall that I urged DUers last year to pay close attention to a little-known financial services giant called State Street (the company had me arrested at its 2006 annual meeting when I asked uncomfortable questions about its financial reporting): http://www.google.com/search?hl=en&q=+site:www.democraticunderground.com+corpgovactivist+%22state+street%22

Well, here's today's headline about a State Street-managed CDO being cut to junk status, and being liquidated: http://news.google.com/news?hl=en&um=1&ie=UTF-8&tab=wn&q=%22state+street%22

If State Street is the manager or custodian of your 401(k), I strongly urge you to contact this law firm, which has recently filed suit on behalf of all pension plans that held one of its "safe" bond funds: http://news.google.com/news?hl=en&um=1&ie=UTF-8&tab=wn&q=%22state+street%22+keller

Best,

- Dave

I think State Street was one of the limited choices offered

http://www.freeerisa.com/5500/Form5500.asp?mode=SEARCH

Once you find your company's plan, be sure to look at the schedules to see who the trustee, manager, and/or custodian is.

Best,

- Dave

...of the U.S. dollar

... comes out to "jawbone" about the currency, that's a sure sign that it's in trouble:

http://news.google.com/news?hl=en&ned=&ie=UTF-8&scoring=d&q=paulson+dollar+treasury

- Dave

similar to Junior's Social Security privatization plan. I bet a bunch of Canadians are going to get burned.
This was about a year ago.

http://www.planadviser.com/compliance/article.php/1393

"State Street also contended that the funds at issue in the suits amounted to a small fraction of the $244 billion in fixed-income funds it manages."

http://news.google.com/news?hl=en&ned=&ie=UTF-8&scoring=d&q=%22state+street%22+trillion+custody+management

"With $15.1 trillion in assets under custody and $2 trillion in assets under management at September 30, 2007, State Street operates in 26 countries ..."

- Dave

What the topic should be is the greed and corruption involved by banks, insurers, investors, ratings agencies, etc. There should be subpoenas flying around all over the place.

The actual mortgage is just one very small piece of the big financial instruments they are writing down.

However if any thing other than subprime borrowers are mentioned, then someone other than the little guy gets blamed.

... were boneheaded from the start, and you're absolutely right: sub-prime mortgages are just one example of many.

- Dave

(If you haven't already seen it) The sub prime gets tied in to the hedge funds

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=385&topic_id=64467&mesg_id=64637

And of course, scroll upwards to see the Video, not my remark of "Hilarious"

:shrug:

It seems "cooking the books" has become an acceptable industry standard.

... on (and off) bank's books.

- Dave

over the next 1 - 3 years.

We're fast approaching the time when guns and grain are the assets to be investing in.

... from now through the general is going to create one heckuva headwind for the GOP, from the top of the ticket all the way down through local races, I think.

- Dave