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Archive for the ‘Investment banking’ Category

The Snowball – Warren Buffett and the business of life

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http://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553805096

I bought this book from Strand book stall at Manipal chambers, Bangalore today. This book was just released 2 days ago on the 28th September 2008 and lo and behold it’s already in circulation in India – that is cool.

I am a self proclaimed Warren Buffett protege and fan since I first read his books by Mary Buffett (Buffettology) and the Warren Buffett Way (2nd ed.) since 2003.

Anything about his investment habits interests me. This book written by Alice Schroeder – a Managing Director at Morgan Stanley is going to be my food for thought in the coming days! Will post my detailed review once I am done reading through this massive book that I will be forced to read at home due to its huge size – its almost 960 pages! The book I bought is Printed in Great Britain and is not the US print.

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CITIGROUP takes over Wachovia banking operations

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The tumble continues. The Fed’s $250 billion immediate injection to buy toxic assets of troubled financial institutions, followed by the $100 billion based on President’s approval followed by another $350 billion subject to approval of Congress did not help. Read the rest of this entry »

WaMu goes to JPMChase

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Washington Mutual is the largest bank failure in US history. It went up for grabs yesterday as JPMorgan Chase & Co. quickly acquired it for $ 1.9 billion.

This continues the series of fallouts of companies since last week when Lehman announced bankruptcy and Merrill got acquired by Bank of America.

How did JPMorgan stay clear of this mess? The answer might be here – http://money.cnn.com/2008/08/29/news/companies/tully_jpmorgan.fortune/index.htm?postversion=2008090216. I have a lot of respect and admiration for CEO of JPMChase (NYSE: JPM), Jamie Dimon for staying clear of this.

Buffett swoops down with $5 billion capital infusion into Goldman Sachs

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http://www2.goldmansachs.com/our-firm/investors/financials/current/annual-reports/entire-2007-annual-report.pdf

This was expected. Goldman Sachs (NYSE: GS), an exceptionally run institution could not beat the heat of Wall Street and lately its stock was also hammered down by investors. They converted themselves to a bank a couple of days ago and this immediately meant the ‘smartest man in any room’ – the legendary Warren Buffett and my guru  swoop down and make a minimum $ 5 billion dollars in preferential stock and an option to purchase another $ 5 billion at a later date. Read the rest of this entry »

The Wall Street carnage explained

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http://www.time.com/time/business/article/0,8599,1842123,00.html

Excellent article! Its so precise and beautifully explained as the sequence of events unfolded. A must read.

Fed tries to come up with a solution

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In what is termed as the worst crisis to hit the financial landscape of Corporate America since the 1930’s and the great depression, the Fed made an emergency attempt to get the Congress to agree to a $ 700 billion rescue plan aimed to stem the current financial turmoil by purchasing the bad assets from financial companies at a deep discount and sell it at a later date when things are more bright. This will help take the bad assets off from the financial companies’ balance sheets helping ease the stress and load on the financial system. Read the rest of this entry »

AIG struggling to stay afloat – no pun intended!

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https://ecofin.wordpress.com/2007/08/12/the-us-subprime-crisis-increasing-chance-of-a-us-recessionburst-of-the-us-housing-bubble/

If you have read Warren Buffet’s letters to shareholders and his book – The Warren Buffet way (2nd ed.), then you know what a float is. I am not trying to strike a relation or anything to this problem but am just stating that insurance business is supposed to insure others and AIG (American International group) had that obligation to keep but something clearly went astray. Read the rest of this entry »