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The Times' Rorshach Geithner Story
Apr 27 20099:26 am EDT -
Sinking Animal Spirits
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Counter-cyclical Urban Policy
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Be Your Own Counterfeiter
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Being Tim Geithner
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Notes From a Press Conference Naif
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What Good is the News?
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Stressful Enough
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Not Regretting the Pound
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Introducing the New Ford Squeeze
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Don't Bank on Loan Deals
Front-page stories in the WSJ and FT: two great tastes which go great together!
First there's David Enrich in the WSJ, talking about a Citigroup hedge fund named CSO Partners, which contracted to buy a bunch of loans and then tried to back out of the deal. Then there's Henny Sender in the FT saying that it's not just hedge funds owned by banks which are trying to back out of loan deals, it's also the banks themselves - maybe. If following through on their loan commitments will cost them more than the reverse break-up fees if they walk away, then it might make sense to walk away.
The upshot of all this would seem to be that it's a bad idea to count any chickens in the world of loans. Until you have your cash in the bank, don't assume you're going to get what a bank says you're going to get.
(Incidentally, this is the first and last time I'll ever use a "bank on" or "banking on" headline here at Market Movers. I have a self-imposed all-time quota of one such headline, which is hereby used up.)
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