Lunchtime Links: Bailouts all round
After much hemming and hawing and late-night pizza consumption, the US bailout plan finally appears to be in a workable state. Basic principles: money to be spent in three stages; government gets an ownership stake in the beneficiaries via stock warrants; no golden parachutes for bailed out executives; and the financial services industry might be forced to reimburse the government for any related losses.
But no sooner had the bailout been wheeled out for all to coo over, than sceptics started remarking on its ugliness. Arch-pessimist Nouriel Roubini said the plan is flawed whichever way you look at it because households are fundamentally bankrupt.
Lex points out that there's also no indication how the assets will be priced. (FT)
Shock: JPMorgan is not rescuing Bradford & Bingley... (Reuters)
...nor Fortis... (FT)
...nor Wachovia. (Wall Street Journal)
"As long as inflation remains subdued, the markets may absorb almost limitless government debt." (Telegraph)
Pound plummets. (Telegraph)
Will Buffet cut bonuses and complimentary haircuts and manicures at Goldman? (Bloomberg)
Top M&A bankers fleeing to boutiques. (FT)
Quant brain drain. (Economist)
Dick Fuld cried when Erin Callan left. (CNN)
"Hello, this is Bob Diamond, would you like to come to a private dinner with moi on Wednesday? No?" (FT)
Wall Street's thank-you letter. (Floyd Noris)
Fashionable elderly turn to designer nappies in Japan. (The Times)
