Guess who's suddenly looking nicely positioned to do well out of the US government's putative $700bn bailout? According to the Telegraph today, Goldman intends to use most of the $10bn it raised in its Buffet-bolstered fundraising to buy assets either from the US government's planned $700bn bailout fund or from banks directly.
Michael Lewis, over at Bloomberg, points out that Goldman really does need to preserve its bonus pool right now: "We needed the best and the brightest to get us into this mess, and we'll need the best and the brightest to get us out of it." Luckily, therefore, the Treasury plan has come in just the nick of time.
Who is Byron Trott? (The Times)
"You are telling the market you are cashed up with the guy who is considered the smartest in the world." (FT)
Buffet makes $783m paper profit within hours. (The Times)
Sumitomo won't invest in Goldman after all. (Bloomberg)
Pimco passed on Morgan Stanley. (Clusterstock)
No Golden parachutes, no bonuses for inappropriate risk, and clawbacks for bank bosses who benefit from The Fund. (Guardian)
"They thought they had discovered a machine for making money that would spread the risks so far that nobody would ever get hurt." (Bloomberg)
Gordon Brown warns short-selling rule may become permanent. (Telegraph)
What would happen if Merrill walked away from BofA? (Wall Street Journal)
Low-key Mid West tomato-growing person is power behind BofA's Merrill buy. (Bloomberg)
CofE lays in to bankers. (The Times)
Everyone's eating turnips. (The Times)
The next emergency measure will be that Americans are not allowed to buy foreign currency and transfer money overseas, and the next measure after that will be not permitting Americans to buy gold, and so on and so forth...(The Big Picture)