- Hostage to Headlines
- Facebook Analyst Reports All Over the Map
- More Fallout From the Facebook Fiasco
- Facebook and Morgan Stanley's 99 Problems
- Lousy Economic Numbers, but Stocks Hold Up
- Eurobond Talk: Good News and Bad News
- Hopes Fading for Big Announcement From EU Leaders
- European 'Crisis Tennis' Again
- Facebook IPO 'Conspiracy' Theories Abound
- OK, Facebook Is Embarrassing
TRADER TALK RSS FEED
MOST SHARED
- Europe May Be Unprepared for Greece Exit: Official
- How Boaz Weinstein and Hedge Funds Outsmarted JPMorgan
- Marc Faber: 100% Chance of Global Recession
- Buying the Right Sell-Off Stocks
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- What Would Greek Exit Mean for the US Economy?
- Steve Jobs and Mickey Drexler: A Tale of Two Retailers
- Are Investors Running Out of Safe Havens to Put Money?
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- How Weinstein, Hedge Funds Outsmarted JPMorgan
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- Citigroup Lost $20 Million on Facebook IPO Trades
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- RIM May Cut at Least 2,000 Jobs in Restructuring: Report
- EU Finalizes Bank Reforms; Shifts Burden to Bondholders
- Spain's Bankia Eyes Stake Sales After Record Bailout
- EU Set to Launch Action Against China Over Telecom Aid
More Videos
Trader Talk
Text Size 
Mr. Geithner Bombs In His Debut
Treasury Secretary Geithner gave his long-awaited speech, speaking of the need to fund new buying of asset-backed securities, of helping private equity purchase old assets through a public/private investment fund, of foreclosure mitigation, and a new capital infusion into banks that pass a "stress test."
Wall Street gave it a thumbs down.
The lack of specifics from Treasury Secretary Tim Geithner rattled the Street (particularly on the public/private venture, where there was no word on how assets would be priced), and the talk of a "stress test" caused a notable selloff in banks, with many big names down 20 percent or more.
Why would a "stress test" rattle banks?
First, it implies that those that pass will be eligible for new equity injections, and those that don't would...be in trouble.
Second, this has revived fears of heavy dilution, more regulation, and effective nationalization for those that are left.
Has the market over-reacted to the Geithner speech?
There were several positives in his speech. For example, his support of the public/private investment fund indicated he wanted to reduce the government's role in the markets, which is not irrational. Providing credit enhancements as a carrot for private equity to purchase assets makes sense.
Still, judging by the chilly reception Geithner received in his Congressional testimony, it does not look like there is a lot of support for additional funds for the Financial Stability Plan, at least not in the short term.
_____________________________
_____________________________
Questions? Comments?
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
- Hostage to Headlines
- Facebook Analyst Reports All Over the Map
- More Fallout From the Facebook Fiasco
- Facebook and Morgan Stanley's 99 Problems
- Lousy Economic Numbers, but Stocks Hold Up
- Eurobond Talk: Good News and Bad News
- Hopes Fading for Big Announcement From EU Leaders
- European 'Crisis Tennis' Again
- Facebook IPO 'Conspiracy' Theories Abound
- OK, Facebook Is Embarrassing
Data is a real-time snapshot *Data is delayed at least 15 minutes
