Wed, Jun 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: The Financial Stability Plan has been lost in translation

Tuesday, March 03, 2009

This article was authored by Shahriar Shahida, CIO, Constellation Capital Management, New York.

The fact that the markets seem to hate the financial rescue plan is no secret. The question is, are they being too hasty in doing so? Secretary Geithner talks about a public-private partnership for working through the current crises, but what does he really mean? Many taxpayers are repulsed by the notion of continued infusion of taxpayer funds into the black hole of bank balance sheets. They argue that the government should not buy toxic assets above market levels (as the banks wish it to), unless they share in the upside. In turn, the banks argue that current asset prices merely reflect the total loss of liquidity in the markets, and not the true fundamental value of their underlying investments. Forced liquidations in a market with no liquidity only add to the systemic risk and lead to greater asset devaluation, in the process compounding our economic travails.

So what is this poor administration to do? Well the fact is that right under everyone’s nose, everyone that is, who cares to dig deeper, there is a very elegant solution that has already been proposed and is embedded in the government’s Financial Stability Plan.

Under the Term Asset Backed Loan Facility (TALF) program, a key component of the Financial Stability Plan, the Treasury has offered to provide US investors with non-recourse financing to buy newly created asset backed securities. I......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t