The New York Federal Reserve just posted an entertaining analysis of an “Internet blooper” that struck UAL, the parent company of United Airlines a few years ago. As authors Carlos Carvalho, Nicholas Klagge, and Emanuel Moench note in a blog post: On September 8, 2008, a six-year-old article about the 2002 bankruptcy of United Airlines’ parent [...]
Posts Tagged ‘Stock Market’
How Fast Does the Stock Market Forget False News? About Seven Days
Posted in Business, Finance, tagged Finance, Stock Market, UAL on October 5, 2011 | 2 Comments »
Positive Feedback and the Flash Crash
Posted in Finance, Regulation, tagged Finance, Regulation, Stock Market on October 1, 2010 | 3 Comments »
The CFTC and SEC staffs are out with their analysis of the May 6 “flash crash.” Short version: A large trader (identified by the media as Waddell & Reed) initiated a large sell order to be executed based on volume, not time or price. The initial selling boosted trading volumes which prompted the algorithm to sell [...]
The Worst Decade for Stock Investors
Posted in Finance, tagged Finance, Stock Market on December 21, 2009 | 2 Comments »
According to this morning’s Wall Street Journal, the 2000s are on track for a dismal record: the worst performance of U.S. stocks in any decade on record. According to data from the Yale International Center for Finance, stocks have fallen about 0.5% per year, on average, during the current decade. Unless stocks stage a healthy [...]
Citigroup & Efficient Markets
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on July 21, 2009 | 8 Comments »
The Citigroup pricing anomaly may be in its final days (earlier posts here and here). Investors must submit their offers to exchange preferred shares for common shares by this Friday (which may require contacting your broker several days earlier). The common shares will then be delivered to investors on July 30. The pricing gap between the [...]
TARP Warrants: Auctions and the Oversight Panel
Posted in Finance, Uncategorized, tagged Auction, Banks, Finance, Stock Market, TARP, Warrants on July 10, 2009 | 1 Comment »
Good news on the TARP warrant front today (previous installments here and here). First off, Reuters reports that: JPMorgan Chase & Co, seeking to completely extricate itself from a federal bailout program, has asked the government to auction warrants to buy the bank’s stock, after the Treasury Department demanded too high a price for the bank [...]
The Citigroup Repo
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on July 10, 2009 | 6 Comments »
As I’ve noted in a series of posts (here’s the most recent), there’s an anomaly in the pricing of Citigroup securities. Several issues of Citi’s preferred stock are scheduled to convert into common by the end of the month. Yet the common stock has been trading at a significant premium to the preferred in recent [...]
Citigroup & Berkshire Anomalies
Posted in Finance, tagged Arbitrage, Banks, Berkshire Hathaway, Citigroup, Finance, Stock Market, TARP on July 6, 2009 | 9 Comments »
Summary: Both Citigroup and Berkshire Hathaway continue to violate the law of one price. Citigroup In previous posts (this is the most recent), I’ve pointed out that there are three ways you can purchase common shares of Citigroup: Simple: Buy shares of common stock. Preferred: Buy shares of preferred stock that will convert into common. [...]
The TARP Peace Sign
Posted in Budget, Finance, tagged Bank of America, Banks, Budget, Citigroup, Finance, Stock Market, TARP, Warrants on June 18, 2009 | 3 Comments »
Wednesday was a rare day in Washington: the Federal government was actually cash-flow positive. The reason, of course, is that ten major banks repaid $68 billion in TARP money. Smaller banks had previously repaid about $2 billion, so Wednesday’s action lifted total repayments to $70 billion, almost 30% of TARP support to individual banks. (For [...]
Linkfest
Posted in Auctions, Budget, Finance, Health, Regulation, tagged Antitrust, Arbitrage, Auction, Budget, Citigroup, Google, Health, Regulation, Search, Stock Market, TARP, Venture Capital, Warrants on June 11, 2009 | 1 Comment »
Some good items elaborating on topics I’ve discussed in the past week: Paul Kedrosky says that the U.S. Venture Capital industry needs to shrink – by 50%. [my latest post on this] SubsidyScope presents some cool visualizations of the TARP money and other bailouts. (ht: Marcus Peacock in the comments) [latest post] Barrons analyzes the [...]
The Citigroup Anomaly Lives
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on June 9, 2009 | 25 Comments »
Summary: Citigroup securities are still violating the law of one price. Later this week, Citigroup will finally launch its offer to convert some preferred stock into common stock. That exchange has big implications for the government, which purchased preferred shares through the TARP program; after the exchange, the government will become Citi’s largest shareholder. The [...]
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