FLASH: FACEBOOK IPO DELAYED UNTIL LATE-2012

STORY HERE

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This is a good question, but one that probably does not have to be answered for a long time. Perhaps next year sometime we may be asking this very question.

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“China is willing to buy bonds from nations involved in the sovereign debt crisis, National Development and Reform Commission Vice Chairman Zhang Xiaoqiang said in an interview with the media in Dalian yesterday.

China is willing to offer assistance, Zhang said without elaborating, adding that Premier Wen Jiabao made similar remarks earlier, according to a transcript distributed on the planning agency’s website yesterday evening. Caijing magazine attended the briefing and published an article earlier.

Wen, speaking at the World Economic Forum in Dalian yesterday, signaled that that developed nations should cut deficits and open markets rather than rely on China to bail out the world economy. China can best contribute to the global economic recovery by ensuring steady growth at home, he said.

“Countries must first put their own houses in order,” Wen said. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.”

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Today’s meeting produces largely nothing other than quelling fears that Greece would not get kicked out of the union.

Never thought they might get kicked out, but rather default and bow out if anything.

Sarcozy and Merkel issued a joint statement that they were “convinced Greece’s future is in the euro zone.

Putting into place commitments of the (bailout) programme is essential for the Greek economy to return to a path of lasting and balanced growth,”

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Carey from Frito Lay a strong division will head up the beverage unit to better compete with KO.

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Some shareholders are recommending a clean house approach to reshape the company.

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STORY HERE

This paper basically sums up the key problem with bailouts in general. The banks that received funds, realizing they had the option to never lose, started throwing hail mary passes buying up high yielding garbage with the off chance hope that they could luck out and regain their former glory.

What a huge waste of resources.

ANN ARBOR, Mich. (TheStreet) — The government bailout made banks appear safer but actually caused them to take on more credit risk, according to a University of Michigan study released Wednesday.

According to a working paper by finance professors Ran Duchin and Denis Sosyura of the university of Michigan’s Ross School of Business, banks participating in the government’s Capital Purchase Program as part of the Troubled Assets Relief Program, or TARP, “significantly increased their investments in risky securities,” by 10%, “displacing safer assets, such as Treasury bonds, short-term paper, and cash equivalents.”

The study also found that although the banks receiving TARP money weren’t any more likely to expand their lending, the group’s lending activity shifted toward riskier mortgages “as measured by the borrower’s loan-to-income ratio and the high-risk loan indicator based on the loan rate.” According to the study, “the fraction of the riskiest mortgages in the originated credit increased for banks approved for participating in TARP but declined for banks denied TARP money by the regulators.”

According to the study, the receipt of TARP money also led to “significant effect on the risk profile of corporate lending,” similar to that seen for mortgage lending.

Duchin and Sosyura say that although TARP helped improve participating banks “capitalization ratios,” the net effect was “the net effect is a significant increase in systemic risk and the probability of distress due to the higher risk of bank assets.”

Among banks participating in TARP by selling preferred shares to the U.S. Treasury, the largest bailout recipients were Citigroup , which received $49 billion from the U.S. Treasury, and Bank of America , which received $45 billion in government money. Bank of America fully repaid TARP and Citigroup repaid $20 billion in TARP money, after converting $25 billion its TARP preferred shares to common shares, which were later sold by the government.

Other large banks receiving $25 billion in TARP money apiece included JPMorgan Chase and Wells Fargo , both of which fully repaid the government.

The publicly traded bank with the largest amount of TARP preferred shares outstanding is Regions Financial , which owes $3.5 billion in government bailout funds.

So Austria is not rejecting expansion of EFSF, but rather a fast track vote on it. Markets are hopeful of a meeting taking place with Germany, France, and Greece.

How can these countries really come together and act decisively and quickly ?

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Doubt it unless the come out with a TARP style program….

Vienna (PK) – The Finance Committee
the National Council opened its session today with a
current debate. The delegates discussed with the
Federal Minister Maria Fekter and with the Governor and Vice-
Governor of the Oesterreichische Nationalbank, Ewald Nowotny and
Wolfgang Duchatczek, on questions of European
Sovereign debt crisis. In this issue came in very different
Approaches to this subject expressed. Governor Nowotny pointed
to the position of the OeNB, the way that the consolidation of
Government budgets should be recorded. Austria belongs to the
Core area of ​​European stability, it will also
not change if the continuity of financial and
Economic policies be preserved. It is the observance of
Budget discipline is an integral component.
Before input into the agenda committee chairman suggested Günter
Stummvoll ago, the agenda of the Committee for the
Government bill to raise the Austrian
Share of liability on the “euro rescue” from the original
Add to 12.24143 billion € to 21.63919 billion €. The
corresponding change in the balance of payments stabilization law
(1390 dB), it follows that European decisions to increase the
Total guarantee volume of 440 billion € EFSF to € 780 billion to
the lending capacity of EFSF in the original amount
Restore of 440 billion €. This was due to rising
Capital market interest rates on the one hand and by increasing the EFSF
Cash reserves for credit enhancement on the other hand EFSF
been reduced.
Deputy Werner Kogler criticized the approach taken by the
Government parties who are not willing to submit to Parliament a
clear roadmap and a clear position on the negotiations
to transmit via the ESM contract. His call for a party
good discussion on these core issues of European
One policy, for a hasty acquisition for the majority
Coalition if they were not available. Seconded
Michael Ikrath (V), however, pleaded for the inclusion of
Point on the agenda, it is precisely because of the
current situation of financial markets important to immediately contact the
Employed to law and thus a positive signal of pages
Parliament set. Argued in a similar direction
Seconded Kai January Krainer (S). The Elmar
Podgorschek (F) and Peter Westenthaler (B), despite being in their view
no reason to accede to the request. This was so
not the necessary two-thirds majority.
National Bank governor Ewald Nowotny said in his
introductory remarks that the first task in their OeNB
Line in the maintenance of price stability can see. You go to
compliant with the ECB. It focuses on the prevention of
Inflation and deflation. Austria is part of the European
Core stability and will remain so. The economic
Starting point for this but have changed since this spring.
Growth forecasts have slowed worldwide, the
Forecasts for 2012 are characterized by insecurity. So
Germany, meanwhile expect a downturn. The prospects
Austria presented themselves for optimism, but it is
assumed that even with a weakening of Austria
Economy would be expected, a stagnation or even recession
one is still far away, he said.
He explained the measures taken by the ECB in the
State debt crisis has taken. You have to volatility
to take the markets, expanded the purchase of government bonds.
But this was only as a temporary program to
Stabilize the market and ask a thought monetary policy
neutral measure dar. The inflow of capital into Switzerland
have triggered a rise in the franc, thus further
Problems arose. Nowotny said that it was not
appropriate in relation to negotiations with the second
Program for Greece to talk about a bankruptcy. It go
so that the troika of the lender from the EU Commission, IMF and
Governing the results of actions taken evaluated, here lies
no conclusion so far before.
Vice Governor Wolfgang Duchatczek explained the increase in the
Is the total guarantee volume of 440 billion € EFSF € to 780 billion
become necessary, because the rating of some participating States
I had meanwhile changed. The measure would be the
Lending capacity of EFSF in the original amount of
€ 440 billion recovered. The problem lies with Greece
refinancing to the financial markets. The utility
due to the fact that the financing gap would be calculated. This
must then be partially closed through austerity measures, the
remainder going on to the stabilization program
Made available. As a further consequence will be the
Experience in debt restructuring, such as those in the 1980s
in the case of Poland, Hungary or even in Latin America and Asia
were carried out, must see.
Seconded Kai January Krainer (S) saw the stabilization programs
Although necessary, it is missing but sufficient
Measures to stimulate growth and employment. The
Problem was clearly in Greece now. Seconded Michael
Ikrath (V) inquires whether the expected
Economic slowdown and an output-side adjustment
Make necessary budget. The behavior of Hungary on the question of
Foreign currency loans was simply adventurous and hazardous
legal certainty in Europe. MEP Elmar Podgorschek
(F) raised the question whether, in view of the public debt
Austria, the involvement of the budgetary debts except
already achieved 80% of GDP, the triple-A rating in Austria
Question could be asked. MEP Alexander Van der Bellen
(G) criticized that the agreement never ESFS in parliaments
was discussed. In Germany must now at least the
Budget Committee of the Bundestag to be included, he said
and asked what considerations to give it in Austria. Van
pointed to the barking rumored cost of a payment default
Greece. It is 40 billion € for Austria the speech, he
think this number is unlikely. Seconded Peter
Westenthaler (B) provided by the debate currently taking place
Assessment confirmed the BZÖ, which is the scenario of a
Greece’s exit from the monetary union several months ago
have thought possible.
In its response to the MPs said Governor Ewald
Nowotny, that a purely restrictive policy for Greece
could not be the solution. However, bringing the
Growth slowdown, the U.S. and emerging markets,
China as recorded, have new problems. Greece
must make a correction longtime aberrations,
it was a painstaking process. A particular problem is the
Principle of unanimity in EFSF program, this makes the
European institutions very cumbersome. The measures, which
Hungary is now taken in connection with foreign currency loans
‘ve had, extremely annoying. The Austrian Government
should in this regard, all legal options
advised to exploit Nowotny. On the question of the Triple-A ratings meant
He that the rating agencies reduced their rating criteria never
laid open, it was also a frequently expressed
Criticism. But it is well known that one measures
Hedge the ratings lead, and they would need in a
good fiscal policy there. This concerns the public
Area, the banks and the private sector.
Federal Minister Maria Fekter said the rumored numbers of
€ 40 billion is consistent with the loss of the benefits that Austria
‘m now out of participation in the euro zone. A
Breakup of the euro zone would by no means a
Represent an alternative to the shield, but high costs
cause by immediately striking expectant loan losses. A
Such a scenario would ultimately only benefit speculators who
Politics should not commit the mistake of it
to be influenced, stressed the Minister of Finance.
A further round of consultation led SPÖ MP Christopher
Matznetter with a complaint about that across Europe
austerity-driven growth stall. Greece
compared to the speakers with a “patient in the ICU,
where a starvation diet is prescribed. “With the savings alone could
Country do not come back on their feet, and said Matznetter
welcomed the growth impetus from the European
Development Bank. One of the causes of the debt crisis in
Europe Matznetter also pinpointed in the ruinous tax competition,
broke with the broad areas of the European economy
had been.
MEP Konrad Steindl (V) contradicted his previous speaker
vehemently and pointed to the damage that high taxes for the
Economic means. Austria had a tax rate of 44
% A high-tax country, held firmly Steindl.
Deputy Werner Kogler (G) called Euro Bonds not to
anticipated bad talk and pointed out that even
differentiated Vorgansweise with Blue and Red Bonds Bonds,
as proposed by Juncker, or fees for countries with
bad budget data is conceivable. Interest on Bonds €
should not be higher than those for Austrian
Government bonds, Euro bonds in any case be a tool against
Speculators said Kogler.
Detailed questions about problems with foreign currency loans, purchase
of government bonds by the ECB and after receiving the gold reserves of the
OeNB, the deputies Gerhard Huber (B) and Maximilian
Linder (R).
Vice Governor Wolfgang Duchatczek informed
Committee members that the OeNB since last
July and August, a deterioration in global economic
Climate registers, expect a dampening of economic activity
leaves. Negative messages superimposed over this period
Unfortunately, the positive developments and progress
in Ireland, Portugal and Spain, said Duchatczek.
With the subject “Euro Bonds” represented the Vice-Governor’s view,
that this instrument of economic policy in Europe
Institutions presuppose that there are not yet available. The
EFSF may act on the secondary market, but not on the
Derivatives market, said Duchatczek. The Austrian
280 tonnes of gold reserves are located in Austria, said
Duchatczek.
The Greece program contains not only saving requirements,
but also growth measures, but not short, but
medium term effect. Experience has shown that it needs time to
Deficit to close gaps in countries and they repaired to
back to refinance on the market.
With regard to the inflation fears of the OeNB
Lieutenant Governor to help calm: the calculations
National Bank indicate a decline in inflation to below 2% in
Years 2012.
Establishment of a Centre of Excellence Punzierungskontrolle
After the discussion with the National Bank of top European
Financial problems of the Finance Committee voted unanimously to
Proposal by the Federal Government to establish a
“Competence Centre Punzierungskontrolle” at the customs office at Vienna. So
to coordination problems between the Finance Department and Customs offices
be eliminated, which occurred previously, because the technical supervision
Punzierungskontrolle from the finance department, the
Supervision but was perceived by the customs offices.
Responding to a question members of the G-Ruperta Lichtenecker
argued with Secretary of State Andreas Schieder
Administrative simplifications, synergy effects and
Efficiency gains for the proposed changes in
Punzierungsgesetz (1275 d.B.). Also underlined the
Secretary of State, the efforts of the federal government to continue the
Administrative reform, such as by setting one
Corporate and administrative service portal announced
Simplifications in the course of the next business of order amendment
of which is being prepared.
International Finance Agreements
An additional protocol to the current Doppelbeststeuerungsabkommen
treaty with France that adapts to the new OECD
Standards for transparency and readiness for mutual assistance in
Prosecution of tax evaders to (1331 d.B.). The protocol
passed the committee with S-V-G-majority. MEP Elmar
Podgorschek (F) are known to avoid
Double taxation rejected the agreement on behalf of his faction
but down, because there is a softening of the Austrian
Bank secrecy brings with it. This argument was
State Secretary Andreas Schieder strongly opposed.
Unanimously recommended the approval of the Finance Committee to the plenary
to three agreements for the mutual promotion of the protection
investments with Kosovo (1332 dB), Kazakhstan (1333
d.B.) and Tajikistan (1334 d.B.). The contracts are based respectively
on the principle of MFN and
National treatment and meet the current state of the
Investment law. Investment in the two Parties
the attractiveness of Austria as a business location, increase
Secretary Andreas Schieder said and underlined the
Importance of Central Asia for the Austrian economy.
BZÖ breaks a lance for pension fund beneficiaries
Subsequently laid BZÖ member Gerhard Huber one
Resolution 1625 / A (E) with the desire of his group
on an amendment to the Pension Fund Act. He reminded
accept pensioners, who cuts up to 45% have to, because
capital in times of high market interest rates fixed bill
were, could not be generated. The
Applicants to the pension funds by lowering the
Discount rate, but also rehabilitate other pension cuts
prevent and demand compensation for the reduction of
Affected, where they proposed to the Austrian
Senior Citizens Council and the Association for the Protection of
Pension fund beneficiaries point.
The committee adjourned the application by the majority of
Coalition parties, after the deputies in January Kai Krainer (S)
and Gabriele Tamandl (V) on the matter in discussions between the
Had pointed Finance and the Ministry of Social Affairs.
In contrast, turned the Elmar Podgorschek (F)
and Gerhard Huber (B) against the adjournment, and criticized the
Refusal to work the federal government.
Freedom Party wants to relieve small businesses from the record keeping requirement
FPÖ deputy novel Haider demanded the raising of
Single recording limit of 150,000 € to 400,000 € in the
Federal tax code. The measures necessary for effective fraud
under the title “Barbewegungsverordnung” enhanced
Record keeping requirement for all companies to have unreasonable
Burdens of small businesses, particularly in tourism,
out, said Haider (1068 / A (e)).
Deputy Gabriel Obernosterer (V) held the request for
entitled, agreed to the adjournment request of Deputies
Christoph Matznetter (S) but because he felt that we should be the
Concerns in the context of an overall package with the necessary
Administrative simplification for small businesses comply.
FPO duplicate information obligations for businesses
Furthermore, criticized Haider FPÖ deputy novel of the duty
Stock companies and limited liability companies, financial statements,
New registrations, transfer and cancellation of company headquarters,
Appointment of new Managing Director and authorized officers or
Transfer of shares in both the commercial register
entered as the Internet and in the Official Gazette “Wiener
Newspaper “to publish. These” useless “duplication
77 000 a year burden for companies in Austria with € 15 million, the
Publication in the “Wiener Zeitung” was abolished, therefore,
Haider demanded.
Federal Minister Maria Fekter pointed out that for
this request on the judiciary and on the other hand
Chancellor’s Office had jurisdiction. This application was also S-
V-majority adjourned.
Freedom Party: Bank assistance for infrastructure company ÖBB
In view of bank debt in company of ÖBB-Infrastruktur
the amount of € 13.5 billion argued FPÖ deputy Gerhard
Deimek in its resolution 1654 / A (e) ensure that those
Banks that have been renovated with state assistance, their
Claims against the company ÖBB infrastructure by ten
Years and extend this period on interest payments –
offsettings without.
Seconded Kai January Krainer (S) and Finance Minister Maria
Fekter felt it would not claim to be conclusive. Fekter pointed
especially pointed out that the state banks for
Participation capital to pay high interest rates and it also
equality unconstitutional would be if they adopt only one customer interest
would. The adjournment resolution was passed with majority-SV.
(Close)
A release of the parliamentary correspondent
Tel +43 1 40110/2272, Fax. +43 1 40110/2640
e-mail: [email protected], Internet: http://www.parlament.gv.at
*** OTS ORIGINAL PRESS RELEASE UNDER EXCLUSIVE
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OTS0256 2011-09-14/15: 36
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Political dysfunction continues

As a result, markets are plunging.

Fun times

Add that to initial claims….

A very bearish outlook. Proceed with caution.

Despite all the talk this morning there are some real concerns. We have a conference call coming up later this morning between France, Germany, and Greece. Hopefully we get some statements. Otherwise here we stand.

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Enjoy