The capital raising from US financial institutions continues. Wachovia (WB) latest -raising 7 bln at a 15% discount. WM also raised some cash last week from the PE group-suspicions about the FED to JPM to PE firms to Financials entities circles are being mentioned. Merrill and Citi are expected to announce more major writedowns.
The financial tricks are running rampant-LEH repackaging LBO debt into a SIV to securitize and get rated AAA by SP and then sent to the FED for treasuries. Professor Bernanke is getting a portfolio full of toxic waste. How much abuse can the FED take before it realizes the sharks of Wall Cheat have once again taken full advantage of the system to remove money from the publics pocket?
Financials remain overlevered with more loan portfolios.
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