write-downs

Federal Reserve officials anticipate economic contraction

March 31st, 2008|by Michael Ashley Schulman, Perspectives, The Big Picture|

Federal Reserve officials anticipate economic contraction in the first half of 2008. Recently, Chairman Bernanke invoked rarely used authority to provide emergency financing for investment banks. Fed officials sought to limit the broad economic impact of what former Fed Chairman Alan Greenspan terms the worst credit crisis in 50 years. Central bankers cut the benchmark […]

Investors refused to buy $11 billion of new bonds and loans

July 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

In mid July, investors refused to buy $11 billion of new bonds and loans that Goldman Sachs, JP Morgan, Citigroup, Lehman and the other Wall Street banks created to finance major leveraged buyouts (LBOs): DollarGeneral, First Data, TXU, ServiceMaster, US Foodservice, etc. The huge excess supply of unwanted debt created the worst high-yield debt bear […]