For Those Keeping Score.....

Some of the above bankruptcies have directly impacted individual investors. For example, CIT and GM issued medium term notes (debt trading in $1,000 increments) that were popular in retirement accounts. These obligations were junior to the larger debt issues that were traded by institutional accounts. As a result, individual investors may have only realized a return of 40 cents on the dollar.

Update: Corporate Bankruptcies

We've only just begun......



As a side note, last week's bank failures reduced the FDIC bankroll to a few hundred million dollars (my guesstimate). They have announced a plan to levy another "special assessment" this year and another one in the first quarter of 2010. The Quarterly Banking Profile will be released later today, so we can get the latest numbers.

Update: Corporate Bankruptcies

Recent CDS Auctions:

Lear Corporation CDS: 38.5 cents on the dollar

Six Flags, Inc. CDS: 14 cents on the dollar

Visteon Corporation CDS: 3 cents on the dollar

General Motors Corporation CDS: 12.5 cents on the dollar


I guess there is risk in lending to corporate America............

Bankruptcy Update

Please click on table to expand.

Two additions in the last week, including the owner of the Great Adventure theme park.

Corporate Bankruptcy Update

For those keeping score.....

GM Bankruptcy By Morning

Seems like a good time to review the wise investments by the TARP. Somehow, I get to share in the losses, but I never was able to participate in the gains. I never even wanted to get involved.



New CarCo is the new Chrysler acquisition vehicle.

Total = $55.80 billion

I'm not done yet: add another $30 billion in GM bankruptcy funding provided by the Federal Government.

60% of GM in return for the taxpayers. How 'bout eliminating the Federal Income Tax and let me decide how I want to set my money on fire.