Grenville

The phone looks very nice. Lots of cool upgrades. The photo quality and panorama is very nice. here is a link to the presentation: http://www.apple.com/apple-events/september-2012/

txlaw, Thank you for posting this. Awesome presentation. So much better watching it then trying to read the live blog. It doesn't do it justice at all.

Nice read! Thanks for posting.

Thanks!

My worry in regards to the successor liability case is that if the courts side with MBIA as a de Facto merger, it will provide precedence. I worry that this will put the 8.5bln BNY settlement in jeopardy. The settlement occurred mostly because it would be hard to prove successor liability against BAC. Also from some of the articles I've read, the statue of repose varies by state. In the end there is a lot here that hinges on laws and their interpretation. I don't have a legal background to say with confidence that there is no risk of loss so I handicap for it. In my mind, I think that's why Warren set up his investment in BAC as a preferred with the warrant kicker. If it was so clear cut that all the mortgage/Countrywide issues were behind the company, he would be buying the common now. In an interview recently, he said he wished he invested more when he made the preferred deal. The preferred deal protects his capital in the event the risks aren't contained.

Thanks!

Nice update on successor liability from Frankel: "In BofA successor liability issue, whose law applies?" http://newsandinsight.thomsonreuters.com/Legal/News/2012/08_-_August/In_BofA_successor_liability_issue,_whose_law_applies_/ The successor liability issue in NY courts is the one thing that worries me most about BAC. I imagine if the ruling by Bransten comes out in favor of MBIA, BAC will appeal and things will get dragged out. I still would prefer a settlement between MBIA & BAC so the can of worms doesn't get opened and the uncertainty disappears.

"LME approves Jefferies Bache as ring-dealing member" http://in.reuters.com/article/2012/08/21/lme-jeffries-idINL6E8JLGE020120821 Jefferies is hiring floor traders from both Newedge and Natixis which are both retreating from the commodities space.

Thanks! Enjoyed the article and your experience meeting him.

Do you know where I can find a link to the strike/conversion on Fairholmes website? Thank you p.23-24 see footnote (b) http://www.fairholmefunds.com/sites/default/files/352975_051.pdf

Fairholme's reports break out the details (strike/conversion) for the warrants they own. I imagine they'll be well informed given their large positions in the warrants.

Jefferies invested 125mln in the 400mln capital raise for Knight Capital Group (convertible at 1.5/share) Jefferies 100mln Jefferies High Yield Holdings 25mln I don't know how much of the convertible preferred will be held by Jefferies or syndicated out.

Here's the breakdown of the investors: Jefferies 100mln Jefferies High Yield Holdings 25mln Blackstone 87.5mln GETCO 87.5mln TD Ameritrade 40mln Stephens Investment Holdings 30mln Stifel Financial Corp 30mln Info at the bottom: http://www.sec.gov/Archives/edgar/data/1060749/000119312512338098/d392396dex101.htm It will be interesting to see if Jefferies holds onto their stake or syndicates the stake to others.

Jefferies Early On Was Friend to Knight - WSJ http://online.wsj.com/article/SB10000872396390443517104577573620011603832.html Jefferies Provided Funding to Knight Capital on Friday -Sources - WSJ http://online.wsj.com/article/BT-CO-20120806-709824.html?mod=WSJ_latestheadlines

Goldman Sachs Charged Knight $440 Million for Unwind http://www.cnbc.com/id/48489000

Trading in AIG has been halted on IB. 11:11am 8/3/12 west coast time

Only thing I briefly looked at was the proxy and Joyce, the CEO owns 1.5mln shares or 1.5% of the common, and his 2011 cash salary was 4.5mln. I don't see him too worried if the common gets diluted. Also it took 45mins for them to shut down the software, when it seemed like they knew something was wrong sooner than that.

Here's a link to the Q2 10Q http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=quarterlyearnings#fbid=UiiPOE1wJ7p

Hi Plan, Thanks for your responses and the links.

Good article on Jefferies growth in commodities and its recent application to upgrade to ring dealing membership on the LME. http://in.reuters.com/article/2012/07/31/idINL2E8IP9SY20120731

I just skimmed the ZION 2011 10K. I like the low cost deposit base with lots of growth potential. The core bank earnings engine looks to be producing good profitability. Also looks like they will clean up the capital structure. A couple of things stuck out for me though: + CEO & Chairman Harris Simmons oversaw the investments in the CDOs and the setup of Lockhart SPV and he still remains in charge --> what prevents similar investments in the future + TRS with Deutche Bank covering 1bln of CDO for regulatory capital + Foreign branches in Grand Cayman --> (not sure what the purpose is, I haven't come across this with other banks, may not be a big deal) + "The company holds investments in pre-public companies through various venture capital funds." Only about 48mln, but why is a bank investing in VC + "Amegy has in place an alternative investment program. These investments are primary directed toward equity buyout and mezzanine funds with a key strategy of deriving ancillary commercial banking business from portfolio companies." --> 71mln but still doesn't sound like something a bank needs to be involved in.

- Canada (Northbridge) 105.6% - U.S. (Crum & Forster and Zenith National) 107.0% - Asia (Fairfax Asia) 88.8 % Reinsurance - OdysseyRe 85.8 % Insurance and Reinsurance - Other 100.9% Insurance and reinsurance operations 97.5% Glad we have ORH, growing and writing profitably

Thanks for mentioning that bit. I am enjoying the story about A.P. Giannini and his acumen as an entrepreneur and businessman.

Started reading Biography of a Bank. Enjoying it so far, just 70 pages in. I liked this quote: "At thirty-one A.P. Giannini had formulated the philosophy concerning the accumulation of personal wealth that he was to carry through life. "I don't want to be rich," he said. "No man actually owns a fortune; it owns him." p.9 (1954 edition)

nice blog. thanks.