Back on May 20 ,2009 in A Few Thoughts I said the following;
on Nov 11 this year where in a piece called Sandbagging I said this;
The bankers and their ilk care not a whit when rules of law are skirted in their favour. The lawlessness, the duplicity, the double dealing that have overwhelmed our capital markets suit them fine when works in their favour but boy does it hurt when it doesn't.
So, it is with great pleasure that I read today this article out of the Times of London whereby the bankers seem to be getting a serious dose of their own medicine. It seems they object, no, they strenuously object, to having their interests superseded. (or more likely in this case, rendered moot, but I digress)
The article reports that:
"Bankers are furious that two defaulting Saudi conglomerates that owe $20 billion (£12.2 billion) appear to be favouring local banks over foreign creditors. State-owned Royal Bank of Scotland, HSBC and Standard Chartered are all understood to have exposure to Saad Group and Ahmad Hamad Algosaibi & Bros (Ahab). Dozens of other Western banks are also owed money, including Citigroup and BHP Paribas.
Bankers suspect that the two family-owned businesses, which defaulted over the summer, have privately reached agreement with local Saudi banks over restructuring their loans while leaving foreign banks in the cold. One senior banker told The Times yesterday: “Local banks appear to have been given preference.”
They are furious. They are so furious, they have dispatched a Lord Davies to represent their interests (might I suggests a couple of Sirs and maybe a Duke as reinforcements!) What?!! No TARP? No TALF? No flow through a la AIG? No redemption's at par? What the F$^% !!
Where the hell is Bob Rubin, King Henry and Neel Cash n Carry when you need em' (Mortimor where in hell is Beeks? with apologies to Ralph Bellemy)
I would love to hear what the Saudis tell his Lordness upon arrival.
Remember that toxic, purportedly triple A paper you foisted on us?
Remember those RMBS and CMBS mezzanine loans you peddled us?
Remember those recapitalization deals for financials like Citi you let us participate in?
Well... whenever we complained, (post mortem) you kept repeating over and over again caveat emptor. So a reciprocal caveat emptor to you. Oh, and how do you say...ummm...sucker in latin?
No readers you cannot make this up. This is the natural evolution, or should I say devolution of things, a downward spiral if you will. You can argue against it all you want but the fact remains rule of law regarding our capital markets went out the window a long time ago.
Do I agree with what is happening? Of course I don't but when the gloves are off the gloves are off. By the way, yet another tell in this market.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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