Marketplace Scratch Pad

Morning Reading

Scott Jagow Jan 26, 2010

Good morning. The debate over Ben Bernanke’s confirmation and Tim Geithner’s job roars on. Plus, a follow up to yesterday’s post on the collapse of the biggest real estate deal ever.

It’s time for Bernanke to resign (Real Clear Markets)

Why Bernanke should be reconfirmed (Econbrowser)

The Press angle of the Fed’s AIG coverup (Columbia Journalism Review):

To reiterate, the Geithner New York Fed reacted to a FOIA not by releasing the information, but by making more information secret–in order to prevent other meddlesome reporters (or lawyers) from filing FOIAs!

If Geithner goes, he’ll parachute into Goldman Sachs (Bloomberg):

Axing Geithner might be good for president and Treasury secretary alike. Obama would be seen as an ally of the people. Geithner would be free to claim his just reward: that plum offer from Goldman Sachs. The circle would be squared. Obama would have his man on the inside.

Bank of America forecloses on a home without a mortgage (Consumerist) Trust me, just read it.

Homeowner wants to walk, despite loan terms (NPR)

Fallout is wide in failed deal for Stuyvesant Town (New York Times) I posted something on this yesterday called A lose-lose-lose deal. I probably should’ve said — A lose-lose-lose-lose-lose-lose-lose deal:

Many of the other companies, banks, countries and pension funds — including the government of Singapore, the Church of England, the Manhattan real estate concern SL Green, and Fortress Investment Groups — that invested billions of dollars in the 2006 deal stand to lose their entire stake.

“At the time, it looked like a sound investment,” said Clark McKinley, a spokesman for Calpers, the giant California public employees’ pension fund, which bought a $500 million stake in the property. “When the market tanked, we got caught.”

As reader Franchesco put it, the Stuyvesant failure is a metaphor for everything.

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