Fed News Flow & Wrap Up

Got back long after the FOMC news was released. As we expected yesterday, the Fed disappointed the perma-bulls and left rates unchanged. Here’s what grabbed my eye between meeting. While I am gorging on yet another slab of marbled red meat, I won’t leave you with nothing to read.

Here is some interesting news flow surrounding the Fed decision, AIG and other, behind the scenes actions:

Surprise! Fed stays on hold, keeps neutral bias (MarketWatch)

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Parsing the Fed: New Risks, Same Rate (WSJ)

Fed to futures market: Thanks but no thanks (Rosenberg/Merrill Lynch)

• Bloomberg headline: US Considering AIG "Conservatorship"

Fed Said to Reverse Stance, Consider AIG Loan Package (Bloomberg) 

Today’s WTF headline: JPMorgan Gave Lehman $138 Billion After Bankruptcy (Bloomberg)

The Crisis of Confidence and the Banks (The Institutional Risk Analyst )

Geithner Skips FOMC Meeting to Stay in New York  (for AIG ?) (Real Time Economics) 

The End of Dissent: Fisher Joins the Majority  (WSJ)

Barclays to acquire Lehman capital markets (MarketWatch)

AIG-LEH-Federal Reserve and asymmetric information (Kotok/Cumberland)

Money fund breaks a buck: Reserve Primary Money Fund Falls Below $1 a Share  (Bloomberg)   

Shattering the Glass-Steagall: The rise of the commercial banks. (Slate)   

•  Greenspan: Economy in ‘once-in-a-century’ crisis (CNN/Money)

Why the Fed couldn’t lower rates (iTulip)

A Sense That Wall St.’s Boom Times Are Over (NYT)   Do ya think ?

Bail-out or bust?  (Economist)

McCain Calls Wall Street Reckless, Obama Hits McCain (Bloomberg) 

Investment Banks, By the Numbers (Marketbeat)

•  Any notice? Russia fell 20% overnight

 

Lastly, the always objective, neutral and disinterested Hank Greenberg:

It is in America’s interest to save AIG (Real Time Economics) 

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