Nomi Prins on Banker's Gone Bad - MF'ers, BoA, and Spanish Bond Bashing
Welcome to Capital Account. MF Global’s creditors could have more than three billion dollars in claims against the failed firm. That’s according to the creditors’ bankruptcy trustee – former FBI director Louis Freeh. Guess who is NOT in the front of the line for the money according to Freeh’s report? Customers. This is after a report came out yesterday from the trustee for the creditors, James Giddens. Lot’s to unpack, and we have just the guest to help us do it, author and former Goldman Sachs Managing Director Nomi Prins.
G7 finance chiefs reportedly held a Eurozone crisis conference call as Spain’s Treasury Minister has shot a flare: Help Us! The country is shut out of the bond market. The Treasury Minister, and reportedly some of Spanish bankers want the EU to help recapitalize struggling banks. This is easy for them to say. A bank rescue for them comes on the backs of taxpayers. It comes on the backs of citizens. We’ll ask if anything could turn this dynamic around.
And, on a lighter night, no pun intended, it seems that cash strapped cities have discovered a new and creative way to fill the budget shortfall: putting advertisements on fire trucks. We are not kidding. Demetri and Lauren will explain in our episode of Loose Change.