With Oscar night coming up this Sunday, it's fair to consider awards in industries other than film. BofA's Ken Lewis makes his case for why he should be nominated Banker of the Year:
Bank of America Corp. doesn’t need any further assistance and has enough "capital, liquidity and earnings power to make it through this downturn on our own," Chief Executive Officer Kenneth Lewis said in a memo today to employees.
Spoken like a true champ, Ken. I'll bet you can stick it to those shorts just as hard as Dick Fuld did before Lehman Bros. cratered, with just as much success. Meanwhile, another hedge fund that was unfortunate enough to invest in the type of securities eating away at bank balance sheets announced its insolvency today:
The managers and directors of Highland CDO Opportunity Fund LP, comprised of a U.S. partnership and an offshore affiliate, determined that “it is in the best interests” of the fund to wind down, according to a Feb. 4 letter to investors. Remaining assets will be distributed to creditors, leaving nothing for shareholders.
Maybe they'll end up on Failblog. I certainly won't. I'm shorting SPY because news items like the ones above indicate just how much financial pain still needs to work its way through the economy.
Nota bene: Anthony J. Alfidi has no position in BAC or any of Highland's hedge funds. He holds short uncovered calls on SPY.
