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ECB Now a Hedge Fund; €1T Bazooka; ECB Promotes Euro Carry Trade; Draghi Has it Backwards

MishTalk

Question: Mr Draghi, you said that the new measures and the TLTROs will have a sizeable impact on your balance sheet. You have the TLTROs which are going to unfold over several operations over two years initially, then two more years. Please consider an ECB Press Conference Q&A (not available when I commented yesterday).

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What the Companies That Predict the Future Do Differently

Harvard Business

No wonder, then, that executives have placed predictive analytics at the top of the executive agenda since 2012, according to a recent Accenture survey. Effective use of predictive analytics involves mastering a new set of management, operational, and financial techniques and disciplines.

Company 71
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Kodak’s Downfall Wasn’t About Technology

Harvard Business

The company filed for bankruptcy protection in 2012, exited legacy businesses and sold off its patents before re-emerging as a sharply smaller company in 2013. It sold the site to Shutterfly as part of its bankruptcy plan for less than $25 million in April 2012. People went from printing pictures to sharing them online.

Film 70
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Research Shows That Smaller M&A Deals Work Out Better

Harvard Business

Walter Thompson Company for $566 million in 1987 and Ogilvy for $864 million in 1989 — big acquisitions that stretched the company’s balance sheet. So WPP acquired the ad agencies J. After that, however, WPP practiced programmatic M&A, turning it into a strong muscle. Axel Springer followed a similar path.

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Back in the Saddle, Just in the Nick of Time

MishTalk

The bank has no plans to securitize its originations, and it won’t keep any servicing rights or build out a servicing operation, Ally spokeswoman Gina Proia said in an e-mail. In 2012, Ally announced that it was going to shutter its mortgage business after the conclusion of ResCap’s bankruptcy proceedings.

Mercer 28
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Huge Capital Raising Effort at Spanish Bank Passing Latest Stress Test; New Game in Town; Smell Test Failure

MishTalk

On June 22, 2012, I commented Laugh of the Day: Stress Tests Show Spanish Banks Only Need Between €16bn and €62bn in New Capital; ECB to Accept BBB- Rated Debt (One Step Above Junk) as Collateral. Banco Santander passed the last "stress test" so allegedly it had no need to raise capital.

Banking 28
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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Corporate Fund is Chicago’s general operating fund. Chicago’s property tax revenues do not go into its general operating fund. From 2003 to 2012, these projects have ranged from $54.2 This fund is used to pay for essential government services and activities (e.g. public safety and trash collection). million to $102 million.