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Wednesday, February 29

29th Feb - TROLOLO Countdown

Just a short morning post, for more see last evening's LTRO is what you want it to be. Today the LTRO auction, followed by revision to USD 4Q GDP and Bernanke addressing the Congress. For my full LTRO coverage, see this LTRO: The Ultimate Collection

News roundup – Between The Hedges
News roundup – The Trader
Emerging London Headlines – beyondbrics / FT
Press digests by Reuters: FT, WSJ, NYT

Morning Briefing – BNY Mellon
Market Preview – Saxo Bank

Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
Tracking Europe’s Debt Crisis – NYT

Global Economics View 27-FebCiti (pdf)
Why Does The ECB Not Put Its Mouth Where Its Money Is? The ECB As Lender Of Last Resort For Euro Area Sovereigns And Banks

Swap Talks Over Greece Could Test the MarketDealBook / NYT
A required payout would most likely happen if a bond issuer actually changed the terms of some existing bonds to make them subordinate, he said, and he added that shielding the central bank from losses did not appear to do this.

Greek CDS Would Be Fine If People Would Just Leave It Alone For A WhileDealbreaker
So there is absolutely no doubt whatsoever that if Greece’s plan goes off as planned then at some point between now and step (7) you will have a credit event.

Sharpen the Mower: Spain Needs Triple the Budget Cuts and Tax Hikes to Meet EMU Imposed Budget TargetsMish’s
Many structural reforms pertaining to jobs and work rules are quite necessary. The accompanying tax hikes are not and the Spanish economy is poised to implode as a result. Not to worry, EU commissioner Jean-Claude Juncker promises to "examine the situation with calm and serenity".

Doubtful Signs of a Criminal Case Against MF GlobalDealBook / NYT
Investigators, unable to find a smoking gun amid thousands of e-mails and documents, increasingly suspect that chaos and poor risk control systems prompted the disappearance of more than $1 billion in customer money, according to several people involved in the case.

Wall Street was never on your sideAbnormal Returns
The fact of the matter is that Wall Street has always been in the business of taking advantage of the little guy.

Wall Street Confesses to Bonus Culture’s IllsBB
William D. Cohan: Now, four years after the crisis started -- and despite the Dodd-Frank law intended to reduce the risks on Wall Street -- not one thing has changed in what bankers and traders are rewarded to do. Until that happens, you can forget about preventing another crisis on Wall Street.

Dalio Earned Clients $13.8 Billion to Lead Hedge Funds as Paulson SlumpedBB

It wasn’t long ago that people were blaming banks, not governments – and the issue of the day was financial regulation, not fiscal compacts. This column, the second of two, focuses on the Basel framework for banking regulation that it argues has led to a ‘vast, poorly diversified, highly interconnected banking system’. In this section it outlines how to put this right.

Preventive macroprudential
Banking runs are a major threat to modern finance. This column makes the case for preventive tools over ex post intervention. It argues for assigning responsibility and novel tools to microprudential regulators for supervising individual liquidity and capital ratios, and to central banks those tools for aggregate liquidity-risk management, with overall control switching to fiscal authorities once intervention appears to require fiscal means.