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In this issue of The Institutional Risk Analyst, we update the Countrywide Financial situation and then discuss the evolution of the bailout led by Paulson & Poodle.  Is the term “passive aggressive” meaningful in the context of the managed liquidation of Countrywide?  by Christopher Whalen

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A Land Mine Or A Gold Mine? - Frank Pallota - (Today’s Blog View column is guest authored by Frank Pallotta, CEO of Steel Curtain Capital Group LLC in  Mahwah, N.J.) - a lot of you know Frank - MortgageOrb

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Northern loses bid to run $700B bailout - Paul Merrion - Northern Trust Corp. lost out to Bank of New York Mellon Corp. in bidding to run the federal government’s $700-billion financial bailout effort. The Treasury Department announced Tuesday that Bank of New York was selected for a three-year contract as master custodian of the Troubled Asset Relief Program. There were 70 submissions, including a joint proposal from Northern and the parent of the New York Stock Exchange, NYSE Euronext. - Crain’s Chicago Business

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Will the government’s capital plan encourage bank consolidation? -  … In short, Treasury’s effort to “destigmatize”  troubled institutions by also buying into healthy banks means the latter could put that capital to work in an offensive, rather than a defensive, fahion. That could mean more acquisitions between have banks and have-not banks. Paulson is undoubtedly aware of this “side effect,” which may in fact be intentional.  … - The Daily Deal
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As the credit crisis has unfolded, the ratings agencies’ moves have been as destructive as they’ve been incompetent. This has to stop. Tom Brown explains at bankstocks.com 
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Dimon, Munger, Rohatyn: No More Vegas - Robert Lenzner - Three of Wall Street’s most influential leaders want big reforms to help Wall Street kick its gambling habit. - Forbes

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Options Clearing Corp. to compete with CME - first time, after agreeing to guarantee contracts traded at a new futures exchange run by the New York Stock Exchange’s parent. NYSE Liffe LLC will switch clearing of its precious metals futures contracts to Options Clearing Corp. from CME at the end of the first quarter, NYSE said in a statement Tuesday. … - Crain’s Chicago Business
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High-Flying Hedge Fund Falls Back to Earth - LOUISE STORY -  Thousands of hedge fund managers, mostly young, mostly male and virtually all unknown outside financial circles, confront a sober reality: for now, the days of easy money are over.  Only 10 months ago, Remy Trafelet was so flush that he treated about 100 employees at his hedge fund to a getaway in Venice . He and his crew spent a long, luxurious weekend at the five-star Hotel Bauer, which has Murano glass chandeliers, private gondoliers and a splendid view of a 17th-century basilica. -  NY Times

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EU to press for reform, Asia joins bailout bandwagon - European leaders will push on Wednesday for an overhaul of global financial structures after Asia joined western bastions of capitalism in bailing out banks to avert financial meltdown and tackle looming recession. - Reuters

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Paulson’s Land Grab: Will Your Bank Be Next? - Motley Fool 

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Waking up to financial crisis — finally - The recession is real. The economic downturn will not be another Great Depression, but it will hurt, and there is no avoiding it. - Bruce Ramsey - Seattle Times editorial columnist 

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What it would take for me to become bullish - Posted by Prieur du Plessis - This post is a guest contribution by Bennet Sedacca*, President of Atlantic Advisors Asset Management …. “Bounces along the way are inevitable, but for a true bottom to be put in place, some more work needs to be done to the downside,” said guest contributor Bennet Sedacca about the outlook for stock markets. The post includes a check-list of items that need to happen in order for him to turn bullish on equities. - Investment Postcards from Capetown

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IRA ARTMAN SECTION - thanks Ira: 

Fort Myers: Finding Bottom, But With A Crash Landing - John Burns RE Consulting
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2 from Red Construction News
1.  How did $600-800 billion of US mortgage defaults cause a worldwide economic crisis? 
2.  The Financial Sector Bailouts Move to a New Phase