The lessons of greed by leading financial institutions have not been learned – click here.
A funny thing happened on the way to “Vegas,” for those readers of the earlier posts, including ["If We Were in Vegas, Our Wager Would Be on Visa’s IPO Not Happening,"].
Several weeks ago we began raising the question of whether the Visa IPO would be delayed or derailed. After the most recent financial market earthquakes, we opined for the latter and with good reason. We strongly felt that investors would be more risk adverse, pay closer attention to the IPO risk factors and analyze the banks’ need to bail out from Visa.
However, the historic moves within the past 48-hours by the Federal Reserve by adding liquidity, covering the Bear Stearns takeover and announcing new protocols to lower key interest rates all helped temporarily prop up the financial markets. Perhaps just long enough to keep the IPO window open for Visa’s thousands of member banks to run for the hills.
WayTooHigh.com – The Credit Card Interchange Report will be closely monitoring and updating the events of the next few days and beyond.