Light of Day?

It seems like, despite the gnashing of teeth, the nascent plans to fix our current financial mess (focusing only on the collapsing banking system) is gaining traction. Now if only Obama can make a grandstand speech to rally his forces (AKA the citizens of the United States of America), we can get a positive vibe going.

Deal Journal - WSJ.com : Warburg's MBIA Rallying Cry: Remember the Mellon: "In the spirit of Sam Houston, the deal makers at Warburg Pincus, publicly flogged over the past year for their wrong-way bet on MBIA, could very well be walking around the office this week shouting “Remember the Mellon!”
MBIA’s plan to split itself into two–a muni bond insurer and a toxic-securities insurer–brings to mind Warburg’s two-decade old investment in Mellon Bank, a deal that holds a place in the “good bank/bad bank” investing hall of fame.
In 1988, the Pittsburgh bank, reeling from a portfolio of bad real-estate loans, ring-fenced $1.4 billion of troubled assets and transferred them into a newly capitalized “bad bank” called “Grant Street National Bank.” As part of the recapitalization, Warburg purchased about $150 million in Mellon convertible preferred stock that it later converted into shares, becoming one of Mellon’s largest shareholders."

Yes We Can.