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  • Sat, Sep 27 2008
  • 9:29 AM » Dear Washington - A Real Plan For You
    Published Sat, Sep 27 2008 9:29 AM by mrmortgage.ml-implode.com
    Bill King, whose foresight I rely upon for my personal financial well-being, and who I quote in the blog often has put forth a plan worth serious consideration. Please get this to your representative in Washington…they need all the help they can get. -Best Mr Mortgage King Report Bailout Plan Premises: The US credit system is broken. The Paulsen-Bernanke Bailout Plan does not insure that those banks and brokers that receive bailout aid will increase lending. The reality is the market is hoarding liquidity and these banks are likely to do the same. More importantly consumer lending has been a small, often insignificant part of their business. They made money by trading and through securitization of debt. It is necessary to create a new system parallel with the existing dysfunctional system in order to mitigate the inevitable economic and financial damage and to facilitate, as seamless as possible, the transition to a functioning financial system or new model of credit and banking. The Wall Street model, securitization and extreme leverage, is obsolete. US financial institutions need to recapitalize. Hank and Ben assert that it is paramount to keep credit flowing to consumers; the bail out is a necessary adjunct. Paulsen and Hank’s bailout plan is tantamount to bailing out Univac, Digital Equipment, etc, in the eighties, which would’ve retarded the development of Dell, Microsoft, Intel and other nascent technology companies. It’s wasteful & foolish to put more money in an obsolete non-functioning system Big banks and brokers made most of their earnings over the past several years in trading, not consumer lending. And now their derivatives are THE problem If you want to get money to the consumer: the less middlemen, the better. Decentralization of liquidity, lending and risk is necessary to refurbish the financial system. The illiquidity of a few large banks is collapsing the system. Basics of the King Report Bailout Plan Directly recapitalize banks by the US government...
    Click Here to Read the Full Article

    Source: mrmortgage.ml-implode.com
  • 9:29 AM » Chinese regulator calls US lending 'ridiculous'
    Published Sat, Sep 27 2008 9:29 AM by Washington Post
    TIANJIN, China -- U.S. lending standards before the global credit crisis were "ridiculous," and the world can learn from China's more cautious system as it considers financial reforms, the top Chinese bank regulator said Saturday.
    Click Here to Read the Full Article

    Source: Washington Post
  • 9:29 AM » Fleeing WaMu deposits sent regulators scrambling
    Published Sat, Sep 27 2008 9:29 AM by Washington Post
    WASHINGTON (Reuters) - As depositors lost confidence in Washington Mutual Inc (WM.N), and began emptying their accounts, regulators abandoned hopes of saving the largest U.S. savings bank and conducted a secret auction.
    Click Here to Read the Full Article

    Source: Washington Post
  • 9:13 AM » SEC: Brokerage Collapse Was Our Fault
    Published Sat, Sep 27 2008 9:13 AM by The Big Picture
    “The last six months have made it abundantly clear that voluntary regulation does not work." -Christopher Cox, Chairman Securities and Exchange Commission Excellent timing -- I have an editorial in this weekend's Barron's on exactly this sort of blind deregulation: "The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down . . . The program Mr. Cox abolished was unanimously approved in 2004 by the commission under his predecessor, William H. Donaldson. Known by the clumsy title of “consolidated supervised entities,” the program allowed the S.E.C. to monitor the parent companies of major Wall Street firms, even though technically the agency had authority over only the firms’ brokerage firm components. The commission created the program after heavy lobbying for the plan from all five big investment banks. At the time, Mr. Paulson was the head of Goldman Sachs . . . The announcement was the latest illustration of how the market turmoil was rapidly changing the regulatory landscape. In the coming months, Congress will consider overhauls to the regulatory structure, but the markets and the regulators are already transforming it in response to events . . . The division’s “failure to carry out the purpose and goals of the broker-dealer risk assessment program hinders the commission’s ability to foresee or respond to weaknesses in the financial markets,” the report said." Scathing stuff . . . > Source: STEPHEN LABATON NYT, September 26, 2008 http://www.nytimes.com/2008/09/27/business/27sec.html
    Click Here to Read the Full Article

    Source: The Big Picture
  • 9:13 AM » "Even Hank Paulson's bail-out plan cannot detox global banking"
    Published Sat, Sep 27 2008 9:13 AM by feeds.feedburner.com
    Some readers would have a go at me whenever I'd post articles by the Telegraph's Ambrose Evans-Pritchard. Although he has a tendency to hyperventilate and sometimes oversimplifies, he regularly points to data and research that I haven't seen covered elsewhere. More important, his major calls this year have been correct. He predicted the oil price decline, was vehement that deflation, not inflation was the risk to the global economy, and pointed to evidence of near zero money supply growth in major economies, an early warning that the credit crunch was intensifying. Today, Evans-Pritchard and the Financial Times editorial page are in agreement on the the dangers of the debt crisis and the need for swift action, although Evans-Pritchard spends more time on the long-term outlook. First, from the (boldface ours): Banks are not to be trusted. This is not just the view of the public and policymakers, but that of the banks themselves. Spreads on unsecured inter-bank lending have reached unprecedented levels, particularly in dollars and, to a lesser degree, sterling. Such stresses cannot continue for long, without serious damage to both the financial system and the economy.... This dire situation makes decisive action essential. Beyond doubt, failure by the US Congress to pass a rescue package would court catastrophe. B ut the plan proposed by Hank Paulson, US treasury secretary, is inadequate. This, too, is the banks’ view. They know his plan is likely to pass, in some form, yet seem increasingly nervous. So what is to be done? The response must have three elements. First, in the absence of private funding, central banks must do the intermediation among banks. Moreover, banks cannot fund ongoing operations overnight. So all central banks must shift liquidity provision away from overnight lending, towards much longer maturities. Second, the US Congress must pass a version of the Paulson plan. This must promise to make the distressed securitised mortgage assets now...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • Fri, Sep 26 2008
  • 4:44 PM » Freddie Mac shakes up management
    Published Fri, Sep 26 2008 4:44 PM by CNN
    Read full story for latest details.
  • 4:44 PM » Paulson taps Forst as adviser on plan
    Published Fri, Sep 26 2008 4:44 PM by www.ft.com
    Hank Paulson, Treasury secretary, has called on Edward Forst, a former senior Goldman Sachs executive who recently joined Harvard University, to be a key adviser on the $700bn financial rescue plan
  • 4:44 PM » Real estate insiders see market upheaval into 2010
    Published Fri, Sep 26 2008 4:44 PM by feeds.bizjournals.com
    The majority of real estate execs -- 60 percent -- say the current credit crisis is the event with the single-greatest impact on the commercial real estate industry during the past 20 years, according to a national survey conducted by law firm DLA Piper.
    Click Here to Read the Full Article

    Source: feeds.bizjournals.com
  • 4:40 PM » Wachovia Begins Early Deal Talks with Citi
    Published Fri, Sep 26 2008 4:40 PM by dealbook.blogs.nytimes.com
    Wachovia has begun preliminary talks with Citigroup about a potential merger, people briefed on the matter said Friday afternoon.
    Click Here to Read the Full Article

    Source: dealbook.blogs.nytimes.com
  • 4:38 PM » WaMu Gives New CEO Mega Payout as Bank Fails
    Published Fri, Sep 26 2008 4:38 PM by www.foxnews.com
    That's right, $20 million for 17 days on the job ... and his company failed.
    Click Here to Read the Full Article

    Source: www.foxnews.com
  • 3:54 PM » The Creation of the Second Great Depression
    Published Fri, Sep 26 2008 3:54 PM by ml-implode.com
    The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences... are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess! Paul is right... it's not a crash that creates an extended Depression; it is how we respond to it. And doubling-down on a debt-based system (merely moving around who holds and who is in charge of the debt) cannot be the answer. Also see this interview which is of a similar gist: no "bailout" of Wall Street is needed. In fact it is precisely in the vein of what we have been doing for the past 30 years, and therefore is exactly the opposite of what should be done. One caveat regarding Hudson: he recommends T-bills as the "only" safe haven for us little guys to protect our wealth. But he ignores gold and silver. The reason is that Hudson still supports an "economist-managed" system; that is to say a centrally-managed economy. His quibble is simply who the managers are. A sound money system is the only one that truly protects the wealth of the people. Even better, such a system without government props for banks is the most optimal. You don't have to wait for such a system to arrive -- you can get the wealth-preservation benefits by buying gold or silver right now. All paper is suspect.
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 3:54 PM » Marc Faber: US Needs as Much as $5 Trillion Financial Rescue
    Published Fri, Sep 26 2008 3:54 PM by feeds.feedburner.com
    Swiss investor Marc Faber, known for a long track record of good calls (he was a commodities bull until late this spring, for instance, when he reversed his view) and a fine grasp of financial markets history, confirms the estimate earlier in the week by Ken Ohmae that the US needs a salvage operation much bigger than the one envisaged by the Treasury plan, and the damage may come to $5 trillion: Marc Faber, managing director of Marc Faber Ltd. in Hong Kong, said the U.S. government's rescue package for the financial system may require as much as $5 trillion, seven times the amount Treasury Secretary Henry Paulson has requested.... ``The $700 billion is really nothing,'' Faber said in a television interview. ``The treasury is just giving out this figure when the end figure may be $5 trillion.''... ``The decline in home prices of 20 percent is a relatively minor decline so far and it has created so many problems,'' Faber added. ``The US is in much worse shape'' than Japan was when its stock market crash ushered in a decade-long slump in 1990. There is other juicy stuff in the . Some of Faber's other comments: The problem is excessive leverage, not housing per se. Stocks may rally once a bailout package is in place, since on a short-term basis stocks are oversold, but a durable bull market for financial is "out of the question." The one bubble that has not been pricked is US Treasuries. Higher interest rates are in the offing. While the dollar may decline sharply in the next few days, Faber regards it as attractive because even though the US is in bad shape, the rest of the world is even worse off.
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 3:54 PM » Credit Markets Predictably Not Happy Right Now
    Published Fri, Sep 26 2008 3:54 PM by feeds.feedburner.com
    As we reported earlier, central banks have been providing emergency liquidity, but it has not coaxed nervous investors off the sidelines. From the: “There is extreme lack of liquidity in the short-term markets,” Kevin Giddis of Morgan Keegan told Dow Jones Newswires, noting he has seen no commercial paper trade so far this morning. “Each moment that the government’s bill gets held up, things will remain like this. They need to calm markets.” The interventions we've had to date have, by any standard, been massive, yet have failed to bring lasting relief. The idea that a $700 baillout bill is a "comprehensive solution" seems more than a tad optimistic. From: In the last two weeks — if I am reading the Federal Reserves’ balance sheet data correctly — the Fed has: Increased “other loans” to the financial system by around $230 billion (from $23.56b to $262.34b); Increased its “other assets” by about $80b (from $98.67b to $183.89b); Increased the securities it lends out to dealers by $60b (from $117.3b to $190.5b); That works out to the provision of something like $370b of credit to the financial system in a two week period. That may be a bit too high: the outstanding stock of repos felll by $40b (from $126b to $ 86b), leaving a $330b net change in these line items. But that is still enormous. The most that the IMF ever lent out to cash strapped emerging economies in a year? $30b, in the four quarters through September 1998 (i.e. the peak of the 97-98 crisis). The most the IMF ever lend out over two years? $40b, in the eight quarters through June 2003 (this covered crises in Argentina, Brazil, Uruguay and Turkey) This is a very real crisis. The Fed’s balance tells a story of extraordinary stress. I never would have expected to see the Fed lend out these kinds of sums over such a short-period. Setser also says there is not sign of foreign creditors abandoning US assets, as custodial holdings at the Fed have increased. FT Alphaville reports that . I couldn't...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 2:49 PM » Mr. Greenspan, please shut up
    Published Fri, Sep 26 2008 2:49 PM by feeds.feedburner.com
    This guest post is from: a veteran business journalist who writes the blog , a humorous look at marketing, business and his dog. If you’d like to submit a guest post . “There’s no question that this is in the process of outstripping anything I’ve seen, and it still is not resolved and it still has a way to go,” Alan Greenspan said last Sunday. This sentence can be applied equally to both the sub-prime/credit-crunch/what-have-you mess and the destruction of Greenspan’s reputation as a financial genius. Each passing bankruptcy makes it clearer that Mr. Irrational Exuberance is responsible for the two things at the heart of this entire thing: Easy credit and minimal oversight. His constant refusal to raise interest rates meant that more money was always available for any thing – whether or not that thing was actually economically sustainable. At the time most said this was “finessing” the problem. Now it is clear to all of us – just as it was to some at the time – that finesse is another word for delay. And with each delay, the size of the problem compounded. To make it worse, Greenspan and the Fed did nothing to see if these loans were actually any good. As : Under the Home Ownership and Equity Protection Act enacted by Congress in 1994, the Fed was given the authority to oversee mortgage loans. But Greenspan kept putting off writing any rules. As late as April 2005, when things were seriously beginning to go wrong, he was saying that subprime lending would work out for the common good—without government interference. As a result the US mortgage industry came to resemble a Ponzi scheme. Mortgage brokers made bad loans because they made money whether or not those loans were paid off. They just passed the risk along to the next company. That company made its little slice of the revenue stream by bundling up a bunch of those bad loans and selling them (and any risk) to the next step in the chain and so on and so on. As long as you weren’t last in the chain it was exactly...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 2:48 PM » Legislative process sometimes not very pretty
    Published Fri, Sep 26 2008 2:48 PM by themessthatgreenspanmade.blogspot.com
    It was short and sweet, but very clear. The silver-tongued leader of the free world has "willed" the much-needed bailout legislation into being and, therefore, it will happen. Good Morning, My administration continues to work with the Congress on a rescue plan. And we need a rescue plan. This is uh... it's hard work. Our proposal is a big proposal. And the reason it's big - and substantial - is 'cause we got a big problem. We also need to uh... move quickly. Now, anytime you have a plan this big, that is moving this quickly, that requires legislative approval, it creates challenges. Members uh... want to be heard, they want to be able to express their opinions, and they should be allowed to express their opinions. There are disagreements over aspects of the rescue plan, but there is no disagreement that something substantial must be done. The legislative process is, sometimes, not very pretty. But, we are going to get a package passed. We will rise to the occasion. Republicans and Democrats will come together and pass a substantial rescue plan. Transcribing the words of our president once again yields a new appreciation for the political leadership in Washington. While some doubters may have had their faith restored in the financial system - the gold market apparently didn't see things that way.
    Click Here to Read the Full Article

    Source: themessthatgreenspanmade.blogspot.com
  • 2:48 PM » The Mortgage Servicing Sector Has Failed & Is In Complete Chaos
    Published Fri, Sep 26 2008 2:48 PM by loanworkout.org
    The facts remain that without provisions mandating loan workouts and loan modifications, increased regulation on mortgage servicers, servicer accountability and without complete 100% control of these mortgages, themselves, this bailout plan WILL NOT work. Well, at least for the people on Main Street losing their homes. The proposed $700 bailout proposed by U.S. Treasury Secretary Henry Paulson, in [...]
    Click Here to Read the Full Article

    Source: loanworkout.org
  • 2:48 PM » Wachovia Finally Addressing Their Pay Option Portfolio
    Published Fri, Sep 26 2008 2:48 PM by mrmortgage.ml-implode.com
    Wachovia, who at last count owned $122bb of the most toxic loan every created (the Pay Option ARM), has taken on an aggressive initiative with mortgage brokers/bankersto help them refi their way out of their financial troubles. They hope to refi about 30% or 135k loans over the next couple of years. The Pay Option ARM, in part, just took WaMu down and many think Wachovia will be next. Wachovia’s plan is to dole out leads to mortgage brokers/bankers and have them refinance the loans via Fannie/Freddie or FHA. Now that the Government (US taxpayer) is the lender of last resort, why not? They are even talking about carrying back second mortgages for those in a serious negative equity positions. However, I think FanFredFHA and the borrower may frown upon that a bit. In my opinion, this is a great approach but I think they underestimate the severity of the negative equity in states in which they own the most Pay Options and overestimate the quality of their borrowers. Remember, I have told you many times, the nickname in the mortgage industry for World Savings was ‘The Heartbeat Lender’. That’s because anyone with a heartbeat could get a loan there. It was Wachovia’s purchase of World Savings in CA that led to their downfall. I also think they overestimate the borrowers willingness to get out of their ultra-low payment Pay Option ARM into a fixed rate loan without a serious principal balance reduction. It is all about the monthly payment and having equity in the home, right! Lastly, they will be tempted to focus on the worst borrowers first, which could prove to undermine the project. With lending guidelines magnitudes tighter than they were when these loans were originated and values down 30-70% in the hardest in Pay Option regions, I have doubts they will be able to make a meaningful dent. However, for the ones that can’t be helped if Wachovia gets aggressive about proactive loan modifications they may be able to achieve their goal. For those that can’t refi through this...
    Click Here to Read the Full Article

    Source: mrmortgage.ml-implode.com
  • 2:36 PM » WaMu Failure Puts Renewed Pressure on Nat City, Wachovia
    Published Fri, Sep 26 2008 2:36 PM by www.thetruthaboutmortgage.com
    The government better get moving on the bailout, with renewed pressure on some of the largest U.S. banks poised to wreak even more havoc on the flagging economy. National City saw its share fall as low as $2 in early trading today, a new all-time low for the struggling Cleveland, Ohio-based bank. That led spokesman Kelly Wagner [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 1:17 PM » Washington Mutual Shut Down by OTS
    Published Fri, Sep 26 2008 1:17 PM by www.thetruthaboutmortgage.com
    So much for the merger with Chase; instead the largest bank failure in U.S. history. Late Thursday evening, Washington Mutual was shut down by the Office of Thrift Supervision and the FDIC was named receiver, making it the 13th failure of the year. At the same time, JP Morgan Chase acquired the assets of the failed thrift [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 11:27 AM » Wachovia Hit by Concerns
    Published Fri, Sep 26 2008 11:27 AM by feeds.feedburner.com
    In the wake of Washington Mutual’s failure Thursday evening, financial sector stocks are pressured heavily in early trading as investors wonder who is next — Wachovia Corp (WB: 10.7499 -21.53%) in particular.
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 11:06 AM » Cuomo adds the credit default swap market to his short selling probe
    Published Fri, Sep 26 2008 11:06 AM by wallstfolly.typepad.com
    Attorney General Andew Cuomo is expanding his probe of short sellers to also include the credit default swap market. According to the WSJ:Mr. Cuomo's office Thursday morning subpoenaed data from three providers of pricing and trading information that operate in...
    Click Here to Read the Full Article

    Source: wallstfolly.typepad.com
  • 11:05 AM » A History of Hedge Funds
    Published Fri, Sep 26 2008 11:05 AM by www.minyanville.com
    Editor's Note: The following originally appeared on September 29 2003 and in light of current events has been reprinted here for the benefit of the Minyanville community.As the SEC progresses toward rules to regulate hedge funds I thought it a good time to talk about their history and development as well as their current and future role in the investment world. As these funds become a more and more integral part of the investment process it's important to understand where the media and other laypeople are misinformed about how they operate and how they affect the financial system. This ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 11:04 AM » How Does the WaMu Failure Compare?
    Published Fri, Sep 26 2008 11:04 AM by Seeking Alpha
    submits: It was announced Thursday, after-hours, that the FDIC is taking control of Washington Mutual (WM) and selling its deposits as well a number of branches to JP Morgan (JPM) for $1.9 billion.D Losing $6.3 billion in the last three quarters and getting cut to "junk" status didn't give WM many options to choose from. $19 billion in losses is projected through 2011, but some say the number could be as high as $30 billion.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 11:03 AM » Investors Flee Commercial Paper Markets
    Published Fri, Sep 26 2008 11:03 AM by www.minyanville.com
    The bailout of the financial system has officially become a typical Washington dog-and-pony show. Partisan politics it turns out do in fact trump economic expediency and our elected officials' desire to act in the best interests of their constituency. Meanwhile back in reality the short-term money market -- the oil that greases the gears of the financial system -- is coagulating. According to the Wall Street Journal cash is flowing out of the commercial paper market at an alarming rate. In the past two weeks the market contracted by $113 billion the largest amount since last summer when the Federal Reserve was forced ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 11:02 AM » Mayor Mike Bloomberg for Treasury Secretary
    Published Fri, Sep 26 2008 11:02 AM by The Big Picture
    This morning on SquawkBox, my fishing pal Chris Whalen of called for Paulson's and Bernanke's heads. That is the perfect opening for Marion Maneker, who presents us with this guest essay. Marion is the Managing Partner at Colle, Hochberg and Grey, publishers of the . He is a former editor at New York Magazine and the Publisher at the HarperCollins business imprint. Marion has been observing the political and economic scene from a vantage point within the financial press for many years. His take is wry, sharp, and unique. I would not bet against his perspectives. ~~~ It isn’t easy being Secretary of Treasury these days. One minute you’re down on your knees begging the Congressional leadership not to blow up the world’s banking system; the next you’re fielding calls from the Chinese threatening god-knows-what if you don’t make them whole on the GSEs. Just look at the month Hank Paulson has had. One of the effects of the market shock and bailout plan has been a renewed focus on the Secretary of the Treasury. Once a role for a worthy business figure whose job amounted to repeating the mantra “a strong dollar is in America’s interest” -- usually as the dollar is sinking--the job has become something very different now and for the forseeable future. If Hank Paulson gets his way and Congress declares martial law over the financial community, the Treasury Secretary is going to be more Proconsul than cabinet functionary. First, Paulson received for the way he handled the crisis; then he unveild his bailout plan. Suddenly it seemed like -- though Anatole Kaletsky had already. No matter what happens to the bailout, Paulson isn’t likely to be asked to stay on after the transition. So we have to start asking the question: who is going to be riding this tiger next? This isn’t a question like, who would the new president appoint to the Supreme Court? Where the Treasury Secretary was once a high level consiglieri, the position is rapidly becoming a much more complex and intense...
    Click Here to Read the Full Article

    Source: The Big Picture
  • 11:01 AM » The 15-Point Plan to End the Credit Crisis
    Published Fri, Sep 26 2008 11:01 AM by Seeking Alpha
    submits: By Shah Gilani While it’s clear from the current credit crisis that our financial system is at a critical juncture, it’s just as clear that there’s no agreement over how we should fix the problems we face. The reality is that neither the plan put forth by U.S. Treasury Secretary Henry M. "Hank" Paulson Jr. - nor any of the addendums offered up by Congress or the lobbyists - will resolve this crisis. The key culprits are the structured financial products that reside on the balance sheets of banks, dead investment banks, insurance companies, hedge funds and all manner of other duped and unsuspecting , as well as the proliferation of the unregulated $62 trillion credit default swaps [CDS] market.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 11:00 AM » SunTrust: No Such Thing as Safe in This Market
    Published Fri, Sep 26 2008 11:00 AM by Seeking Alpha
    submits: Atlanta-based SunTrust Banks, Inc. (STI) saw its stock price plunge with the rest of the financials over the summer and, while it never reached the depths that many financial stocks crashed to in July, the stock had lost—at its 52-week low—more than two thirds of its value from the previous summer. For SunTrust, long considered a bastion of probity and one of the strongest super-regional banks in one of the most economically vibrant parts of the country, the drop in SunTrust shares has been a sobering experience. Like many other banks at the present time, SunTrust has experienced an increase in non-performing loans. Unlike other banks, SunTrust has not had to resort to dilutive measures to raise capital. The company has been selling some of its large stake in the common stock of Coca-Cola Company (KO)—earned when its predecessor bank—Trust Company of Georgia—helped bring Coke public in the early part of the last century. Ockham has recently downgraded STI to Overvalued after rating it Undervalued when the stock hit its nadir at $30.94 on July 11 th of this year. With the stock now trading in the low fifties, we believe that the valuation is over glide slope and could be vulnerable to a pull-back should a slowing economy negatively impact bank earnings in the coming months—which is likely! Only a take-over of the company would cause further upside from here and such a transaction, while always possible in this environment, would probably need to see a lower acquisition price for STI to come to fruition.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 11:00 AM » The FDIC Rips into Bloomberg
    Published Fri, Sep 26 2008 11:00 AM by Seeking Alpha
    submits: It seems that Bloomberg has angered the powers that be at the Federal Deposit Insurance Corporation [FDIC] with its recent article suggesting that the FDIC may need more money to bail out banks than is currently in its fund. Here is the and the FDIC response is printed below: Bloomberg reporter David Evans' piece ("FDIC May Need $150 Billion Bailout as Local Bank Failures Mount," Sept. 25) does a serious disservice to your organization and your readers by painting a skewed picture of the FDIC insurance fund. Let me be clear: The insurance fund is in a strong financial position to weather a significant upsurge in bank failures.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 11:00 AM » Fannie and Freddie: Finally a Light at the End of the Tunnel?
    Published Fri, Sep 26 2008 11:00 AM by Seeking Alpha
    submits: Fannie Mae (FNM) and Freddie Mac (FRE) shares saw extreme volatility and heavy call volume Thursday. Shares of Freddie traded between $1.30 to $2.95 before settling the day down 3 cents to $1.86. In the options market, 115,000 calls and 21,000 puts traded on Freddie Thursday. Meanwhile, FNM traded between $1.09 and $2.76 before closing the day up 20 cents to $1.94. 131,000 FNM calls and 25,000 puts have traded on Fannie Mae.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 10:40 AM » House Republicans Revolt, Push Separate Bailout Plan
    Published Fri, Sep 26 2008 10:40 AM by feeds.feedburner.com
    Discussions surrounding a proposed $700+ billion bailout of the nation’s financial markets over mortgage bets gone horribly wrong took a dramatic turn late Thursday, after a group of Republicans in the House of Representatives surprised key lawmakers and proposed a separate bailout proposal during a key meeting with President Bush and members of the House [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:47 AM » WaMu is Largest Bank Failure in History
    Published Fri, Sep 26 2008 9:47 AM by feeds.feedburner.com
    As lawmakers struggle to determine a direction to best tackle a credit crisis that continues to play out, troubled thrift Washington Mutual (WM: 1.69 0.00%) was closed by regulators on Thursday night, the victim of a huge bet on mortgages gone south. The Federal Deposit Insurance Corporation seized the failed bank and sold the company’s [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:31 AM » Statement this morning
    Published Fri, Sep 26 2008 9:31 AM by feeds.feedburner.com
    Bush to address the credit crisis for the second time in three days in a 9:35am address.
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 8:12 AM » Housing Excess Looks Good, but Not That Good
    Published Fri, Sep 26 2008 8:12 AM by Seeking Alpha
    The excess supply of housing units is being worked off quickly. Here's the picture for new single-family homes: We've made a lot of progress towards a normal inventory of unsold homes. At the rate we're going (and not making any forecasts about changes in new construction or home sales), we'll be down to a normal inventory of unsold new homes by May of next year. However, it's not quite that good. There are many excess existing homes on the market. The overall vacancy rate is still very high. It will be much longer for the total housing inventory to look decent. Still, this is good news today.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 6:36 AM » Update On Mortgages And Lending [Housing Tracker]
    Published Fri, Sep 26 2008 6:36 AM by Seeking Alpha
    Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below. Mortgage Trends Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; font-size:10.0pt;"Times New Roman";}
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 5:18 AM » Well At Least Inventory Is Declining [Housing Tracker]
    Published Fri, Sep 26 2008 5:18 AM by Seeking Alpha
    Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below. House Sales/Price Data Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; font-size:10.0pt;"Times New Roman";}
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 5:03 AM » Global Subprime: Markets Under Stress [Housing Tracker]
    Published Fri, Sep 26 2008 5:03 AM by Seeking Alpha
    Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below. Global Subprime Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; font-size:10.0pt;"Times New Roman";}
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 2:52 AM » Billion $ Question: What Will Mortgage Backed Securities Be Worth? [Housing Tracker]
    Published Fri, Sep 26 2008 2:52 AM by Seeking Alpha
    Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below. Quotes of the Day Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; font-size:10.0pt;"Times New Roman";}
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 2:34 AM » WaMu Fails, Is Sold Off to J.P. Morgan
    Published Fri, Sep 26 2008 2:34 AM by WSJ
    Federal regulators seized Washington Mutual and struck a deal to sell the bulk of its operations to J.P. Morgan in what is by far the largest bank failure in U.S. history.
  • 2:34 AM » Hey, Congress, Guess What? WaMu's Toast
    Published Fri, Sep 26 2008 2:34 AM by Seeking Alpha
    submits: Stick that in your eye, Congress. Reportedly, the unexpected federal take over of Washington Mutual (WM) will leave no value to either shareholders or bondholders. Will taxpayers notice that another $2.5 Billion in market cap has evaporated from their S&P 500 401-K holdings in the morning? Hey, it's all Wall street guys, after all ... (wait a minute, isn't WAMU out here in the Pacific Northwest?) And your constituents are furious with this bailout, aren't they? Take your time, guys, we all want to be assured that you "get it right." And special good work to the that downgraded the firm yesterday and today. My personal kudos to you.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • Thu, Sep 25 2008
  • 7:12 PM » WaMu to be purchased
    Published Thu, Sep 25 2008 7:12 PM by feeds.feedburner.com
    Sources tell HW the government has brokered a deal that will see JP Morgan Chase & Co (JPM: 43.46 +7.31%) acquire troubled thrift Washington Mutual (WM: 1.69 -25.22%).
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
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MBS Prices:
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