Image by Getty Images via Daylife Major financial institutions, like Bear Stearns and AIG are demostrating their enormous potential impact on the US and even global economies. However, there is little or no coordinated supervision or insolvency path should they begin to fail. US Treasury Secretary Timothy Geithner begin revealing his plan for a "new era of regulation." Meanwhile, Roubini takes his shot at crafting a response and framework for what he thinks would be most effective: Blueprint for … [Read more...]
Roubini Looks at Insolvency Regime for Non-Banks and Holding Companies
March 27, 2009 By Leave a Comment
Loan Modifications Getting Mixed Re-default Results
December 12, 2008 By 2 Comments
John Dugan, Comptroller of the Currency has people thinking about the potential risks of mortgage loan modifications. Releasing data earlier this week, Dugan revealed that over 50 percent of loan workouts re-default within the first six months. Meanwhile, FDIC Chairman Sheila Bair says, "not so fast, check your data." Bair points to how loan are modified as the key determinate of success. For example, lowering rates drops that re-default rate to 23 percent according to Credit Suisse survey. A recent … [Read more...]
Bair, Paulson Showdown Hits the (Public) Congressional Floor
November 19, 2008 By Leave a Comment
We knew this was coming...the Bair/Paulson Smackdown. This is truly a rare event to watch two government agencies open up a public battle for power and leadership. The sides are aligned: Treasury Secretary Paulson/White House versus FDIC Chairman Bair (a Bush appointee)/Congressional Democrats. The strategy seems clear--Paulson is playing to hold the line for the next 9 weeks and Bair is playing for a longer term opportunity with the new Obama White House. Paulson stuck to his reversal in TARP … [Read more...]
Loan Modifications Primer for Mortgage Industry
November 12, 2008 By 1 Comment
If you don't know loan modifications you are going to have a hard time surviving this mortgage business cycle. Despite all of the appealing government assistance and FHA mortgage refinance programs, banks and now the government is settling into massive programs to streamline loan modifications for troubled homeowners. Here is a quick primer on loan modifications to get you up to speed and help you spot opportunities for your mortgage business: FHFA endorsed Fannie Mae and Freddie Mac Loan Modification … [Read more...]
AMEX Bank, ABA No New Regs, Big Bank Loan Modifications, Economist Turn Negative, 10 Benefits of Recession
November 11, 2008 By Leave a Comment
American Express Becomes a Bank American Express becomes a bank, getting unprecedented speedy approval to become a Federally chartered bank. This is likely a smart preemptive move by American Express to hedge mounting credit card troubles by gaining access to TARP bailout funds. The cautionary part of this tale--how bad might those mounting losses be for the Federal Reserve to waive even the cursory 30-day waiting period? Bad! American Express Co. won U.S. Federal Reserve approval to become a commercial … [Read more...]
Obama Reviewed, China, TARP Update, Bank of England, Wal-Mart Indicator
November 6, 2008 By Leave a Comment
Obama Election Reviewed Everyone is jumping in with there review and assessment of President-elect Obama. Here is what the financial services wonks are saying: Blown Mortgage is tracking Obama's Housing Promises Henry Blodget on the Yahoo! TechTicker is noting Obama already reseting expectations Wall Street Journal is ttracking Economists reactions to Obama Paul Kedrosky says Wall Street doesn't care China Crash Debated Economist Nouriel Roubini, noted economic doomsdayer often attributed with … [Read more...]
Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger
November 3, 2008 By Leave a Comment
Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]
Weekend Notes: The Loan Modification Edition
November 1, 2008 By Leave a Comment
Loan Modification Plans The US government and JP Morgan Chase race to massive loan modification plans. Naked Capitalism reviews the JP Morgan plan with skepticism: So despite the use of mortgage counsellors, borrowers are NOT being assessed on an individual basis. I hate to sound like a perennial skeptic, but I doubt that these programs will be terribly successful (although pushing foreclosures off even two or three quarters will probably make the bank's financials look better, and they presumably … [Read more...]
Asian Markets Down, Where is the Bottom, Rethinking Capitalism, and JP Morgan Will Not Lend
October 27, 2008 By Leave a Comment
Asian Markets Take Another Dip Asian markets continue to tumble on real fears of global recession. Compounded by the already tightly intertwined system of banking and commercial equity positions. Much of these riskier equity positions, unlike US Banks are counted toward their regulatory capital requirements. This latest Asian market plunge is signalling another dangerous day on Wall Street. How many bullets can the market dodge? If we do get a real free fall what do you do? By the way don't overlook … [Read more...]
OPEC, Pending Market Crash, Credit Cards, AIG Collapse, Keynesian?, Todd Carpenter for NAR Social Media
October 24, 2008 By Leave a Comment
OPEC Orders Cut in Production Just in case you had any doubt that we need immediate energy independence or have a Middle East that has the least bit of concern for the global economy--OPEC orders a cut in oil production. Is Russia the answer? Futures Off 6.5%, Watch for a Big Ride Today Asian and European markets tumbled overnight, 10 percent and 6 percent respectively and futures are showing 6.5 percent decline. The Big Picture wonders if we will trigger NYSE circuit breakers today. Credit Cards, … [Read more...]