Loan Modifications Getting Mixed Re-default Results
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 [...]
Bair, Paulson Showdown Hits the (Public) Congressional Floor
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 [...]
Obama Reviewed, China, TARP Update, Bank of England, Wal-Mart Indicator
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 [...]
Weekend Notes: The Loan Modification Edition
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 [...]
Consumer Squeeze, Charlie Gasparino, Election Trades, FDIC Loan Modifications, Consumer Capitulation, Deflation/Reflation Whipsaw
Consumer Squeeze is On
Minyanville does a nice analysis, using the Star Wars Death Star garbage masher analogy, of the consumer conundrum–damned for credit, and damned if you save.
Consumers are certainly being pinched at both ends as the US government keeps trying to unfreeze credit by driving down interest rates. The result? Lenders are getting more [...]
FDIC Setting Down Roots in Orange County
Looks like the FDIC anticipates a lot more clean-up ahead in Orange County, the former subprime capital of the world. FDIC is looking for 200,000 square feet of Los Angeles office space for a term of 3-5 years. That is in addition to the space they currently occupy in their newly acquired IndyMac Federal Bank. [...]
