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Loan Modifications Getting Mixed Re-default Results

December 12, 2008 By 2 Comments
Sheila Bair FDIC

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 … [Read more...]

Bair, Paulson Showdown Hits the (Public) Congressional Floor

November 19, 2008 By Leave a Comment
smackdown

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 … [Read more...]

Obama Reviewed, China, TARP Update, Bank of England, Wal-Mart Indicator

November 6, 2008 By Leave a Comment
walmart

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 … [Read more...]

Weekend Notes: The Loan Modification Edition

November 1, 2008 By Leave a Comment
home loan modifications

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 … [Read more...]

Consumer Squeeze, Charlie Gasparino, Election Trades, FDIC Loan Modifications, Consumer Capitulation, Deflation/Reflation Whipsaw

October 31, 2008 By Leave a Comment

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 attractive rates by "borrowing" from consumers tax dollars, than bidding for their savings. Therefore, savings rates are down and lending is not … [Read more...]

FDIC Setting Down Roots in Orange County

October 22, 2008 By Leave a Comment

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. Maybe they should check out New Century's old offices. With senior regulators and bank cleaner-uppers shuttling in weekly from  Washington DC and Dallas, maybe a few relocations could … [Read more...]