Banks Supposedly Will Cut Consumer Credit Card Lines by $931 Billion if Reforms Mandated

There is a rather amusing story at the Financial Times tonight, "Credit card reforms ‘to cost banks billions’". Let's look at the particulars ... that banks will lose $10 billion in interest annually, reduce credit lines by $931 billion, and put ... not get anyone well known for banking expertise to put its name on a self-serving report [more...]

Date: 2008-12-15 01:59:42

Blog posts (29) | Videos (7)
 

Why banks shouldn't be given government help.

Banks are the property of their shareholders, and may act in accordance with the best interests of their shareholders in mind ... of my payment history. I have never missed a payment. When you pull up a TransUnion credit report ... from a bank recently. You may have heard about banks calling in lines of credit. Essentially [more...]

Date: 2008-12-19 19:18:31

Los Angeles Mortgage Rates Report: January 14, 2009

The US Treasury Department has been supporting the mortgage bonds market, in order to keep mortgage rates under 5% ... , their funding line gets filled up.  Imagine a funding line (sometimes called a warehouse line of credit) like a big credit card,  Normally, a big bank needs, say $100 Billion for its line.  The unexpected [more...]

Date: 2009-01-14 06:35:15

Tightening Consumer Credit Standards

According to a Federal Reserve survey of senior loan officers at major banks, ... % of banks report that they’ve been actively lowering credit limits, with just under 40% saying that credit ... 52% of banks reported that they’ve increased the credit score required to secure a line of credit [more...]

Date: 2008-12-29 15:00:51

“To the Bunkers!”: Central banks slash rates in emergency “midnight” meeting By Mike Whitney

Dandelion Salad By Mike Whitney 10/08/08 “ICH’ Stocks fell sharply across Europe and Asia last night following another down day on Wall Street ... in there. The present crisis, which has its roots in the unsupervised expansion of credit in the United ... tapping a line of credit at a bank)  The Fed will start providing businesses and financial [more...]

Date: 2008-10-09 00:51:50

When you overdraw your checking account does that effect credit??

don't mess with your credit That is exactly what someone plugged into a search engine to get to my site! I love it - bad grammar and all ... , you can bet that your credit score will take a hit. Also, if you use an overdraft line of credit ... the bank is going to report you to the credit agencies. But if, however, you continue doing so every [more...]

Date: 2008-09-10 16:07:32

5 Reasons Why Stocks and Commodities Will Soar Over Next 9 Months

Right now we're in an Alice in Wonderland world where the government not only wants to spend $700 billion on buying up banks' bad debt but it also ... , you realize you’ve got one last option. You have $25,000 worth of unused credit lines you could tap ... the credit lines and pull a rabbit out of a hat -- come up with a brilliant marketing campaign [more...]

Date: 2008-09-24 19:28:43

More Discussion of Why the Bailout Bill Will Not Help Money Markets, Commercial Lending

Reader FairEconomist left a short comment on an earlier post which we hoisted along with some other material, ... to have commercial paper backed up with a standby line of credit at a bank. Thus, if for some reason a company ... , and of course, also require banks to hand out cash when they worried about extending credit [more...]

Date: 2008-10-02 04:36:58

Has Deleveraging Even Begun? (Not For the Fainthearted)

It no doubt seems absurd to question the idea that deleveraging in underway ... . Leveraged buyout loans have been scarce to non-existent. Banks have cut home equity credit lines and credit card borrowing limits. Commercial and industrial loans have fallen. The private mortgage [more...]

Date: 2008-07-28 07:37:19

2008 in Review No. 2: Barnett Shale Bust?

For much of the year, as every Chesapeake Energy advertisement reminded us in newspapers, billboards, buses, ... when Chesapeake could access the credit market to finance their massive debt to pay for operations ... from operations and revolving bank credit lines have historically been insufficient to fund [more...]

Date: 2008-12-29 20:00:16

No Financials Required - Commercial Lending

If you search the internet for factoring or accounts receivable financing programs you have probably seen many companies claim, ... companies (”factors”) without financial statements. As a small business owner that performs multiple ... for your company without having to prepare a large amount of reports. But can a bank loan or line of credit [more...]

Date: 2009-01-08 01:40:00

Chicago Factory Sit-In: The Dawn of a New Era For Unions in America?

By MANIFESTO JOE This is an example of why a bailout, any bailout, is fundamentally a no-win situation for the taxpayer ... . The company's creditor, Bank of America, canceled Republic's line of credit. Republic's sales have tumbled in the sour economy, and with no line of credit, CEO Rich Gillman said the company [more...]

Date: 2008-12-08 17:34:37

Looks like another financial tsunami is coming!

Photo by Faces of California Photo by Faces of California The deterioration in economic and corporate data continues ... is declining in value) as customers cancel orders.  Bank and other supplier credit lines are being cut… ... into Q4-2008.   Now its being hit by exposure to Madoff.  I just read a research report from a large [more...]

Date: 2009-01-15 04:05:14

"Amazon" Thanksgiving Day Parade?

Amazon had it's "best season ever." (results from Macy's 2008 holiday season results have yet to be released)  But make no doubt about it ... payable in 2012, along with its bank line of revolving credit.  So the "paradigm shift" I've ... . Analysts agreed Amazon's report was good news for the online shopping giant, but they were divided over [more...]

Date: 2008-12-29 17:32:00

Debit Cards

Debit cards look like regular MasterCard and Visa cards but are linked to your bank checking account instead of a line of credit.  They work like an electronic check.  When you use one, the amount you spend is withdrawn ... those credit cards.  So if you’re at a restaurant, short on cash, and don’t want to rack up charges [more...]

Date: 2008-12-30 14:26:30

Hypo Real Estate and insider trading scandal about to blow in Berlin tomorrw

The ordure is due to enter the air conditioning in Berlin , Monday am ... and the country's central bank in October - followed by complaint filed by small shareholders that HRE directors ... out by the German government and the country's central bank in October.This involved a credit line [more...]

Date: 2008-12-28 10:11:00

Is The Inflation Scare Over Yet?

Treasuries have been on a bit of a rally recently as the Lehman iShares 20+ year duration treasury fund (TLT) chart shows ... of credit via massive writedowns in banks and financials, accompanied by sharply rising unemployment rates, falling wages, and curtailment in credit lines everywhere is simply not an inflationary [more...]

Date: 2008-06-27 00:51:36

Twitter Weekly Updates for 2009-06-21

Israel’s richest woman gets messages, has visions - guardian.co.uk http://cli.gs/z4U25p # Prototype Sustainable All-steel House Completed in Eight Weeks … - PR Web (press release) http://cli.gs/ZEt1jv # Baylor, MCC recognized for ‘green’ building construction - Waco Tribune Herald http://cli.gs/ZGEJ4Z # Banks’ credit to realty sector expands in 2008-09 - Hindu Business Line http://cli.gs/m03S7g # Family of hoteliers builds empire on glitz - Crain’s New York Business [more...]

Date: 2009-06-21 15:45:00

How To Find Out If Your Bank Is Next In Line To Fail

18 banks have gone under so far this year. But how do you know if yours will be next? ... this year amid the ongoing credit crisis. With total assets of $5.1 billion and total deposits ... in U.S. history, reaching all the way back to 1934, U.S. News & World Report said at the time. That begs [more...]

Date: 2008-11-14 14:00:40

Guest Post: Time to Recapitalize Banks Fully

As debate continues over the release of the second half of the Treasury Department’s Troubled Asset Relief Program, ... recapitalizations using government money on October 13th, but largely by massive credit lines from the Federal ... in the payments system (in which letters of credit and the willingness to take counterparty risk [more...]

Date: 2009-01-15 11:47:00

Republic Windows Takes A Stand By Taking A Seat

The story of Republic Window and Doors started quietly last week, when Bank of America informed the company, located on Chicago's Goose Island, that it had canceled their $5 million line of credit. Then came the rumble. Republic's executives ... -- is refusing to extend credit to manufacturers like Republic while at the same time putting [more...]

Date: 2008-12-07 19:26:00

TD Rate Down 0.15%

That is the epilogue to the Bank of Canada rates dropping by 0.25% yesterday, so TD again shaves 0 ... back that 0.1% is if they find they are losing income from people with loans or lines of Credit taking ... , I will investigate and report on them). It’s interesting that TD announced their “prime” to be 4.00 [more...]

Date: 2008-10-22 10:40:15

Did America Get Punk’d on the Bailout?

Did America Get Punk’d on the Bailout? Posted by James O'Rourke on December 18, 2008 By David Sirota, Campaign for America’s Future ... , the major claims about a credit crisis that justified Congress cutting a trillion-dollar blank check ... false. For instance, take a look at line 1 and line 5 of this December Federal Reserve report on bank [more...]

Date: 2008-12-18 16:01:10

Time to Recapitalize Banks Fully

The Great US Banking Crisis is entering Phase III ... recapitalizations using government money on October 13, but largely by massive credit lines [more...]

Date: 2009-01-16 21:12:09

"A surge of inflation is sure to follow". Fed fault line grows.

WASHINGTON (MarketWatch) - Key fault lines are emerging at the Federal Reserve over the central bank's journey into uncharted monetary policy ... $2 trillion in its efforts to restore the credit markets to health but has stopped offsetting [more...]

Date: 2009-01-15 02:35:13

Information trickle down

UPDATE: 7:45PM NZDT:ODT reporting:ANZ and National Bank have announced they are dropping their fixed-term mortgage rates ahead of the next Official ... fall in line with what the RBNZ does on 29 January.-- UPDATE ENDS RNZ reporting that the S&P credit rating downgrade has affected our dollar. I have always said that credit rating agencies will trigger [more...]

Date: 2009-01-13 22:43:00

‘Contrived Default’

from sddt.com Barratt American, the Carlsbad-based homebuilding firm, and three affiliates, ... didn’t help matters, Pattinson said when Bank of America yanked its $125 million credit line ... on that line when the bank balked. Pulling credit lines and not renegotiating loans has become [more...]

Date: 2008-12-30 06:04:42

Morning Commentary

Start with Markus K. Brunnermeier. While the overall mortgage losses are large on an absolute scale, ... or other loans as collateral...To ensure funding liquidity, the sponsoring bank grants a credit line ... vehicles, and then granting a credit line to that pool to ensure a AAA-rating, allowed banks to reduce [more...]

Date: 2008-11-20 12:11:23

The Early Bird: September 18, 2008

Central Banks Announce $180 Billion Credit Line To Encourage Lending In a move aimed at easing a worldwide credit crunch, the U.S ... of central banks that will, in turn, provide new lines of credit to firms who would otherwise face ... will no doubt take some lumps today following an AP report that notes he's never visited or held official [more...]

Date: 2008-09-18 14:14:03

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