Bretton Woods 2, R.I.P.

A wide range of commentators, including your humble blogger, have worried about the clearly untenable system known as global imbalances, ... central bank is not lending to credit card issuers and banks that provide home equity loans. China buys ... eliminate the need to buy Treasuries to keep the currency low, but would also considerably reduce [more...]

Date: 2008-10-22 08:47:01

Blog posts (19) | Videos (60)
 

Paulson's New Program: Giving People Money They Can't Afford To Spend

The news is as old as the Magna Carta. The consumer is broke. He does not have a dime. He is out of work. He is defaulting on his home equity loan, and the bank has reposed his credit card. It may ... of auto loans, student loans and credit cards." The head of the Treasury is concerned that people [more...]

Date: 2008-11-25 10:50:07

Gordon Brown: Step-Skipper

For some months now there’s a being a bit of amnesia about how we got to this point in the global banking crisis ... the government took over the banking system, the dodgy loans therein were dumped into a separate ... for bad assets, now they’ve overpaid for equity.  Banks still aren’t lending.  The queue of banks [more...]

Date: 2009-01-09 03:11:25

BANKS FACE ANOTHER BAD YEAR IN 2009

Rising loan losses, the threat of more regulation and tougher competition adds up to another year of poor profits for banks BY DAVID ELLIS ... a significant deterioration in the health of their credit cards and home equity loan portfolios ... and business loans are starting to surface as well. “There is loan quality deterioration across [more...]

Date: 2008-12-22 15:14:10

Banking 101

Balance Sheets contain Assets, Liabilities and Equity.  Assets:  Bank Assets are primarily Cash, Liquid Securities (those that can be converted to cash very quickly and usually Treasury Securities), Loans ... what they owe to Depositors in checking or savings accounts, Loans usually from the Federal Reserve &amp [more...]

Date: 2009-01-15 20:19:04

Home Prices May Be Nearing Bottom, Bank Equities to Follow?

I remain optimistic that housing is nearing a bottom ... traffic. Add to the fall in prices, the recent sharp reduction in 15 and 30 year mortgage interest rates ... news about loan losses. In my judgment, most banks in the US have been trying to get out ahead [more...]

Date: 2009-01-14 07:24:00

How an excessively low valuation can leave you feeling really down

Long-time homeowners coming to the end of mortgage deals are being forced to take more expensive loans than they had planned for because of ... is that remortgaging homeowners who mistakenly bank on high levels of equity are instead having to take ... to those with at least 25% equity in their home. Sellers counting on an inflated selling price to help [more...]

Date: 2008-12-21 00:04:09

Daily News Roundup - Jan 16 2009

GAIL may get exclusive marketing rights for distribution of Reliance Industries D6 gas from KG Basin. (ET)Ranbaxy has missed the deadline to convert equity warrants issued by Jupiter Bioscience. (ET)M&M ... Bank plans to issue Power Grid US$1bn loan. (ET)Mutual funds willing to bail out cash strapped Unitech [more...]

Date: 2009-01-16 03:55:00

Can You “Walk Away” with a HELOC?

A growing number of homeowners are walking away from their homes, giving their keys and their worries to the bank ... . Homeowners living in a “recourse state” will still be responsible to pay off their home equity line ... into an unsecured loan that you will continue to pay over the next decade or two. You’re paying [more...]

Date: 2009-01-16 03:11:52

Tips for Mortgage Refinancing and Debt Consolidation

Many people discover that their credit card debt is out of control when they get their monthly bank statement ... your balance over-the-limit fees. It’s time to consider debt consolidation to save your money - credit card balance transfer, home equity loan or mortgage refinancing. One of the best ways to obtain [more...]

Date: 2009-01-08 03:48:15

Beneficial Finance - Mortgage Review

Beneficial Finance, does personal, auto, and mortgage lending as a retail subsidiary of mega-bank parent HSBC Group (NYSE: HBC) ... of Beneficial Finance should be avoided. They are big pushers of credit cards, home equity loans, and debt consolidation mortgages. You can’t expect much better being a subsidiary of HSBC Mortgage [more...]

Date: 2009-01-14 22:05:31

The Green shoots Baroness is a disaster for what she does more than for what she says

The Opposition will continue to remind people of the insensitive remarks of Baroness Vadera, ... , private equity injections, demergers and other methods of challenging and changing management ... into base metal. Why on earth didn’t she suggest short term Bank of England loans against security [more...]

Date: 2009-01-15 10:36:43

BANK OF AMERICA CLOSE TO GETTING BILLIONS MORE IN BAILOUT

BY KEVIN DRAWBAUGH and DAN WILCHINS WASHINGTON/NEW YORK - Bank of America, the largest U.S ... equity, as well as fund Merrill Lynch, as well as handle loan losses and get rid of the problems [more...]

Date: 2009-01-15 02:03:30

FDIC Faces $10 Billion Blast on IndyMac Loans

The Federal Deposit Insurance Corp. – while supposedly rid of IndyMac Bank via a sale agreement with a consortium of private-equity investors last week — may face $10 billion in previously-unknown [more...]

Date: 2009-01-12 12:51:30

Why Bother Becoming a Bank?

Last week the Federal Reserve Board gave GMAC, the mostly spun-off financial arm of General Motors, permission to become a bank ... the Troubled Asset Relief Program (TARP). Today the Times reports that GMAC, which loans money to car ... things, it has to convert 75 percent of its debt into equity and shrink the share of the company owned [more...]

Date: 2008-12-29 16:47:00

Miracle TARP Can Cover Anything

The Treasury Department has agreed to buy a $5 billion stake in GMAC, General Motors' former financial subsidiary, to help it become a bank holding company. The money will come from the Troubled Asset Relief ... of its debt to equity. But that's hardly the most confusing part of the deal. GMAC, which loans money [more...]

Date: 2008-12-31 16:37:00

INDYMAC BANK SALE PROVES TWO THINGS: WE'RE AT THE BOTTOM, AND WE'RE BEING SCREWED!

From Reliapundit at the Astute Bloggers:THE GOOD NEWS IS THEY'RE BUYING, NOT SELLING:AP: ... bust, for $13.9 billion.IndyMac, which specialized in loans made with little down payment or proof ... , co-chief executive of private equity firm Dune Capital Management, agreed to buy IndyMac in a deal [more...]

Date: 2009-01-09 01:11:00

Is Bank of America The Next Citigroup?

Charles Darwin's theory was survival of the fittest. The Fed's policy is Survival Of The Weakest ... of America, which has been setting aside too little reserves for its own loans, Graham Fisher & Co.’ ... been so acquisitive, they find themselves with very little in tangible equity.” As Citigroup Goes To Sleep [more...]

Date: 2009-01-15 02:36:00

Deutsche Bank analyst says GM may still consider Chapter 11

Filed under: Government/Legal, GM GM was able to avoid bankruptcy court when it received billions in government loans, ... a stipulation that demands the General swaps a great deal of its $36 billion in outstanding debt for equity ... . GMAC, which was required to exchange 75% of its bondholder debt for equity to become a TARP-eligible [more...]

Date: 2009-01-15 21:58:00

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