Ten Financial Entities On The Brink
Mike Shedlock
Mish's Global Economic Trend Analysis
August 22, 2008
http://globaleconomicanalysis.blogspot.com/
2008/08/ten-financial-entities-on-brink.html
Lehman (LEH)
Washington Mutual (WM)
Fannie Mae (FNM)
Freddie Mac (FRE)
Corus Bank (CORS)
BankUnited (BKUNA)
Downey Savings (DSL)
Wachovia (WB)
Regions Financial (RF)
MBIA (MBI)
Ambac (ABK)
On account of deflation, I had to throw in a bonus 11th. Everyone wants more for their money these days, even when things like this are free.
I am quite sure there are many more deserving candidates that should be on the list. An excellent case can be made for Ford (F) and GM. They are really not manufacturing companies but rather financial lending disasters.
The key here is there is virtually no chance the Fed can save them all, or even most of them. The list is simply Too Big To Bail.
Showing posts with label monoline insurers. Show all posts
Showing posts with label monoline insurers. Show all posts
Tuesday, August 26, 2008
Wednesday, July 30, 2008
Does Wall Street come apart next week?
Does Wall Street come apart next week?
by Stranded Wind
Sun Jul 27, 2008
http://www.dailykos.com/story/2008/7/27/43457/2825/714/557629
The triggering event for the run on the monoline bond insurers could not come from within the United States; the Federal Reserve, the U.S. Treasury, the Congress, and the White House have all shown a willingness to do whatever was necessary to head off this day of reckoning. It was always obvious the trigger for the meltdown would come from a "mark to market" occurring outside the control of these entities.
National Australia Bank’s decision to value the CDOs it holds at 10% of their face value (this is what got me started on this diary) may very well be the event that will trigger the destruction of the monoline insurers, the revaluing of CDOs from their "mark to model" to "mark to market". If you prefer to be more direct you can call it "mark to meltdown".
These synthetic securities or derivatives (Just call ‘em funny money) were valued via computer models that purported to express the percentage of debtors who’d fail to pay. No one actually sold these things in the open market, they just bought and held them, taking the payments that came and trusting the investment banks that were bundling up and selling these things. Financial innovation, they called it. This was true until two Bear Stearns funds imploded fifty four weeks ago.
Bankers were terrified that this would trigger an overall "mark to market" event.
by Stranded Wind
Sun Jul 27, 2008
http://www.dailykos.com/story/2008/7/27/43457/2825/714/557629
The triggering event for the run on the monoline bond insurers could not come from within the United States; the Federal Reserve, the U.S. Treasury, the Congress, and the White House have all shown a willingness to do whatever was necessary to head off this day of reckoning. It was always obvious the trigger for the meltdown would come from a "mark to market" occurring outside the control of these entities.
National Australia Bank’s decision to value the CDOs it holds at 10% of their face value (this is what got me started on this diary) may very well be the event that will trigger the destruction of the monoline insurers, the revaluing of CDOs from their "mark to model" to "mark to market". If you prefer to be more direct you can call it "mark to meltdown".
These synthetic securities or derivatives (Just call ‘em funny money) were valued via computer models that purported to express the percentage of debtors who’d fail to pay. No one actually sold these things in the open market, they just bought and held them, taking the payments that came and trusting the investment banks that were bundling up and selling these things. Financial innovation, they called it. This was true until two Bear Stearns funds imploded fifty four weeks ago.
Bankers were terrified that this would trigger an overall "mark to market" event.
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