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MediaBoyz, The purchase price for BS shouldn't be considered a conventional valuation. Usually, before a merger, the parties will research each other for months. In this case, the entire deal was thrown together in about 48 hours. The end price was less about BS's book value, and more...

Bear's building alone is worth over a bill. After JPM is through, liabilities as they relate to payroll will be non existent. I have heard that up to 85% of BS employees will be getting a pink slip very shortly. I do not see this a a bad deal for JPM. But the price and value (whatever...

Wow, $2.00 per share. Well, the good news is that we just had our first run on a bank (institutional run on the banks assets, as opposed to a consumer run, a la the great depression), and things went down in a fairly orderly fashion - all things considered. JP Morgan made out like bandits, and...

Depends on the level on finish and amenities that you want, whether you want to match the neighborhood, and whether there are any special considerations. For example, if you demand a huge kitchen with two prep sinks, a range and a built in double oven, you will pay a lot more, as that will...

Graph, Any preliminary numbers on Feb. foreclosures?

Also, I would not be opposed to a step program, which is not that uncommon in capital equipment financing. The lender and borrower could restructure the loan so that it phases up in an orderly fashion. Lets say the d+i (fully amoritized) payment is $5,000.00 per month for 30 years. Years one...

My thinking is that in the long term, the asset will eventually be worth morwe than the outstanding balance. I think it is unfair that investors on the loan take a short term and long term loss, while the borrower gets short term relief, and a long term gain (lower cost basis against future...

It looks like a version of a "Mutual Appreciation Agreement". If I was a lender, I would be willing to: 1) Reduce the principal on the mortgages to a level that is affordable 2) Place the balance on the end of those mortgages as a balloon that accrues interest. 3) Make the borrower...

Apparently so. He's working alchemy here. He turned a slap down into an apology into a threesome! I'm just all envy over here.

Geez graph, You have groupies! This whole tormented soul with a hard edge, yet also sensetive to the people around him thing is really working for you. I'm taking notes!!

Graph, It sounds like you have some numbers that you are hinting at in your posts of the past few days. Care to share?

If you like it, and are not concerned about getting the money back, then go for it. I know that my wife would like a home with a pool in the future. However, I also know that upon resale, the pool of potential buyers really shrinks, as families with young children typically do not want a house...

Take a look at who this change is really intended for: http://www.cnbc.com/id/22841437 This is to prop up the mortgage industry.

My understanding is that conforming allows lenders to write loans to a universal set of standards ("conforming" to those standards), with the understanding that the loan will then be eligible for purchase by one of the GSE's. The standards have become much tighter recently, especially in...

Graph, One of the hot topics on CR is that of homeowners turning their keys and walking away. I assume some of these would be foreclosures, and some would be deed in lieu. Are the latter tracked in yours and DQ's foreclosure numbers?

Anon, I agree in regards to setting Conforming Limit to Median Price. Logic dictates that it should be set to median household income. However, politicians are getting nervous about housing prices dropping, and are looking for artificial supports.

Irvine Renter, I think that I saw the answer to your question: They have the builders rights, but on a fee system instead of built in profit (12% according to your analysis in the "Analysis" section). Let's say that instead of the 12%, they are accepting costs plus a fee of $20,000.00 (a...

I think their are a few ways to look at the service rates for the subprimes: Refinance those that can and desire to into more lucrative products (remember, if things get really ugly and delinquencies get to 10%, that still means 90% are current, and can be sold additional services - refi's...

If the REO's are on the books at over 3, and they turn around and sell them for 1.8, then they will have to take an impaiment charge to make up the difference. The point isn't about the accounting process, but rather to point out that there is value that can be turned into cash to offset the...

I agree with jbatz, B of A got the company cheap. This is a situation where the parts are more valuable than the sum. Remember, the REO's have a book value of over 3 billion, if they are discounted and sold to a vulture at, say, 1.8 bil, that helps bring down the cost. Also, I have not seen...