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profette_IHB

profette_IHB

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<p class="articleTitle" style="MARGIN: 10px 0px 0px"><a href="http://online.wsj.com/article/SB120671093586671677.html?mod=hpp_us_whats_news">Housing Woes Shake Bank in California</a></p>



<p>"The financial crisis threatened to claim its first casualty in the U.S. banking industry, as federal and state regulators gave a rare directive to Fremont General Corp. to shore up its operations immediately.</p>

<p>While the California lender's woes don't pose a threat to the broader financial system, its plight marks a new stage in the turmoil that began last summer. Regulators said the Brea, Calif., company, parent of a once highly active subprime lender called Fremont Investment & Loan, must raise new capital within the next 60 days or sell its banking subsidiary." <em>WSJ 3/28</em></p>

<p><em><a href="http://online.wsj.com/public/resources/documents/fremont20080328.pdf">FDIC Directive</a></em></p>

<p>Note: If you have not met your daily dose of snarkasm, <a href="http://www.youtube.com/watch?v=rNQRfBAzSzo">click here.</a></p>
 
<p><a href="http://www.foxbusiness.com/markets/industries/finance/article/fremont-general-corporation-announces-receipt-bank-subsidiary-directive_538042_9.html">About Fremont General</a></p>

<p>"Fremont General Corporation is a financial services holding company with $8.8 billion in total assets, at September 30, 2007. The Company is engaged in deposit gathering through a retail branch network located in the coastal and Central Valley regions of Southern California and residential real estate mortgage servicing through its wholly-owned bank subsidiary, Fremont Investment & Loan. Fremont Investment & Loan funds its operations primarily through deposit accounts sourced through its 22 retail banking branches which are insured up to the maximum legal limit by the FDIC.</p>

<p>The Retail Banking Division of the Bank continues to offer a variety of savings and money market products as well as certificates of deposits across its 22 branch network. Customer deposits remain fully insured by the FDIC up to at least $100,000 and retirement accounts remain insured separately up to an additional $250,000..."</p>
 
Will there be a run on the bank tomorrow ?





<em>Orange County-based lenders that take deposits and are struggling include Brea's <strong>Fremont General</strong>, parent of <strong>Fremont Investment & Loan</strong>, and Newport Beach's <strong>Downey Financial</strong>, parent of <strong>Downey Savings</strong>. Others who have operations here and recently reported losses or profit declines include Pasadena-based <strong>Indymac Bancorp</strong>and Seattle-based <strong>Washington Mutual</strong>.</em>





<a href="http://www.ocregister.com/articles/bank-fremont-fdic-2007536-deposits-loans">News: Banks teeter as credit crisis deepens | bank, fremont, fdic, deposits, loans - OCRegister.com</a>
 
<p>What's crazier--keeping a lot of cold hard cash at home or not keeping a lot of cold hard cash at home? Seriously. I'm strongly considering keeping a lot more cash around than normal.</p>
 
FDIC has about $40b in reserves. I wonder how much of that $8.8B Fremont actually has, because 95% of the FDIC's reserves are presently in treasuries, which they would have to sell on the open market.<p>

And the truly big question, what amount of credit default swaps are written with Fremont bonds as their underlying asset? Hmm-m-m-m.
 
<p>Nothing under my mattress.</p>

<p>Got this under my bed though:</p>

<p><img alt="" src="http://www.militaryfactory.com/smallarms/imgs/spas12.jpg" /></p>
 
<p>I used to close with Fremont, or its mtg division, not sure which. The broker was honest, but the qualification was fog a mirror. I used to look at the people and wonder how they would make the payments and still be able to afford a McD's hamburger and toothpaste. . None of them were neg am, but at least a few were adjustible.</p>

<p>We have a bit of cash in a stash, not much and a very few gold coins in a safety deposity box at WAMU. And a couple of 100oz silver bars. Wonder if I should take them out of the box. Ridiculous? What say you all?</p>
 
<p><a href="http://Economy: Anyone have any money at Fremont Bank?">Economy: Anyone have any money at Fremont Bank</a></p>

<p> </p>

<p>Hey Profette! Also check out my post from March 5th</p>

<p> </p>

<p>GITOC</p>
 
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