no_vaseline_IHB
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Nice scoop Eff.
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- Thread starter effenheimer_IHB
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In English Awgee, I didn't see that. Do you mean an orderly market or orderly marketing (sales).
Get used to disappointment.
REITs averaged 15% ann st dev from 2002-2006. then 24% in 2007 and so far 32% this year. that is exceptional and unprecented volatility for an asset class that has traditionally been income, not growth, driven. so the size of these movements is extraordinary, although i agree, i'm not all that surprised there was more $h** to hit the fan.
graphrix_IHB
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IndyMac deemed under-capitalized by regulators
Lender can't raise new capital now; halts new loans and cuts 3,800 staff
SAN FRANCISCO (MarketWatch) -- IndyMac Bancorp said late Monday that regulators have told the lender it isn't "well capitalized" after failing to raise new capital.
The company said it has agreed to a new business plan with regulators which includes halting new mortgages to shrink its balance sheet and improve capital ratios. It will also cut 3,800 jobs, bringing staff levels to roughly 3,400.
IndyMac is also barred from accepting new brokered deposits unless it gets a waiver from the Federal Deposit Insurance Corp., a bank regulator that insures deposits. But the company said it's not certain a waiver will be granted. Second-quarter losses may be larger than the first-quarter, the company also warned.
IndyMac shares slumped 30% to 50 cents during after-hours trading on Monday.
"Insured financial institutions don't fail in the U.S., they go through an orderly unwinding process under the guidance of regulators, and I think that's what we're seeing with IndyMac," Fred Cannon, an analyst at Keefe, Bruyette & Woods, said in an interview on Monday. "We do not expect IndyMac will be the last financial institution to go through this."
IndyMac is a top-ten savings and loan institution and was one of the largest mortgage lenders in the U.S. But the housing slump has taken a heavy toll on the company, pushing its stock down 98% in the past year.
Between 150 and 300 banks may fail over the next few years as the real estate slump takes a heavy toll on the industry, experts told MarketWatch in May.
Nice call by Eff.
Lender can't raise new capital now; halts new loans and cuts 3,800 staff
SAN FRANCISCO (MarketWatch) -- IndyMac Bancorp said late Monday that regulators have told the lender it isn't "well capitalized" after failing to raise new capital.
The company said it has agreed to a new business plan with regulators which includes halting new mortgages to shrink its balance sheet and improve capital ratios. It will also cut 3,800 jobs, bringing staff levels to roughly 3,400.
IndyMac is also barred from accepting new brokered deposits unless it gets a waiver from the Federal Deposit Insurance Corp., a bank regulator that insures deposits. But the company said it's not certain a waiver will be granted. Second-quarter losses may be larger than the first-quarter, the company also warned.
IndyMac shares slumped 30% to 50 cents during after-hours trading on Monday.
"Insured financial institutions don't fail in the U.S., they go through an orderly unwinding process under the guidance of regulators, and I think that's what we're seeing with IndyMac," Fred Cannon, an analyst at Keefe, Bruyette & Woods, said in an interview on Monday. "We do not expect IndyMac will be the last financial institution to go through this."
IndyMac is a top-ten savings and loan institution and was one of the largest mortgage lenders in the U.S. But the housing slump has taken a heavy toll on the company, pushing its stock down 98% in the past year.
Between 150 and 300 banks may fail over the next few years as the real estate slump takes a heavy toll on the industry, experts told MarketWatch in May.
Nice call by Eff.
usctrojanman29_IHB
New member
I hardly doubt people will be running to IndyMac to deposit new money. If anything, Tuesday will bring lots of people trying to pull out their money while they can before the Feds come in and take charge.graphrix said:
lendingmaestro_IHB
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Tap Out
no_vaseline_IHB
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And now the real fun begins in earnest, kids!
IrvineCommuter_IHB
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I guess homeowners are not the only ones having trouble keeping their payments current.
http://www.cnbc.com/id/25569417
We started to hear rumblings last week about how residential construction loans are weighing heavily on local banks because, big surprise, some of the builders are having trouble keeping up with the payments.
While commercial loan delinquencies as a whole are still at historically low levels, the residential construction loans (which are grouped with commercial) are pushing the numbers up.
This morning FBR’s mortgage maven Paul Miller put out a note naming names:
At the largest 50 residential construction lenders, 1Q08 nonperformers totaled $7.8 billion, or 8.0% of such loans. Unfortunately, banks and thrifts just began to break out their one to four family residential construction loan portfolios on their call reports in 1Q08, so we don't have any historical context. Regardless, it is clear that growing construction nonperforming loans are an increasing concern for lenders.
As more small and mid-sized builders either go belly up or walk away from land at bargain basement prices, the banks will be left holding the bag. Which banks? FBR ranks banks and thrifts with market caps over $500 million by exposure to single-family construction lending to tangible equity:
The two financial institutions under FBR coverage that are most at risk due to their single-family exposures are SunTrust (STI – Underperform) and Washington Federal (WFSL – Market Perform). Other companies under FBR coverage that rank in the top 20 are First Horizon (FHN – Market Perform,), Zions (ZION – Market Perform), BB&T(BBT – Market Perform), National City (NCC – Market Perform), Synovus (SNV – Market Perform), and Regions (RF – Underperform).
http://www.cnbc.com/id/25569417
We started to hear rumblings last week about how residential construction loans are weighing heavily on local banks because, big surprise, some of the builders are having trouble keeping up with the payments.
While commercial loan delinquencies as a whole are still at historically low levels, the residential construction loans (which are grouped with commercial) are pushing the numbers up.
This morning FBR’s mortgage maven Paul Miller put out a note naming names:
At the largest 50 residential construction lenders, 1Q08 nonperformers totaled $7.8 billion, or 8.0% of such loans. Unfortunately, banks and thrifts just began to break out their one to four family residential construction loan portfolios on their call reports in 1Q08, so we don't have any historical context. Regardless, it is clear that growing construction nonperforming loans are an increasing concern for lenders.
As more small and mid-sized builders either go belly up or walk away from land at bargain basement prices, the banks will be left holding the bag. Which banks? FBR ranks banks and thrifts with market caps over $500 million by exposure to single-family construction lending to tangible equity:
The two financial institutions under FBR coverage that are most at risk due to their single-family exposures are SunTrust (STI – Underperform) and Washington Federal (WFSL – Market Perform). Other companies under FBR coverage that rank in the top 20 are First Horizon (FHN – Market Perform,), Zions (ZION – Market Perform), BB&T(BBT – Market Perform), National City (NCC – Market Perform), Synovus (SNV – Market Perform), and Regions (RF – Underperform).
lendingmaestro_IHB
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No_Such_Reality_IHB
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awgee said:
In English Awgee, I didn't see that. Do you mean an orderly market or orderly marketing (sales).
Trooper_IHB
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Alcoa beats the Street
This could be why the market did so well today...seems word started leaking right about noon
However: "Alcoa is the first Dow company to report its results for the second quarter. Another Dow component, General Electric (GE, Fortune 500), will release its second-quarter earnings on Friday. Next week, investors will pay close attention to earnings announcements from key financials Citigroup (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Merrill Lynch (MER, Fortune 500)."
This could be why the market did so well today...seems word started leaking right about noon
However: "Alcoa is the first Dow company to report its results for the second quarter. Another Dow component, General Electric (GE, Fortune 500), will release its second-quarter earnings on Friday. Next week, investors will pay close attention to earnings announcements from key financials Citigroup (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Merrill Lynch (MER, Fortune 500)."
EvaLSeraphim_IHB
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acpme said:
Get used to disappointment.
usctrojanman29_IHB
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That wasn't a big suprise...I got some ultra short financial index and ultra nasdaq 100 index shares out there so today was a nice day. How long before Fannie and Freddie get absorbed by the gov't???acpme said:
acpme_IHB
New member
usctrojanman29 said:
REITs averaged 15% ann st dev from 2002-2006. then 24% in 2007 and so far 32% this year. that is exceptional and unprecented volatility for an asset class that has traditionally been income, not growth, driven. so the size of these movements is extraordinary, although i agree, i'm not all that surprised there was more $h** to hit the fan.
Anonymous_IHB
New member
Fannie, Freddie Tumble on Bailout Concern, UBS Cut (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aefOxE9thfw8&refer=home
http://www.bloomberg.com/apps/news?pid=20601087&sid=aefOxE9thfw8&refer=home
No_Such_Reality_IHB
New member
On a political front, unfortunately unrelated to housing... Rove ignores Congressional subpoena.
To be frank, even as a Republican, I'm really looking forward to the current administration's comeuppance when they can't stonewall and thumb their nose at the rest of the Government branches come January.
To be frank, even as a Republican, I'm really looking forward to the current administration's comeuppance when they can't stonewall and thumb their nose at the rest of the Government branches come January.
lendingmaestro_IHB
New member
Somewhere, Karl Marx is smiling
US govt considering takeover of Fannie, Freddie-NYT
Fri Jul 11, 2008 12:34am EDT
TOKYO, July 11 (Reuters) - The U.S. government is considering taking over the top U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) and placing them into conservatorship if their problems worsen, the New York Times reported, citing people briefed about the plan.
Under conservatorship, the shares of Fannie and Freddie would be worth little or northing, and any losses on the mortgages they guarantee would be paid by taxpayers, the New York Times said in the report published late on Thursday.
Senior officials in the Bush administration had considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies, but that was considered unattractive because it would effectively double the size of the public debt, the paper reported.
The report gave a boost to investors who have fretted about the financial condition of Fannie and Freddie all week, sending the dollar slightly higher and sparking a rebound in Asian stock markets.
For the New York Times report online, click on: ">here
(Reporting by Eric Burroughs)
US govt considering takeover of Fannie, Freddie-NYT
Fri Jul 11, 2008 12:34am EDT
TOKYO, July 11 (Reuters) - The U.S. government is considering taking over the top U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) and placing them into conservatorship if their problems worsen, the New York Times reported, citing people briefed about the plan.
Under conservatorship, the shares of Fannie and Freddie would be worth little or northing, and any losses on the mortgages they guarantee would be paid by taxpayers, the New York Times said in the report published late on Thursday.
Senior officials in the Bush administration had considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies, but that was considered unattractive because it would effectively double the size of the public debt, the paper reported.
The report gave a boost to investors who have fretted about the financial condition of Fannie and Freddie all week, sending the dollar slightly higher and sparking a rebound in Asian stock markets.
For the New York Times report online, click on: ">here
(Reporting by Eric Burroughs)