Rising Foreclosures & Citibank Capital Requirements
Not now Dear...
We need more time to cook the books. After hitting an all time low in Aug, the NAR website indicates...
Today's SEPT Pending Home Sales release has been postponed till Nov 13th, wonder why?
Rising tide...
Foreclosure filings for July-September rose to 635,159, representing one in every 196 households and a 30% jump from Q2, with a 100% jump from Q3 last year.
The level climbed in 45 out of 50 states in the quarter, led by Nevada (+23%, YOY +300%), California (+36%, YOY +400%) and Florida (+50%, YOY +200%).
Rising deadpool... A CIBC World Markets analyst downgraded Citigroup to "sector underperformer."
Near term, Citibank, the largest US bank, may have to raise $30 billion to meet capital requirements.
The CIBC analyst wrote she expects Citi to be forced to sell assets, raise capital or cut its dividend to improve its capital ratios.
The ratio of Citigroup's tangible equity to tangible assets fell to 2.8%, half the average of its peer group.
Citigroup's tier 1 capital ratio, a measure used by regulators to make sure banks have enough cash to cover losses, fell to 7.4% at the end of Q3 from 8.64% at the same time last year.
CIBC also downgraded Bank of America , the 2nd largest U.S. bank, saying it sees a diminished revenue outlook for the bank.
Pots calling Kettles black... Morgan Stanley and Credit Suisse also cut their rating for Citigroup.
Credit Suisse said its Q3 investment banking profit was all but wiped out by write downs in leveraged loan commitments, residential mortgages and collateralized debt obligations.
CNG hits the Valdez... Exxon Mobil said its Q3 earnings declined 10%, missing expectations on sharply dropping profits from refining and lower natural gas prices.
Refining margins plummeted by as much as 90% from record highs reached in May. CNG (compressed natural gas) is a far superior alternative fuel to E85 corn ethanol.
NGV (natural gas vehicles) are also an easily implemented superior solution to hybrids. The 7 sisters don't like CNG, it spoils their E85 and hybrid scams.
E85 hits Kraft Foods... S&P Ratings Services warned it may lower its credit ratings on food maker Kraft Foods after the company's Q3 profit sank 20%.
Dairy costs have skyrocketed due to international demand for milk and higher animal feed costs.
Animal feed is made from corn, which has risen to record levels due to demand for the alternative fuel E85 ethanol.
Corn is used to make E85 Ethanol fuel which requires a gross misallocation of land & water to grow the corn and process it into ethanol. (17 gallons of water to make 1 gallon of E85.)
Poor auto sales hit Ford... the 2nd largest U.S.-based automaker, said its U.S. sales of cars and trucks dropped...
9.3% in October, (Cars -26%; Trucks +1.2%) marking the 12th straight monthly decline. GM and Chrysler are expected to post declines later today.
Layoffs hit Chrysler... Chrysler said it would cut up to 10,000 hourly jobs (20% of workforce) through 2008 as it slashes production capacity in North America.
Chrysler said it will eliminate five North American assembly plants and stop making four different production models.
In addition, Chrysler said it would cut 1,000 salaried jobs, and eliminate almost 40% of its contract positions.
The layoffs are in addition to 13,000 jobs that Chrysler cut as part of its restructuring plan announced in February.
We need more time to cook the books. After hitting an all time low in Aug, the NAR website indicates...
Today's SEPT Pending Home Sales release has been postponed till Nov 13th, wonder why?
Rising tide...
Foreclosure filings for July-September rose to 635,159, representing one in every 196 households and a 30% jump from Q2, with a 100% jump from Q3 last year.
The level climbed in 45 out of 50 states in the quarter, led by Nevada (+23%, YOY +300%), California (+36%, YOY +400%) and Florida (+50%, YOY +200%).
Rising deadpool... A CIBC World Markets analyst downgraded Citigroup to "sector underperformer."
Near term, Citibank, the largest US bank, may have to raise $30 billion to meet capital requirements.
The CIBC analyst wrote she expects Citi to be forced to sell assets, raise capital or cut its dividend to improve its capital ratios.
The ratio of Citigroup's tangible equity to tangible assets fell to 2.8%, half the average of its peer group.
Citigroup's tier 1 capital ratio, a measure used by regulators to make sure banks have enough cash to cover losses, fell to 7.4% at the end of Q3 from 8.64% at the same time last year.
CIBC also downgraded Bank of America , the 2nd largest U.S. bank, saying it sees a diminished revenue outlook for the bank.
Pots calling Kettles black... Morgan Stanley and Credit Suisse also cut their rating for Citigroup.
Credit Suisse said its Q3 investment banking profit was all but wiped out by write downs in leveraged loan commitments, residential mortgages and collateralized debt obligations.
CNG hits the Valdez... Exxon Mobil said its Q3 earnings declined 10%, missing expectations on sharply dropping profits from refining and lower natural gas prices.
Refining margins plummeted by as much as 90% from record highs reached in May. CNG (compressed natural gas) is a far superior alternative fuel to E85 corn ethanol.
NGV (natural gas vehicles) are also an easily implemented superior solution to hybrids. The 7 sisters don't like CNG, it spoils their E85 and hybrid scams.
E85 hits Kraft Foods... S&P Ratings Services warned it may lower its credit ratings on food maker Kraft Foods after the company's Q3 profit sank 20%.
Dairy costs have skyrocketed due to international demand for milk and higher animal feed costs.
Animal feed is made from corn, which has risen to record levels due to demand for the alternative fuel E85 ethanol.
Corn is used to make E85 Ethanol fuel which requires a gross misallocation of land & water to grow the corn and process it into ethanol. (17 gallons of water to make 1 gallon of E85.)
Poor auto sales hit Ford... the 2nd largest U.S.-based automaker, said its U.S. sales of cars and trucks dropped...
9.3% in October, (Cars -26%; Trucks +1.2%) marking the 12th straight monthly decline. GM and Chrysler are expected to post declines later today.
Layoffs hit Chrysler... Chrysler said it would cut up to 10,000 hourly jobs (20% of workforce) through 2008 as it slashes production capacity in North America.
Chrysler said it will eliminate five North American assembly plants and stop making four different production models.
In addition, Chrysler said it would cut 1,000 salaried jobs, and eliminate almost 40% of its contract positions.
The layoffs are in addition to 13,000 jobs that Chrysler cut as part of its restructuring plan announced in February.
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