A Passel of Liars with Saggin Fannies (FNMA)
Sitting on the face of the markets...
Citigroup wrote off $6.4 billion and warned it could suffer up to $11 billion in further losses. Merrill Lynch reported $8.4 billion in Q3 subprime related losses.
Morgan Stanley said it had suffered $3.7 billion of subprime mortgage losses that would result in a $2.5 billion hit to Q4 results.
So far this quarter over $40 Billion in writedowns. Imagine what will happen when the assets get shifted back to "assets for sale" or get marked to market.
Refuting the Alligators...
Today, Britain's third biggest bank, Barclays Plc categorically denied rumors, it was about to announce a $10 billion writedown and see its top management quit.
Their credit is as good as their word, right?
Barclay's credit default swaps, used to protect debt from default or speculate on credit quality, rose 10 bps to 68bps and Barclays stock -30% in the last month.
Lie to me some more, Pinocchio...
U.S. Treasury Secretary Henry Paulson reiterated his support for a "strong" dollar and also said a currency's value should be based on economic fundamentals.
Carry trade unwind continued as the yen rose to the highest since May 2006 against the dollar rising 1.7% to hit 110.7 intraday.
Dead Pool Rising... Wachovia, the fourth largest U.S. bank, said it had incurred about $1.1 billion of further losses in October.
The pretax value of collateralized debt obligations (CDOs) invested in asset-backed securities declined by $1.1 billion last month.
That's on top of a $1.3 billion write-down during the third quarter.
Wachovia ranked third for the first nine months of this year in CDO underwriting at $19.6 billion, though most of that involved commercial mortgage securities.
Total residential MBS exposure was unchanged during the month at $2.1 billion.
After lying, Sagging Fannie in a sling... Today, FNMA or Fannie Mae, the biggest source of money for U.S. home loans, posted a wider Q3 loss.
Credit elated losses surged by $1.6 billion to $2 billion, while losses on securities guaranteed by Fannie Mae rose $857 million to $1 billion.
The net loss more than doubled to $1.39 billion because of $2.24 billion in derivative-related losses.
Net income for the first three quarters of 2007 dropped 57% t$1.5 billion rom $3.5 billion.
Michael Mullaney at Fiduciary Trust Co.:
"Fannie Mae is becoming another poster child for the problem you see with Countrywide, WaMu and any of the firms with a good chunk of mortgage business."
Ungirdled Fannie...
Today's SEC filing brings Fannie up to date on its earnings reports since an accounting overhaul delayed filings going back to 2004.
The restoration of current financial statements satisfies a prerequisite for the removal of limits on Fannie Mae's $723.2 billion mortgage portfolio.
The Nattering One muses... we Nattered about the FHA bailout here and here.
Witness the financial houses solvency problem in the ABCP and short term debt markets.
This is because, no investor in their right mind, will touch this toxic mortgage debt with a 10 foot poll.
FNMA or Fannie can now go out and buy even more fraudulent "conforming" loans from the likes of WaMu, Countrywide, Impac and IndyMac.
Meanwhile, SHHHH! Congress can quietly bail out the banks and real estate speculators by increasing FHA loan limits to over $700K,
thus giving a roll over to the high end "noveau riche" fraudulent borrowers with bogus loans. When and where does this felonious saga end?
Right here, FNMA, FHLMC, FHA all GSE's, none guaranteed by the government, only by the taxpayers. Just what sleepy John Q. Public needs don't ya think?
Rip Van John Q. Public better come out of his opiated stupor, and start screaming at the Legislative branch, before he wakes up to a real nightmare.
Hattip to Reuters and Bloomberg for the snipets.
Citigroup wrote off $6.4 billion and warned it could suffer up to $11 billion in further losses. Merrill Lynch reported $8.4 billion in Q3 subprime related losses.
Morgan Stanley said it had suffered $3.7 billion of subprime mortgage losses that would result in a $2.5 billion hit to Q4 results.
So far this quarter over $40 Billion in writedowns. Imagine what will happen when the assets get shifted back to "assets for sale" or get marked to market.
Refuting the Alligators...
Today, Britain's third biggest bank, Barclays Plc categorically denied rumors, it was about to announce a $10 billion writedown and see its top management quit.
Their credit is as good as their word, right?
Barclay's credit default swaps, used to protect debt from default or speculate on credit quality, rose 10 bps to 68bps and Barclays stock -30% in the last month.
Lie to me some more, Pinocchio...
U.S. Treasury Secretary Henry Paulson reiterated his support for a "strong" dollar and also said a currency's value should be based on economic fundamentals.
Carry trade unwind continued as the yen rose to the highest since May 2006 against the dollar rising 1.7% to hit 110.7 intraday.
Dead Pool Rising... Wachovia, the fourth largest U.S. bank, said it had incurred about $1.1 billion of further losses in October.
The pretax value of collateralized debt obligations (CDOs) invested in asset-backed securities declined by $1.1 billion last month.
That's on top of a $1.3 billion write-down during the third quarter.
Wachovia ranked third for the first nine months of this year in CDO underwriting at $19.6 billion, though most of that involved commercial mortgage securities.
Total residential MBS exposure was unchanged during the month at $2.1 billion.
After lying, Sagging Fannie in a sling... Today, FNMA or Fannie Mae, the biggest source of money for U.S. home loans, posted a wider Q3 loss.
Credit elated losses surged by $1.6 billion to $2 billion, while losses on securities guaranteed by Fannie Mae rose $857 million to $1 billion.
The net loss more than doubled to $1.39 billion because of $2.24 billion in derivative-related losses.
Net income for the first three quarters of 2007 dropped 57% t$1.5 billion rom $3.5 billion.
Michael Mullaney at Fiduciary Trust Co.:
"Fannie Mae is becoming another poster child for the problem you see with Countrywide, WaMu and any of the firms with a good chunk of mortgage business."
Ungirdled Fannie...
Today's SEC filing brings Fannie up to date on its earnings reports since an accounting overhaul delayed filings going back to 2004.
The restoration of current financial statements satisfies a prerequisite for the removal of limits on Fannie Mae's $723.2 billion mortgage portfolio.
The Nattering One muses... we Nattered about the FHA bailout here and here.
Witness the financial houses solvency problem in the ABCP and short term debt markets.
This is because, no investor in their right mind, will touch this toxic mortgage debt with a 10 foot poll.
FNMA or Fannie can now go out and buy even more fraudulent "conforming" loans from the likes of WaMu, Countrywide, Impac and IndyMac.
Meanwhile, SHHHH! Congress can quietly bail out the banks and real estate speculators by increasing FHA loan limits to over $700K,
thus giving a roll over to the high end "noveau riche" fraudulent borrowers with bogus loans. When and where does this felonious saga end?
Right here, FNMA, FHLMC, FHA all GSE's, none guaranteed by the government, only by the taxpayers. Just what sleepy John Q. Public needs don't ya think?
Rip Van John Q. Public better come out of his opiated stupor, and start screaming at the Legislative branch, before he wakes up to a real nightmare.
Hattip to Reuters and Bloomberg for the snipets.
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