B of A Freezes Over; MBIA Bailout, Dogs Eat Vick
Pending Home Sales Oct +0.6% vs prior - 0.2% Full Report
Inside the number: YOY -18,4%; NE -11.1%; MW -11.7%; S -25.3%; West -16.9%. YTD -17.4%; NE -11.8%; MW -11.1%; S -24.$%; West -14.7%
B of A Freezes Pool...Today, Bank of America has frozen its Columbia Strategic Cash Portfolio...
a $12 billion enhanced money market fund for institutional investors, the largest of its kind in the world.
B of A has confirmed it is winding down the fund because of illiquid investments and after losses on holdings that included short term debt sold by structured investment vehicles SIV.
Should we be concerned? As reported Oct 10th:
Only $64 billion of BoA assets fall into Level or Tier 1. With $696 billion in assets, and being the most solvent of US banks...
BofA's Level or Tier 1 asset ratio is only 9%.
Guarantor seeks capital...
Last week MBIA's stock got pummeled after Moody's reported the company was "somewhat likely" to face capital shortfalls which would effect a crippling reduction of its AAA credit rating.
Today, buyout firm Warburg Pincus has agreed to invest $1 billion in MBIA, bolstering the finances of the world's largest bond insurer amid concern about its ability to pay claims on faltering mortgage-backed bonds.
MBIA also said it would set aside reserves of $500 million to $800 million in Q4 to bolster its balance sheet for potential write downs and losses.
From Flecks latest:
It's a Dog Eat Dog World... Quarterback Michael Vick was sentenced to 23 months in prison for plotting to run an interstate dogfighting ring.
Upon release, nothing short of a lifetime ban from the NFL will suffice for this typical overpaid miscreant.
More to come in Paulson's Loan & Securities Fraud Bailout.
Inside the number: YOY -18,4%; NE -11.1%; MW -11.7%; S -25.3%; West -16.9%. YTD -17.4%; NE -11.8%; MW -11.1%; S -24.$%; West -14.7%
B of A Freezes Pool...Today, Bank of America has frozen its Columbia Strategic Cash Portfolio...
a $12 billion enhanced money market fund for institutional investors, the largest of its kind in the world.
B of A has confirmed it is winding down the fund because of illiquid investments and after losses on holdings that included short term debt sold by structured investment vehicles SIV.
Should we be concerned? As reported Oct 10th:
Only $64 billion of BoA assets fall into Level or Tier 1. With $696 billion in assets, and being the most solvent of US banks...
BofA's Level or Tier 1 asset ratio is only 9%.
Guarantor seeks capital...
Last week MBIA's stock got pummeled after Moody's reported the company was "somewhat likely" to face capital shortfalls which would effect a crippling reduction of its AAA credit rating.
Today, buyout firm Warburg Pincus has agreed to invest $1 billion in MBIA, bolstering the finances of the world's largest bond insurer amid concern about its ability to pay claims on faltering mortgage-backed bonds.
MBIA also said it would set aside reserves of $500 million to $800 million in Q4 to bolster its balance sheet for potential write downs and losses.
From Flecks latest:
Wall Street is relying on crony capitalism to "paper" over all the bad mortgage products it underwrote.
There is a huge contingent of people who anticipate a rally into the year-end. They are more terrified of missing it than they are of anything in the credit arena. That we have a credit crisis and a dollar crisis at the same time means nothing to them.
The problem is simple:
Too many Americans own homes they once could "afford" due to the credit mania that continually inflated prices. But now that credit is contracting, so are home values.
It's a Dog Eat Dog World... Quarterback Michael Vick was sentenced to 23 months in prison for plotting to run an interstate dogfighting ring.
Upon release, nothing short of a lifetime ban from the NFL will suffice for this typical overpaid miscreant.
More to come in Paulson's Loan & Securities Fraud Bailout.
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