MBIA, ETrade, WaMU, Countrywide, An Enema
Next year... Biotech and Nanotech are the future, but like everything else in the future, they have not arrived yet.
In 2006, 336 U.S. public biotech companies lost a combined $3.5 billion on revenue of $55.5 billion, falling short of the $59.5 billion in sales at Target stores that year.
Guarantor Blues... MBIA, the world's largest bond insurer...
said it expects to incur $737 million of losses in Q4, $614 million for securities comprised of prime residential home equity loans and lines of credit.
MBIA slashed its common stock dividend 62% and said it will raise $1 billion of new capital (by selling "surplus" notes) to preserve its AAA rating.
MBIA said the surplus notes will rank below all other debt, enabling them to be treated as capital.
Stock down 81% last year, another 14% today. Let's see if those notes offer 10% interest and if anyone buys them.
Its Official... Goldman Sachs on Wednesday said the U.S. economy is already in a recession...
or will drop into recession this year as the unemployment rate rises to 6.5% in 2009 from the current 5%.
Stock broker blues... Last month, ETrade accepted a $2.55 billion capital injection from hedge fund Citadel Investment Group and Blackrock to stay afloat.
In November, Etrade sold $3 billion of ABCP for $800 million to Citadel and plans to take a $2.2 billion write down on the short sale.
Today, Etrade sold $3 billion of MBS and municipal bonds to raise much needed capital.
The sale allowed ETrade to decrease its borrowings from the FHLB Federal Home Loan Bank by about $3.5 billion.
ETrade's market capitalization peaked last year at $10.9 billion, yesterday the stock hit a 12 year low, giving a market value of $1.04 billion.
Etrade stock down 80% last year and rumoured to be filing BK, but hey, year end tier 1 capital ratio was better or equal to the 5.9% requirement.
WaMu solvency rumours... WaMu stock fell 14% on reserve requirement and debt default concerns.
Last month WaMu sold $3 billion of convertible preferred bonds to shore up capital.
The nation's biggest savings and loan also shut 190 loan offices, reduced staff 6% and slashed its dividend as bad loans continue to rise.
Speaking of solvency rumours... Countrywide, the largest U.S. mortgage lender, said foreclosures and late payments rose in December to the highest on record.
The YOY foreclosure rate among Countrywides 9.03 million mortgages doubled to 1.44% vs 0.70%. The YOY delinquency rate rose to 7.20% vs 4.60%.
Countrywide stock fell another 20% today on BK rumors. Countrywide traded at $45.26 last January, a record, and its market value hit about $27 billion.
Todays market value for Countrywide $2.7 billion, barely above the $2 billion which BofA forked out several months ago...
for preferred shares that are convertible at $18 into common stock and pay a 7.25% dividend.
If BofA converted all of the $2 billion original stake at the current price $4.65, they would face a loss of more than $1.3 billion,
or about 70%, excluding dividends and the value of the conversion rights.
FYI, Countrywide has outstanding debt of over $50 billion with the Federal Home Loan Bank system. Wonder who is picking up that tab when they file BK?
Poole! don't Bogart that joint... St. Louis Fed Head Poole said:
U.S. economic fundamentals remain strong and 2008 looks to be a year of rising growth.
He also noted it is too early to tell if housing problems will push the economy into a recession.
He said low inflation expectations give the Fed "breathing room" to lower rates further.
The Nattering One muses... Ponder how many financial institutions are in the same boat...
did anyone notice in the above, that Etrade and Countrywide are both worth less than what they owe to the FHLB let alone the preferred stock holders?
Ponder the size of the problem we are facing..
did anyone notice in the above, the world's largest bond insurer, the nation's biggest savings and loan, and the largest U.S. mortgage lender, all neck deep in cocka?
What this town needs is an enema... Just like an anus, everyone has an opinion...
and I just don't know whose anus is more full of shit, the Fed heads or the presidential "election" clowns, er, candidates.
Let alone have an original or cognizant idea, or address a real issue, it would be nice if all these pretenders,
and that is what they are, could at least get together on the same page of bullshit propaganda...
The Fed to explain their "loose money" debauchery of the dollar since 2000, and the "fool on the hill" bunch to explain,
their treasonous duplicity in the emasculation of our durable economic base by selling out to multinational and foreign lobbyists...
And the wholesale mortgaging of our nations future by incurring a mountain of debt from which our children will never come out from under.
At least, there is no doubt that both groups of anuses are full of shit. Speaking of anuses...
maybe someday, instead of being so retentive, the public will wake up and just "dump out" these "waste products" that have befouled our less than perfect union.
In 2006, 336 U.S. public biotech companies lost a combined $3.5 billion on revenue of $55.5 billion, falling short of the $59.5 billion in sales at Target stores that year.
Guarantor Blues... MBIA, the world's largest bond insurer...
said it expects to incur $737 million of losses in Q4, $614 million for securities comprised of prime residential home equity loans and lines of credit.
MBIA slashed its common stock dividend 62% and said it will raise $1 billion of new capital (by selling "surplus" notes) to preserve its AAA rating.
MBIA said the surplus notes will rank below all other debt, enabling them to be treated as capital.
Stock down 81% last year, another 14% today. Let's see if those notes offer 10% interest and if anyone buys them.
Its Official... Goldman Sachs on Wednesday said the U.S. economy is already in a recession...
or will drop into recession this year as the unemployment rate rises to 6.5% in 2009 from the current 5%.
Stock broker blues... Last month, ETrade accepted a $2.55 billion capital injection from hedge fund Citadel Investment Group and Blackrock to stay afloat.
In November, Etrade sold $3 billion of ABCP for $800 million to Citadel and plans to take a $2.2 billion write down on the short sale.
Today, Etrade sold $3 billion of MBS and municipal bonds to raise much needed capital.
The sale allowed ETrade to decrease its borrowings from the FHLB Federal Home Loan Bank by about $3.5 billion.
ETrade's market capitalization peaked last year at $10.9 billion, yesterday the stock hit a 12 year low, giving a market value of $1.04 billion.
Etrade stock down 80% last year and rumoured to be filing BK, but hey, year end tier 1 capital ratio was better or equal to the 5.9% requirement.
WaMu solvency rumours... WaMu stock fell 14% on reserve requirement and debt default concerns.
Last month WaMu sold $3 billion of convertible preferred bonds to shore up capital.
The nation's biggest savings and loan also shut 190 loan offices, reduced staff 6% and slashed its dividend as bad loans continue to rise.
Speaking of solvency rumours... Countrywide, the largest U.S. mortgage lender, said foreclosures and late payments rose in December to the highest on record.
The YOY foreclosure rate among Countrywides 9.03 million mortgages doubled to 1.44% vs 0.70%. The YOY delinquency rate rose to 7.20% vs 4.60%.
Countrywide stock fell another 20% today on BK rumors. Countrywide traded at $45.26 last January, a record, and its market value hit about $27 billion.
Todays market value for Countrywide $2.7 billion, barely above the $2 billion which BofA forked out several months ago...
for preferred shares that are convertible at $18 into common stock and pay a 7.25% dividend.
If BofA converted all of the $2 billion original stake at the current price $4.65, they would face a loss of more than $1.3 billion,
or about 70%, excluding dividends and the value of the conversion rights.
FYI, Countrywide has outstanding debt of over $50 billion with the Federal Home Loan Bank system. Wonder who is picking up that tab when they file BK?
Poole! don't Bogart that joint... St. Louis Fed Head Poole said:
U.S. economic fundamentals remain strong and 2008 looks to be a year of rising growth.
He also noted it is too early to tell if housing problems will push the economy into a recession.
He said low inflation expectations give the Fed "breathing room" to lower rates further.
The Nattering One muses... Ponder how many financial institutions are in the same boat...
did anyone notice in the above, that Etrade and Countrywide are both worth less than what they owe to the FHLB let alone the preferred stock holders?
Ponder the size of the problem we are facing..
did anyone notice in the above, the world's largest bond insurer, the nation's biggest savings and loan, and the largest U.S. mortgage lender, all neck deep in cocka?
What this town needs is an enema... Just like an anus, everyone has an opinion...
and I just don't know whose anus is more full of shit, the Fed heads or the presidential "election" clowns, er, candidates.
Let alone have an original or cognizant idea, or address a real issue, it would be nice if all these pretenders,
and that is what they are, could at least get together on the same page of bullshit propaganda...
The Fed to explain their "loose money" debauchery of the dollar since 2000, and the "fool on the hill" bunch to explain,
their treasonous duplicity in the emasculation of our durable economic base by selling out to multinational and foreign lobbyists...
And the wholesale mortgaging of our nations future by incurring a mountain of debt from which our children will never come out from under.
At least, there is no doubt that both groups of anuses are full of shit. Speaking of anuses...
maybe someday, instead of being so retentive, the public will wake up and just "dump out" these "waste products" that have befouled our less than perfect union.
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