Hey Bro, Can Ya Spare $1 Trillion? Credit Suisse; CIT Group; The Fed TSFL
What no profit? Previous markdowns reduced Q4 net income by almost 60%.
Today, Credit Suisse Group, Switzerlands 2nd largest bank fell 6.4% after the company said
it may post a Q1 loss because of writedowns on debt securities deliberately mispriced by employees.
Hey Brother can you spare $7.3 billion? the largest independent U.S. commercial finance company, consumer finance bank Cit Group,
posted a $123.2 million loss before preferred dividends last quarter because of bad mortgages and the declining value of its student-loan business.
Today, CIT drew its entire $7.3 billion in unsecured U.S. bank credit facilities in an effort to improve its liquidity.
It will use the proceeds to repay debt maturing in 2008. The stock was down 36% today and is down 88% from its 52-week high.
Hey Brother, can you spare $1Trillion? ...How bad is the banking/financial system collapse?
Guidelines revised in 2002 say the Fed should charge non- banks more than the highest rate that commercial banks pay.
But not today, as that rule has been put aside by Bennie & The Fed's.
In its first extension of credit to non-banks since the Great Depression...
The Fed lent $28.8 billion as of yesterday to the biggest securities firms, at the same rate as banks.
The New York Fed also announced modifications to its new Term Securities Lending Facility (TSFL).
Taking more crap at the window...
The TSFL auctions will now allow schedule 2 collateral, instead of the schedule 1 collateral previously proposed.
Schedule 2 collateral will now include collaterized mortgage obligations (CMOs) and AAA rated commercial mortgage-backed securities
In other words, the Fed will be lending banks highly liquid Treasury securities in exchange for less liquid assets.
Whats the difference? The Fed is already taking boat loans at the window,
so why not IOU's on overpriced and rapidly deflating real estate? This mess is already making 1929 look simple.
Today, Credit Suisse Group, Switzerlands 2nd largest bank fell 6.4% after the company said
it may post a Q1 loss because of writedowns on debt securities deliberately mispriced by employees.
Hey Brother can you spare $7.3 billion? the largest independent U.S. commercial finance company, consumer finance bank Cit Group,
posted a $123.2 million loss before preferred dividends last quarter because of bad mortgages and the declining value of its student-loan business.
Today, CIT drew its entire $7.3 billion in unsecured U.S. bank credit facilities in an effort to improve its liquidity.
It will use the proceeds to repay debt maturing in 2008. The stock was down 36% today and is down 88% from its 52-week high.
Hey Brother, can you spare $1Trillion? ...How bad is the banking/financial system collapse?
Guidelines revised in 2002 say the Fed should charge non- banks more than the highest rate that commercial banks pay.
But not today, as that rule has been put aside by Bennie & The Fed's.
In its first extension of credit to non-banks since the Great Depression...
The Fed lent $28.8 billion as of yesterday to the biggest securities firms, at the same rate as banks.
The New York Fed also announced modifications to its new Term Securities Lending Facility (TSFL).
Taking more crap at the window...
The TSFL auctions will now allow schedule 2 collateral, instead of the schedule 1 collateral previously proposed.
Schedule 2 collateral will now include collaterized mortgage obligations (CMOs) and AAA rated commercial mortgage-backed securities
In other words, the Fed will be lending banks highly liquid Treasury securities in exchange for less liquid assets.
Whats the difference? The Fed is already taking boat loans at the window,
so why not IOU's on overpriced and rapidly deflating real estate? This mess is already making 1929 look simple.
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