Sumpin' Jist Ain't REIT
Not REIT... Subprime lender, Novastar Financial, scrapped plans to pay a dividend on 2006 profit...
and will forfeit its tax status as a real estate investment trust as a result. Down 90% YTD, the loss of REIT status will have a "significant adverse impact" on Q3 results
More impact... Bank of America, the second- biggest U.S. bank, said "unprecedented dislocations" in the credit markets will have a "meaningful impact" on Q3 investment-banking results.
At What Price? The SEC are questioning mutual fund managers who bet on home loans before the subprime mortgage market collapsed, concerned they may overvalue the stakes when selling shares and making payouts to investors.
If the funds sell off the more- liquid securities to satisfy redemption requests, then the valuation of the remaining portfolio becomes even more critical.
Stiff upper lip... exchequer Alistair Darling: "Should it be necessary, we and the Bank of England would put in place arrangements that would guarantee all the deposits in Northern Rock.''
A mouth full... Vince Cable, treasury spokesman for the Liberal Democrats:
"(the situation) is a product of greed and reckless gambling by over-paid executives, lax, indulgent banking regulation and a complacent government."
Conservative leader David Cameron:
"This government has presided over a huge expansion of public and private debt without showing awareness of the risks involved. Our economic growth has been built on a mountain of debt."
and will forfeit its tax status as a real estate investment trust as a result. Down 90% YTD, the loss of REIT status will have a "significant adverse impact" on Q3 results
More impact... Bank of America, the second- biggest U.S. bank, said "unprecedented dislocations" in the credit markets will have a "meaningful impact" on Q3 investment-banking results.
At What Price? The SEC are questioning mutual fund managers who bet on home loans before the subprime mortgage market collapsed, concerned they may overvalue the stakes when selling shares and making payouts to investors.
If the funds sell off the more- liquid securities to satisfy redemption requests, then the valuation of the remaining portfolio becomes even more critical.
Stiff upper lip... exchequer Alistair Darling: "Should it be necessary, we and the Bank of England would put in place arrangements that would guarantee all the deposits in Northern Rock.''
A mouth full... Vince Cable, treasury spokesman for the Liberal Democrats:
"(the situation) is a product of greed and reckless gambling by over-paid executives, lax, indulgent banking regulation and a complacent government."
Conservative leader David Cameron:
"This government has presided over a huge expansion of public and private debt without showing awareness of the risks involved. Our economic growth has been built on a mountain of debt."
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