UBS, Wells Fargo, NFI & Pinocchio
UBS write downs will not grow, but there could be more...
UBS reported its first quarterly loss in five years at the end of last month after writing down $3.92 billion on $39 billion of subprime-related exposures.
UBS Spokesman: "UBS does not expect writedowns greater than those implied in its outlook which means writedown numbers like $8 billion are not expected.
We are not holding back further charges. However, in view of current market uncertainty, more writedowns beyond the fourth quarter could not be ruled out."
Lie to me more, Pinocchio... Wells Fargo, #2 U.S. mortgage lendersaid it had net credit losses on:
0.77% of its $83 billion in home equity loans and its $67 billion portfolio of first mortgage home loans faces only 11 basis points of losses during Q3.
CEO John Stumpf cited "disciplined underwriting." Regular Naybob readers already know better...
as they are already familiar with Well's 10Q chicanery and balloning California REO inventory (+41% to 5380 homes) in the last two months.
Not completely Stumpf-ed and redeeming himself...
"Wells Fargo is not immune to the slowdown in housing, home equity losses are likely to increase in the fourth quarter and remain elevated through 2008.
The current housing market is the worst since the Great Depression. It's hard to say what inning we are in.
I don't think we are in the ninth inning. If we are, it's going to be an extra inning game."
Lie to me more, its only $2.7 Billion... Barclays Britain's third biggest bank said its investment banking unit had made a $2.7 billion write down.
Propping up its SIV's... Barclays has made about $38 Billion of credit available to its asset backed commercial paper conduits.
Finance Director Chris Lucas:
The units are "fully funded through commercial paper" and have not drawn down the credit lines. There is no further risk of writedowns in U.S. residential CDOs.
Upon further review... Barclays's continuing risk in the U.S. subprime markets include its CDOs and about $2.6 billion in mortgages held by its EquiFirst unit.
Raising BK spectre... NovaStar Financial stock down 97% YTD, fell another 49% today..
as the former subprime lender posted a $600 Million loss vs a $25.3 million profit a year earlier.
NFI: Future borrowings are at the “sole discretion” of its remaining lender, Wachovia Bank,
“and there can be no assurance that Wachovia will provide additional advances to the company.”
The company has raised $48.8 million in equity capital from institutional investors, suspended payment of its dividend and sold $364.3 million in mortgage loans.
NovaStar owed Wachovia $83.9 million in short term loans and $11.8 million in fees as of Tuesday.
The company reported that its cash balances had dwindled to $51.5 million, a decline of $99 million from the end of last year. Hattip to Reuter's & Bloomberg.
UBS reported its first quarterly loss in five years at the end of last month after writing down $3.92 billion on $39 billion of subprime-related exposures.
UBS Spokesman: "UBS does not expect writedowns greater than those implied in its outlook which means writedown numbers like $8 billion are not expected.
We are not holding back further charges. However, in view of current market uncertainty, more writedowns beyond the fourth quarter could not be ruled out."
Lie to me more, Pinocchio... Wells Fargo, #2 U.S. mortgage lendersaid it had net credit losses on:
0.77% of its $83 billion in home equity loans and its $67 billion portfolio of first mortgage home loans faces only 11 basis points of losses during Q3.
CEO John Stumpf cited "disciplined underwriting." Regular Naybob readers already know better...
as they are already familiar with Well's 10Q chicanery and balloning California REO inventory (+41% to 5380 homes) in the last two months.
Not completely Stumpf-ed and redeeming himself...
"Wells Fargo is not immune to the slowdown in housing, home equity losses are likely to increase in the fourth quarter and remain elevated through 2008.
The current housing market is the worst since the Great Depression. It's hard to say what inning we are in.
I don't think we are in the ninth inning. If we are, it's going to be an extra inning game."
Lie to me more, its only $2.7 Billion... Barclays Britain's third biggest bank said its investment banking unit had made a $2.7 billion write down.
Propping up its SIV's... Barclays has made about $38 Billion of credit available to its asset backed commercial paper conduits.
Finance Director Chris Lucas:
The units are "fully funded through commercial paper" and have not drawn down the credit lines. There is no further risk of writedowns in U.S. residential CDOs.
Upon further review... Barclays's continuing risk in the U.S. subprime markets include its CDOs and about $2.6 billion in mortgages held by its EquiFirst unit.
Raising BK spectre... NovaStar Financial stock down 97% YTD, fell another 49% today..
as the former subprime lender posted a $600 Million loss vs a $25.3 million profit a year earlier.
NFI: Future borrowings are at the “sole discretion” of its remaining lender, Wachovia Bank,
“and there can be no assurance that Wachovia will provide additional advances to the company.”
The company has raised $48.8 million in equity capital from institutional investors, suspended payment of its dividend and sold $364.3 million in mortgage loans.
NovaStar owed Wachovia $83.9 million in short term loans and $11.8 million in fees as of Tuesday.
The company reported that its cash balances had dwindled to $51.5 million, a decline of $99 million from the end of last year. Hattip to Reuter's & Bloomberg.
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