Archive for the ‘Sheila Bair’ Category
Posted by Larry Doyle on March 26th, 2009 11:10 AM |
The other day, I provided a cursory overview of the details embedded in the recently proposed Public-Private Investment Partnership, Will Banks Truly Sell these Toxic Assets?
The main point I tried to highlight in that piece was the need for true price discovery for these toxic assets. A loyal reader provided tremendous insight in highlighting that the PPIP needs to assure that sellers are truly at arm’s length from buyers to insure that the price discovery process is real and fair.
There are potential concerns with this price discovery process highlighted in my piece Send in the Clown. Are the bank portfolios, located within the largest banks needing to sell toxic assets, attempting to prop the market higher? (more…)
Tags: 12th Street Capital, bank portfolios at Bank of America and Citigroup, matthew richardson, Nouriel Roubini, price discovery of toxic assets, public-private investment program, Sheila Bair, Tim Geithner, Toxic Assets, U.S. central Credit Union, West Corp Credit Union
Posted in American Consumers, Bank Failure, Bank Nationalization, Bank of America, Banking Institutions, Economy, FDIC, General, Mortgage Crisis, Nouril Roubini, Real Estate, Sheila Bair, Tim Geithner, Wall Street | 3 Comments »
Posted by Larry Doyle on March 5th, 2009 9:45 AM |
In very short order, the FDIC (Federal Deposit Insurance Corporation) has seen its reserves plummet from $50 billion to $18.9 billion at the end of 2008. At that pace and with the expectation of more bank failures, could this bedrock of our national banking system go broke? Well, FDIC’s Bair Says Insurance Fund Could Be Insolvent This Year. Is Sheila Bair unnecessarily sounding warning signals? Am I running to the bank to withdraw my money? No and no.
Sheila Bair is proactively managing expectations for all concerned, those being politicians, regulators, bankers, and consumers. In fact, if she did not highlight the current state of the FDIC reserve fund and expectations for future declines, she would not be fulfilling her obligations. (more…)
Tags: bank earnings, banks, consumers, FDIC, risk controls, Sheila Bair, taxpayers
Posted in American Consumers, Banking Institutions, Business, Commerce, Current Affairs, Economy, Insurance Industry, Mortgages, Retail Business, Risk, Sheila Bair, Unemployment, Wall Street | 10 Comments »
Posted by Larry Doyle on February 20th, 2009 6:00 AM |
These are clearly the times that try our souls. In an attempt to bring a measure of perspective to the markets and economy, let me review some month-to-date stats for February and add economic commentary:
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DJIA
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-9%
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S&P 500
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-5.7%
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Nasdaq
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-2.3%
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Bonds
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Flat to -10%, depending on sector
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$/Yen
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94.14 vs.89.81
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$/Euro
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1.262 vs. 1.280
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Oil
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38.78 vs. 41.60
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Gold
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975 vs. 929
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There really has been no place to hide. Why? Very simply because in a “massive margin call” (selling assets purchased with borrowed money) when debt cannot be refinanced, all assets are “on sale” in order to pay down debts!!
We have achieved the objective we were looking for in the DJIA and are about 5% away from the objective on the S&P. If there are people who were outright short the market “nobody ever went broke taking a profit.” The question is where do we go from here? In order to address that question, we need to break it down into its component parts. (more…)
Posted in American Consumers, Bad Bank, Bank Nationalization, Banking Institutions, Barack Obama, China, Current Affairs, Economic Stimulus, Economy, General, Global Finance, Hedge Funds, Obama Administration, Sheila Bair, Tim Geithner | 1 Comment »
Posted by Larry Doyle on January 6th, 2009 10:00 AM |
On the first real day of business after the holidays, I will tip my hat to PEBO and his economic team. Obama opened his press briefing this morning with his take that the economy is “bad and getting worse.” In deft fashion, he then caught almost everybody off guard by leading his proposed economic stimulus plan with focus on a significant level of tax cuts and tax credits. In my opinion, this was a very, very strong first move. Well done, Barack!!
The general outline of these cuts and credits include:
1. tax cuts for those paying taxes or with an earned-income credit. Likely for families earning up to 200k, although that is not yet defined.
2. businesses can retroactively reduce tax bills going back 5 years by writing off losses from 2008 and 2009.
3. offer tax credits to entice firms to plow money back into new investments.
4. provide a one year tax credit for companies that make new hires or forego layoffs.
5. increase write-offs for a wide array of expenditures for small business.
(more…)
Tags: Education, funding for agriculture, Homeland security, HUD, Kevin Doyle of 12th Street Capital, Obama proposes tax cuts in January 2009, Obama says economy bad and getting worsen, stimulus details
Posted in Barack Obama, Bernie Madoff, Bob Rodriguez, Economy, Jeff Gundlach, Laszlo Birinyi, Mark Carney, Meredith Whitney, Nouril Roubini, Sheila Bair, Tax Stimulus Package | No Comments »
Posted by Larry Doyle on January 1st, 2009 11:35 AM |
On December 23rd in my piece, “Everything’s Negotiable…“, I wrote that I thought for those financially challenged and potentially facing personal bankruptcy with resulting mortgage default and foreclosure that principal reduction was definitely on the horizon. I wrote in that piece:
Additionally, the likely first piece of government assistance to come from the Obama administration is capital to help homeowners in foreclosure or approaching foreclosure. I expect that that assistance will incorporate some degree of mortgage principal reduction.
I would definitely broach with your banker the topic of principal reduction after laying out your budget. The worst that the bank can do is say no. If that is their response you will have been on record as having been proactive in the process and that can’t hurt you if in fact you end up actually defaulting.
Given the anemic response to the current loan modification programs along with the high level of re-defaulting, it is readily apparent that the powers that be should have been listening to Sheila Bair’s proposal on principal reduction from the outset. Sheila promoted the concept of government funding sharing in the losses with the banks in the principal reduction process.
(more…)
Tags: government assistance for homeowners, Hope for homeowners, loan modifications, Mortgage Cram-Down, mortgage cramdown, mortgage legislation, mortgage rates will increase with mortgage cram-downs, mortgage rates will increase with mortgage modifications, principal reduction of mortgages, Sheila Bair
Posted in Economy, General, Mortgage Cram-Down, Sheila Bair | No Comments »
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