Posts Tagged ‘EMC Mortgage’
Posted by Larry Doyle on March 16th, 2009 10:37 AM |
It was one year ago that the Federal Reserve and Treasury delivered Bear Stearns into the hands of JP Morgan for $2 a share. Bear Stearns stock had traded above $170 a share in 2006. With the passage of time, what are some of the lessons learned and what questions remain unanswered.
1. Although Bear Stearns employees and shareholders may not qualify a price of $2 a share (revised to $10 a few weeks later) as being saved, would the financial system have been better off letting Bear totally fail? Why? If Bear had failed, many people do not believe we would have had the breakdowns in our financial systems that occurred because of Lehman’s failure.
2. Did Dick Fuld, CEO of Lehman, assume that the Fed and Treasury would save Lehman much as they did Bear? Was he less aggressive in pursuing increased capital injections during the Summer 2008 as a result? Many people believe this to be the case. (more…)
Tags: Ace greenberg, AIG, Bear Stearns, bear Stearns Asset Management, Dick Fuld, EMC Mortgage, Federal Reserve, Hank Paulson, Jamie Dimon, Jimmy Cayne, JP Morgan, Julius caesar, Lehman Bros, Matthew Tannin, Moral Hazard, Ralph Cioffi, Tim Geithner, Treasury, Wall Street Journal, Warren Spector
Posted in Jamie Dimon, JP Morgan, Risk, Wall Street | 2 Comments »
Posted by Larry Doyle on November 12th, 2008 12:15 PM |
Despite billions and now trillions of dollars in capital injections and equity investments made by our government, private equity, and sovereign wealth funds, our economic turmoil is a long way from being over. I do find it interesting that despite numerous Wall Street titans having indicated to us at different points over the last year that we were in the 7th inning of this fiasco, now a recurring theme is that we should not expect any real economic recovery until 2010. Actually, maybe we were in the 7th inning but it was the 7th inning of the first game of a 4 game series.
Well, if we want to figure out where and when we are moving forward, I think it would be beneficial to know from where and when we came.
For those over 50 years of age, perhaps you remember when mortgage money dried up. Perhaps you also recall the days of putting down 20% before you even thought of buying a home. In any event, the growth of the secondary mortgage market in the mid 1980s was a result of some very sharp financial minds on Wall St. who engineered a product called a Collateralized Mortgage Obligation (CMO). (more…)
Tags: ABS model on Wall Street, and distribute business model, Asset securitization on Wall Street, Aurora Mortgage, bankruptcy of Lehman, Bear Stearns, breakdown of rating agnecy models on Wall Street, business model on Wall Street, CMO business model on Wall Street, Countrywide, development of CBOs, development of CDS, development of CLOs, development of credit derivatives, EMC Mortgage, fannie Mae and Wall Street model, First Franklin, Freddie Mac and Wall Street model, Hedge Funds, history of Wall Street business model, junk mortgages, Lehman Bros, Maryann Hurley, Merrill LYnch, NINA loans, originate, originate and distribute, originate to distribute, originate to distribute model, originate to distribute modeli, origination and distribution business, origination business model on Wall Street, Paulson comments on Wall Street, rating agency models, securitize, securitizing loans, the Wall street model, underwriting of loans on Wall Street, volumes of asset securitizations, Wall Street, Wall Street business model, Wall Street engineering, Wall Street engineers, Wall Street finance, Wall Street model, Wall Street model is broken, Wall Street model won't soon be fixed, Wall Street operating model is broken, Wall Street quants, Wall Street securitization model, Wall Street securitization process, Wall Street trading
Posted in American Consumers, Banking Institutions, Current Affairs, Economy, Housing Crisis, Mortgage Crisis | 13 Comments »
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The Wall St. Model is Broken . . . and Won’t Soon be Fixed!!
Posted by Larry Doyle on November 12th, 2008 12:15 PM |
Despite billions and now trillions of dollars in capital injections and equity investments made by our government, private equity, and sovereign wealth funds, our economic turmoil is a long way from being over. I do find it interesting that despite numerous Wall Street titans having indicated to us at different points over the last year that we were in the 7th inning of this fiasco, now a recurring theme is that we should not expect any real economic recovery until 2010. Actually, maybe we were in the 7th inning but it was the 7th inning of the first game of a 4 game series.
Well, if we want to figure out where and when we are moving forward, I think it would be beneficial to know from where and when we came.
For those over 50 years of age, perhaps you remember when mortgage money dried up. Perhaps you also recall the days of putting down 20% before you even thought of buying a home. In any event, the growth of the secondary mortgage market in the mid 1980s was a result of some very sharp financial minds on Wall St. who engineered a product called a Collateralized Mortgage Obligation (CMO). (more…)
Tags: ABS model on Wall Street, and distribute business model, Asset securitization on Wall Street, Aurora Mortgage, bankruptcy of Lehman, Bear Stearns, breakdown of rating agnecy models on Wall Street, business model on Wall Street, CMO business model on Wall Street, Countrywide, development of CBOs, development of CDS, development of CLOs, development of credit derivatives, EMC Mortgage, fannie Mae and Wall Street model, First Franklin, Freddie Mac and Wall Street model, Hedge Funds, history of Wall Street business model, junk mortgages, Lehman Bros, Maryann Hurley, Merrill LYnch, NINA loans, originate, originate and distribute, originate to distribute, originate to distribute model, originate to distribute modeli, origination and distribution business, origination business model on Wall Street, Paulson comments on Wall Street, rating agency models, securitize, securitizing loans, the Wall street model, underwriting of loans on Wall Street, volumes of asset securitizations, Wall Street, Wall Street business model, Wall Street engineering, Wall Street engineers, Wall Street finance, Wall Street model, Wall Street model is broken, Wall Street model won't soon be fixed, Wall Street operating model is broken, Wall Street quants, Wall Street securitization model, Wall Street securitization process, Wall Street trading
Posted in American Consumers, Banking Institutions, Current Affairs, Economy, Housing Crisis, Mortgage Crisis | 13 Comments »