Market Currents

Bankrupt lender Thornburg Mortgage - one of the biggest casualties of the subprime housing...

Friday, February 5, 2010, 3:52 PM ET
Bankrupt lender Thornburg Mortgage - one of the biggest casualties of the subprime housing crisis - is seeking approval to sell its $11B mortgage servicing portfolio to a unit of Credit Suisse (CS), winner of a sealed-bid auction that drew wide interest. PennyMac (PMT) is the back-up bidder. (previously)

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This news story has 2 comments:

Tom Au Comments (6708)

Another one bites the dust.

5 Feb 2010, 03:56 PM Reply Like

Jeff Nielson Comments (2464)

Presumably, if such an auction REALLY DID draw a lot of bidders then those bidders would be bidding 10 or 20 cents on the dollar for these "assets" - if that much.

This again raises the question of what would be found if an accountant ever undertook a REAL valuation of the "assets" of Wall Street banks.

With their entire balance sheets leveraged by 30:1, many of their bets would go to zero with only a 5% decline on the underlying assets. With the U.S. housing market down 30% and the commercial real estate market down 40%, it would be very interesting to know how many TRILLIONS in losses is still being hidden.

5 Feb 2010, 04:03 PM Reply Like

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