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Citigroup's (C) reluctance to pare its mortgage assets at fire-sale prices could pay off, says...

Citigroup's (C) reluctance to pare its mortgage assets at fire-sale prices could pay off, says KBW, as it now stands to greatly benefit from rising home prices. It's a flow vs. stock argument as Citi - compared to WFC, JPM, or USB - does a relatively small amount of (now under profit-pressure) mortgage origination volume, but still has loads of questionable paper on its books. Also positioned to benefit is BAC.
Comments (3)
  • doughave
    , contributor
    Comments (34) | Send Message
     
    ETFC also has about $10B in seasoned loans on their books. Market cap for the entire company is just over $2.93B.
    29 Apr 2013, 10:29 AM Reply Like
  • MexCom
    , contributor
    Comments (3054) | Send Message
     
    Nice story in the Charlotte OBserver on this for BAC.

     

    http://bit.ly/ZLBODF

     

    Initially there are some complaints but shedding the mortgage servicing business will be getting rid of a legacy headache.
    29 Apr 2013, 12:35 PM Reply Like
  • mphill47
    , contributor
    Comments (540) | Send Message
     
    MexCom, you seem to be an astute observer/investor of BofA, what are your thoughts on the legal issues. Are you betting that there will be an out of court settlement with MBIC prior to May 30?
    29 Apr 2013, 01:03 PM Reply Like
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