trlblzr

First Marblehead Losing Its Marbles?

"In April, The Education Resources Institute, or TERI, which guaranteed billions in private student loans, filed for bankruptcy protection after a sharp increase in student loan defaults. As a result, Bank of America (BAC), FMD’s second-largest customer, cut off its business with the company. In 2007, BAC accounted for 15% of FMD’s total revenue of $881 million. Obviously, this has contributed to a large degree for the wide loss."

Also, that last sentence is absolutely wrong. FMD's large losses are due to writedowns and not packaging loans for the past several quarters. Losing clients like BAC may or may not impact business in the future (i.e., who knows if BAC comes back once we unfreeze a bit). As long as FMD doesn't securitize, it really is irrelevant who their customers are -- they're not selling the goods anyway. So no, losing BAC did not contribute to FMD's large losses.

First Marblehead Losing Its Marbles?

... and in other breaking news, the sky is blue and 1 plus 1 still equals 2

First Marblehead's Demise Effectively Closes the Bear Case

did you stop loss on IMB as well?

First Marblehead's Demise Effectively Closes the Bear Case

are *you* "holding" the bag?

www.seekingalpha.com/a...

*yawn*