ChristianR

Financials Likely in Dead Cat Bounce, But Fed's Now a Wildcard

"Auction Rates Securities market which locked
$330,000,000,000,000 in now absolutely illiquid securities."

$330 trillion????? Please.

A Bank Led, Bank Insurer Bailout?!

Wachovia has stated multiple times that its monoline exposure is around $400 million. MorningStar stated last month: "Wachovia hedged away a portion of subprime and CDO exposure with monoline financial guarantors and believes it would need to take as much as $400 million in credit charges if the monoline financial guarantors were to fail. If Wachovia wrote down all of its remaining exposure and the monoline financial guarantors failed, we estimate it would take a pretax charge of $1.47 per share."

$1.47 per share. IF the monoline guarantors were to fail.