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Nationalization, By Any Other Name

Another name would be policy banks...which is used by the PRC!

Can't let banks like Citi go down otherwise America will loose its footing in the financial industry and possibly its economic influence.

The End of the Credit Crisis

I'm no tax expert but a bit lost....

buyers will only pay 100k for bad $500k loan which is worth $300K...

but willing to pay $300K for a good $300K loan...

Ignoring tax benefits, why would the buyer not pay $100k for bad $500K loan and writedown the $200K. Hence get a good $300k loan for $100K and make 200% profit? Why not write down the loan to $200K - super save - and make 100% profit?

Isn't this the crux of stumbling block, banks are not willing to sell their loans for the fraction of what they paid for it nor reduce the principle? The $500K loan has a good part (repayable without foreclosure) so why is it worth only $100K unless that is what the expected repayment is.

An Obama Speech to Light Wall Street on Fire

Another ranting article written by someone who wants their stocks to go back up.

Real value of the banks - how can you do that without market to market. Value base on purchase prices, face value, end value!? When the underlying is falling the assets are not worth what was paid for instead they worth the sale value which are probably less then 50cnt to the dollar. The rules can be changed but does reality change? The cat is out of the box. Liquidity can only address by open market auction. Buyers will want some return for the risk they are taking.

Your article is correct in that short term solutions are not going to hold water as in the case of AIG exemplifies.

Nationalization would be better since that is what is happening but without the control. $180 billion in AIG is not taking over the company? Shareholder dilution is sad but necessary part of the game. Shareholders should have got out long time ago. Looks like Uncle Sam and the whole system is in for shock if the stories of $60 billion losses are true.

Obsessing About Global Bank Stocks in the Post-Lehman World

Given the severity and globally spread of the situation its no surprise that all major bank stocks are following the same pattern. Although, European countries, being more socialist inclined, can more easily nationalize their banks.

Also, no banks to do business with, nor major organization for that major if discounting government backed companies.

C and BAC have probably reached their support levels, unless another AIG happens.

Why Bank Nationalization Will Never Happen

Failure of the biggies would mean no company is safe. Given the current sentiments everyone will be holding cash or gold. Too many people, pensions, etc., will be wiped out. Great great depression!

Foreclosure Moratoriums: It's Time to Get Real

In 2001, I did exactly that - rented my flat out as I could afford the mortgages after loosing my job. With the interest also falling, I was able to make difference in rental income and mortgage and keep until 2008, when I should my property for 30% face value profit. Off course I moved into a much cheaper apartment and still live there now.

As an alternative, why don't the banks spin of the mortgages into asset company/ vehicle and sell shares in open market. Similar to REIT vehicle. I am sure their will be buyers if interest /dividends are good. This way the mortgages can be extended to longer period, income from IPO can be used to readderess some of foreclosures, turn mortgages in rentals, recapitalise the banks, etc. Much better then let mortgages sit on balance sheets, don't re-arrange loans to more affordable repayment levels and wait it out.

What the Treasury Plan Needs: Price Discovery, Writedowns and More

Some points in your article...

...TG was the Fed Governor at NYC so he is in mix of things from the start - one month in the job excuse doesn't cut it.;
...Obama made the mistake of picking TG if he didn't understand the current problems or have a solution to propose at his job interview;
...markets were disappoint on what he DIDN'T say as oppose to what he said as the expectation were built up by his boss - urgency, action, otherwise, etc. instead we got more time is needed and some vague framework which was already known.

Banks: Just a Shadow of Their Former Selves

Judging the graphics, HBC and JPM have some way to downsize should their relative proportions return to time before the crisis.

Week in Review: Market Uptrend Broken, Will We Return to November Lows?

Great article. The Obama honeymoon may very short given earnings will be probably be more of the same.

Bleak Outlook for U.S. Banks Through 2009

So what is new? In bleak economy people can't pay their bills hence will default. Lending banks will take the hit either default or repackage the repayment terms. And, we are in a very bleak economy.

What Do We Need In 2009? More Failure

Great article. More failures will occur in 2009 unfortunately it will be small guys/ companies. Similar to 2008, the big companies will get their bailouts and grow even bigger.

Pay Bankers Much Less

what top talent? have you forgotten it was these so called top guys got us into this mess?

Citigroup Avoids Bankruptcy, Will Citizens Fare as Well?

Did you see Citi exec's coming out on CNN and saying they were going to buy other banks toxic assets and hope make a killing in the long run?

I think the fed and treasury know what is happening and looking to benefit when loose their jobs when Obama sits in.

Why Citigroup Imploded

Having watch part of his interview on CNN, I wouldn't take too much attention to what Prince Alaweed said.

I don't think anyone really knows what are the assets, not even the treasury/ fed but they are backing them.

Parsons Is a Poor Candidate for Chairman of Citigroup

too true - the old guard must be replaced or all the bailout money is being wasted!