Ishortyou

Option ARMs: The Banking Backdrop of 2009

God knows, but if I were the one having the ARM or resetting ALT-A loan, I would be worrying now on how to refinance those loans to more affordable ones with or without the governments help.

Option ARMs: The Banking Backdrop of 2009

Refinancing is one solution, it doesnt take a brainer to figure it out, although as professor said, the government could come with other alternatives to alleviate the tsunamy second wave on the housing market, obviously the simple supply and demand rule applies, then the key to how to get rid of excesive housing invetories needs more attention.

Option ARMs: The Banking Backdrop of 2009

the solution to the option ARM's is to REFINANCE the damn thing!!!!!11

Chewing on the FDIC List of 'Problem' Banks

WaMu cents of a dollar soon? going belly up?

10 Financial Entities On the Brink

show us adequate documentation if you don't mind.

10 Financial Entities On the Brink

Monolines on the brink? doesn't seem likely, monolines are doing a good job in book remediation. Many of those bonds wraped in RMBS and CDOs are from NINJA loans or credits-No Income, No Job or Assests- originated by banks and broker firms. Many of those bonds were triple A rated by Moody's. Bond insurers believing they were high quality bonds decided to insure them, but surprise, surprise they contained JUNK, this cost a lot of write downs. Eventually Moody's dowgrades the bond insurers based more on SPECULATION rather than facts and causes a massive sell off of municipal bonds, a flood in the auction rate securities market, massive write downs in banks and broker firms, collapse of several regional banks, Fannie and Freddie, etc., bond insurers are now doing their homework and remediating their books from toxic waste. On the other side the housing market is correcting itself, it will take sometime, but like any other economic bubble is correcting itself, so remediation is on the way.

Global Financial Performance

In respect to AMBAC and MBIA, they need to keep and save all the cash possible including stop paying dividends, deleverage AGGRESSIVELY from all their risky liabilities specially those CDS-CDO's, RMBS-ABS of uncertain value, in order to remediate their book values, once their book values are sound they need to reinstate their triple A rating again to write new low risk public bond insurance business. They can also open or extend a line of credit to make sure to continue operations and dissipate doubts. This will also prevent further downgrades from rating agencies.

They are already doing these, so it will take some time to deleverage their books from uncertainties and rewrite new business again. This coming back will be the best advertisement to recruit new clients.