Ron Himelfarb

Still Short Downey Financial Despite Jump on Earnings

Amit, thanks for taking the time to put together that analysis. I note that , in addition to the items you point out, that for some reason DSL reported an actual reduction in their loan loss reserves. I found that hard to believe in the current market environemnt. It struck me as an obvious and likely dishonest attempt to manage their earnings report.
I am not sure if this is available in their reports or not, but is it possible to discern what the average LTV on their negative amortization loans, and that age of those loans? With that information, and some assumptions about market performance, one could determine whether they had adequate collateral for those loans.