pcyhuang

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    • Ambac, MBIA: Moody's strikes again [view article]
      glassbox:

      SEC tightening rules on short selling:

      www.investorvillage.co...

      Cheers,       Sep 27 10:07 AM
    • Ambac, MBIA: Moody's strikes again [view article]
      Federal Reserve Chairman Bernanke testified today before the Senate Banking Committee. and explained that “hold to maturity” valuations are greater than the current fire sale market value, and the difficult balance between promoting higher pricing to support financial institutions and causing tax payer losses by being excessively generous..

      Imagine if ABK would be able to liqudiate its CDS portfolio according to "hold to maturity" valuation.

      Cheers,

      Cheers,       Sep 24 05:26 AM
    • Ambac, MBIA: Moody's strikes again [view article]
      The huge market for credit default swaps, a derivative behind many of
      the problems roiling the financial markets, will get some regulatory
      oversight from New York state, Gov. David Paterson announced Monday.

      Credit default swaps are contracts that enable institutional investors
      to bet on the likelihood of companies defaulting on the debts. The
      market for these contracts has grown from nothing a decade ago to $62
      trillion of notional volume this year. Despite this extraordinary
      growth, the credit default swaps market has remained outside the
      purview of federal or state regulators, largely because they accepted
      Wall Street’s argument that swaps are not securities or insurance
      policies.

      That seems poised to change. Mr. Paterson said the state Department of
      Insurance issued guidelines to establish that credit default swaps are
      a form of insurance and, hence, subject to state regulation.

      “We are going to ensure that whoever sells them [credit default]
      protection is solvent, in other words, can actually pay the claims,”
      said Eric Dinallo, the New York state Department of Insurance
      superintendent. “There is currently no such protection for
      policyholders.”

      Credit default swaps were a major factor in the difficulties
      experienced by American International Group Inc., the giant insurer
      taken over by the federal government last week. AIG wrote insurance
      against tens of billions worth of credit default swaps and had to post
      billions of additional collateral when the value of those swaps
      declined due to growing mortgage defaults, causing the losses that
      nearly bankrupted the firm.

      "The state of New York should proceed very cautiously and in
      consultation with federal regulators before acting in a way that may
      ultimately cause more harm than good," said Robert Pickel, executive
      director and chief executive officer at the International Swaps and
      Derivatives Association, a trade group representing Wall Street firms.

      Source: www.crainsnewyork.com/...

      Comment: Great boost of confidence in ABK, MBI and other licensed
      financial guarantors.       Sep 22 10:55 PM
    • Evaluating Ambac: Intrinsic Value Withstanding Market Volatility [view article]
      ABK -- Strong Insitutional Support

      www.investorvillage.co...

      ABK -- The 100,000,000 Shares Short Position

      www.investorvillage.co...       Aug 08 05:46 AM
    • Evaluating Ambac: Intrinsic Value Withstanding Market Volatility [view article]
      ABK's Price Recovery Target


      ih.fotothing.com/43985...

      Cheers,


      Aug 01 11:45 PM
    • Another Look at Fannie and Freddie's Mess [view article]
      >On the other hand, if assets fall, that means that the GSE’s are not providing liquidity to the mortgage market, which will make the housing situation significantly worse

      Paulson's push of covered bonds issued by the big banks could alleviate the stated problem above.       Jul 31 12:14 AM
    • Evaluating Ambac: Intrinsic Value Withstanding Market Volatility [view article]
      Similar deal possibilities available for ABK

      SCA -- Huge Injection of Capital


      NEW YORK (Associated Press) - XL Capital Ltd. Monday said it is bailing out its former subsidiary Security Capital Assurance Ltd., saving the bond insurer from insolvency.

      The Bermuda-based insurer also said its profit tumbled 56 percent in the second quarter as softening market conditions continue. It announced management changes and a dividend cut and said it was conducting a strategic review of its life reinsurance operations.

      XL will pay SCA about $1.78 billion in cash, issue 8 million shares to SCA and transfer its 46 percent stake in SCA to a trust. The agreement substantially eliminates XL Capital's total net exposure under reinsurance agreements and guarantees with SCA subsidiaries.

      Simultaneous with the creation of the trust, SCA will terminate eight credit default swap agreements with Merrill Lynch & Co. and the related financial guarantee insurance policies with an insured gross par outstanding of $3.74 billion at June 30. SCA will pay Merrill $500 million in exchange.

      Regulators including the New York State Insurance Department have signed off on the deal, which remains subject to other conditions including a successful $2.5 billion capital raise by XL Capital.

      After paying preferred dividends, the Hamilton, Bermuda-based insurer earned $237.9 million, or $1.34 per share, compared with a profit of $544.5 million, or $3 per share, a year ago.

      Operating profit, which insurers emphasize because it excludes investment losses and other costs insurers do not consider reflective of their business, totaled $1.50 per share.

      Analysts expected that result to be $1.94 per share, according to Thomson Financial.

      Profit in the insurance division dropped nearly 28 percent to $73.8 million. XL spent 94 cents of each premium dollar administering claims, compared with 90.6 cents on the dollar last year.

      In the reinsurance division, which writes contracts promising to cover losses on insurers' insurance policies, profit more than halved to $54.5 million from $129.8 million. The company spent 89 cents of each premium dollar, more than 10 cents above the 2007 quarter.

      Looking ahead, XL Capital expects to post a charge of $50 million to $60 million in the rest of the year, related to its decision to cut up to $120 million from its run rate operating expenses from 2009 onwards.

      XL halved its quarterly dividend to 19 cents per share, payable Sept. 30 to shareholders of record Sept. 12. The prior payout was 38 cents.

      Also, Chief Operating Officer Henry Keeling is retiring Aug. 1, and XL Capital said it was eliminating the COO post.

      In other management news, Michael Lobdell, executive vice president and chief executive of global business services, is leaving Aug. 31, while Fiona Luck, chief of staff, was named special adviser to the CEO.

      XL Capital shares fell more than 10 percent to $16.52 in after-hours trading Monday. The stock closed at $18.37. Security Capital shares soared 88 percent to 98 cents in after-hours trading.

      Full Story: money.cnn.com/news/new...

      ih.fotothing.com/43092...


      Mkt close: $.52, AH Close: $.95
      Jul 29 01:02 AM
    • New York Times Co. - No End to the Pain in Sight [view article]
      Instead of Using missiles and suicidal planes, a dark force may have declared war upon us. It has succeeded, or almost succeeded, in forcing to their knees some of our most venerable financial institutions like Bear Stearns, Lehman Brothers, Countrywide Financial, Fannie Mae and Fredie Mac, Washington Mutual and Wachovia Bank etc. Now it has perhaps turned its attention to the next icon of our public-media world -- the New York Times.


      The charts show that NYT is trading at its 10 year low, and its put/call option open interest ratio reached the 100% percentile reading on July 15th.

      <p>www.fotothing.com/phot...

      <p>www.fotothing.com/phot...

      <p>http: fotothing.com/photos/u...

      Since the New York Times is one of chrished tradition, I hope that the threatened attack by abusise shorting will not materialize, or that the SEC will put a stop to it under its new anti-abusive-shorting rules.
      Jul 25 04:17 AM
    • Countering the AP's 'E*Trade Financial Earnings Preview' [view article]
      "E*Trade said it liquidated about 65 percent of $330 million in preferred equity held in the mortgage lenders Fannie Mae and Freddie Mac, a move that will result in an $83 million pretax loss in the third quarter."

      I think that the market over the next several months will prove that Leyton has made a big mistake in liquidating this sound investment, and taken the $83 million pretax loss.

      Cheers,
      Jul 22 11:41 PM
    • The SEC's Campaign Against Naked Shorting: Misguided or Right On? [view article]
      Your opening paragraph: "To the extent that the SEC has evidence that naked shorting is going on, then more power to 'em to try to put an end to it (but if so, why limit the new regs to only 17 stocks? Get rid of all of it!). I'm somewhat skeptical, however, that naked shorting is widespread and had much to do with the declines in the stocks of the 17 companies"

      This just shows your negligence about the accuracy of your information and your total ignorance about the subject matter.       Jul 20 01:39 AM
    • Metrics, Mortgages and Analysts [view article]
      ETFC's 127,000,000 Shares Short Position

      Etrade's 270,000,000 shares short position


      www.investorvillage.co...

      Jul 18 09:01 AM
    • Metrics, Mortgages and Analysts [view article]
      An Expression of Confidence by Insiders' and Instiutional Investors


      siliconinvestor.advfn....       Jul 16 02:44 AM
    • Metrics, Mortgages and Analysts [view article]
      Cindy, what's your take of the following announcement:

      ETFC -- Sale of Canadian Unit Generates Cash Proceeds of Aapproximately $511 Million


      NEW YORK--(BUSINESS WIRE)--E*TRADE FINANCIAL Corporation (NASDAQ: ETFC - News) today announced it has entered into a definitive agreement to sell E*TRADE Canada to Scotiabank (TSX: BNS, NYSE: BNS) for $442 million in cash. E*TRADE FINANCIAL expects the combination of the sale of E*TRADE Canada and the return of related capital to generate net cash proceeds of approximately $511 million.

      “We continue to make solid progress against our 2008 Turnaround Plan by monetizing non-core assets to generate capital while delivering consistent organic growth in the retail business,” said Donald H. Layton, Chairman and Chief Executive Officer, E*TRADE FINANCIAL Corporation. “This transaction generates capital for E*TRADE at a very low implied cost. Combined with the other planned non-core asset sales announced this year, we’ve generated more than $700 million in proceeds in a shareholder-friendly manner. With this transaction signed, we re-affirm that our plans to access the capital markets are focused at this time upon the previously-announced debt-for-equity swaps.”

      The deal is subject to approval by all regulatory agencies and is expected to close in the third quarter, 2008.

      Full Story: biz.yahoo.com/bw/08071...       Jul 15 12:21 AM
    • Fannie & Freddie: Myth vs. Reality [view article]
      FNM & FRE -- A Sober Analysis

      www.investorvillage.co...       Jul 12 09:35 AM
    • Fannie & Freddie: Myth vs. Reality [view article]
      FNM & FRE -- The Evils of Naked Shorting

      www.investorvillage.co...       Jul 12 09:34 AM
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