mikeg3

'Too Big to Fail' Has Gotten Much Bigger

Has anyone thought about having the Fed and other country's equivalents driving down LIBOR to near zero so that the rate resets create the mortgage adjustments the mortgage servicers won't do?

Pre-Payments Reducing Value of Mortgage-Backed Securities

Under normal conditions, you'd be correct. However, banks are currently starved for capital and any way they get more cash without diluting their common stock is a good thing. The problem you describe was the original reason tranche's were created, so the holders of the "equity tranche", the riskiest 5%, get a lot of the prepayment. Since this tranche is selling for peanuts right now, investors who accept your analysis have an interesting speculation available.

Probe of Citigroup et al Could Hit Financial ETFs

It's amazing how NY Attorneys General run for Governor by trashing major employers.

Can you imagine the Governor of Michigan suing Ford or the Governator of California suing Disney?

No one expected these auctions to fail, but hindsight is a wonderful thing.

Large Banks' Net Income History

Please explain the headings FY1, FY2, and FY3.