Tag Archives: american international group

Will Countrywide Go Bankrupt?

Bank of America made some terrible acquisitions in 2007 — particularly Merrill Lynch and Countrywide. These purchases have cost the bank many billions of dollars more than they initially budgeted. Countrywide in particular is just a sink hole. The losses … Continue reading

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America’s Mortgage Bond Slump

As long as mortgage-backed bonds are slumping in price, lenders will have restricted capital to lend for new mortgages. Unless mortgages can be securitized, only a comparatively small amount of money will be available to lend out. A turnaround in … Continue reading

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Fannie Mae, Freddie Mac Find It Difficult To Unload Their Assets

About half of the mortgage assets of Fannie Mae and Freddie Mac are toxic. They’re subprime loans wit huge default rates. Why are Fannie and Freddie in the subprime business? You can blame Bill Clinton for that. He wanted to … Continue reading

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The Return Of The Subprime Market?

You want some toxic assets, Mr? Well, if you think you can make some money with them, why not? Everything has its price. The WSJ reports: The Federal Reserve Bank of New York’s recent success in auctioning nearly 90 subprime-mortgage … Continue reading

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TARP Turns Out To Cost Us Not So Much

The Bush administration’s hastily-conceived TARP $700 billion bailout has been repaid almost in full. I always felt queasy about it but it seemed like the financial markets in September of 2008 needed that reassurance. Now AIG wants to buy back … Continue reading

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We’re Unlikely To Get Our Money Back

We’ve spent billions on bailouts. Now it looks like General Motors and Chrysler will need another bailout. We’ve spent about $200 billion on propping up AIG. Don’t hold your breath waiting for us to get our money back on that. … Continue reading

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Obama Wants To Regulate Derivatives

I was a lousy math student. I got a D in Algebra in high school as a freshman. I got Ds in my junior year in Geometry. I repeated it as a senior and got a C. I got to … Continue reading

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Capitalism Ends With A Bail-Out?

From Chicago Tribune: For years, the good people who look after the stability of our neighborhoods—people like the late activist Gale Cincotta and Msgr. Jack Egan—complained that finance companies were pushing ruinous “payday” loans and high-interest mortgages like crack cocaine. … Continue reading

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Banks Refinance

The Financial Times is reporting US banks scramble to refinance maturing debt: Last week, financial groups including Citigroup (C), JPMorgan Chase (JPM) and American International Group (AIG) borrowed almost $20bn in new long-term debt, paying some of the highest interest … Continue reading

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Mortgage Default Jump

CHICAGO -(Dow Jones) – Home loans reported as delinquent to a mortgage insurer trade group surged in April, when a major home lender tightened up its policy for reporting past-due mortgages. The Mortgage Insurance Companies of America said Friday that … Continue reading

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