Tag Archives: collateralized debt obligations

Does The SEC Have The Resources To Police Wall Street?

JP Morgan Chase paid out $154 million to settle with the SEC over allegations that the bank improperly marketed its mortgage-backed securities. Politicians are eager to keep pointing fingers at Wall Street for the economic collapse. They’re not so eager … Continue reading

Posted in Banks, mortgage | Tagged , , , , , | Comments Off on Does The SEC Have The Resources To Police Wall Street?

What Is A Collateral Manager?

Have you heard about collateralized debt obligations? Those are bundles of debt. Sometimes they are bundles of mortgages and other times they are bundles of student loans or credit card loans or auto loans. CDOs became huge during the heady … Continue reading

Posted in Banks, mortgage | Tagged , , , , , | Comments Off on What Is A Collateral Manager?

Republicans Blame Government Housing Policy For 2008 Real Estate Crash

Here is the essence of the GOP complaint, that “the government subsidized and, in some cases, mandated the extension of credit to high-risk borrowers, propagating risks for financial firms, the mortgage market, taxpayers, and ultimately the financial system.” Democrats blame … Continue reading

Posted in Banks, Politics | Tagged , , , , , , , | Comments Off on Republicans Blame Government Housing Policy For 2008 Real Estate Crash

Are Private Companies Inherently More Efficient Than The Government?

You’d think so. If a private company runs out of money, it goes bankrupt or gets sold. If a government agency runs out of money, it gets more funding from the politicians. The credit rating agencies are quasi-monopolies. They don’t … Continue reading

Posted in Banks, mortgage, Politics | Tagged , , , , , | Comments Off on Are Private Companies Inherently More Efficient Than The Government?

Do You Remember The Spring Of 2007?

Everything was great with the economy. Consumer spending was strong. The credit markets looked strong. Sure, the real estate bubble had burst. I am reading the 2008 book by Charles Morris, “The Trillion Dollar Meltdown: Easy Money, High Rollers, and … Continue reading

Posted in Bankruptcy, Banks, wall street | Tagged , , , , , , , , , , , , | Comments Off on Do You Remember The Spring Of 2007?

Understanding Important Financial Lingo

NEW YORK (Associated Press) – A number of financial terms have become a part of the daily conversation as the worst financial crisis in decades has deepened, affecting companies, industries and ordinary people. A slowdown that began in the real … Continue reading

Posted in Rates | Tagged , , , , , | Comments Off on Understanding Important Financial Lingo

Treasury Implements Bailout

WASHINGTON (Thomson Financial) – The Treasury Department today laid out a process under which it will quickly select financial asset managers to help it evaluate and purchase up to $700 billion worth of illiquid assets, which it hopes will restore … Continue reading

Posted in U.S. Government | Tagged , , , , , | Comments Off on Treasury Implements Bailout

Figuring The Worth Of Mortgage-Backed Securities

Report: In an amazingly prophetic article written by Steven A. Holmes of the New York Times when Fannie Mae began purchasing sub-prime mortgages in 1999, Mr. Holmes explained that “Fannie Mae is taking on significantly more risk, which may not … Continue reading

Posted in wall street | Tagged , , , , , | Comments Off on Figuring The Worth Of Mortgage-Backed Securities

Blackstone Says Subprime Market Has Bottomed Out

From the New York Times: Blackstone began betting against subprime in 2006, just as many home loans began experiencing trouble — though firms like Merrill Lynch and Citigroup continued to dive into the mortgages. Now the firm has started going … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Blackstone Says Subprime Market Has Bottomed Out

‘We Should Not Be Rating It’

From the WSJ: Problems keeping up with the surging growth of mortgage-related debt products were particularly acute at Standard & Poor’s Ratings Services, according to a draft version of a Securities and Exchange Commission report on bond-rating firms. The agency’s … Continue reading

Posted in wall street | Tagged , , , , , | Comments Off on ‘We Should Not Be Rating It’