Do as I say, not as I do.

So it looks like the government has gotten concessions out of private banks in regards to outstanding mortgage balances. According to USA Today  the settlement requires the five leading mortgage servicers to forgive at least $10 billion in principal that homeowners owe on mortgages. That will help underwater borrowers who owe more on their mortgages […]

Is Mark to Market a bad idea?

I wrote about this last month, and it’s been in the news again this past week, because there’s once again discussion to “relax” the mark to market accounting rule known as FAS 157.  I expect that the discussion in Washington is what’s behind the rally in financial stocks this past week.  It doesn’t really matter, […]

Looks like Citi is going down

From a story on Marketwatch.com: The Journal reported that under the terms being discussed, a large part of the $45 billion in preferred shares held by the government would convert into common stock. The government received those shares, equivalent to a 7.8% stake, in return for pouring capital into Citigroup. The move wouldn’t cost taxpayers […]

Updated bailout list

Since I last posted this list, there have been a few updates.  $1.9 trillion in new updates to be exact.  The grand total approved to be spent for the bailout programs is now up to $9.1 trillion, and we’ve actually spent $3.6 trillion – none of which we have, so it’s 100% borrowed or simply […]

Bank of America going down?

Just ran across this while taking a quick scan of the news headlines before going to bed.  The headline on CNN says “BofA may need billions for Merrill“. In reading the story, I saw this nugget: Bank of America, which had been viewed as one of the strongest banks in the country, may be buckling […]

Financial Follies

In going through the financial news stories on various sites tonight, this one from the NY Times struck me as particularly insightful.  Lets see what they have to say about the state of the financial institutions…. The story starts with this: Somehow, $4.4 billion just evaporated at Merrill Lynch. Less than two weeks ago, Merrill […]