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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bond_bubble who wrote (59059)	4/21/2006 8:15:21 PM
From: shades	Read Replies (1) \| Respond to of 110194

US Bank Business Loans Up $6.8 Bln In Latest Week . WASHINGTON (Dow Jones)--Large U.S. banks' commercial and industrial loans fell $6.8 billion to about $1.088 trillion in the week ended April 12, the latest week for which data are available, the Federal Reserve said Friday. That followed a $10.2 billion increase in these loans to businesses the previous week. Jumbo certificates of deposit grew $7 billion to about $1.536 trillion in the latest weekly data, after growing $15.5 billion the previous week. Revolving home equity loans fell $400 million to $431.3 billion after falling $2.7 billion the previous week. More weekly Fed statistics on the banks' assets and liabilities will be available on the Internet at: www.federalreserve.gov/releases/h8/Current -By Campion Walsh; Dow Jones Newswires; 202 862 9249; campion.walsh@dowjones.com (END) Dow Jones Newswires April 21, 2006 16:15 ET (20:15 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 04 15 PM EDT 04-21-06

To: bond_bubble who wrote (59059)	4/21/2006 8:16:46 PM
From: shades	Respond to of 110194

Financial Services Top Stories Of the Day (you gonna short all these guys?) . Goldman Flexes Investing Arm Goldman Sachs is considering forming a new infrastructure fund that would invest in operations such as BAA, the U.K. airport operator. Goldman executives say it could buy a big BAA stake, according to The Wall Street Journal. North Fork 1Q Net Falls 19% Bank posts net income of $210.1 million, or 46¢ a share, a penny above analysts' expectations. North Fork is in the midst of being bought by Capital One Financial. Bank Of America 1Q Net Rises 14% Financial-services giant reports net of $4.99 billion, or $1.07 a share. Analysts expected EPS of $1. Revenue increases 31% to $17.68 billion in part on last year's MBNA acquisition. Results also boosted by loan growth. Bank Of New York 1Q Net Up 11% Bank of New York posts 1Q net of $422 million, or 55¢ a share, a penny better than Wall Street expected. Securities-servicing fees rise 11%. Firm is preparing to swap assets with JPMorgan Chase. Refco Creditors In $263M Settlement Creditors have reached a $263 million settlement with Sphinx Managed Futures Fund, whose parent firm was one of few Refco clients to successfully transfer money out of brokerage accounts at Refco as it was melting down last fall, according to person familiar with matter. NYSE Seats Boosting Banks' Profits When NYSE merged with Archipelago last month, the exchange's 1,366 seats were replaced by stock in the public company. As part of the deal, seatholders received cash and NYSE Group stock. The benefits now are flowing to banks' bottom lines. Nasdaq Plans Stock Offering To Repay Debt Nasdaq Stock Market plans to sell stock to raise funds for repaying debt used to finance acquisition of a stake in London Stock Exchange. Meanwhile, Nasdaq's 1Q profit climbs 41% to $18 million, or 16¢ a share, 5¢ above analysts' expectations. Revenue soars to $396.2 million. Adlam Leaves Orion To Join Rival Independent dealer loses its newly appointed head of investment-banking operations, Wayne Adlam, to rival Blackmont Capital. His departure comes at a time when Orion Securities has had some difficulty attracting talent. PNC Net Flat On Year, Tops Views Firm earns $354 million, or $1.19 a share, topping Wall Street expectations by 2¢. Revenue climbs 18% to $1.75 billion. Results aided by strong retail-banking operations and BlackRock. Freddie Mac To Settle Class Actions Freddie Mac announces that it will pay $410 million to settle securities class-action and shareholder derivative lawsuits stemming from its restatement of earnings from 2000 to 2002. Wall St Pushes Investors Toward Margin Loans As borrowing costs increasingly pinch consumers, Wall Street is pushing loans backed by individual investors' brokerage portfolios to fund purchases ranging from vacation homes to new cars. JPMorgan Agrees To Settle 'Laddering' Suit JPMorgan Chase has agreed in principle to pay $425 million to settle litigation accusing the bank of artificially inflating the price of stock after initial public offerings. Capital One Financial 1Q Net Soars 74% Credit card and banking company reports 1Q earnings of $883.3 million, or $2.86 a share, up 74% from the same period a year ago. Results are fueled by improved credit trends and the acquisition of Hibernia Bank. Changes Seen In Stock-Loan Business Stock-lending practices are about to undergo big changes that will slash profits for Wall Street's prime brokers, according to a study issued by a Massachusetts consulting group. -0- (END) Dow Jones Newswires April 21, 2006 16:00 ET (20:00 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 04 00 PM EDT 04-21-06

To: bond_bubble who wrote (59059)	4/21/2006 8:30:30 PM
From: shades	Read Replies (1) \| Respond to of 110194

Shades, this is where Chromatic is conveniently glossing over the fact. One person need not take all the trillion. That is just a number. what if every individual who has taken the home loan defaults? What if morgan fairchild shows up at my door tomorrow? I bet not all default - some will some wont. Look there was already one poster on real estate thread who said he was thinking about taking the HELOC and burying it in the woods and walking: Message 22320729 Read all the responses there why this was not gonna work. What do you think of his retirement plan? The banks have given every house owner 500K loan and the Fed is taking these loans into its books. Ok. Knowing that the Fed is going to be tolerant, every house owner is going to say, Oops I'm sorry - but thank you for waiving the loan. Fat chance - they going after those katrina refugees aren't they? Gubbment not gonna be so nice to the point the gubbment blows up! Chromatic is implying that the Fed will congratulate the house owner!! Knowing this, the house owner will go and bid a land where a manufacturing plant is going to be built!! why does he care as long as Fed is willing to write off his loan!! To a point gubbment wants you to spend - but if you get too crazy with it - you get reigned in. Ofcourse, Banks dont care as they will be passing this loan to the Fed!! Many loantechs are putting bad loans out there knowingly that can only end in default - but many loans won't. So tell me, why should people work? I don't - I sit here and chat about rothbard with you - that isn't work - that is fun! Are you saying, govt will take only shades' loan and not Jay's Well oblomov said he did work on credit ratings standard scoring - it is very good system - but loan officers making loans stepping outside of it - but banks looking at that now eh? Message 22375892 US Regulators Review Proposed Guidelines On EXOTIC Mtges WASHINGTON (Dow Jones)--U.S. regulators will review public comments to decide if changes are needed to recently proposed guidelines for EXOTIC home mortgage products, the comptroller of the currency said Thursday. In December, the Office of the Comptroller of the Currency and other federal regulators proposed guidelines addressing unique risks from loan products such as "interest only" and "payment option" mortgages. Compared with traditional loans, these mortgages typically reduce monthly loan payments in the first five years of repayment but sharply increase payments afterwards. "Our proposed guidance makes clear that these products are perfectly appropriate if underwritten properly with meaningful disclosures - indeed, the essential purpose of the proposed guidance is to help lenders achieve this goal," Comptroller John Dugan said in speech prepared for delivery to a community development conference in Los Angeles. Many industry commenters objected to the specificity of the proposed guidance, claiming regulators were encroaching on underwriting decisions traditionally left to lenders, Dugan said. Another concern was that the proposal assumes a worst-case scenario for all borrowers, rather than allowing appropriate assessment of individual borrowers, he said. But the comptroller defended a cautious regulatory approach to EXOTIC mortgages. "It is in neither the bank's nor the borrower's best interest to have a mortgage amount, or a payment structure, that a borrower is unlikely to be able to afford in the long run," he said. The guidance tries to ensure that lenders address these issues at the inception of the loan, taking account of "any reasonable foreseeable payment requirements possible under the terms of the loan," Dugan said. Federal regulators looked at actual marketing material for payment-option adjustable-rate mortgages, and they found in many cases that sales pitches focused mainly on low initial monthly payments, with relatively little discussion of much higher payments due later on, he said. The comptroller noted monthly payments for a typical payment-option adjustable-rate mortgage can double after the initial five-year repayment period if interest rates rise two percentage points during that period. Dugan used California as an example of a market where soaring home prices can compel low- and medium-income buyers to use EXOTIC mortgages. From 2000 to 2005, the median price for an existing home in California increased 117% to $524,000, while over the same period household income rose only about 10%, he noted. -By Campion Walsh; Dow Jones Newswires; 202 862 9249; campion.walsh@dowjones.com (BTw, that is me) loan? Where is chromatic - why is he not posting anymore? How does Fed draw a line - who gets it and who does NOT? The regulators gonna debate that from the above article eh? i.e home owners can get loan and default but for the CEOs, there is some limit to which he will be excused. Yes - ceo's with power and money and connections get special treatment over regular j6p - CEO plays golf with the judge. J6p kid stole judges car - who is judge gonna like better? Is this documented? You are saying moral hazard can be tolerated with limit. Can you explain how? I turned in illegal drug gangs Jay - I had hard evidence on them - taped session doing drug deals - making hits on people - they all still running free if still breathing - i think most dead now from bad drug deals or overdoses - I was the one sent to a dumpy fla trailer park to enter witness protection - things don't always turn out like you expect - I didn't have enough powerful friends and money and all the people I was trying to get arrested did - so there you have it - that should teach you all you need to know how things work in this world. Message 22374888 Prosecutors have alleged that Ahmed fraudulently obtained about $1.4 million from a variety of financial institutions through home-equity loans and lines of credit using the personal identification information of two Staten Island residents. The institutions included units of Washington Mutual Inc. (WM), Wachovia Corp. (WB) and Wells Fargo & Co. (WFC). The government also has alleged that Ahmed purchased more than $180,000 in goods and services by using stolen identities to obtain credit cards. The cards were obtained from a number of credit-card providers, including units of JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and American Express Co. (AXP).