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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (62650)	1/24/2007 12:12:46 PM
From: mishedlo	Respond to of 116555

Like many other banks, Bank of America and Wachovia increased their loan-loss provision, which serves as a financial shock absorber for loans likely to go bad in the future. The increases partly reflect larger loan portfolios as a result of takeovers, but executives at both banks said they also are expecting more trouble. Bank of America's credit-card operation, the country's largest in terms of loans outstanding, has seen delinquencies climb for four straight quarters. The bank said it plans to boost its total loan-loss provision by about 20% this year. Kenneth D. Lewis, Bank of America chairman and chief executive, said that his prediction two years ago that credit quality would return to normal levels is "finally...beginning to happen." But consumers aren't likely to face widespread problems "if you've got employment and wage growth," he added. As part of its push to overcome the stiffest headwinds facing banks, Bank of America said it is considering expanding a pilot program offering no-fee mortgages nationwide. In the fourth quarter, a free stock-trading offer led to a 54% jump in the number of brokerage-account openings, compared with the third quarter. Tom Wurtz, Wachovia's chief financial officer, said the bank will be helped by its limited exposure to borrowers with poor credit histories and heavy concentration in growing markets on the East Coast, California and Texas. Message 23215066 Is this really anything new? I had several refinancings over the years were I did not pay a dime in fees. Of course it was reflected in the rate. Is BAC talking about wrapping fees up in the rate or really eliminating them. If the latter what does that do to originators? Mish

To: orkrious who wrote (62650)	1/24/2007 12:18:18 PM
From: mishedlo	Respond to of 116555

Well the sole basis for Succo's hedge fund is volatility trading. That is all he does. Typically but not always he hedges. Judging from his posts he has been buying naked options on occasion from other hedge funds and waiting for the play to come to him. He does not sell options at these prices. He usually but not always hedges as best as I can gather. I am quite sure he knows what he is doing and what he is talking about. Mish

To: orkrious who wrote (62650)	1/24/2007 12:18:53 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Like many other banks, Bank of America and Wachovia increased their loan-loss provision, which serves as a financial shock absorber for loans likely to go bad in the future. The increases partly reflect larger loan portfolios as a result of takeovers, but executives at both banks said they also are expecting more trouble. Bank of America's credit-card operation, the country's largest in terms of loans outstanding, has seen delinquencies climb for four straight quarters. The bank said it plans to boost its total loan-loss provision by about 20% this year. Kenneth D. Lewis, Bank of America chairman and chief executive, said that his prediction two years ago that credit quality would return to normal levels is "finally...beginning to happen." But consumers aren't likely to face widespread problems "if you've got employment and wage growth," he added. As part of its push to overcome the stiffest headwinds facing banks, Bank of America said it is considering expanding a pilot program offering no-fee mortgages nationwide. In the fourth quarter, a free stock-trading offer led to a 54% jump in the number of brokerage-account openings, compared with the third quarter. Tom Wurtz, Wachovia's chief financial officer, said the bank will be helped by its limited exposure to borrowers with poor credit histories and heavy concentration in growing markets on the East Coast, California and Texas. Message 23215066 Is this really anything new? I had several refinancings over the years were I did not pay a dime in fees. Of course it was reflected in the rate. Is BAC talking about wrapping fees up in the rate or really eliminating them. If the latter what does that do to originators? Mish