Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (29641)	1/10/2008 7:41:43 PM
From: Madharry	Read Replies (1) \| Respond to of 78465

one of my concerns personally would be when you refinance that you find out who your servicer is going to be. If you are escrowing insurance and real estate taxes, you want to make sure that those are going to be paid in timely fashion. there are reports out there of people having problems and the finding out that their servicer failed to pay the insurance on time and that the policy lapsed. Maybe what BAC will do is on the other hand maybe another scenario is that they lend them $15 Billion and pick up a preferred controlling stake in the company as an equity kicker to their secured loan. that way they wont be on the hook for existing mortages until they work out. I certainly wouldnt count on current equity holders getting bailed out.

To: Jurgis Bekepuris who wrote (29641)	1/11/2008 12:31:59 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78465

BAC and CFC - i think a buy of CFC is ill timed going into one of the worst mortgage fallouts in this generation. I really wonder why want's to make yet another deal now. Last years LaSalle deal apparently was not enough to keep management business. A purchase of CFC would stretch BAC balance sheet so that they will see a credit downgrade, IMO. the Lasalle deal depleted already some tangible equity which made the tangible equity ratio thinner than i'd like to see for a Bank like BofA in this environment. All those deals make me wonder if Ken Lewis is just doing this to build an empire.