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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (31574)	3/25/2008 12:18:13 AM
From: TobagoJack	Read Replies (3) \| Respond to of 218073

be patient forget northern rock and bear stearns the central banks have just tee-ed themselves up for collapse the most outrageous and costly is still to be in the mean nasty time, just in in-tray Damage to securities revealed in court By Gillian Tett in London Published: March 23 2008 19:04 \| Last updated: March 23 2008 19:04 The first public price estimates for specific structured credit securities to have emerged since the start of the credit crisis show that values have fallen sharply. Some securities have lost almost a third of their value – even though many were considered to be so safe that they carried top-notch ratings from the credit ratings agencies. Meanwhile, some subprime mortgage-linked securities issued by groups such as UBS have lost almost 95 per cent of their value. The price estimates were made in a legal filing following a decision by JPMorgan Chase to publish detailed securities valuations in a Canadian court. The securities are linked to commercial loans and medium-grade mortgages. The estimates are likely to be scrutinised by auditors and regulators since they come at a time when the issue of security pricing has become controversial. Banks are under pressure from regulators to book losses they have incurred on such instruments. However, trading has virtually dried up in many corners of the credit markets, and it is hard to compare prices for these instruments between banks. Many regulators and investors fear that banks are still varying in the degree to which they have booked losses on their credit instruments in recent months – not least because it is hard for auditors to compare internal estimates with external benchmarks. The figures have emerged because the US bank is leading an effort to restructure a group of 20 Canadian structured investment vehicles that issued $32bn of asset-backed commercial paper. JPMorgan and Ernst & Young lodged a report with an Ontario court gives estimates for the securities held by the Canadian SIVs based on implied values. Copyright The Financial Times Limited 2008