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

To: Tapcon who wrote (36089)	12/4/2009 8:01:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 78666

Hi Paul - That's one way to buy an undervalued asset. Just buy it from the FDIC w/ a "loan-loss" guarantee. From the article you posted: "... NYB received certain assets of approximately $11 billion, including performing single-family mortgage and consumer loans of approximately $6 billion which are subject to a loss-share agreement with the FDIC; cash of approximately $4 billion; and securities of approximately $1 billion...". It looks like they received some sort of "loan-loss" guarantee from the FDIC for the loans assumed. These new loans expand their base by 19% to $42 Billion with the kicker of a "loan-loss" guarantee. I guess I should have followed the big option trader when I first noticed 518 contracts trade early this AM on the December $12 calls at $0.20... all buys! I did double up my core position in November when the CEO mentioned they were looking to do an "accretive" deal if the opportunity presented itself. EKS