If you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting!Talk about scary. We all knew that LowerMyBills.com and LendingTree.com provided for a ‘less-than-ideal’ customer experience as consumers got battered by hundreds of calls from rabid mortgage folks; but this announcement is just plain scary. Employees caught [...]
The prescient executives at Washington Mutual must have seen it coming. How else can you explain the March change to their compensation plans that ensures bonuses are granted without consideration to the impact of the credit crunch and bad mortgage bets made by the bank? It must be nice setting your own rules. [...]
The Federal Reserve is at it again, pumping another $50 billion in short-term loans in to the financial system to prevent a freeze up. That brings the total to a cool $360 billion since the auctions started in December. 83 bidders were represented looking for a slice of the loans which were granted [...]
In a tense shareholder meeting that opened with the call for his ouster, Wachovia CEO Ken Thompson stated the obvious that Golden West Financial Corp (parent to World Savings) was a “poorly-timed” acquisition. I’m giving Ken Thompson a belated “Captain Obvious” award for that admission.
I remember saying that when Wachovia acquired World it was [...]
CNN reports that Bank of America will eliminate all but the most sound mortgage products as it attempts to complete its takeover of Countrywide. Countrywide was made famous by its option ARM and other non-traditional products which have clearly back-fired. Which begs the question – why Countrywide mortgage at all?
Bank of America [...]
If Fannie and Freddie fail the price tag is somewhere between $400 billion and a shade over a trillion of taxpayer money to bail them out. How do you like them apples? A trillion bucks? Big enough to sink the government’s AAA rating. Big enough to make LTCM look like child’s [...]
Quantitative Easing. Get ready for those two words to dominate the press over the next 18 months as the Federal Reserve attempts to cut off the credit crunch. As the LIBOR stymies the efforts of Fed rate cuts they have limited arrows left in the quiver, and Quantitative Easing is going to look [...]
National City took on $7 billion in additional capital at a 40% discount to market price, sending shares tumbling as the beleagured bank looks to shake off bad mortgage bets and make it through the crisis. National City was reportedly looking to sell itself and has now turned to opportunistic Corsair Capital.
It’s [...]
Bank of America’s profit tanked a whopping 77% in the recently-closed quarter as the bank took on an additional $5 billion in credit-loss provisions. The company cited ongoing challenges to the consumer such as high debt, subprime mortgage-related issues and a faltering economy as reasons for concern for future quarters. Still the bank [...]
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