BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Merrill & Wachovia give up the ghost]]>http://www.bloggingstocks.com/2009/01/02/merrill-and-wachovia-give-up-the-ghost/http://www.bloggingstocks.com/2009/01/02/merrill-and-wachovia-give-up-the-ghost/http://www.bloggingstocks.com/2009/01/02/merrill-and-wachovia-give-up-the-ghost/#commentsFiled under: , , , , , , ,

We start the new year with the disappearance of two household names in the financial world, Merrill Lynch which sold itself to Bank of America, (NYSE: BAC) fearing the worst of the broadly deteriorating financial markets; and Wachovia that not only feared the worst but lived through it only long enough to be acquired by Wells Fargo (NYSE: WFC). Both transactions completed yesterday while the market was closed.

The market has been up all day and both BAC and WFC can be upbeat as two of the world's survivors of the 2008 minefields that blew up some of the largest and most revered names in many generations.

The BAC deal propels it to be the No. 1 financial institution in the United States with about $2.7 trillion in assets. Merrill Lynch ends a 94 year run. Earlier in the year BAC acquired Countrywide Financial. These two deals allow Bank of America to stand tall as he largest originator and servicing company for new loans, just when home refinancing may take off based on new lower rates becoming available. It may be able to expand financial services when the world is hoping for even a modest recovery.

Continue reading Merrill & Wachovia give up the ghost

Merrill & Wachovia give up the ghost originally appeared on BloggingStocks on Fri, 02 Jan 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACbank of americaBankOfAmericaBankStocksCFCfeaturedMERSheldon LiberSheldonLiberWBwells fargoWellsFargoWFCFri, 02 Jan 2009 16:40:00 EST<![CDATA[Serious Money: eBay auction off PayPal -- create bidding war]]>http://www.bloggingstocks.com/2008/11/13/serious-money-ebay-auction-off-paypal-create-bidding-war/http://www.bloggingstocks.com/2008/11/13/serious-money-ebay-auction-off-paypal-create-bidding-war/http://www.bloggingstocks.com/2008/11/13/serious-money-ebay-auction-off-paypal-create-bidding-war/#commentsFiled under: , , , , , , , , , , , , , , , , , , ,

This is the third in a four part series which I hope gives buyers, sellers, shareholders and dare I say management a platform for discussion.

The most valuable asset eBay (NASDAQ: EBAY) has is PayPal, the dominant internet financial transaction facilitator. When I started imagining what might happen if eBay started auctioning off its parts I envisioned that PayPal would be worth the highest premium.

I think there would be dozens of interested companies that would find it highly advantageous to acquire PayPal.

The reason eBay bought PalPal in the first place was that they had first hand experience trying to compete with it when it was a separate company, and even with its huge base of customers, eBay could not build much traction. As the old saying goes, "if you can't beat them, join them", or in this case buy them.

For starters, all of the major credit card companies would be very interested with MasterCard Inc'A' (NYSE: MA) and Visa (NYSE: V) leading the bidding and beleaguered American Express (NYSE: AXP) trying to find a way too.

Then there are the few prospering banks still left standing that would have to give this potential acquisition strong consideration. Bank of America (NYSE: BAC) which has already bought out Countrywide Financial and will soon add Merrill Lynch (NYSE: MER) would find this a must have. JPMorgan Chase (NYSE: JPM) has added Bear Stearns and Washington Mutual (NYSE: WM) to its group of enterprises and might be best suited to expand the company given its growing resources. Wells Fargo (NYSE: WFC) that recently agreed to acquire Wachovia Corp (NYSE: WB) after staying on the sidelines most of the year might want PayPal, but I do not think it would pay up.

Continue reading Serious Money: eBay auction off PayPal -- create bidding war

Serious Money: eBay auction off PayPal -- create bidding war originally appeared on BloggingStocks on Thu, 13 Nov 2008 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AMZNAXPBACBKCCFCEBAYfeaturedGOOGGSJPMMAMERMSFTserious moneySeriousMoneySheldon LiberSheldonLiberSovereign Wealth Fund of DubaiSovereignWealthFundOfDubaiWBWFCWMThu, 13 Nov 2008 10:00:00 EST<![CDATA[The beggars of Wall Street]]>http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/#commentsFiled under: , , , , , , , , , , ,

Everything is upside down these days. The folks with all the money and multi-million dollar bonuses are begging for a handout on the pretext that the economy will crash if they do not get one. We're not talking money for coffee or a snack, we're talking billions of dollars.

It is crashing anyway, or at least sinking. It is just a matter of what it takes down along the way. Apparently, the folks at the Treasury and Federal Reserve are now convinced that it will be everything.

The survivors are pawing at the defeated as Wells Fargo tries to grab Wachovia despite its previous tentative agreement with Citigroup Inc. (NYSE: C). While Citigroup gained a point in Wachovia deal over the weekend, the balance has since tilted in favor of Wells Fargo again.

Bank of America (NYSE: BAC) gobbled up Countrywide (done) and Merrill Lynch (NYSE: MER) (a work in progress), while JPMorgan Chase (NYSE: JPM) corralled Bear Stearns and Washington Mutual (NYSE: WM).

Sadly, only the federal government was big enough to swallow the problems of American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Otherwise,those in the know think world financial markets would have crumbled due to the collateral damage, (pun intended).

When I posted Congress is screwing up -- think backstop not bailout!, I was concerned with the psychological effect as much as the financial effect of not approving the funding, but no doubt the people suffering the most are not those who created the pain.

Continue reading The beggars of Wall Street

The beggars of Wall Street originally appeared on BloggingStocks on Mon, 06 Oct 2008 10:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGBACBear StearnsBearStearnsBSCCCFCCitgroupcitigroupeconomic policyEconomicPolicyfeaturedFNMSheldon LiberSheldonLiberThe poorThePoorWachoviaWall StreetWallStreetWaMuwashington mutualWashingtonMutualWBWells FargoWellsFargoWFCWMMon, 06 Oct 2008 10:58:00 EST<![CDATA[Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet]]>http://www.bloggingstocks.com/2008/08/03/let-them-eat-cake-ex-countrywide-exec-takes-family-on-african-v/http://www.bloggingstocks.com/2008/08/03/let-them-eat-cake-ex-countrywide-exec-takes-family-on-african-v/http://www.bloggingstocks.com/2008/08/03/let-them-eat-cake-ex-countrywide-exec-takes-family-on-african-v/#commentsFiled under: , ,

Some things never change.

David Sambol, the out-going president of kaput mortgage giant Countrywide Financial Corp., is taking his family on an African vacation -- on Countrywide's Gulfstream IV.

Yes, the guy in charge of the company that sold hundreds of thousands of suspect mortgages to people who couldn't afford them is leaving on a jet plane, for a nice three-week-long vacation in Africa with his family.

But you know, it's been a stressful year for Mr. Sambol, what with his company nearly collapsing and that stressful fire sale to Bank of America (NYSE: BAC). Not to mention being hauled before Congress to account for his part in helping facilitate the global credit crisis.

Marie Antoinette would have understood completely. "Let them take a vacation," she would have said. "An African safari would be nice. The kids will love it."

Continue reading Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet

Let them eat cake: Ex-Countrywide exec takes family on African Vacation ... on Countrywide's jet originally appeared on BloggingStocks on Sun, 03 Aug 2008 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACBank of AmericaCFCCountrywideDavid SambolExecutive compensationinthenewsSun, 03 Aug 2008 11:40:00 EST<![CDATA[Friends of Angelo loans: more names!]]>http://www.bloggingstocks.com/2008/07/17/friends-of-angelo-loans-more-names/http://www.bloggingstocks.com/2008/07/17/friends-of-angelo-loans-more-names/http://www.bloggingstocks.com/2008/07/17/friends-of-angelo-loans-more-names/#commentsFiled under:

The Friends of Angelo Mozilo loan scandal widens, with Portfolio.com publishing a list of prominent people who received favorable loan terms from Countrywide Financial because they were friends of its chairman and CEO. Christopher Dodd has already been raked over the coals for the special deals he received, but there's more: former Fannie Mae CEOs James Johnson and Franklin Raines, former HUD director Henry Cisneros, CNN commentator Paul Begala, and many others. View the full list here, with 17 names and details on the terms.

It's tempting to level allegations of political corruption, and special terms given to executives at Fannie Mae and a judge who later heard a case involving Countrywide would seem to be obvious conflicts of interest. But as scandals go, this one seems pretty lame in that regard. The amounts involved just weren't that big: What's $15,000 when you're William Esrey, the former CEO of Sprint? It seems more likely that Angelo Mozilo, an incredibly vain man, wanted to be a "player" and hobnob with influential people. That he used shareholder assets to pursue his social agenda is distasteful but, unfortunately, not particularly rare. And given what a corporate governance outhouse Countrywide was, it certainly isn't surprising.

But in the current environment where Countrywide is being raked over the coals, mostly with good reason, this was destined to turn into a big mess. Read the Portfolio exposé here.

Friends of Angelo loans: more names! originally appeared on BloggingStocks on Thu, 17 Jul 2008 17:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CFCCountrywide FinancialCountrywideFinancialThu, 17 Jul 2008 17:15:00 EST<![CDATA[Countrywide fined $325,000 for ripping off consumers]]>http://www.bloggingstocks.com/2008/07/16/countrywide-fined-325-000-for-ripping-off-consumers/http://www.bloggingstocks.com/2008/07/16/countrywide-fined-325-000-for-ripping-off-consumers/http://www.bloggingstocks.com/2008/07/16/countrywide-fined-325-000-for-ripping-off-consumers/#commentsFiled under: , , ,

The Chapter 13 bankruptcy trustee in Pittsburgh accused Countrywide Financial, the poster child for lending practices that were disastrous for both investors and consumers (but worked out quite well for Angelo Mozilo), of losing or destroying more than $500,000 in checks between December 2005 and April 2007, and then charging already downtrodden borrowers for illegitimate late fees and legal costs.

Countrywide recently settled those allegations, and will pay $325,000. That's it. Is that a deterrent? Now that Countrywide is owned by Bank of America (NYSE: BAC), it's barely a rounding error, and certainly not something that will discourage Countrywide or other lenders from ripping people off.

Crime might not pay, but apparently it doesn't cost much either. Given the continuing flow of hugely negative publicity for Countrywide, it's hard to imagine that Bank of America isn't rethinking its plan to keep the Countrywide brand. Why would someone go a company synonymous with foreclosures, bait and switch, and corporate greed when they want a home loan?

Countrywide fined $325,000 for ripping off consumers originally appeared on BloggingStocks on Wed, 16 Jul 2008 10:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bacBank of AmericaBankOfAmericaCFCCountrywide FinancialCountrywideFinancialForeclosureinthenewsMortagesWed, 16 Jul 2008 10:35:00 EST<![CDATA[Cramer on BloggingStocks: When the bottom comes, you'll know it ]]>http://www.bloggingstocks.com/2008/07/02/cramer-on-bloggingstocks-when-the-bottom-comes-youll-know-it/http://www.bloggingstocks.com/2008/07/02/cramer-on-bloggingstocks-when-the-bottom-comes-youll-know-it/http://www.bloggingstocks.com/2008/07/02/cramer-on-bloggingstocks-when-the-bottom-comes-youll-know-it/#commentsFiled under: , , , , , , , ,

TheStreet.com's Jim Cramer says it'll be a huge, bizarre investment that sticks -- not a bid for Wachovia.

Why is there so much chatter about Wachovia (NYSE: WB) (Cramer's Take) getting a bid? Why do people think that its deposit base is worth the heartache of dealing with its mortgage portfolio?

We have all heard the chatter about a potential bid for Wachovia, and it sure would be sweet, because the stock has been one of the worst of the group. It doesn't have a CEO, so that fits the scenario of a company that could be for sale. The franchise was always a solid one until now. And I will admit that the secret to the bulls' case for a better second half is a bid for Wachovia, a premium bid that takes everyone's breath away and causes a short panic.

My problem is that if you wanted to buy Wachovia, why not wait? What's the hurry? Is it that you might miss a chance at a bottom? Is there someone else out there who might want it? Do you perceive a bidding war, for instance, between JPMorgan (NYSE: JPM) (Cramer's Take) and Wells Fargo (NYSE: WFC) (Cramer's Take) for WB? How about USB (NYSE: USB) (Cramer's Take)?

Continue reading Cramer on BloggingStocks: When the bottom comes, you'll know it

Cramer on BloggingStocks: When the bottom comes, you'll know it originally appeared on BloggingStocks on Wed, 02 Jul 2008 09:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacbottomccfcchattercitfeaturedjim cramerJimCramerjpmusbwbwfcWed, 02 Jul 2008 09:22:00 EST<![CDATA[Florida joins Countrywide Financial-suing bandwagon]]>http://www.bloggingstocks.com/2008/07/01/florida-joins-on-the-countrywide-financial-suing-bandwagon/http://www.bloggingstocks.com/2008/07/01/florida-joins-on-the-countrywide-financial-suing-bandwagon/http://www.bloggingstocks.com/2008/07/01/florida-joins-on-the-countrywide-financial-suing-bandwagon/#commentsFiled under: , ,

If pretty much every other attorney general in the country was suing Countrywide Financial (NYSE: CFC), would Florida's? Apparently. Last night the Associated Press reported that Florida Attorney General Bill McCollum has sued the company for misleading and unfair trade practices.

There's no question that Countrywide is a horrible company on a multitude of levels, but there's some irony to the allegations that the company took advantage of borrowers. Take a look at the chart for the company's stock price over the past 5 years -- how much worse would it have done if they'd treated people ethically? It's a little bit like finding out that career minor leaguer Manny Alexander was a steroid user.

In some ways the beat down on Countrywide seems unfair, more of a response to general market problems than anything else. Countrywide helped people use toxic mortgages to buy homes they couldn't afford at a time when lenders were operating on the assumption that home values always went up, interest rates never did, and everything was comin' up roses. It was a happy conspiracy and, sure, Countrywide was happily working on loans that were fraudulent -- but everyone knew the subprime game was the wild west and no one cared. Towns benefited from increased property taxes and federal loan programs encouraged home buying with little money down. But with a lot of people angry about losing their homes, these lawsuits are good politics in an election year.

Florida joins Countrywide Financial-suing bandwagon originally appeared on BloggingStocks on Tue, 01 Jul 2008 11:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CFCCountrywide FinancialCountrywideFinancialhousinginthenewsTue, 01 Jul 2008 11:59:00 EST<![CDATA[Countrywide CEO Angelo Mozilo gets emotional -- the male Tammy Faye?]]>http://www.bloggingstocks.com/2008/06/30/countrywide-ceo-angelo-mozilo-gets-emotional-the-male-tammy-f/http://www.bloggingstocks.com/2008/06/30/countrywide-ceo-angelo-mozilo-gets-emotional-the-male-tammy-f/http://www.bloggingstocks.com/2008/06/30/countrywide-ceo-angelo-mozilo-gets-emotional-the-male-tammy-f/#commentsFiled under: ,

In the days leading up to its acquisition by Bank of America (NYSE: BAC), Countrywide Financial (NYSE: CFC) founder and chief value destroyer Angelo Mozilo is getting emotional. Business Week reports that the man whose tan makes George Hamilton look like Casper "choked up" at the company's annual meeting to approve the deal. In an emotional speech, Mozilo described his love of the organization he'd built and described his tears as a "drawback of being Italian."

Let's see: Mozilo sold hundreds of millions of dollar in stock at several times the current price, and will now walk away from battered shareholders with a bloated net worth resulting from horrific corporate governance, leaving Bank of America to deal with the shareholder lawsuits and attorneys general investigations into the company's practices.

Remember Tammy Faye's tearful interviews after her televangelist collapsed amid revelations of extramarital affairs and air-conditioned doghouses? It might not be quite as pathetic, but Mozilo is one of the few people who can give the late Ms. Faye a run for her money in the unsympathetic display of emotion department.

I somehow doubt that shareholders were moved by Mozilo's speech, which was delivered in a shareholder meeting free of a question and answer session, marked by an overwhelming security presence reflecting the number of people who hate Mr. Mozilo.

Countrywide CEO Angelo Mozilo gets emotional -- the male Tammy Faye? originally appeared on BloggingStocks on Mon, 30 Jun 2008 18:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Angelo MoziloAngeloMoziloCFCCountrywideinthenewsMon, 30 Jun 2008 18:03:00 EST<![CDATA[Cramer on BloggingStocks: The path ahead is down ]]>http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/http://www.bloggingstocks.com/2008/06/27/cramer-on-bloggingstocks-the-path-ahead-is-down/#commentsFiled under: , , , , , , , , , , ,

TheStreet.com's Jim Cramer says with few exceptions, the landscape is littered with corpses.

Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it.

Are you going to argue with any of that? Do you have a case against it? What's the counter? Takeovers? We've had a couple: Anheuser-Busch (NYSE: BUD) (Cramer's Take), Wrigley (NYSE: WWY) (Cramer's Take). Good if you owned them.

Lower rates? Can the Fed help? We assume the Fed is done. The odds favor higher rates. Bank turnarounds? How, with short-rates going up? With housing prices going down?

Can oil go down? Only with a worldwide crash, and with a worldwide crash, why would we come back at 10,000?

Can the consumer get more liquid? How? Unemployment's going higher. Wages won't go up in that environment.

That's the environment. It's pretty bulletproof when it comes to its logic.

Continue reading Cramer on BloggingStocks: The path ahead is down

Cramer on BloggingStocks: The path ahead is down originally appeared on BloggingStocks on Fri, 27 Jun 2008 09:19:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacblkbudccfcffeaturedgmjim cramerJimCramermerwbwmwwyFri, 27 Jun 2008 09:19:00 EST<![CDATA[Countrywide's (CFC) Mozilo passed out loans like candy]]>http://www.bloggingstocks.com/2008/06/27/countrywides-cfc-mozilo-passed-out-loans-like-candy/http://www.bloggingstocks.com/2008/06/27/countrywides-cfc-mozilo-passed-out-loans-like-candy/http://www.bloggingstocks.com/2008/06/27/countrywides-cfc-mozilo-passed-out-loans-like-candy/#commentsFiled under: , ,

Angelo Mozilo, CEO of Countrywide (NYSE: CFC) may be a thug and he may get in trouble with federal authorities due to the way he ran his company. But at least he was generous.

According to The Wall Street Journal, everyone from casino employees to retired pro athletes got sweet deals. The paper writes that, Mr. Mozilo regularly lined up loans for people he met, according to several current and former Countrywide executives. Said one: "Angelo would call in and say, literally, 'My maid needs a loan.'"

Mozilo even gave a loan to the buyer of hockey player Wayne Gretsky's home.

The big open question about these mortgages is whether the people could have gotten them in the normal course of business, or was Mozilo's help necessary. He also may have made certain that his pals got below market rates.

Based on most of what has come out about Mozilo's behavior, he should probably give back those tens of millions of dollars in cash he got from stock options.

And perhaps, spend a few years in the pen.

Douglas A. McIntyre is an editor at 247wallst.com.

Countrywide's (CFC) Mozilo passed out loans like candy originally appeared on BloggingStocks on Fri, 27 Jun 2008 09:06:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Angelo MoziloAngeloMoziloCFCcountrywide financialCountrywideFinancialinthenewsFri, 27 Jun 2008 09:06:00 EST<![CDATA[The barbecue at Countrywide turns into a forest fire]]>http://www.bloggingstocks.com/2008/06/26/the-barbecue-at-countrywide-turns-into-a-forest-fire/http://www.bloggingstocks.com/2008/06/26/the-barbecue-at-countrywide-turns-into-a-forest-fire/http://www.bloggingstocks.com/2008/06/26/the-barbecue-at-countrywide-turns-into-a-forest-fire/#commentsFiled under: , , ,

More states have filed charges against Countrywide (NYSE: CFC) for aggressive marketing and giving loans which were highly risky. Washington and California have joined Illinois in the actions.

Up until now, Bank of America (NYSE:BAC), which is buying Countrywide, has been sticking to its story that it will close on its purchase of the mortgages company. The media has written a million times that the big money center bank might pull out of the deal. That actually became a bit more likely with the new states' actions.

According to The Wall Street Journal, Kurt Eggert, a law professor at the School of Law at Chapman University said, "Countrywide could be required to give back its profit on all those loans and conceivably give back houses on which it has foreclosed." Since that number could be well into the billions of dollars, the potential damages are rising fast.

Countrywide could spend tens of millions of dollars on legal fees and countless hours in court over the next several years. That has become much clearer in the last few days.

BAC would be better off to let CFC go out of business and just buy its assets. Maybe the bank never intended to close the deal. Maybe that was its plan all along.

Douglas A. McIntyre is an editor at 247wallst.com.

The barbecue at Countrywide turns into a forest fire originally appeared on BloggingStocks on Thu, 26 Jun 2008 14:06:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BACCFCfeaturedThu, 26 Jun 2008 14:06:00 EST<![CDATA[Illinois goes after Countrywide (CFC) and CEO Angelo Mozilo]]>http://www.bloggingstocks.com/2008/06/25/illinois-goes-after-countrywide-cfc-and-ceo-angelo-mozilo/http://www.bloggingstocks.com/2008/06/25/illinois-goes-after-countrywide-cfc-and-ceo-angelo-mozilo/http://www.bloggingstocks.com/2008/06/25/illinois-goes-after-countrywide-cfc-and-ceo-angelo-mozilo/#commentsFiled under: , , ,

Angelo Mozilo's nine lives may be about to run out. So far the CEO of Countrywide (NYSE:CFC) has avoided the most severe taint from the collapse of his mortgage company and its questionable practices.

The State of Illinois, the land of Lincoln, will bring civil charges against Mozilo and the firm he started. According to The Wall Street Journal, In a draft of the complaint, Illinois alleges that the company engaged in "unfair and deceptive practices" in the sale of mortgage loans.

One of the main pieces of the complaint is that mortgage brokers pushed loans on people, even it they could not afford them.

Of course, as is always true with charges bought by attorneys general, there is some politics behind the claim. There have been a number of Countrywide foreclosures in the Illinois.

To some extent the politics do not matter. Based on other investigations of Countrywide, it appears that management did quietly push its people to move loans out like cars off an assembly line.

What is most troubling is that no one in government anywhere caught onto the practice earlier.

Douglas A. McIntyre is an editor at 247wallst.com.

Illinois goes after Countrywide (CFC) and CEO Angelo Mozilo originally appeared on BloggingStocks on Wed, 25 Jun 2008 08:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>angelo moziloAngeloMoziloCFCillinois attorney ge...IllinoisAttorneyGe...subprime meltdownsubprime mortgagesSubprimeMeltdownSubprimeMortgagesWed, 25 Jun 2008 08:35:00 EST<![CDATA[Before the bell: Futures higher ahead of data, Fed]]>http://www.bloggingstocks.com/2008/06/25/before-the-bell-futures-higher-ahead-of-data-fed/http://www.bloggingstocks.com/2008/06/25/before-the-bell-futures-higher-ahead-of-data-fed/http://www.bloggingstocks.com/2008/06/25/before-the-bell-futures-higher-ahead-of-data-fed/#commentsFiled under: , , , , , , , , ,

U.S. stock futures were higher Wednesday morning, ahead of several economic reports and the Federal Reserve's policy statement on interest rates. While trading might be affected by the upcoming economic data, the real test will be in early afternoon, when Fed chairman Bernanke will read the policy statement. Some on Wall Street believe a strong statement could help markets recover.

U.S. stocks ended lower on Tuesday, as markets just couldn't pull it together ahead of the Federal Reserve rate decision. Combine that with worries over the economy, oil, struggling financials and the the Dow industrials fell another 34 points, or 0.29%, the Nasdaq Composite 17 points, 0.73%, and the S&P 500 3 points, or 0.28%.

At 8:30 a.m. EDT, the first economic reading of the day will be reported -- May durable goods orders. At 10:00 a.m., May statistics for new home sales is due out. Neither are likely to show any improvement in their respective sectors.

Then, at 10:30 a.m., weekly crude inventories will be released. Lately, this statistic has affected oil prices more than it once did. While the report may show diminishing supplies, it could also show lessened demand.

The biggest event of the day will then come at 2:15 p.m. EDT, when Bernanke will read the Fed's policy statement. No action on interest rate is expected, but a shift in focus where the Fed considers inflation as a risk to the economy rather than slow growth. This could be a signal for future rate hikes.

Continue reading Before the bell: Futures higher ahead of data, Fed

Before the bell: Futures higher ahead of data, Fed originally appeared on BloggingStocks on Wed, 25 Jun 2008 07:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacbcscfcgisWed, 25 Jun 2008 07:42:00 EST<![CDATA[Option Update: Bank of America volatility up; purchase of CFC on July 1]]>http://www.bloggingstocks.com/2008/06/20/option-update-bank-of-america-volatility-up-purchase-of-cfc-on/http://www.bloggingstocks.com/2008/06/20/option-update-bank-of-america-volatility-up-purchase-of-cfc-on/http://www.bloggingstocks.com/2008/06/20/option-update-bank-of-america-volatility-up-purchase-of-cfc-on/#commentsFiled under: , ,

Bank of America (NYSE: BAC) closed at $28.14 Thursday.

BAC aims to complete its planned acquisition of Countrywide Financial (NYSE: CFC) on July 1. BAC announced in January of 2008 the planned acquisition of CFC for 0.1822 per share of BAC for each share they own, $5.13 based on BAC closing share price of $28.14. CFC closed at $4.83.

BAC July option implied volatility of 51 is above its 26-week average of 40 according to Track Data, suggesting larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Bank of America volatility up; purchase of CFC on July 1 originally appeared on BloggingStocks on Fri, 20 Jun 2008 09:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacbank of americaBankOfAmericacfcinthenewsFri, 20 Jun 2008 09:33:00 EST<![CDATA[Cramer on BloggingStocks: JP Morgan made a huge mistake ]]>http://www.bloggingstocks.com/2008/06/20/cramer-on-bloggingstocks-jp-morgan-made-a-huge-mistake/http://www.bloggingstocks.com/2008/06/20/cramer-on-bloggingstocks-jp-morgan-made-a-huge-mistake/http://www.bloggingstocks.com/2008/06/20/cramer-on-bloggingstocks-jp-morgan-made-a-huge-mistake/#commentsFiled under: , , , , , , , , , , ,

TheStreet.com's Jim Cramer says the acquired Bear Stearns portfolio is worth even less than he thought.

How bad was that Bear Stearns portfolio? I am beginning to believe that JPMorgan's (NYSE: JPM) (Cramer's Take) buy of Bear is looking like a big mistake. It can only be justified by what might have been an even bigger problem for JPM -- the collapse of the trades that Bear made, which were being processed by JPM's clearing.

We are now beginning to get a real sense of the worthlessness of the mortgage portfolios. Not that we got any help from the SEC, which has taken a "we don't care what's in the mortgages as long as you tell us you have mortgages" attitude. That's been worthless for investors, and maybe even for JPMorgan.

The losses now exceed $400 billion, according to my modeling (if you simply assumed that 50% of the exotic mortgages that were issued from 2005 to 2007 eventually went into default). That's amazing, but it looks like I dramatically underestimated the losses. UNDERESTIMATED!

The most egregious issuers of these exotic mortgages were Bear, Merrill Lynch (NYSE: MER) (Cramer's Take) and Lehman Brothers (NYSE: LEH) (Cramer's Take). I believe that JPM has taken in a huge number of uninsurable, non-hedgeable mortgage instruments that are a pure write-off. And that means they are probably underwater on everything they took in.

Continue reading Cramer on BloggingStocks: JP Morgan made a huge mistake

Cramer on BloggingStocks: JP Morgan made a huge mistake originally appeared on BloggingStocks on Fri, 20 Jun 2008 08:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacbank of americaBankOfAmericabankscfccountrywidefeaturedfinanacialsgoldman sachsGoldmanSachsgsjim cramerJimCramerjpmjpmorgan chaseJpmorganChaselehlehman brothersLehmanBrothersmermerrill lynchMerrillLynchnational cityNationalCitynccwachoviawashington mutualWashingtonMutualwbwmFri, 20 Jun 2008 08:57:00 EST<![CDATA[Thornburg, mortgage giant, may not make it]]>http://www.bloggingstocks.com/2008/06/19/thornburg-tma-morgage-giant-may-not-make-it/http://www.bloggingstocks.com/2008/06/19/thornburg-tma-morgage-giant-may-not-make-it/http://www.bloggingstocks.com/2008/06/19/thornburg-tma-morgage-giant-may-not-make-it/#commentsFiled under: , , ,

Thornburg Mortgage (NYSE:TMA) was one of the larger mortgage lenders in the US. Its stock now trades at $.65, down from almost $27 a year ago. That means it market cap was $5 billion then.

According to The Wall Street Journal, TMA said in a federal filing that "the future of the home-mortgage finance company as a viable business remains in doubt." The company is trying to raise over $1.3 billion, but, by many accounts, that is not going well.

One of the issues that the Thornburg problems opens, again, is why Bank of America (NYSE:BAC) is so anxious to buy Countrywide (NYSE:CFC). While the largest mortgage lender may have problems which are not quite as severe as Thornburg's, it still faces a growing number of customer defaults.

Many on Wall St. would argue that Countrywide would trade well below its current price of $4.67,down from its 52-week high of $38.89, if BAC had not made its offer. It has traded as low as $3.95. CFC has had trouble with regulators, write-offs and in being probed for its lending practices.

Could Countrywide have fallen below $1 if it did not have a firm buy-out offer? Certainly.

Douglas A. McIntyre is an editor at 247wallst.com.

Thornburg, mortgage giant, may not make it originally appeared on BloggingStocks on Thu, 19 Jun 2008 13:23:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BACCFCinthenewsTMAThu, 19 Jun 2008 13:23:00 EST<![CDATA[California bankin' with Wachovia]]>http://www.bloggingstocks.com/2008/06/17/calfiornia-bankin-with-wachovia/http://www.bloggingstocks.com/2008/06/17/calfiornia-bankin-with-wachovia/http://www.bloggingstocks.com/2008/06/17/calfiornia-bankin-with-wachovia/#commentsFiled under: , , ,

Minyanville's wise professor, Mark Bloudek, dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

I've been doing precious little in this market, but one stock I've been tracking closely is Wachovia Corp. (NYSE: WB). Why would I pay more mind to Wachovia than to other banks? Because it bought Golden West Financial in May of 2006 for $25 billion. And where did Golden West have most of its exposure? That's right, California.

Last night I was looking through the median home price data in the Multiple Listing Service (MLS) in various California cities and noticed some shocking price drops. The median home price offers in San Francisco dropped $10,000 in one week. Ditto for Orange County. In Los Angeles, the figure was a startling $13,000. I went back to check when the market topped in these areas and found that every one of them peaked in -- drum roll, please -- May of 2006.

Continue reading California bankin' with Wachovia

California bankin' with Wachovia originally appeared on BloggingStocks on Tue, 17 Jun 2008 15:42:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>californiacalifornia real estateCaliforniaRealEstatecfccountrywide financialCountrywideFinancialhousinghousing marketHousingMarketinthenewswachoviawamuwashington mutualWashingtonMutualwbwmTue, 17 Jun 2008 15:42:00 EST<![CDATA[Angelo Mozilo's loans to friends: the real story]]>http://www.bloggingstocks.com/2008/06/16/angelo-mozilos-loans-to-friends-the-real-story/http://www.bloggingstocks.com/2008/06/16/angelo-mozilos-loans-to-friends-the-real-story/http://www.bloggingstocks.com/2008/06/16/angelo-mozilos-loans-to-friends-the-real-story/#commentsFiled under: , ,

The Wall Street Journal reports (subscription required) that "Dealings with Countrywide Financial Corp. (NYSE: CFC) are becoming a liability in political circles."

Democratic Senator Kent Conrad of North Dakota is donating $10,500 to Habitat For Humanity, in a nice gesture designed to compensate for the fact that he received a loan under special terms from Countrywide -- part of a program at the company known as F.O.A., meaning friends of Angelo Mozilo, the company's CEO.

Barack Obama advisor James Johnson resigned from the campaign after the media reported that he had received a special loan, and Senator Chris Dodd has come under fire for something similar.

Political corruption is one thing and, as political corruption goes, this hardly seems worth noting, especially in the current climate. But it hasn't gotten any attention as a corporate governance matter, and it should. Angelo Mozilo was paid hundreds of millions of dollars to run Countrywide Financial and he appears to have used shareholder assets to give special deals to his friends. If he wanted to give gifts to friends, he should have done it with his money.

Is it material? No, probably not. It's just more evidence of the fact that Angelo Mozilo ran the company as a personal fiefdom -- the opposite of the way a public company should be run, but not much different from the way most probably are.

Angelo Mozilo's loans to friends: the real story originally appeared on BloggingStocks on Mon, 16 Jun 2008 11:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CFCCountrywide FinancialCountrywideFinancialMon, 16 Jun 2008 11:22:00 EST<![CDATA[Cramer on BloggingStocks: When banks won't buy banks ]]>http://www.bloggingstocks.com/2008/06/13/cramer-on-bloggingstocks-when-banks-wont-buy-banks/http://www.bloggingstocks.com/2008/06/13/cramer-on-bloggingstocks-when-banks-wont-buy-banks/http://www.bloggingstocks.com/2008/06/13/cramer-on-bloggingstocks-when-banks-wont-buy-banks/#commentsFiled under: , , , , , ,

TheStreet.com's Jim Cramer says that rather than merging, these banks will have to raise money through dilutive offerings.

The big difference between 1990s bank implosion and this one is that nobody at other banks sees any value in owning the ones that are faltering.

Key (NYSE: KEY) (Cramer's Take) is the latest example. Key's everywhere, it is grandfathered to be in every state. You would think there was some bank out there that would want it. Nope. No one. So they have to do this down round that destroys the common. Nobody wants Sovereign (NYSE: SOV) (Cramer's Take) either. Or Nat City (NYSE: NCC) (Cramer's Take). Or Washington Mutual (NYSE: WM) (Cramer's Take). The latter's really interesting now that Hudson City (NYSE: HCBK) (Cramer's Take) has passed it in market size because it says that all of those branches and all of that deposit base just doesn't mean anything. Or worse, the losses are so bad that unless the Fed takes the losses and puts them on its balance sheet, there can be no consolidation.

Yet consolidation is the only way to go. Now, we are much more laissez-faire then we were in 1990. The administration then felt engaged to move quickly to set up mergers instead of the charade of down rounds. I call them charades because none of them yet has produced a return for anyone who has put the money up.

Continue reading Cramer on BloggingStocks: When banks won't buy banks

Cramer on BloggingStocks: When banks won't buy banks originally appeared on BloggingStocks on Fri, 13 Jun 2008 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baccfcfeaturedhcbkjim cramerJimCramerjpmkeynccsovwmFri, 13 Jun 2008 09:40:00 EST