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[Banks fail to absorb commercial real estate loan losses]]>http://www.bloggingstocks.com/2009/10/08/banks-fail-to-absorb-commercial-real-estate-loan-losses/http://www.bloggingstocks.com/2009/10/08/banks-fail-to-absorb-commercial-real-estate-loan-losses/http://www.bloggingstocks.com/2009/10/08/banks-fail-to-absorb-commercial-real-estate-loan-losses/#commentsFiled under: , , , ,

Remember the havoc in the financial markets when the residential bubble burst last year? Are we in for a rerun this year or next year?

You are probably thinking that such an event could not occur. Well think again. There is a report that says that we may be in for another crisis.

The report was initiated by Federal Reserve analyst, K.C. Conway. Conway is a senior real estate analyst at the Federal Reserve Bank of Atlanta. The Federal Reserve has acknowledged the report but said that it is not part of its formal opinion. What does the report say?

Continue reading Banks fail to absorb commercial real estate loan losses

Banks fail to absorb commercial real estate loan losses originally appeared on BloggingStocks on Thu, 08 Oct 2009 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutscommercial real estateFederal ReserveinthenewsK.C. Conwayreal estate bubbletoxic assetsThu, 08 Oct 2009 13:40:00 EST<![CDATA[Sign #3: The banks will lead us down again]]>http://www.bloggingstocks.com/2009/09/19/sign-3-the-banks-will-lead-us-down-again/http://www.bloggingstocks.com/2009/09/19/sign-3-the-banks-will-lead-us-down-again/http://www.bloggingstocks.com/2009/09/19/sign-3-the-banks-will-lead-us-down-again/#commentsFiled under:

october market crashThe banks led the markets down, and then led it back up. And when they announce earnings in October, they are almost positively going to include comments about 2010 that will help send the market back down.

The banks still have trillions of dollars in toxic assets and increasing credit losses, and they are facing new accounting and regulatory rules that are pressuring them to raise capital and dilute shareholders.

And the market is not likely to react well to this news.

Next: Sign #4: No positive catalysts on the horizon

Sign #3: The banks will lead us down again originally appeared on BloggingStocks on Sat, 19 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banksmichael shulmanOctober market crashtoxic assetsSat, 19 Sep 2009 11:00:00 EST<![CDATA[What if bankers were paid in toxic assets?]]>http://www.bloggingstocks.com/2009/09/14/what-if-bankers-were-paid-in-toxic-assets/http://www.bloggingstocks.com/2009/09/14/what-if-bankers-were-paid-in-toxic-assets/http://www.bloggingstocks.com/2009/09/14/what-if-bankers-were-paid-in-toxic-assets/#commentsFiled under: , ,

There's a new day dawning out there. Some analysts are proposing that bankers should be paid in toxic assets. Among the chief proponents of this idea are Vince Farrell of Soleil Securities and Jim Rodgers of Rodgers Holdings.

Now this seems to be a fine idea. The bankers, with their greed and excess speculation, took down our financial system. The U.S. Treasury and the Federal Reserve had to pledge $12.2 trillion of your money to bail out these ... (you finish the sentence as you see fit). Can you imagine what $12.2 trillion is like? Do you have any idea what this money could have done for our country?

Continue reading What if bankers were paid in toxic assets?

What if bankers were paid in toxic assets? originally appeared on BloggingStocks on Mon, 14 Sep 2009 15:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutsbankersFederal Reservetoxic assetsToxicAssetsMon, 14 Sep 2009 15:40:00 EST<![CDATA[Wells Fargo climbs out from under the TARP]]>http://www.bloggingstocks.com/2009/09/01/wells-fargo-climbs-out-from-under-the-tarp/http://www.bloggingstocks.com/2009/09/01/wells-fargo-climbs-out-from-under-the-tarp/http://www.bloggingstocks.com/2009/09/01/wells-fargo-climbs-out-from-under-the-tarp/#commentsWhen the financial crisis really got into full swing, a lot of banks ended up taking TARP money. Some banks needed it, and some banks were forced by Treasury Secretary Henry Paulson to take it.

Wells Fargo & Co. (NYSE: WFC) was one of those banks that was forced to take TARP money, and now it is making plans to pay the TARP money back.

Here's the interesting thing though. While many of the larger banks have paid the TARP money back, Wells Fargo says it is going to pay the money back without having to go out and raise additional funds for the bank -- something other large banks, like Goldman Sachs Group (NYSE: GS), didn't do.

Continue reading Wells Fargo climbs out from under the TARP

Wells Fargo climbs out from under the TARP originally appeared on BloggingStocks on Tue, 01 Sep 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bloombergfeaturedhenry paulsonHenryPaulsonjohn stumpfJohnStumpfsubprime lendingSubprimeLendingtarptoxic assetsToxicAssetsTue, 01 Sep 2009 18:00:00 EST<![CDATA[Why is the government spending $30 billion to buy toxic assets?]]>http://www.bloggingstocks.com/2009/07/09/why-is-the-government-spending-30-billion-to-buy-toxic-assets/http://www.bloggingstocks.com/2009/07/09/why-is-the-government-spending-30-billion-to-buy-toxic-assets/http://www.bloggingstocks.com/2009/07/09/why-is-the-government-spending-30-billion-to-buy-toxic-assets/#commentsFiled under: , , ,

Do you know where another $30 billion of your tax dollars are going? You guessed it. The Federal Reserve and the Federal Deposit Insurance Corporation announced that they will spend $30 billion dollars to buy toxic assets.

To do this they have chosen nine firms out of 100 that applied for the program. The guts of the program are that the government will partner with private companies to buy toxic assets.The Treasury supposedly did background checks to be sure that none of the firms chosen had any "conflicts of interest."

Continue reading Why is the government spending $30 billion to buy toxic assets?

Why is the government spending $30 billion to buy toxic assets? originally appeared on BloggingStocks on Thu, 09 Jul 2009 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>FDICFederal ReserveFederalReserveinthenewsppiptoxic assetsToxicAssetsThu, 09 Jul 2009 15:00:00 EST<![CDATA[What is the good and the bad about the condition of our banks?]]>http://www.bloggingstocks.com/2009/06/12/what-is-the-good-and-the-bad-about-our-banks/http://www.bloggingstocks.com/2009/06/12/what-is-the-good-and-the-bad-about-our-banks/http://www.bloggingstocks.com/2009/06/12/what-is-the-good-and-the-bad-about-our-banks/#commentsFiled under: ,

What is the real condition of our banks? Well depends on which glass you are looking at. Is it half full or half empty? Let's look at the good news first:
  • Profits for the bans are up.
  • Bank stocks are surging.
  • The U.S. government gave 10 banks permission to pay back $70 billion of TARP monies.
  • Since January, banks have raised $200 billion and sold $75 billion in debt.
  • Stress tests showed that 19 of the biggest banks needed only $75 billion to withstand a tougher than expected recession.
  • In a press conference, U.S. Treasury Geithner said, "these are early signs of repair and improvement."

Continue reading What is the good and the bad about the condition of our banks?

What is the good and the bad about the condition of our banks? originally appeared on BloggingStocks on Fri, 12 Jun 2009 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank stocksbanksDouglas ElliotFDICGeithnerMarvin J. Millerstress testsTARPtoxic assetsFri, 12 Jun 2009 14:00:00 EST<![CDATA[Wanna buy some toxic waste?]]>http://www.bloggingstocks.com/2009/04/09/wanna-buy-some-toxic-waste/http://www.bloggingstocks.com/2009/04/09/wanna-buy-some-toxic-waste/http://www.bloggingstocks.com/2009/04/09/wanna-buy-some-toxic-waste/#commentsFiled under:

Just when I think I have heard it all, they come up with something even more eye-poppingly incredible. That's right folks. First they sucked you into the dot-com boom; then wiped out your tech stocks. Next they urged you to buy houses with money you couldn't pay back -- and those houses plunged in value while the global stock markets lost half their value -- further decimating your net worth.

Now they want to give you the once in a lifetime opportunity to buy the very toxic waste that is sinking the entire global financial system. And if you have a job in state government, your pension fund may be enticed into this financial sludge as well.

Continue reading Wanna buy some toxic waste?

Wanna buy some toxic waste? originally appeared on BloggingStocks on Thu, 09 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bill grossBillGrosspimcotoxic assetstoxic wasteToxicAssetsToxicWasteThu, 09 Apr 2009 10:30:00 EST<![CDATA[Should we fire CEOs and liquidate their banks?]]>http://www.bloggingstocks.com/2009/04/08/should-we-fire-ceos-and-liquidate-their-banks/http://www.bloggingstocks.com/2009/04/08/should-we-fire-ceos-and-liquidate-their-banks/http://www.bloggingstocks.com/2009/04/08/should-we-fire-ceos-and-liquidate-their-banks/#commentsFiled under:

A Congressional panel headed by Harvard Law School professor Elizabeth Warren is suggesting it's time to fire bank CEOs and liquidate the banks they ran. As Jon Stewart would say, "Me likey."

The panel is not suggesting that the firing and liquidation happen en masse. Rather, it simply argues that the Treasury's approach denies the reality of just how bad the banks' financial condition is and leaves those sick banks in control of the very people who got them into the toxic-waste business. The panel suggests that CEOs of sick banks have a too-rosy view of their institutions' prospects.

Continue reading Should we fire CEOs and liquidate their banks?

Should we fire CEOs and liquidate their banks? originally appeared on BloggingStocks on Wed, 08 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ceoElizabeth WarrenElizabethWarreninthenewstoxic assetsWed, 08 Apr 2009 12:30:00 EST<![CDATA[Bank stocks at least 20% undervalued thanks to accounting rule change]]>http://www.bloggingstocks.com/2009/04/02/bank-stocks-at-least-20-undervalued-thanks-to-accounting-rule-c/http://www.bloggingstocks.com/2009/04/02/bank-stocks-at-least-20-undervalued-thanks-to-accounting-rule-c/http://www.bloggingstocks.com/2009/04/02/bank-stocks-at-least-20-undervalued-thanks-to-accounting-rule-c/#commentsFiled under: ,

By caving into pressure from Wall Street, the Financial Accounting Standards Board (FASB) just single-handedly added at least 20% to the value of major banks burdened with formerly toxic waste. What just happened is that FASB passed an accounting ruling that allows the banks to decide the value of its toxic waste rather than letting the market set a price.

Continue reading Bank stocks at least 20% undervalued thanks to accounting rule change

Bank stocks at least 20% undervalued thanks to accounting rule change originally appeared on BloggingStocks on Thu, 02 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FASBfeaturedmark-to-markettoxic assetsToxicAssetsThu, 02 Apr 2009 12:30:00 EST<![CDATA[New accounting rule to end financial crisis: April Fool's?]]>http://www.bloggingstocks.com/2009/04/01/new-accounting-rule-to-end-financial-crisis/http://www.bloggingstocks.com/2009/04/01/new-accounting-rule-to-end-financial-crisis/http://www.bloggingstocks.com/2009/04/01/new-accounting-rule-to-end-financial-crisis/#commentsFiled under: , ,

Many people are wondering when this recession/depression will end. Well the waiting is over.

Tomorrow a group of accountants will vote on a new accounting rule that will end the financial crisis. This rule, called FAS 157-e, permits banks to make up the value of assets they carry on their books that nobody wants to buy. By letting banks put whatever value they choose on these assets, they will no longer need to tell investors just how badly those assets have deteriorated.

This is obviously fantastic news for the global economy. We can now get back the $12.8 trillion we've spent bailing out the bad bets of banks and insurance companies. That's because the toxic waste that has so far caused them to take $3 trillion in write-offs is no longer toxic. In fact, the banks can mark those assets just as high as they want -- taking a profit by valuing them at, say, $1.20 instead of the 60 cents at which they're currently priced on their books. This increase in value will instantaneously give the banks as much capital as they want.

Continue reading New accounting rule to end financial crisis: April Fool's?

New accounting rule to end financial crisis: April Fool's? originally appeared on BloggingStocks on Wed, 01 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FAS 157-eFas157-efeaturedmark-to-marketSECtoxic assetsToxicAssetsWed, 01 Apr 2009 12:30:00 EST<![CDATA[Closing Bell: Suddenly, Uncle Sam is again a friend (BAC, C, AIG, GE, GM, TIF)]]>http://www.bloggingstocks.com/2009/03/23/closing-bell-suddenly-uncle-sam-is-again-a-friend-bac-c-aig/http://www.bloggingstocks.com/2009/03/23/closing-bell-suddenly-uncle-sam-is-again-a-friend-bac-c-aig/http://www.bloggingstocks.com/2009/03/23/closing-bell-suddenly-uncle-sam-is-again-a-friend-bac-c-aig/#commentsFiled under: , , , , ,

Today saw a monster rally brought on by Tim Geithner's Treasury plan to rid banks of toxic assets. Then a much "less bad" bit on the existing home sales showed a gain of more than 5% because so many are distressed house sales. And now there is a new issue to consider: The bears have to be worried as key upside technical resistance levels were taken out in the last hour of trading.

Here are the unofficial closing bell levels:

Dow 7,775.86 +497.48 (6.84%)
S&P 500 822.92 +54.38 (7.08%)
Nasdaq 1,555.77 +98.50 (6.76%)

Top Analyst Upgrades and Downgrades

Continue reading Closing Bell: Suddenly, Uncle Sam is again a friend (BAC, C, AIG, GE, GM, TIF)

Closing Bell: Suddenly, Uncle Sam is again a friend (BAC, C, AIG, GE, GM, TIF) originally appeared on BloggingStocks on Mon, 23 Mar 2009 16:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt ratingDebtRatingmoodystim geithnerTimGeithnertoxic assetsToxicAssetsMon, 23 Mar 2009 16:15:00 EST<![CDATA[Inaction and a financial crisis don't mix]]>http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/#commentsFiled under: , , , , , , , ,

Investor Jim Rogers, noted for his expertise in commodities, is someone Wall Street professionals, business executives, and economists alike pay close attention to, as he's frequently been ahead-of-the-curve regarding market and investment trends.

Still, that's not to say that Rogers sometimes can't overdo it a bit and/or does not get it wrong.

A recent chat Rogers had with Bloomberg News is an example of the latter, as the talk yielded more rhetoric, half-truths, and flat out absurd statements and not a whole not of illumination.

Continue reading Inaction and a financial crisis don't mix

Inaction and a financial crisis don't mix originally appeared on BloggingStocks on Wed, 18 Mar 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking systembanksbond marketCongresscredit marketsFedJim Rogerstoxic assetsU.S. economyWed, 18 Mar 2009 16:40:00 EST<![CDATA[If the U.S. economy strengthens, Fiscal Stimulus II may be shelved]]>http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/#commentsFiled under: ,

In his column last week, New York Times (NYSE: NYT) columnist and Nobel Prize-winning economist Paul Krugman laid waste to those who argue that he's not critically assessing Obama administration programs. He offered a cogent critique of the U.S. Treasury's tardiness regarding the banking system fix.

Either temporarily nationalize those banks that are clogging the system, buy the toxic assets at unsubsidized prices, or announce some other market-valued removal plan to unclog the system, but let's put this train in motion, Krugman said, in so many words, to get to the root of the matter: We need to get credit flowing freely to facilitate commerce.

Continue reading If the U.S. economy strengthens, Fiscal Stimulus II may be shelved

If the U.S. economy strengthens, Fiscal Stimulus II may be shelved originally appeared on BloggingStocks on Wed, 11 Mar 2009 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorCongressDemocratsfeaturedfiscal policyfiscal stimulus packageNew York Times op-edNewYorkTimesOp-edObama administrationPaul KrugmanRepublicanstoxic assetsU.S. economyWed, 11 Mar 2009 12:15:00 EST<![CDATA[In banking fix, U.S. must remain focused on success, not justice]]>http://www.bloggingstocks.com/2009/03/04/in-banking-fix-u-s-must-remain-focused-on-success-not-justice/http://www.bloggingstocks.com/2009/03/04/in-banking-fix-u-s-must-remain-focused-on-success-not-justice/http://www.bloggingstocks.com/2009/03/04/in-banking-fix-u-s-must-remain-focused-on-success-not-justice/#commentsFiled under:

Lately, it has been as if every lesson from a first-year graduate seminar in public policy is being played out on the national stage.

Let's underscore one point: the nation appears to be nearing a policy to deal with the financial crisis. Investors should try to keep that at the forefront. Or maybe paste it on to their computer screens at work or in their home offices, so that they can maintain a sense of perspective. Yes, it's about a year late, but there was another U.S. president in charge then: the new guy's just arrived. Moreover, if calm prevails, the nation is going to get through this difficult period, this aftermath of the decade of policy errors, the decade of descent.

Continue reading In banking fix, U.S. must remain focused on success, not justice

In banking fix, U.S. must remain focused on success, not justice originally appeared on BloggingStocks on Wed, 04 Mar 2009 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksfinancial crisishome foreclosuresObama administrationtoxic assetsWed, 04 Mar 2009 13:40:00 EST<![CDATA[Soros says world is witnessing end of pure, unregulated capitalism model]]>http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/#commentsFiled under: , , , ,

You might say that a key investor, one of the exemplars, is no longer bullish on the pure bulls. Or on the unregulated bulls. Or on the totally free market bulls.

Billionaire investor George Soros told Bloomberg News that the current global financial crisis originated during the deregulation of the 1980s, and signals the end of the free market model that has dominated capitalist countries, and indeed much of the developed world, since the the end of the Cold War with the break-up of the Soviet Union in 1991.

Continue reading Soros says world is witnessing end of pure, unregulated capitalism model

Soros says world is witnessing end of pure, unregulated capitalism model originally appeared on BloggingStocks on Mon, 23 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Asiabanking sectorbanksbond marketcredit marketsEuropegdpGeorge SorosinthenewsSorostoxic assetsU.S. economyMon, 23 Feb 2009 15:00:00 EST<![CDATA[Wilbur Ross craves toxic assets]]>http://www.bloggingstocks.com/2009/02/18/wilbur-ross-craves-toxic-assets/http://www.bloggingstocks.com/2009/02/18/wilbur-ross-craves-toxic-assets/http://www.bloggingstocks.com/2009/02/18/wilbur-ross-craves-toxic-assets/#commentsFiled under:

Of course, there is no shortage of toxic financial assets. They are clogging the financial system and putting incredible pressure on global banks.

Typically, such things get bought up. But, with little visibility and the complexity of modern financial instruments, it's been tough to attract bottom-fishers into the market.

Yet, according to U.S. Treasury Secretary Timothy Geithner, it's important that private operators swoop in.

Continue reading Wilbur Ross craves toxic assets

Wilbur Ross craves toxic assets originally appeared on BloggingStocks on Wed, 18 Feb 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsToxic AssetsToxicAssetsWilbur RossWilburRossWed, 18 Feb 2009 10:00:00 EST<![CDATA[Stuff bad mortgages in ETFs? Great idea!]]>http://www.bloggingstocks.com/2009/02/16/stuff-bad-mortgages-in-etfs-great-idea/http://www.bloggingstocks.com/2009/02/16/stuff-bad-mortgages-in-etfs-great-idea/http://www.bloggingstocks.com/2009/02/16/stuff-bad-mortgages-in-etfs-great-idea/#commentsFiled under: , ,

Most experts now believe that in order to recover, banks need to find a way to move their "toxic assets" off their balance sheets to stop the bleeding of quarterly writedowns.

The idea of establishing a "bad bank" to buy all that crap is gaining some traction in Washington, but Dennis Kneale proposes an alternative solution in a column on CNBC.com: "Turn all those rotting securities into an ETF, add a boost from government and let investors put a real, truly liquid value on 'em."

Continue reading Stuff bad mortgages in ETFs? Great idea!

Stuff bad mortgages in ETFs? Great idea! originally appeared on BloggingStocks on Mon, 16 Feb 2009 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Dennis KnealeDennisKnealeETFsinthenewsToxic AssetsToxicAssetsMon, 16 Feb 2009 08:30:00 EST<![CDATA[DailyFinance today: the death of print media, toxic assets, and Dubai falling]]>http://www.bloggingstocks.com/2009/02/13/dailyfinance-today-the-death-of-print-media-toxic-assets-and/http://www.bloggingstocks.com/2009/02/13/dailyfinance-today-the-death-of-print-media-toxic-assets-and/http://www.bloggingstocks.com/2009/02/13/dailyfinance-today-the-death-of-print-media-toxic-assets-and/#commentsFiled under:


Media Biz: What will happen when print media dies?
Why the banks won't price their toxic assets
Dubai: What goes up must come down
Continental plane crash ends remarkable aviation safety streak
Stocks picks and pans: MCD, CPB, CLH, POT, KO, VZ, TIF, HNZ ...

DailyFinance today: the death of print media, toxic assets, and Dubai falling originally appeared on BloggingStocks on Fri, 13 Feb 2009 18:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>continental airlinesContinentalAirlinesdaily financeDailyFinancedubaitoxic assetsToxicAssetsFri, 13 Feb 2009 18:20:00 EST<![CDATA[Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan]]>http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/#commentsFiled under: , ,

Investors should not read too much into the Dow's nearly 400-point drop Tuesday. What they should concentrate on, in the view of a pair of economists, is the mechanism the U.S. Treasury uses to price toxic assets.

The above is the most important 'unknown' in the U.S. Treasury's financial stability plan, so says economist David H. Wang -- how toxic assets that are clogging banks' balancing sheets and restricting credit -- will be priced.

"Will the United States government set-up a clearinghouse? Or will they design some type of open outcry, or managed open outcry? These are the key unknowns," Wang said. "Treasury Secretary Geithner and his staff cannot rush this decision, but on the other hand they cannot take two quarters to developed it. They have to announce the structure of the pricing program within a couple of weeks. I cannot underscore enough the importance of this pricing methodology. It will be the biggest factor in whether the credit system recovers, or something much worse occurs."

Continue reading Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan

Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan originally appeared on BloggingStocks on Wed, 11 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebanking sectorcredit marketsfeaturedGeithnermortgage backed securitiesnationalizationtoxic assetsU.S. TreasuryWed, 11 Feb 2009 12:00:00 EST<![CDATA[Bank of America (BAC) shares could double in a week]]>http://www.bloggingstocks.com/2009/02/07/bank-of-america-bac-shares-could-double-in-a-week/http://www.bloggingstocks.com/2009/02/07/bank-of-america-bac-shares-could-double-in-a-week/http://www.bloggingstocks.com/2009/02/07/bank-of-america-bac-shares-could-double-in-a-week/#commentsFiled under:

Shares of Bank of America (NYSE: BAC) plunged over the past month on concerns about write-offs from its Merrill Lynch unit and fears that the firm might be nationalized to keep it from failing. Over the 30 days ending on Thursday, the stock moved down 60% before recovering on Friday by rising 26% to $6.13.

Ken Lewis, the bank's CEO, has made public comments that his company is fine and will not need more capital from the government. Skeptics argue that he is simply trying to keep his job.

Continue reading Bank of America (BAC) shares could double in a week

Bank of America (BAC) shares could double in a week originally appeared on BloggingStocks on Sat, 07 Feb 2009 06:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACbad banksBank of AmericainthenewsKen LewisMerrill Lynchtoxic assetsSat, 07 Feb 2009 06:42:00 EST