Foreclosures

Alt-A loans, the coming convulsion?

Jim Kim — Fri, 15 Aug 2008 13:28:58 -0400

There is a subtle undercurrent of fear on Wall Street about Alt-A loans. JPMorgan has about $19.5 billion worth of exposure to Alt-A mortgages, and it likely is not alone. I would be surprised if banks have written off much against these assets. CalculatedRISK notes that "subprime delinquencies appear to have peaked in December of 2007, and subprime foreclosure starts may have peaked in January of 2008," according to research firm Clayton. "Unfortunately, Alt-A seems nowhere near its peak yet." Delinquencies and foreclosures seem to be on an upsloping curve. This may be the start of another wave of writedowns.

For more:
- here's the CalculatedRISK item

ALSO NOTED: Merrill Lynch changes stock rating system; Merrill Lynch, Citigroup execs look to former colleagues for talent; and

Thu, 15 May 2008 06:59:50 -0400

Company News:
> Freddie beats expectations. Article
> More on the Clear Channel agreement. Article
> ING reports big drop in earnings. Article
> Merrill Lynch changes stock rating system. Video
> Len Dykstra is bullish on Morgan Stanley. Article
> Merrill Lynch, Citigroup look to former employers for talent. Article
> RBC announces writedowns. Article

Industry News:
> Foreclosures surge in April. Article
> Investors want banks to take back mortgages. Article
> Mortgage weakness takes a regional flavor. Article

Regulatory News:
> More on ex-UBS banker indictment. Article
> Three ex-SEC chiefs endorse Obama. Article

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Tougher times in Greenwich, Conn.

Fri, 25 Apr 2008 06:59:58 -0400

Among suburbs preferred by hedge funds and more than a few top Wall Street executives, Greenwich ranks high. So how is it faring as Wall Street reels? Well, not even Greenwich is immune to the real estate crunch. According to the New York Times, about half a dozen foreclosure notices are sent each month in normal times. That spiked to 34 filings in January. But pain is relative. The Times notes that foreclosures are tricky legal matters here. People have a lot of resources they can call upon to find a way to stay in their homes. Truth be told, the crisis seems rather muted. In any case, it's not the type of place that generates a lot of sympathy, fairly or not.

For more:
- here's the article

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Mon, 31 Mar 2008 07:59:50 -0400

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> In retrospect: Bear Stearns stood for a lot. Article
> 'Devastated' Bear Stearns employee sounds off; suit filed. Article

Industry News:
> Law firms, service firms profit from foreclosures. Article
> High oil prices lead to more cons. Article

Regulatory News:
> MA subpoenas banks on auction rate securities. Article

And Finally... Financial lessons from March Madness. Article