Ben B.: 'C'mon, Angie baby. Part of the deal -- didn't you read the fine print? -- of the Fed, I mean B of A, rescue, I mean investment, was that you sing from MY songbook. Excise that r- word from your vocabulary immediately!
OK, i'm reposting my CFC/BofA thoughts from three threads ago:
BofA was the administrative agent and a participant in CFC's major credit facilities.
Now, is their $2B capital infusion NEW money (in which case they now have a serious conflict of interest/divergent interest from their fellow lenders as they now have credit AND equity interests)
OR
Did BofA agree to convert its share of the credit exposure to a new, better-priced quasi-equity interest?
What's the latin prhrase that means the opposite of "mea culpa?" The orphan is blaming his parentless status for his having murdered his mother and father.
"A bankruptcy court judge will decide when thousands of employees terminated suddenly by First Magnus Financial Corp. last week will receive their final paychecks.
After filing for Chapter 11 bankruptcy protection in Tucson Tuesday, the company asked the court for immediate permission to pay its remaining 159 employees, including payments of $8,333 to its five corporate officers.
First Magnus also requested that the more than 5,000 employees laid off by the company nationwide be paid when "adequate funds become available""
Having listened to Mozillo's comments for some time.....He says it like it is. He has been brutally honest for some time (in preperation for immunity from prosecution perhaps) but either way, he hasn't waffled from what I've heard.
And in Medford, Ore., Diane Adams, a real-estate agent, is offering to pay four months of mortgage payments on the $975,000 house she and her home-builder husband constructed on 20 acres near Crater Lake.
Sweet, vaca in oregon... i'll take your offer for 3 months, please
Well, I feel so much better now that Mozilo has clarified matters for us ignorant masses. We need more of this plain speaking from our valued business leaders.
I am going down to CFC Bank to deposit all my personal liquid assets.
Barley, employees (and the IRS) come before all other creditors. These employees will be paid - even if they have to sell the computers and desks.
jg, yeah, I think the Tan Man went off the script here. He started with what a great vote of confidence the BofA investment was ... and then started saying everything is really bad. Not exactly what stock investors wanted to hear.
I think the company needs to be around to pay the match. Employees usually get shorted on pay as well, though it can depend on the judge.
"Preferential creditors, such as tax authorities, have the first claim on the assets, followed by the banks that have lent money on a secured basis to the company. Any remaining assets are then divvied up between lenders (who have no security for their loans) bond investors, suppliers and employees."
already built million-dollar homes in Richmond, Va., and is offering an additional $20,000 reduction for buyers who buy inventory homes before Labor Day.
For buyers short on cash, builders are offering as much as $10,000 to help cover costs, which can help buyers qualify financially for the home
forget about the computer desk... i read these stories from the floor... that way , you get the point that i'm Rlmao
Well, of course the realtor is having a temporary problem in Oregon.... it's different here!
Just like the idiot builder that tore down a perfectly good house next to my semi-rural home... and put up two enormous 750k mcmansions in its place. The Free Market demands a builder sacrifice, and I'm volunteering him.
It is our financial system that rewards risk-taking activities in the short term, even though in the long run the fall-out from taking those risks might prove fatal. Countrywide chose to join the subprime gangs and reaped its share of profits handsomely, but now have to fight for its life. Had CFC stuck to traditional sound lending practices amid the biggest housing and credit boom, what would happen to its stocks and returns to its investors during the last 4-5 yrs?
I wonder how much of this interview was part of the B of A Agreement - Hey Tan MAn go on TV and pump up the stock by banging on the FED and Regultors to raise FNM cap and drop rates
Fact is, the CP market is sorting itself out a bit right now. The task from the beginning was sorting out which credits were good, which were bad, and which could turn bad if access to credit stayed tight. It takes time to do that. It takes time to find alternatives to the CP market. Time is passing. Things are getting sorted out. The Fed is helping. And 'zilla is spinning a self-serving tale.
We may still have a recession, but I don't think 'zilla is in any position to make an objective forecast.
Housing downturn will lead to a recession? Maybe the tan man is CR?
Great defense when he eventually gets hauled before the SEC, senate finance committe, etc - see, I've been running an anonomous blog for two years warning people this would happen!
After watching the 'zillo video and his talk of the "stigma" of all four IBs going to the Fed window it sounds to me like he has been reading this blog.
I wonder how he feels about all the Tan-Man comments.
Bill Gross, who runs the world's largest bond fund, has called on President George W. Bush rather than the Federal Reserve to bail out American homeowners struggling with sub-prime mortgages.
Technical correction on the priority of employees and the IRS. First, secured creditors get paid out of the collateral. Then, unsecured debts get paid up to certain amounts in the following priority:
(1) Claims for debts to spouse or children for court ordered support
(2) Administrative expenses of the bankruptcy
(3) Unsecured, post petition claims in an involuntary case
(4) Wage claims of employees and independent salespersons up to $10,000 per claim
(5) Contributions to employee benefit plans up to $10,000 per employee
(6) Claims of farmers and fishermen against debtors operating storage or processing facilities.
(7) Layaway claims of individuals who didn't get the item they made the deposit on
(8) Recent income, sales, employment or gross receipts taxes
It's all in § 507 of the BK Code. If you'd really, really like to read it:
The payments to surviving employees (including officers) are an administrative expense, so they get paid before those laid off. So yes, I'm saying First Magnus will probably get its request granted.
oh, he uses the D word, not the R word:
"Such a fall in house prices would represent asset-price deflation not seen since the Great Depression, he explained"
COBRA health premiums are not subdised by the employer. COBRA rates are 102% of the premium paid by the employer to the Health Insurance company with zero subsidy. So I would think COBRA would be available.
COBRA is very expensive though, the real cost of a health plan is often $1000 - $1200 per month for family coverage. Your employer actually pays all of this, every month, except for the portion you have deducted from your check. If the government ever takes over health care, expect to pay much, much higher income taxes - healthh care costs a fortune.
So mwe have a standstill and immediate conversion, both ordinary provisions. The unusual one is BoA's right of first refusal on the sale of the company.
Commercial paper not improving? I think he means asset backed commercial paper.
Maybe everyone can sense the Orangeman's plan to pawn his fake collateral off on unsuspecting money market investors just as he has pawned all his overvalued CFC stock on dumb-money public investors.
He is tan and smooth. That guy should run for politcal office. What do you want to bet that he offered Maria a ride to the airport in the back of his limo after the interview?
Barley, according to Bloomberg, BofA gets to record a $700MM profit on this transaction this quarter due to the conversion price of the notes ($18/share ). So they get a quick pop.
But, IF they also "eliminated" their credit exposure by converting to preferred shares, they also avoid seriously bdowngrading the profitability on the debt due to downgrades from credit risk.
When you have a double-downgrade in commercial/corporate lending, I can assure you, you better be wearing a cup to the next meeting. And I'll gladly bet that CFC was a double-downgrade candidate.
So, BofA had strong short-term incentives to convert, rather than add new capital. i'm betting that's what happened.
Mozillo on housing: "Equity has gone, the tide has gone out."
I agree with CR that he went off his talking points as the interview progressed.
Also, his rationale of the "win-win" early in the interview (and when he was still on topic) was absurd. A win for BAC maybe, but a loss for CFC common shareholders whatever reasonable time frame you care to choose.
If the government ever takes over health care, expect to pay much, much higher income taxes
everyone obviously rails against high income taxes, but isn't it the case that money not taken off the top by the government just ends up in inflated land values via the mechanism of higher rents?
Eg. living here in the Bay Area it's easy to see how wage inflation and rising rents are basically linked 1:1.
The "pop" on the in the money part of the convert is meaningless. I noted in an earlier thread that the RA's would love this, so I think you are on point there.
Troy - That is a very clever arguement designed to appeal to every single person who rents and does not have health insurance, or maybe even pay income taxes. That would be a good one for the Democrats to use to prop up support for government health care.
The reality of the situation might be a flattening of rents over 10 years, not some quick market adjustment decline. Income taxes would keep rising even as health care quality declined. Rent flattening would probably always be behind the curve, so you would be initially poorer and never catch up, as your health care declined. But that is a pretty slick arguement there, maybe Hillary could use it.
This whole thing is getting frothier and frothier. I'm thinking there is a huge disconnect developing between what is really going on and what gets 'reported'. It is one of those times we'll read about months from now in stories about how close things got to the edge.
I emailed the Bloomberg reporter to see what gives. Hopefully he'll respond. Surprisingly, I've found that insightful questions to reporters are usually met with a personal reply.
I thought it was interesting that the CFC bank couldnt tap liquidity because they dont have the assets to borrow against. CFC has the assets but cant transfer them to the bank.
All those years of lending but ignoring building their bank business is hurting them.
Yal,
Mozilo on why take the Money from BoA and not from the Fed window:
"The assets that are colateral are not in the bank unit and we could not move them to the bank to be placed at the Fed window as colterla"
Mozilo on how safe the bank is:
"And the senior citizens should not forget that we also have access for the bank at the Fed window"
Spot on...thats why I was asking in the previous postings here, why did CFC go to BOA 1) when they were in a buy back, 2) window was 5.75 3)dividend was 7.25 4) they would make 700 million in one day ?????
so he says bank had no access to window yet bank is safe because of access to window, when banks have access to window thats why he was trying to convert..but fed allowed any way on unsecured paper..
Lance McD..
and then there was Tanta or CR or maybe Banker that reported back in 2006 that CFC avg daily operating cost was 16BB now i know there are less loans so that cuts some of the 16BB daily and some lay offs but the coast for operating still has to be in excess of 1/8 of that or 2 BB liquid everyday....
so I believe that they have bought 11.8BB plus what 2BB so even at 1BB per day they just bought two weeks operating to be able to take 1BB loss on paper and sell it quickly. And BOA just got their money...
What??? All Mozilo is trying to do with his recession and liquidity talk is to get either the Fed/Bush/Clinton/Dodd to act on the homeowners and lenders behaves and save "the victims". If not, we are suppposedly going to be in big trouble as a country............
Salaries and wages have a higher priority than creditors. As long as there are any assets, back wages will be paid.
COBRA is available as long as First Magnus is still maintaining some sort of health care plan for their remaining employees. If they discontinue all health insurance plans, they are out of luck.
COBRAs sounds great until you get laid off. If the layoff didn't put you into cardiac arrest the sticker shock of continuing group health insurance without your employeer's subsidy certainly will.
If the government ever takes over health care, expect to pay much, much higher income taxes
So what. It's not any less money when its called an insurance premium. In fact, it's more when you look at overhead of the private insurance compared to medicare.
If you are currently being paid at market for your skills, your wage income will would go up when your employer no longer has to pay health insurance for you. Total compensation (wages+benefits) is not going to fall if the government takes over health care unless you somehow believe total compensation is currently out of equilibrium given the current labor market.
Wow. Prop up the stock on one day, torpedo the whole market on the next. There's a strategy here, I think it is "CFC: We suck less".
Nothing like having plenty of money when others don't.
The TanMan should know: his company's stupid lending practices helped cause the bubble.
Ben B.: 'C'mon, Angie baby. Part of the deal -- didn't you read the fine print? -- of the Fed, I mean B of A, rescue, I mean investment, was that you sing from MY songbook. Excise that r- word from your vocabulary immediately!
OK, i'm reposting my CFC/BofA thoughts from three threads ago:
BofA was the administrative agent and a participant in CFC's major credit facilities.
Now, is their $2B capital infusion NEW money (in which case they now have a serious conflict of interest/divergent interest from their fellow lenders as they now have credit AND equity interests)
OR
Did BofA agree to convert its share of the credit exposure to a new, better-priced quasi-equity interest?
I don't think we know the full story here yet.
What's the latin prhrase that means the opposite of "mea culpa?" The orphan is blaming his parentless status for his having murdered his mother and father.
hmmm, is a body floating to the surface today that only the big boys know about so far?
just watching the yen and market moving sharply...
Yal - want to start up a chapter of CRA (Calculated Risk Anonymous)?
"Hi, my name is energyecon and I have a problem with CR!"
For those who toil and trouble for companies...beware, or ask to start being paid at the end of everyday:
A quote taken from:
First Magnus files for bankruptcy | Welcome to StarNet - Tucson, Arizona ®
"A bankruptcy court judge will decide when thousands of employees terminated suddenly by First Magnus Financial Corp. last week will receive their final paychecks.
After filing for Chapter 11 bankruptcy protection in Tucson Tuesday, the company asked the court for immediate permission to pay its remaining 159 employees, including payments of $8,333 to its five corporate officers.
First Magnus also requested that the more than 5,000 employees laid off by the company nationwide be paid when "adequate funds become available""
I wonder if they get COBRA?
I wonder if it's a way to incite fear, hurt the credit markets further, and get the Fed more inclined to ease?
Having listened to Mozillo's comments for some time.....He says it like it is. He has been brutally honest for some time (in preperation for immunity from prosecution perhaps) but either way, he hasn't waffled from what I've heard.
The Tan Man calls for a recession? I'm going to have to rethink my whole macroeconomic position and strategy.
Angelo using the r-word is like seeing Madeline Murray O'hare standing up in church and shouting 'Amen!" to the preacher.
(and yes especially since she is dead)
And in Medford, Ore., Diane Adams, a real-estate agent, is offering to pay four months of mortgage payments on the $975,000 house she and her home-builder husband constructed on 20 acres near Crater Lake.
Sweet, vaca in oregon... i'll take your offer for 3 months, please
Well, I feel so much better now that Mozilo has clarified matters for us ignorant masses. We need more of this plain speaking from our valued business leaders.
I am going down to CFC Bank to deposit all my personal liquid assets.
Wait, I think I drank them all last nite.
Errr, what!?!
video:
Video - CNBC.com
For the first time Both Cramer and Kass are short CFC.
Gary: You raise a good point. Good catch. Was this a way to change a pecking order?
Since the consensus view is about to call for recession, that means we'll probably get a depression.
Barley, employees (and the IRS) come before all other creditors. These employees will be paid - even if they have to sell the computers and desks.
jg, yeah, I think the Tan Man went off the script here. He started with what a great vote of confidence the BofA investment was ... and then started saying everything is really bad. Not exactly what stock investors wanted to hear.
Best to all.
I also hear there may be trouble in the housing market.
From the video-
"can deny BK"
I wonder if the get COBRA?
Sounds iffy:
Aegis bankruptcy
*can't
"I wonder if they get COBRA?"
I think the company needs to be around to pay the match. Employees usually get shorted on pay as well, though it can depend on the judge.
"Preferential creditors, such as tax authorities, have the first claim on the assets, followed by the banks that have lent money on a secured basis to the company. Any remaining assets are then divvied up between lenders (who have no security for their loans) bond investors, suppliers and employees."
Does this mean all of their shorts are in place?
already built million-dollar homes in Richmond, Va., and is offering an additional $20,000 reduction for buyers who buy inventory homes before Labor Day.
For buyers short on cash, builders are offering as much as $10,000 to help cover costs, which can help buyers qualify financially for the home
forget about the computer desk... i read these stories from the floor... that way , you get the point that i'm Rlmao
10g's to help afford 1mm...omg
Another one: Amstar
404 Error, No such article | Chron.com - Houston Chronicle
from the video:
"the FED liquidity has not helped"
Sanslube:
Well, of course the realtor is having a temporary problem in Oregon.... it's different here!
Just like the idiot builder that tore down a perfectly good house next to my semi-rural home... and put up two enormous 750k mcmansions in its place. The Free Market demands a builder sacrifice, and I'm volunteering him.
It is our financial system that rewards risk-taking activities in the short term, even though in the long run the fall-out from taking those risks might prove fatal. Countrywide chose to join the subprime gangs and reaped its share of profits handsomely, but now have to fight for its life. Had CFC stuck to traditional sound lending practices amid the biggest housing and credit boom, what would happen to its stocks and returns to its investors during the last 4-5 yrs?
I wonder how much of this interview was part of the B of A Agreement - Hey Tan MAn go on TV and pump up the stock by banging on the FED and Regultors to raise FNM cap and drop rates
Go Becky. Yeah, 'zilla wants an ease.
Fact is, the CP market is sorting itself out a bit right now. The task from the beginning was sorting out which credits were good, which were bad, and which could turn bad if access to credit stayed tight. It takes time to do that. It takes time to find alternatives to the CP market. Time is passing. Things are getting sorted out. The Fed is helping. And 'zilla is spinning a self-serving tale.
We may still have a recession, but I don't think 'zilla is in any position to make an objective forecast.
Mozilo must have taken some Xanax before that interview.
Housing downturn will lead to a recession? Maybe the tan man is CR?
Great defense when he eventually gets hauled before the SEC, senate finance committe, etc - see, I've been running an anonomous blog for two years warning people this would happen!
Blaming the media for this downturn - come on Tan Man. Its not the bad loans it the medai. LMAO
After watching the 'zillo video and his talk of the "stigma" of all four IBs going to the Fed window it sounds to me like he has been reading this blog.
I wonder how he feels about all the Tan-Man comments.
And this in the UK daily, today:
Bush should bail out sub-prime industry - Telegraph
Bill Gross, who runs the world's largest bond fund, has called on President George W. Bush rather than the Federal Reserve to bail out American homeowners struggling with sub-prime mortgages.
CR,
Technical correction on the priority of employees and the IRS. First, secured creditors get paid out of the collateral. Then, unsecured debts get paid up to certain amounts in the following priority:
(1) Claims for debts to spouse or children for court ordered support
(2) Administrative expenses of the bankruptcy
(3) Unsecured, post petition claims in an involuntary case
(4) Wage claims of employees and independent salespersons up to $10,000 per claim
(5) Contributions to employee benefit plans up to $10,000 per employee
(6) Claims of farmers and fishermen against debtors operating storage or processing facilities.
(7) Layaway claims of individuals who didn't get the item they made the deposit on
(8) Recent income, sales, employment or gross receipts taxes
It's all in § 507 of the BK Code. If you'd really, really like to read it:
11 U.S.C. 507
The payments to surviving employees (including officers) are an administrative expense, so they get paid before those laid off. So yes, I'm saying First Magnus will probably get its request granted.
I'll go away now.
oh, he uses the D word, not the R word:
"Such a fall in house prices would represent asset-price deflation not seen since the Great Depression, he explained"
COBRA health premiums are not subdised by the employer. COBRA rates are 102% of the premium paid by the employer to the Health Insurance company with zero subsidy. So I would think COBRA would be available.
COBRA is very expensive though, the real cost of a health plan is often $1000 - $1200 per month for family coverage. Your employer actually pays all of this, every month, except for the portion you have deducted from your check. If the government ever takes over health care, expect to pay much, much higher income taxes - healthh care costs a fortune.
So mwe have a standstill and immediate conversion, both ordinary provisions. The unusual one is BoA's right of first refusal on the sale of the company.
How many click throughs on the Countrywide ad would it take to bring them down? 500million, 1 billion, 2 billion? The world may never know.
Countrywide® Home Loans
Fast home refi, good credit or not. Countrywide®. 4 out of 5 approved
Who is the 1 out of 5 rejected? Is it the baby or undocumented worker in the picture on their site?
Commercial paper not improving? I think he means asset backed commercial paper.
Maybe everyone can sense the Orangeman's plan to pawn his fake collateral off on unsuspecting money market investors just as he has pawned all his overvalued CFC stock on dumb-money public investors.
He is tan and smooth. That guy should run for politcal office. What do you want to bet that he offered Maria a ride to the airport in the back of his limo after the interview?
Barley, according to Bloomberg, BofA gets to record a $700MM profit on this transaction this quarter due to the conversion price of the notes ($18/share ). So they get a quick pop.
But, IF they also "eliminated" their credit exposure by converting to preferred shares, they also avoid seriously bdowngrading the profitability on the debt due to downgrades from credit risk.
When you have a double-downgrade in commercial/corporate lending, I can assure you, you better be wearing a cup to the next meeting. And I'll gladly bet that CFC was a double-downgrade candidate.
So, BofA had strong short-term incentives to convert, rather than add new capital. i'm betting that's what happened.
Of course, this is pure, wild speculation.
Banker, comment on my theory?
This guy is the perfect poster child for both snake-in-the-grass, glutinous-bonus, profit-above-all-else CEOs and melanoma candidate.
Mozillo on housing: "Equity has gone, the tide has gone out."
I agree with CR that he went off his talking points as the interview progressed.
Also, his rationale of the "win-win" early in the interview (and when he was still on topic) was absurd. A win for BAC maybe, but a loss for CFC common shareholders whatever reasonable time frame you care to choose.
When you have a double-downgrade in commercial/corporate lending, I can assure you, you better be wearing a cup to the next meeting.
Ah, Gary, that was a crack worthy of the finest smart-asses on this blog.
realty-based lawyer, thanks for the correction. It makes perfect sense that secured creditors get paid first.
Thanks!
If the government ever takes over health care, expect to pay much, much higher income taxes
everyone obviously rails against high income taxes, but isn't it the case that money not taken off the top by the government just ends up in inflated land values via the mechanism of higher rents?
Eg. living here in the Bay Area it's easy to see how wage inflation and rising rents are basically linked 1:1.
Gary,
The "pop" on the in the money part of the convert is meaningless. I noted in an earlier thread that the RA's would love this, so I think you are on point there.
Troy - That is a very clever arguement designed to appeal to every single person who rents and does not have health insurance, or maybe even pay income taxes. That would be a good one for the Democrats to use to prop up support for government health care.
The reality of the situation might be a flattening of rents over 10 years, not some quick market adjustment decline. Income taxes would keep rising even as health care quality declined. Rent flattening would probably always be behind the curve, so you would be initially poorer and never catch up, as your health care declined. But that is a pretty slick arguement there, maybe Hillary could use it.
This whole thing is getting frothier and frothier. I'm thinking there is a huge disconnect developing between what is really going on and what gets 'reported'. It is one of those times we'll read about months from now in stories about how close things got to the edge.
I emailed the Bloomberg reporter to see what gives. Hopefully he'll respond. Surprisingly, I've found that insightful questions to reporters are usually met with a personal reply.
Mozilo on why take the Money from BoA and not from the Fed window:
"The assets that are colateral are not in the bank unit and we could not move them to the bank to be placed at the Fed window as colterla"
Mozilo on how safe the bank is:
"And the senior citizens should not forget that we also have access for the bank at the Fed window"
"The assets that are colateral are not in the bank unit and we could not move them to the bank to be placed at the Fed window"
Most interesting. Is the implication that preferred stock owned by BofA is a proxy at the Fed window? They'd be better off with boats, in my opinion.
What's the latin prhrase that means the opposite of "mea culpa?"
It's not Latin; it's Yiddish:
Chutzpah is defined as a request for mercy by a man who killed his parents on the grounds that he is an orphan.
Anyone care to place odds on a CFC BK in the next 12 mos?
Effective Funds rate is still below target rate.They are cheating us!
I thought it was interesting that the CFC bank couldnt tap liquidity because they dont have the assets to borrow against. CFC has the assets but cant transfer them to the bank.
All those years of lending but ignoring building their bank business is hurting them.
Troy:
I don't think your theory is applicable to Detroit and SE Michigan.
Francis,
Abi Gezount: "mea calpa" dos is Latin, nischt Yidish - Mea culpabut - Wikipedia, the free encyclopedia in Yidish is dos besser.
zol zein goot,
Interesting moves @ BCS. Resignation and wide ups
The link is Mea culpa - Wikipedia, the free encyclopedia and indeed it would have sound better in Yidish....
Yal:
Francis meant that the opposite of the Latin word "mea culpa" is the Yiddish word "chutzpa"
OT: Gross wants to bail out everyone in foreclosure? WTF? How asinine is this man? Honestly. Somebody tell him to grow the mustache back.
Yearning to learn,
Kapish. Obviously, my Yiddish is sometimes better than my English (and my Pashto as well)
elvis
What do you want to bet that he offered Maria a ride to the airport in the back of his limo after the interview?
is that any worse than Pickens offering on the air to take Erin to china on his plane and her going
Yal,
Mozilo on why take the Money from BoA and not from the Fed window:
"The assets that are colateral are not in the bank unit and we could not move them to the bank to be placed at the Fed window as colterla"
Mozilo on how safe the bank is:
"And the senior citizens should not forget that we also have access for the bank at the Fed window"
Spot on...thats why I was asking in the previous postings here, why did CFC go to BOA 1) when they were in a buy back, 2) window was 5.75 3)dividend was 7.25 4) they would make 700 million in one day ?????
so he says bank had no access to window yet bank is safe because of access to window, when banks have access to window thats why he was trying to convert..but fed allowed any way on unsecured paper..
Lance McD..
and then there was Tanta or CR or maybe Banker that reported back in 2006 that CFC avg daily operating cost was 16BB now i know there are less loans so that cuts some of the 16BB daily and some lay offs but the coast for operating still has to be in excess of 1/8 of that or 2 BB liquid everyday....
so I believe that they have bought 11.8BB plus what 2BB so even at 1BB per day they just bought two weeks operating to be able to take 1BB loss on paper and sell it quickly. And BOA just got their money...
What??? All Mozilo is trying to do with his recession and liquidity talk is to get either the Fed/Bush/Clinton/Dodd to act on the homeowners and lenders behaves and save "the victims". If not, we are suppposedly going to be in big trouble as a country............
I wonder if they get COBRA?
Salaries and wages have a higher priority than creditors. As long as there are any assets, back wages will be paid.
COBRA is available as long as First Magnus is still maintaining some sort of health care plan for their remaining employees. If they discontinue all health insurance plans, they are out of luck.
COBRAs sounds great until you get laid off. If the layoff didn't put you into cardiac arrest the sticker shock of continuing group health insurance without your employeer's subsidy certainly will.
Hey, what happened to all those "rumors" earlier this week about Warren Buffet buying Countrywide, or pieces thereof?
Phfizzle ...
If the government ever takes over health care, expect to pay much, much higher income taxes
So what. It's not any less money when its called an insurance premium. In fact, it's more when you look at overhead of the private insurance compared to medicare.
If you are currently being paid at market for your skills, your wage income will would go up when your employer no longer has to pay health insurance for you. Total compensation (wages+benefits) is not going to fall if the government takes over health care unless you somehow believe total compensation is currently out of equilibrium given the current labor market.
Monkey In Chief,
What color is the sky in the world you live in?
is that any worse than Pickens offering on the air to take Erin to china on his plane and her going
I did not know that. Think it would work for me, too?
"is that any worse than Pickens offering on the air to take Erin to china on his plane and her going"
heh heh, you get the CNBC girl all mix up.. Picken took Becky to China not Erin...Man, your badge of loyal CNBC viewer just got taken away...