Barclays $2.7 Billion Writedown
Submitted by
CalculatedRisk on Thu, 11/15/2007 - 7:13am (27 comments)
in
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Yeah but what makes one think this is the last write-down that Barclay's will do? Even if they say so now.
Excellent news.
Moin,
i have listened to the call.
Nobody that had listened to this call believes that this was it.....
Stock shot up over 5 percent after the opening...now down 1 percent.....
Here the update with additional infos
Barcalys Trading Update
That's a relief for me. I'm in Barclay's iShares (TIP).
Barclays was one of the more larger subprime players when the boom was going on. It would be hard for me to think this is it for them.
More Larger? Please excuse me.
Okay, thanks.
My relief is gone. I'm now working on the relief valve to reduce some pressure.
Oh, only $3 Billion,yawn.Wait a sec that's more than I made all last year!
Tom Stone,
LOL!!
I lost $2.7 billion in my couch.
No wait, I think I just had a flashforward into the future. I was trying to scrounge up some money to buy a gallon of gasoline.
Stock shot up over 5 percent after the opening...now down 1 percent...
Short blasting is becoming a national pasttime.
Soon the Japanese housewives will be doing it too.
They lost 2.7 billion dollars, sure sounds like a cause for celebration to me!
Insane times
I posted this earlier and didn't get any response. With all of the write-downs occuring by banks revaluing assets does anybody know when/if banks will potentially have to restate past earnings.
My understanging is writedowns are when the assets lose value based on the lastest data from the market or model. What happens when earnings were booked based on deffered interest being piled on via an option ARM? I know many folks were predicting that these earnings being booked would never materialize as cash. Will the banks have to restate past earnings or are these covered in the writedowns we are currently seeing? (I am not an accountant)
I have my business as well as personal accounts with BB&T;the funds are swept daily and invested in MM funds.Any one know how safe these are?
WSJ wrote that a $2.9 bln to $3.1 bln loss was likely. Thus the "better than expected" story.
Big list of icky headlines overnight and today. The GE fund reported here, along with a Bear Stearns ratings downgrade, risk of bond insurers being downgraded, Cerberus rethink on United, WSJ reporting that junk sales are not going well, a second week of falling commercial paper outstanding. Even so, stocks are up?
In a credit/leveraged boom, assets generally go up, but in a credit contraction with de-leveraging (especially with forced selling) you have asset prices generally take haircuts while liabilities stay the same, therfore impairing balance sheets.
How can somebody with 180% of tangible capital(Goldman) in level 3 assets know, a priori, there will be no write downs?? The whole definition of level 3 assets is that they cannot be marked to market or model because they are illiquid not traded and not transparent. and nobody knows what they are worth. By the way private equitiy assets (level 3), are not going to be affected by a slowdown or recession??....I bet they are not going up in value.
missed the call..but, I have trouble believing this as they were arrived at w/ Price W. accts. in an accelerated fashion...did they get an auditors signature? On the 27th we will have a clearer pic...perhaps then we all can be "shocked" or "surprized"
Oh, only $3 Billion,yawn.Wait a sec that's more than I made all last year!
WTF. That's like my entire 401k!
This one isn't even worth the 'confessional' tag. Barclays farts that much on Sunday afternoons.
NEW YORK (Reuters) - NovaStar Financial Inc (NFI.N: Quote, Profile, Research) shares sank by roughly half on Thursday after the company, which has halted subprime mortgage lending, posted a big quarterly loss and said bankruptcy is possible
NovaStar plunges over 60 percent on bankruptcy warning
| Reuters
MBIA, Ambac Downgrades May Cost Market $200 Billion (Update2) - Bloomberg.com
The AAA ratings of MBIA Inc., Ambac Financial Group Inc. and their five smaller competitors are being reviewed by Moody's Investors Service and Fitch Ratings. Without guarantees, $2.4 trillion of bonds may fall in value and some issuers would get shut out of the capital markets.
NovaStar, almost forgot about them, weren't they one of Cramer's picks last spring?
Money quote: "NovaStar said it has stopped mortgage lending, and does not plan to resume it until the economics turn more favorable. It said its current strategy is to manage a mortgage-backed securities portfolio and operate a retail brokerage."
(cue laugh track ...)
C'mon now. You can do it.
"Take it off. Take it all off!
dont worry thats just 1,843 bil EUR and it will be lower with each new month ...
Rescap is reportedly nearing a trigger in some of its loans - capital deterioration, don't you know - so that lenders will call the loans if big daddy GM does pony up some bucks. It just goes on and on.
==========================
"Take it off. Take it all off!
ratefink
But you can leave your hat on !
-K
Year to date (last 12 months that is)inflation rate up to 3.5%. In normal times would not that demand a rise in interest rates? 'Course faced with inflation or recession the FED, in its great wisdom, probably will opt for inflation. So much for the now inconvenient dogma of the past 20 years.