From the Sacramento Business Journal:
The economy is slowing and credit is tight. This should be prime time for Small Business Administration lending. Instead, the SBA is reporting declines in lending in the region and nationwide.
...
Some banks that pushed hard in SBA locally last year have also slowed down. Bank of America made 130 loans in the district by May of federal fiscal year 2007. So far in this fiscal year, the banks SBA loans have declined by two-thirds, to 43 loans...Other active lenders include Capital One Bank and Washington Mutual Bank. Through May of fiscal 2007, Capital One Bank made 84 loans. This fiscal year, the bank has only made 29 loans, down 65 percent. Washington Mutual is down 68 percent over the same period last year, making 62 loans last year through May and 20 loans so far in fiscal 2008.
Shhhh, Everyone please. Tomorrow my Jumbo CD at IndyMac matures. If you promise to keep quiet I'll promise to be first in line. Then talk all you want.
I don't understand why people leave more than $100,000 at troubled banks like Indymac.
There are plenty of companies that will manage accounts of $5 to $50 million by buying CDs from different banks and keeping them invested for you in a way that lets you always have some CDs maturing so you have ready access to this capital.
Indy should have stuck with action, adventure archeaology instead of diverting into an industry like banking that he obviously knows little about. Go save some antiquities while you still can, Mr. Jones, and leave the banking to the bozos.
Too funny. I think each Senator should take responsibility for taking down one bank. NYT headline - "Gang of rogue Senators devastate US banking system."
When anxiety becomes an excessive and irrational dread of everyday situations and you begin to worry and feel tense without provocation, it can be a disabling disorder that needs medical attention.
Panic attacks, phobias, post-traumatic stress disorder, and obsessive-compulsive disorders are different categories of psychiatric conditions that involve excessive anxiety....
Wonderful model: use government insured deposits to raise funds, write crappy loans and stuff them to FHLB to raise more funds. Private enterprise at its best.
Our favorite Congresswoman, Laura Richardson, continued to demonstrate her financial skills by paying $1300 a month to lease a Lincoln at taxpayers expense. That is apparently about twice what others pay.
Maybe all the "extras" she had put in included a bed, fridge and stove since she may need to live in it pretty soon. She might have some foresight after all.
"Too funny. I think each Senator should take responsibility for taking down one bank. NYT headline - "Gang of rogue Senators devastate US banking system."
I like it; all our troubles are caused by the Gang of Rogues...
Anyone see this chart on OC housing (From OC Register):
Slice\tListed\tDeals\tMonths\tYr. ago
All O.C. 14,840\t3,006\t4.94\t9.11
$0-$500k 7,183\t1760\t4.08\t9.5
$500-750k 3,095\t761\t4.07\t8.79
$750k-1m 1,650\t265\t6.23\t7.24
$1-1.5m\t1,274\t138\t9.23\t8.76
$1.5-2m\t676\t51\t13.25\t12.38
$2-4m\t821\t41\t20.02\t14.83
$4m+\t343\t13\t26.38\t20.77
It didn't paste well...basically it looks like low priced (0-$500K) OC real estate is down to 4.08 months of supply vs. 9.50 a year ago.
The claim is that "investors" are snatching up about 30-40% of the properties for use as rentals. The questions are 1) with the enourmous supply of new rentals about to come on line will we see a dramatic decline in rental rates? 2)Could such a decline spur a second round of defaults as "investors" find their newly purchased units are not as profitable as they planned?
Florida sued mortgage lender Countrywide Financial Corp for predatory lending practices on Monday, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them. UPDATE 3-Florida sues Countrywide over mortgages
| Reuters
That I would love to see, instead of a foreclosure bus, a bus filled to the gills with crooked, corrupt slime ball, snake-headed, feces-stuffed, feces-eating Congressmen & Congresswomen, Senators, statesmen and all the other filth that exemplifies the mafia-based whores and prostitutes and the various shit they refer to as public funcionarios!!
** Espero que estos demonios del infierno permanecer allí por toda la eternidad, junto con sus familias y amigos!! (copyright shit, hands off)
OT -- The House just passed a bill to mandate that financial quarters (like the one ending today) be named dollars to account for the rising cost of time. Bush plans to veto the bill if it reaches him, because he wants them named Sacagawea to promote the failing coin.
So Morgan Stanley just placed a Buy on Lehman shares with an "overweight" rating and a price target of $31.
LOL my prediction....
On Tuesday Lehman upgrades Morgan Stanley to a Buy on Tuesday, citing a record opportunity to pick up a proven winner at a discount from book value....
Lying sacks of crap!! Why the market responds to these clowns after hours is beyond me.
So can someone better-informed help me out here? They say 1/2 of 1% no doubt in an effort to make that sound small, but they are a fractional reserve bank. Isn't 1/2 of 1% a significant fraction of their reserves (not 80% significant, but, I don't know, say 10%???)
Perhaps each congressional member of each state could pick a bank failure as a pet project? Save that bank! They could send out the quarterly newsletter and comment on speeches and then name an employee of the month,which could serve as a way to get fresh pages back into circulation on the hill; gads, if one thing is needed on the hill, that would be some fresh young faces!
ML implode is reporting that Indymac has closed its commercial lending unit, Indymac Commercial Lending Corp. There will be a formal announcement tomorrow.
Presumably this is before the much larger formal announcement from the FDIC on Thursday?
Ahhh shit, I just realaized that the price of tar and feathers has gone up! Maybe we need alternative fuels and then burn these witches at a public rally. Bring lots of tater salad and make sure to stay hydrated, cause it's gonna be a long hot day and night!
Chrysler is toast! And asphalt is going to rocket and property taxes will go up!
Re: The worsening U.S. auto sales slump hit Chrysler LLC again Monday as it announced plans to close one St. Louis-area factory and cut a shift from another because of declining demand for minivans and pickups.
Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., said a Barack Obama administration may have no other choice than to produce the first $1 trillion U.S. budget deficit.
I think Jim Rogers & Bill are buddies and will soon adopt...
You have to be under $1 for a while before delisting. You get a delisting notice and the whole process drags for a while. It also depends on what exchange the stock is traded.
"...Obama administration may have no other choice than to produce the first $1 trillion U.S. budget deficit."
Those assuming that Obama has the Presidency in the bag might be in for a big surprise never underestimate the Democrats' ability to snatch defeat from the jaws of victory.
Regardless of whether it's John McCain or Barack Obama, one of them is going to rue the day he got it in his head to be President. Of course there will be a difference in how the media cover it. If Obama is elected, Fox News will place ALL the blame for our economic miseries squarely on Obama's shoulders. If McCain is elected, Fox News will place ALL the blame for our economic miseries squarely on Obama's shoulders.
On the other hand, each morning Hillary will wake up and thank the gods above she didn't get the nomination. She can serve in the Senate, pontificate to her heart's content, and not have to shoulder that staggering burden. Just managing Bill is enough.
Bluestate,
They'll both do their own damage on top of that which we have today.
As much as I like Obama's job destroying entreprenuer tax reinstating Soc Sec at $200k, I think it's also a good idea to invade Iran...you know, while we're in the area anyway, why not drop in?
The questions are 1) with the enourmous supply of new rentals about to come on line will we see a dramatic decline in rental rates? 2)Could such a decline spur a second round of defaults as "investors" find their newly purchased units are not as profitable as they planned?
I've been wondering the same thing, but I guess the foreclosures also mean new renters entering the market.
Funny posts but you can bet the suckers caught out will be saying "why didn't the government warn us we could lose our money?"
If Schumer says nothing he's doing a disservice. If he says not to worry he's a dangerous liar. So he speaks the truth and blamed for the run on a bank.
No one wants to hear the truth.
The denial [bankruptcy] came on the same day the company welcomed ex-Chairman Lee Iacocca back into its fold with a rally with employees at its Auburn Hills headquarters. The 83-year-old Iacocca said the automaker would survive its current woes, just as it did when he helped save it from bankruptcy in the early 1980s.
Emphasis added. Business Week Online > File Not Found
I thought it was the American taxpayer who "saved" Chrysler?
Rob Dawg,
Stay away from any bank that is remotely mentioned to close (Indymac, Downey, Countrywide, Wachovia). The yield you gained to take the risk of holding an INDYMAC CD does not compensate you properly. MOre people lose money stretching for yield.
Floor Statement Sen. Charles E. Schumer S 900 Conference Report
Thank you, Mr. President. And I first want to thank Chairman Gramm and Senator Sarbanes, Chairman Leach, Representative LaFalce, and all of my colleagues who worked so long and hard on this legislation. Particular thanks to Senators Dodd and Edwards, who worked with us in the late-night hours to come up with a compromise that eventually helped get this bill passed. Mr. President, this is a historic moment. We've been working towards it for 18 years.
It's taken 18 years for Congress to pass this bill. When I first came to Congress, the issue was a narrow one -- revenue bonds. Could banks underwrite revenue bonds? And with technological change, with globalization, the issue has expanded far beyond revenue bonds to an issue where the future of America's dominance as the financial center of the world is at stake.
This bill is vital for the future of our country. If we didn't pass this bill, we could find London or Frankfurt or years down the road Shanghai becoming the financial capital of the world. That has grave implications for all of America, where financial services are one of the areas where jobs are growing the most quickly, where our technology is way ahead of everyone else, where our capital dominates the world. And it would be a shame if because Congress has been unable to act that all those advantages were frittered away as they well could be in a global world by our failure to realize the problems that our existing antiquated laws cause us.
So there are many reasons for this bill, but first and foremost is to ensure that U.S. financial firms remain competitive. Like their international competitors now, U.S. firms will be able to offer financial services to complement their business models. Had we not done this, three years from now with new technology, we could find major U.S. companies leaving the United States and locating in other countries that would have laws that would allow them to do these things.
I don't know what the marketplace will yield. Will people want to buy all their financial services from one company? Will it be on-line or with individuals? We don't know. We do know this,l that to close off one avenue of competition is the death knell for the future of a country in that area. In this case, financial services. So it was essential that we pass this bill.
So the first issue is jobs, plain and simple. Hundreds of thousands, yes millions of high-paying jobs. And I need not tell the Senate how important this bill has been to the financial capital of the world, New York.
Second, it's important to consumers. What the years have shown is that the more competition, the better. And this bill will allow more competition by allowing many more firms to compete over similar product lines. When a bank decides to go into the securities industry or a securities firm decides to sell insurance, they're looking for a competitive edge. And they may well find it. They may not. But the ability to have more competition, which this bill creates, is vital to consumers. This is a pro-consumer bill. And it's proconsumer for the same reason that our system has predominated over all the others -- competition.
So jobs is an important reason for this bill. Consumer interest and competition is an important reason for this bill.
A third is that we have to keep up with changing markets. When Glass-Steagall was passed, commercial banks dominated the financial landscape. They had 57% of all financial assets. Today, they have less than 25%. And to look at the world through that antiquated spyglass and say we must keep commercial banks from other areas because they may dominate, is to look at a world that's 50 years old.
In fact, many would argue that commercial banks are among the weakest competitors when you put them against not only securities firms and electronic firms but against mutual funds and everything else. And so we had to move this bill, thirdly, to keep up with changing markets.
And finally, we had to do it because otherwise the regulators were going topsy-turvy. And we all know it makes bad policy to have individual regulatory decisions make policy. That has been what's happened. Because of the necessities of technology and globalization, because of the changes in financial markets, individual companies were going to the regulators and asking for special permission to do A, B, C and the regulators were granting it.
Now we have an overall fabric. We have a law that will treat all companies equally, that will allow businesses, either new or existing, to plan for the future, and will create a level playing field. So there are many reasons to pass this bill.
Now my goal -- Mr. Chairman -- and I stated this at the outset -- was to modernize financial services but not take one step backward on C.R.A. we have done that. The C.R.A. provisions of the bill do not move things forward but they do not take a single step backward. And, in fact, as I have argued to the groups in my state, they will benefit from this legislation. Because their leverage in the C.R.A. process has always been when there are new mergers or new products that a bank decides to add. This is going to increase 10, 20 times. And every time the groups that are interested in C.R.A., one of the most successful banking laws we passed, will have that leverage. So instead of two or three times a year having the opportunity to make the case, they will probably have it two or three times a month. I would argue that C.R.A. groups are going to be so busy with all the new mergers and all the new services that they may not have time to keep up.
We accomplished a great deal. And I want to thank the Senator from Maryland as well as the Administration for making sure we did not take a single step backward on C.R.A.
Sunshine provisions are in the bill. Very hard to argue against them. If I'm for sunshine for business and for political people, including myself, how can you not be for sunshine even for groups that you support and believe in? I have no problem with the concept of sunshine. So we succeeded in C.R.A.
We also succeeded in terms of helping the consumer, in terms of protections. On A.T.M. fees, for instance, I am proud that banks will be required to disclose any and all charges for using an A.T.M. before a customer makes a decision to withdraw funds. I fought for years for this provision. First in the House, with Representative Roukema, and now in the Senate. And it is in the bill.
In addition, there are privacy protections in the bill. Does the bill go as far as I would like on privacy? No. But privacy is a large and complicated issue. We don't know what the balance ought to be between the ability of businesses to share information and the right of the consumer to protect his or her information. In the Senate, we did not have a single hearing on privacy. And to restructure all of privacy with huge numbers of unknown consequences on this bill made no sense. My goal again was, can we move forward? And we have. Not as far as I would like or many would like, but certainly not enough to sink a bill that has so many necessities behind it.
And, finally, Mr. Chairman, safety and soundness. The one thing that has dominated my thinking in this area is that we not repeat an S&L crisis, we not allow insured deposits to be used for risky activities. I am proud to say that the compromise between Treasury and Federal Reserve and the structure of the bill here makes sure that when insured dollars are used for anything that might be slightly risky, that the capital requirements and fire walls will make virtually certain that we will not repeat the kind of S&L crisis that we have had in the past.
And so, Mr. President, in conclusion, this is a historic day. It's a historic day for my state of New York, which I am proud to say is the financial capital of the world, and with this bill has a much greater likelihood of remaining. It is a historic day for modernizing one of the most important industries in American where we are technologically and entrepreneurially way ahead of the rest of the world and this will help us maintain our lead. And it is an historic day for those who have argued that we need to keep C.R.A. strong and keep consumer protections in the bill.
From Glass-Steagall to Gramm-Leach, from the Great Depression to the Golden Age, from isolationists to internationalists, from underdogs to champions, this bill, in my opinion, Mr. President, is an American success story for our economy, for our financial institutions, for our communities and consumers and for my state of New York. And I was proud to have played a role with so many others in ensuring its passage.
To put things in perspective I think Indymac's commercial lending operation was minor compared to its residential book. I certainly do not see them in CMBS
is this kind of warning a part of US Sen. job? just wondering
Hope is not a plan.
Hopefully people get their money out before they lose it.
Schumer received a copy of the day's New York Times with a dead fish in it.
...That's not really ominuous. NYT is trying to entice new subscribers. But still...
See what happens when your campaign contributions aren't large enough?
schumer covered his short position and he will issue an apology tommorow...
IrvineResident writes:
is this kind of warning a part of US Sen. job?
Only if it can get him on TV for 30 seconds.
From the Sacramento Business Journal:
The economy is slowing and credit is tight. This should be prime time for Small Business Administration lending. Instead, the SBA is reporting declines in lending in the region and nationwide.
...
Some banks that pushed hard in SBA locally last year have also slowed down. Bank of America made 130 loans in the district by May of federal fiscal year 2007. So far in this fiscal year, the banks SBA loans have declined by two-thirds, to 43 loans...Other active lenders include Capital One Bank and Washington Mutual Bank. Through May of fiscal 2007, Capital One Bank made 84 loans. This fiscal year, the bank has only made 29 loans, down 65 percent. Washington Mutual is down 68 percent over the same period last year, making 62 loans last year through May and 20 loans so far in fiscal 2008.
Sacramento Land(ing) - Sacramento Real Estate Market Blog - Sacramento Housing Market News
Shhhh, Everyone please. Tomorrow my Jumbo CD at IndyMac matures. If you promise to keep quiet I'll promise to be first in line. Then talk all you want.
Trusting your elected representatives is a crappy hedge.
Rob - be sure to knock down a few old ladies in line...
WATBs at Indymac
Rob Dawg, you will be fine. The FDIC almost closes down banks on Fridays or the last day of the week if there is a holiday ... hmmm, like this week.
Best Wishes
I don't understand why people leave more than $100,000 at troubled banks like Indymac.
There are plenty of companies that will manage accounts of $5 to $50 million by buying CDs from different banks and keeping them invested for you in a way that lets you always have some CDs maturing so you have ready access to this capital.
Wow, advance copies of Schumer speeches will be as hot as pre-IPO shares before too long.
A watched pot never boils, and IndyMac's too obvious. I'm hoping Wachovia will be the Friday special.
Indy should have stuck with action, adventure archeaology instead of diverting into an industry like banking that he obviously knows little about. Go save some antiquities while you still can, Mr. Jones, and leave the banking to the bozos.
Question for Tanta and/or FFDIC:
When bank fails, what typically happens to their RE portfolio, especially REOs? Are those that take over typically more aggressive about liquidation?
Good ones, Alec and c-&c-.
Too funny. I think each Senator should take responsibility for taking down one bank. NYT headline - "Gang of rogue Senators devastate US banking system."
These fools are a zero.
Having stress with bank runs?
Fight stress with food
Life Extension Daily News
When anxiety becomes an excessive and irrational dread of everyday situations and you begin to worry and feel tense without provocation, it can be a disabling disorder that needs medical attention.
Panic attacks, phobias, post-traumatic stress disorder, and obsessive-compulsive disorders are different categories of psychiatric conditions that involve excessive anxiety....
Schumer is trying to get the VP job and this is a PR stunt!
Wonderful model: use government insured deposits to raise funds, write crappy loans and stuff them to FHLB to raise more funds. Private enterprise at its best.
Those banks are such whiners...
didnt they already do that in 1913
OT, but at least still in the political sphere:
Our favorite Congresswoman, Laura Richardson, continued to demonstrate her financial skills by paying $1300 a month to lease a Lincoln at taxpayers expense. That is apparently about twice what others pay.
see:
Rep's got expensive wheels - The Daily Breeze
Maybe all the "extras" she had put in included a bed, fridge and stove since she may need to live in it pretty soon. She might have some foresight after all.
Someone should be wearing stripes for that. (That would be you, Senator Schumer.)
I'm thinking we have a good candidate for Sentence-Of-The-Year here.
We are hopeful that this issue appropriately abates soon.
Though, personally, I'd rather hear "Twenty years; no parole. Bailiff, please escort the banker out to the bus. Next!"
"Too funny. I think each Senator should take responsibility for taking down one bank. NYT headline - "Gang of rogue Senators devastate US banking system."
I like it; all our troubles are caused by the Gang of Rogues...
"we are hopeful that this issue appropriately abates soon"
The only thing appropriate would be for everyone to get their money the fuk out of there ASAP. Forget about FDIC.
hopeinsd, let me guess she is leasing it from her uncle Leroy who owns a used car lot?
hopeinsd said: "That is apparently about twice what others pay."
With her credit score, I'm not surprised.
She was lucky to have gotten the lease at all.
Hmm... perhaps we should look into that. Angelo, is she a friend of yours?
That is Doctor Jones, pal. I didn't go to 8 years of archaeology plundering school to be called Mr. Jones.
Terry, her crdit score does not matter as it is paid by the federal government.
Maybe the extra freight on the lease is for a homing device like Lojack. Only this Lincoln unerringly finds its way to Lefty's Liquors.
(just wondering.)
we did experience elevated customer inquiries
I'm guessing "elevated" is not the best word to describe the language used in those inquiries.
Anyone see this chart on OC housing (From OC Register):
Slice\tListed\tDeals\tMonths\tYr. ago
All O.C. 14,840\t3,006\t4.94\t9.11
$0-$500k 7,183\t1760\t4.08\t9.5
$500-750k 3,095\t761\t4.07\t8.79
$750k-1m 1,650\t265\t6.23\t7.24
$1-1.5m\t1,274\t138\t9.23\t8.76
$1.5-2m\t676\t51\t13.25\t12.38
$2-4m\t821\t41\t20.02\t14.83
$4m+\t343\t13\t26.38\t20.77
It didn't paste well...basically it looks like low priced (0-$500K) OC real estate is down to 4.08 months of supply vs. 9.50 a year ago.
The claim is that "investors" are snatching up about 30-40% of the properties for use as rentals. The questions are 1) with the enourmous supply of new rentals about to come on line will we see a dramatic decline in rental rates? 2)Could such a decline spur a second round of defaults as "investors" find their newly purchased units are not as profitable as they planned?
Thoughts?
Though, personally, I'd rather hear "Twenty years; no parole. Bailiff, please escort the banker out to the bus. Next!"
Anonymous Bosch | 06.30.08 - 6:53 pm
And then the rogue senators!!!!!
Florida sued mortgage lender Countrywide Financial Corp for predatory lending practices on Monday, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.
UPDATE 3-Florida sues Countrywide over mortgages
| Reuters
B of A's anchor.
I wonder if Schumer screams FIRE in crowded theaters too, for kicks.
Re: " please escort the banker out to the bus"
That I would love to see, instead of a foreclosure bus, a bus filled to the gills with crooked, corrupt slime ball, snake-headed, feces-stuffed, feces-eating Congressmen & Congresswomen, Senators, statesmen and all the other filth that exemplifies the mafia-based whores and prostitutes and the various shit they refer to as public funcionarios!!
** Espero que estos demonios del infierno permanecer allí por toda la eternidad, junto con sus familias y amigos!! (copyright shit, hands off)
Schumer strikes me as being selfserving and not very far sighted............ A typical D.C. politition
I wonder if Schumer screams FIRE in crowded theaters too, for kicks.
barely
I bet he also screams "pageboy" in the men's locker room, for kicks.
Is this one of those self-fulfilling prophecies?
I had IMB number one in my banking "Dead Pool". They surely will not see the weekend. Who is next?
Senator Feinstein should retaliate.
Make a speech on the Senate floor tomorrow claiming Citi is insolvent.
MiTurn writes:
Is this one of those self-fulfilling prophecies?
If it is ....it sure is a complicated one!!!!
OT -- The House just passed a bill to mandate that financial quarters (like the one ending today) be named dollars to account for the rising cost of time. Bush plans to veto the bill if it reaches him, because he wants them named Sacagawea to promote the failing coin.
In other news, Barry Bonds blames his inability to sign with a baseball team on the housing crisis.
So Morgan Stanley just placed a Buy on Lehman shares with an "overweight" rating and a price target of $31.
LOL my prediction....
On Tuesday Lehman upgrades Morgan Stanley to a Buy on Tuesday, citing a record opportunity to pick up a proven winner at a discount from book value....
Lying sacks of crap!! Why the market responds to these clowns after hours is beyond me.
@JJL
DSL -- Downey??? They can't be far behind IMB.
So can someone better-informed help me out here? They say 1/2 of 1% no doubt in an effort to make that sound small, but they are a fractional reserve bank. Isn't 1/2 of 1% a significant fraction of their reserves (not 80% significant, but, I don't know, say 10%???)
Re: Senator Feinstein should retaliate.
Perhaps each congressional member of each state could pick a bank failure as a pet project? Save that bank! They could send out the quarterly newsletter and comment on speeches and then name an employee of the month,which could serve as a way to get fresh pages back into circulation on the hill; gads, if one thing is needed on the hill, that would be some fresh young faces!
ML implode is reporting that Indymac has closed its commercial lending unit, Indymac Commercial Lending Corp. There will be a formal announcement tomorrow.
Presumably this is before the much larger formal announcement from the FDIC on Thursday?
The Mortgage Lender Implode-O-Meter News Pick-ups: Ailing/Watch: IndyMac Bancorp
I'm surprised they made it this long.
Don't forget wire those funds out of Indymac don't put in Cashier checks
Ahhh shit, I just realaized that the price of tar and feathers has gone up! Maybe we need alternative fuels and then burn these witches at a public rally. Bring lots of tater salad and make sure to stay hydrated, cause it's gonna be a long hot day and night!
I ♥ Congress
I wonder if Schumer gets any donations from hedge funds.
Ring. Ring.
"Hello?"
"Hi is this Grove Nichols at Indymac?"
"Yes. Yes it is. How can I help you."
"Is your bank running?"
"Yes, because of that terrible Schumer. Why."
"Well, maybe you should let it walk for awhile. (Snicker, snicker.)"
Click
Funny stuff nemo! How to find awesome posts on Yahoo ROTFLMAO!
"Indymac has closed its commercial lending unit, Indymac Commercial Lending Corp"
Really? Cease & Desist order, perhaps ?
Laura Richardson's expensive lease had "up-armoring" built in.
So, do congresspeople get reimbursed for their cars? Or did the money go direct to the strip club, er, leasing company.
Please tell me that there isn't some beautiful tropical retirement island where Richardsons and Schumers and Bushes and Cunninghams all go to die.
A lot of rough play out there in politics lately. Cricket, anyone?
I dunno, but it's looking like the minor bank run is going to end up turning into something rather on the major side.
Chrysler is toast! And asphalt is going to rocket and property taxes will go up!
Re: The worsening U.S. auto sales slump hit Chrysler LLC again Monday as it announced plans to close one St. Louis-area factory and cut a shift from another because of declining demand for minivans and pickups.
We Can Do It, yes in deedy...
Obama May Produce $1 Trillion Deficit, Gross Says
Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Co., said a Barack Obama administration may have no other choice than to produce the first $1 trillion U.S. budget deficit.
I think Jim Rogers & Bill are buddies and will soon adopt...
Looks like Indymac is offically toast:
http://ml-implode.com/info/iclc-notice.pdf
New post up
IMB closed @ .81 Friday. Down .19 to .62 today.
Will there even be anything to close by Friday? (Or thursday?)
Btw, din't you used to have to trade above $1.00 to be listed? When did that change?
You have to be under $1 for a while before delisting. You get a delisting notice and the whole process drags for a while. It also depends on what exchange the stock is traded.
Btw, din't you used to have to trade above $1.00 to be listed? When did that change?
You are given some time to take 'corrective' action I think. They warn you a few times and then delist you.
So they've halted commercial lending, but doesn't this imply that they can still make residential loans?
Given their stock price, it seems likely that they will be in FDIC hands by Thursday eve.
"...Obama administration may have no other choice than to produce the first $1 trillion U.S. budget deficit."
Those assuming that Obama has the Presidency in the bag might be in for a big surprise never underestimate the Democrats' ability to snatch defeat from the jaws of victory.
Regardless of whether it's John McCain or Barack Obama, one of them is going to rue the day he got it in his head to be President. Of course there will be a difference in how the media cover it. If Obama is elected, Fox News will place ALL the blame for our economic miseries squarely on Obama's shoulders. If McCain is elected, Fox News will place ALL the blame for our economic miseries squarely on Obama's shoulders.
On the other hand, each morning Hillary will wake up and thank the gods above she didn't get the nomination. She can serve in the Senate, pontificate to her heart's content, and not have to shoulder that staggering burden. Just managing Bill is enough.
Eric/A cat,
The NYSE is very quick to pull the trigger these days and delist a sub-$1 company.
Bluestate,
They'll both do their own damage on top of that which we have today.
As much as I like Obama's job destroying entreprenuer tax reinstating Soc Sec at $200k, I think it's also a good idea to invade Iran...you know, while we're in the area anyway, why not drop in?
The questions are 1) with the enourmous supply of new rentals about to come on line will we see a dramatic decline in rental rates? 2)Could such a decline spur a second round of defaults as "investors" find their newly purchased units are not as profitable as they planned?
I've been wondering the same thing, but I guess the foreclosures also mean new renters entering the market.
Funny posts but you can bet the suckers caught out will be saying "why didn't the government warn us we could lose our money?"
If Schumer says nothing he's doing a disservice. If he says not to worry he's a dangerous liar. So he speaks the truth and blamed for the run on a bank.
No one wants to hear the truth.
Asphalt Tsunami writes:
Chrysler is toast!
The denial [bankruptcy] came on the same day the company welcomed ex-Chairman Lee Iacocca back into its fold with a rally with employees at its Auburn Hills headquarters. The 83-year-old Iacocca said the automaker would survive its current woes, just as it did when he helped save it from bankruptcy in the early 1980s.
Emphasis added. Business Week Online > File Not Found
I thought it was the American taxpayer who "saved" Chrysler?
"Indymac: Schumer Caused Minor Bank Run"
No. Indymac caused minor bank run.
Rob Dawg,
Stay away from any bank that is remotely mentioned to close (Indymac, Downey, Countrywide, Wachovia). The yield you gained to take the risk of holding an INDYMAC CD does not compensate you properly. MOre people lose money stretching for yield.
Aleister Perdurabo writes:
Press Release
Floor Statement Sen. Charles E. Schumer S 900 Conference Report
Thank you, Mr. President. And I first want to thank Chairman Gramm and Senator Sarbanes, Chairman Leach, Representative LaFalce, and all of my colleagues who worked so long and hard on this legislation. Particular thanks to Senators Dodd and Edwards, who worked with us in the late-night hours to come up with a compromise that eventually helped get this bill passed. Mr. President, this is a historic moment. We've been working towards it for 18 years.
It's taken 18 years for Congress to pass this bill. When I first came to Congress, the issue was a narrow one -- revenue bonds. Could banks underwrite revenue bonds? And with technological change, with globalization, the issue has expanded far beyond revenue bonds to an issue where the future of America's dominance as the financial center of the world is at stake.
This bill is vital for the future of our country. If we didn't pass this bill, we could find London or Frankfurt or years down the road Shanghai becoming the financial capital of the world. That has grave implications for all of America, where financial services are one of the areas where jobs are growing the most quickly, where our technology is way ahead of everyone else, where our capital dominates the world. And it would be a shame if because Congress has been unable to act that all those advantages were frittered away as they well could be in a global world by our failure to realize the problems that our existing antiquated laws cause us.
So there are many reasons for this bill, but first and foremost is to ensure that U.S. financial firms remain competitive. Like their international competitors now, U.S. firms will be able to offer financial services to complement their business models. Had we not done this, three years from now with new technology, we could find major U.S. companies leaving the United States and locating in other countries that would have laws that would allow them to do these things.
I don't know what the marketplace will yield. Will people want to buy all their financial services from one company? Will it be on-line or with individuals? We don't know. We do know this,l that to close off one avenue of competition is the death knell for the future of a country in that area. In this case, financial services. So it was essential that we pass this bill.
So the first issue is jobs, plain and simple. Hundreds of thousands, yes millions of high-paying jobs. And I need not tell the Senate how important this bill has been to the financial capital of the world, New York.
Second, it's important to consumers. What the years have shown is that the more competition, the better. And this bill will allow more competition by allowing many more firms to compete over similar product lines. When a bank decides to go into the securities industry or a securities firm decides to sell insurance, they're looking for a competitive edge. And they may well find it. They may not. But the ability to have more competition, which this bill creates, is vital to consumers. This is a pro-consumer bill. And it's proconsumer for the same reason that our system has predominated over all the others -- competition.
So jobs is an important reason for this bill. Consumer interest and competition is an important reason for this bill.
A third is that we have to keep up with changing markets. When Glass-Steagall was passed, commercial banks dominated the financial landscape. They had 57% of all financial assets. Today, they have less than 25%. And to look at the world through that antiquated spyglass and say we must keep commercial banks from other areas because they may dominate, is to look at a world that's 50 years old.
In fact, many would argue that commercial banks are among the weakest competitors when you put them against not only securities firms and electronic firms but against mutual funds and everything else. And so we had to move this bill, thirdly, to keep up with changing markets.
And finally, we had to do it because otherwise the regulators were going topsy-turvy. And we all know it makes bad policy to have individual regulatory decisions make policy. That has been what's happened. Because of the necessities of technology and globalization, because of the changes in financial markets, individual companies were going to the regulators and asking for special permission to do A, B, C and the regulators were granting it.
Now we have an overall fabric. We have a law that will treat all companies equally, that will allow businesses, either new or existing, to plan for the future, and will create a level playing field. So there are many reasons to pass this bill.
Now my goal -- Mr. Chairman -- and I stated this at the outset -- was to modernize financial services but not take one step backward on C.R.A. we have done that. The C.R.A. provisions of the bill do not move things forward but they do not take a single step backward. And, in fact, as I have argued to the groups in my state, they will benefit from this legislation. Because their leverage in the C.R.A. process has always been when there are new mergers or new products that a bank decides to add. This is going to increase 10, 20 times. And every time the groups that are interested in C.R.A., one of the most successful banking laws we passed, will have that leverage. So instead of two or three times a year having the opportunity to make the case, they will probably have it two or three times a month. I would argue that C.R.A. groups are going to be so busy with all the new mergers and all the new services that they may not have time to keep up.
We accomplished a great deal. And I want to thank the Senator from Maryland as well as the Administration for making sure we did not take a single step backward on C.R.A.
Sunshine provisions are in the bill. Very hard to argue against them. If I'm for sunshine for business and for political people, including myself, how can you not be for sunshine even for groups that you support and believe in? I have no problem with the concept of sunshine. So we succeeded in C.R.A.
We also succeeded in terms of helping the consumer, in terms of protections. On A.T.M. fees, for instance, I am proud that banks will be required to disclose any and all charges for using an A.T.M. before a customer makes a decision to withdraw funds. I fought for years for this provision. First in the House, with Representative Roukema, and now in the Senate. And it is in the bill.
In addition, there are privacy protections in the bill. Does the bill go as far as I would like on privacy? No. But privacy is a large and complicated issue. We don't know what the balance ought to be between the ability of businesses to share information and the right of the consumer to protect his or her information. In the Senate, we did not have a single hearing on privacy. And to restructure all of privacy with huge numbers of unknown consequences on this bill made no sense. My goal again was, can we move forward? And we have. Not as far as I would like or many would like, but certainly not enough to sink a bill that has so many necessities behind it.
And, finally, Mr. Chairman, safety and soundness. The one thing that has dominated my thinking in this area is that we not repeat an S&L crisis, we not allow insured deposits to be used for risky activities. I am proud to say that the compromise between Treasury and Federal Reserve and the structure of the bill here makes sure that when insured dollars are used for anything that might be slightly risky, that the capital requirements and fire walls will make virtually certain that we will not repeat the kind of S&L crisis that we have had in the past.
And so, Mr. President, in conclusion, this is a historic day. It's a historic day for my state of New York, which I am proud to say is the financial capital of the world, and with this bill has a much greater likelihood of remaining. It is a historic day for modernizing one of the most important industries in American where we are technologically and entrepreneurially way ahead of the rest of the world and this will help us maintain our lead. And it is an historic day for those who have argued that we need to keep C.R.A. strong and keep consumer protections in the bill.
From Glass-Steagall to Gramm-Leach, from the Great Depression to the Golden Age, from isolationists to internationalists, from underdogs to champions, this bill, in my opinion, Mr. President, is an American success story for our economy, for our financial institutions, for our communities and consumers and for my state of New York. And I was proud to have played a role with so many others in ensuring its passage.
Thank you.
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Excellent. I give Chuck a conscience so he must have piped up out of guilt. Thanks so much for the post.
To put things in perspective I think Indymac's commercial lending operation was minor compared to its residential book. I certainly do not see them in CMBS
What's got granite countertops and lies in the gutter on its back?
A dead bank...