WSJ: S&P Downgrades $8.74 Billion in CDOs
Submitted by
CalculatedRisk on Fri, 01/11/2008 - 11:42am (15 comments)
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The analysts want to get to the bar before the investors;-P
Gold up dollar down, market down. gee bummer dudes.
Someday this war's gonna end....
OK, guys. I've been worried about Fannie's retained portfolio since about 2003 (started with questions about war affordability, then discovered the "re-fi" bubble and finally saw to my horror how the GSEs were involved).
Things like this story would suggest that those $700+ billion of AAA paper might be hiding some losses. Considering that is being managed by a company with only a small fraction of that in market cap, and with the risk "sold" (hello Q-election) to counterparties that at this point have their own problems, isn't the whole mess about to be wrapped up in a nice wicker basket and left on the steps of the Capitol?
So, who has Standard Pacific in the dead pool?
The Lottery - Wikipedia, the free encyclopedia
The story contrasts commonplace details of contemporary life with a barbaric ritual known as the "lottery." The setting is a small American town (pop. 300) where the locals display a celebratory mood as they gather on June 27 for their annual lottery. After a person from each family draws a small piece of paper, one slip with a black spot indicates the Hutchinson family has been chosen. When each member of that family draws again to see which family member "wins," Tessie Hutchinson is the final choice. She is then stoned by everyone present, including her own family and the young men.
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Allenm: "Someday this war's gonna end ..."
Exactly my point.
1395
1390
1385
1380
1375
where it stops , only the guy at goldman knows, with his hand ....literally on a dial, that controls where the markets close , every day
So, who has Standard Pacific in the dead pool?
That would be Clyde, I think.
Can't find any hard news on why SPF is down over 30%, now in the "Starbucks tall dark roast" club (one share of SPF will cost you about $1.75, or a cup of Starbucks cheap-o java.)
Fil Zucchi at Minyanville says SPF has hired a team of advisors that are known to handle bankruptcy reorganizations.
I haven't seen any other confirmation, but I don't have news ticker on.
It's never too early for a ratings massacre.
Can't find any hard news on why SPF is down over 30%, now in the "Starbucks tall dark roast" club (one share of SPF will cost you about $1.75, or a cup of Starbucks cheap-o java.)
central_scrutinizer,
You should used finance.google.com to look up stock stuff..
The first news item there was posted at 1:22pm today.
Time to Get Out of Standard Pacific
That coincides nicely with the dump that followed a few minutes later.
Thank you central_scrutinizer, for legitimizing my claim to SPF....so I wonder which firm has the best/fast counsel? I can't find any news either.
A bankruptcy specialist named Buckfire - why does this sound funny?
Jim
OK, guys. I've been worried about Fannie's retained portfolio since about 2003 ...
Things like this story would suggest that those $700+ billion of AAA paper might be hiding some losses....
isn't the whole mess about to be wrapped up in a nice wicker basket and left on the steps of the Capitol?
John McLeod
As I understand it, there is no actual guarantee of any sort of FNM by the government. and it will literally take an act of Congress to make there be one.
From wikipedia: "As a GSE, it is a privately-owned corporation authorized to make loans and loan guarantees. It is not backed or funded by the U.S. government, nor do the securities it issues benefit from any explicit government guarantee or protection."
Too bad so many people - including investment managers - actually think FNM is 'implicitly guaranteed'.
More details on SPF ... NYSE asked for a statement from them, apparently none was forthcoming. As far as I can tell trading was never halted.
SPF stock actually recovered a bit into the close, trading @2.20. Someone bought a boatload (~4 million) of shares around 3PM.
nemo you can breathe a bit easier ... between WCI and this we should have a winner next week.
bobn,
I have no doubt that Congress has the political will to back the implicit guarantee -- 100 percent. I have been persuaded by experts, including Mr. Bill Maloni, Fannie's longtime head lobbyist, in a rather public discussion at Doom several months ago.
I don't think they have the economic strength to back up the political will, IMHO.