Archives

HSBC HFC Beneficial layoffs pending, up to 4 divisions say some

Written by Timothy Blake on November 16, 2007 under Archives, Economic Impact, Job Losses, Opinion, Your Answers

A lively discussion is taking place at HSBC Watch regarding HSBC, HFC, and Beneficial layoffs. HSBC employees are giving insight into what may happen. One reliable source provided verified information in that past that proved to be true, and recently said “2200 layoffs to be announced tonight/Friday (November 15-16).

Wells Fargo in interesting position of frustration

Written by Timothy Blake on November 16, 2007 under Archives, Economic Impact, Job Losses, Lenders

Wells Fargo has so far managed to avoid most of the turmoil that has gripped other lenders which puts the Bank in an interesting position. Like a football team that is losing but cannot get their quarterback onto the field Wells Fargo will feel the impact of new laws, a weak dollar, sagging home prices, and foreclosures. Their CEO John Stumpf said “We have not seen a nationwide decline in housing like this since the Great Depression.” Home equity loans from Wells Fargo may go bad, and foreclosures may result as over 200,000 people are now unemployed as a result of the mortgage crisis. Some of them have mortgages from Wells Fargo. For a bank that was relatively insulated the frustration continues to mount. Here is why:

Lawmakers and subprime – a joke again this time?

Written by Timothy Blake on November 16, 2007 under Archives, Editorial, Opinion

U.S. lawmakers tried it in 2002. They tried it again in 2005, but some like Bob Ney of Ohio went to prison instead. Now they are trying it again. The most comprehensive legislative response to the subprime crisis emerged on Thursday as the House of Representatives passed a bipartisan bill imposing liability on companies that package mortgages into securities and setting new standards for mortgage origination. Now it reminds me of a time when rustlers stole all the cattle, killed the rancher’s dog, and burnt the barn to the ground. Too little too late. Where was the OCC while the problem built up over the years? What the Bush administration did might surprise you.

Novastar says bankruptcy is possible

Written by Timothy Blake on November 16, 2007 under Analysis, Archives, Editorial, Lenders

NovaStar sold some of their mortgages to Saxon Mortgage last month, raising some doubts about NovaStar. The lender had a propensity to call home owners before their payments were due. As the troubled lender saw bankruptcy approaching they would call homeowners more than once a day. NovaStar Financial Inc. shares fell as much as 63 per cent on November 15th after the troubled subprime mortgage lender posted a $598 million (U.S.) third-quarter loss and said bankruptcy is possible. Will anybody miss them, or the intrusion on one’s privacy?

Barclays and HSBC manage to lose $6 billion

Written by Timothy Blake on November 15, 2007 under Adjustables (ARMs), Archives, Economic Impact, Outside the U.S., Risk Management

Barclays and HSBC are on different ends of the mortgage crisis but between them they lost $6 billion from their exposure to the U.S. housing crisis and related credit crunch. HSBC lost money because of U.S. mortgages going bad, and Barclays lost money because of collateralized debt obligations (CDO’s) based on U.S. mortgages. The process of putting together a mortgage pool begins when a home loan is originated by a bank or mortgage lender. That loan is typically sold to a Wall Street firm that pools it with thousands of others. Once a pool is packaged, it is sold to investors in different slices, based on risk. That is the CDO.

« Older Entries
Newer Entries »

Our Sponsors

<
Our Partners Selected Articles


© Copyright 1998 - 2012 Mortgage Crisis Daily | 54 queries in 0.339 seconds.