Posts Tagged ‘banks’

Canadian Banks Not Effected Like Germany, Australia

Written by Timothy Blake on August 01, 2007 under Archives, International

With another lesson on how to instill or lose the trust of friends, Canada’s five largest banks may report losses related to the deteriorating U.S. subprime mortgage market but they should be “manageable,” bond rating agency DBRS said on Wednesday. In addition to their capital markets businesses, some Canadian banks have “modest” banking exposure from loans to U.S. subprime borrowers or to other mortgage lenders, the firm said. Canadian banks will report in late August.

Blocked from pulling money out – like 1929 again?

Written by Timothy Blake on August 01, 2007 under Archives, Investors

Boston-based hedge fund manager Sowood Capital Management LP said yesterday that it lost $1.5 billion in July after declines in the corporate debt markets. Banks and insurers ranging from UBS AG in Zurich to CNA Financial Corp. in Chicago have reported losses related to subprime mortgage debt. UBS, the world’s biggest money manager, replaced Peter Wuffli as chief executive officer in July after three quarters of declining earnings and losses at one of its hedge funds that invested in securities linked to subprime loans.

Undertanding Why Mortage Money Is Drying Up

Written by Timothy Blake on July 31, 2007 under Archives, Definitions

Financial backers that pumped money into the mortgage industry are getting pretty tight with their money. In the following example the banks we refer to are not like your local bank. These banks lend money to a mortgage lender, the mortgage lender funnels that money into mortgage loans, and the mortgage loans act as collateral securing the credit line. Lenders are not normally entitled to demand upfront repayment. A margin call takes place when collateral securing a loan loses its value. When that happens, there is nothing protecting the lender from default by the borrower – in this case the borrower is a mortgage lender – so the lender pulls the plug with a margin call.

Mortgage Fraud Is A Two Way Street

Written by Timothy Blake on July 31, 2007 under Archives, Mortgage Fraud

Allegations of mortgage fraud are again echoing through the mortgage industry. Many people think mortgage fraud is perpetrated by potential borrowers. Evolution in a greedy mortgage industry seemed to hit a balance of responsibility with no-doc loans and no verification. Images of shady deals, where a loan officer was told about rental properties that leased for more than they did, and unverified income from eBay and Amazon, give the impression that the potential borrower is running a scam.

Private Equity Deals In Limbo as Losses Mount

Written by Timothy Blake on July 29, 2007 under Analysis, Archives

In an article from Scotland published on Sunday, July 29th, we see a great analysis of the mortgage crisis as it pertains to future loans, bank profits, and investment funds.

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