Bank NY Mellon recently took write down on Alt A MBS of 5 billion at 25 cents on dollar on M 2 M to 1.24 billon if carried as loan write off loss would have 240 Million, thats the differance carried on the books. Check numbers at bankstocks.com Gary Townsend articles.
i started a thread about this last week b4 this news came out: http://elitetrader.com/vb/showthread.php?s=&threadid=155845 i wonder about it now though. when the news of the 3.12 meeting hit, it did NOTHING- no bounce whatsoever. that really surprised me (and cost me some money- shocking). makes me wonder whether it will have the impact i initially thought...
MTM only applies to loans that the firm has put for sale. For the loans that are held until maturity, MTM does not apply. Those loans follow a different FASB rule. What is going on is that bad loans that were held for sale are now being pushed into longer term loans because firm is forced to renegotiate the loans to avoid foreclosure. The article does not compare (a) MTM with (b) Forced pushing of short term loans to longer term loans (at not so good IRR). When comparing (a) with (b), MTM is better. It compares (a) MTM with (c) Longer term loans that were originated with appropriate IRR for longer term loans.
The Constitution DIED in 1933 after the traitor FDR STOLE the gold and silver from the people, so I am NOT worried about capital/corporal punishment. Nationalization or not - hang/decapitate the banksters. The ilk of Bernie Madofff/Stanford have "killed" more than a few people...by subjecting the future generations to untold taxation to pay off the debt they created...while these scum are still alive...extract their organs and whatever else can be "salvaged" from their useless existence! -gastropod
Looks like your prediction worked, look at today's early morning rally... Could you please explain your indicators, esp. RSI (14) above 28.90? I esp like your "catalyst" statement. That's exactly what happened today...
There is only one historical sample point for supporting this 9-11x earnings estimate, the great depression, right? With that small sample, it's hard to say... Any more supportive evidence?
Folks, even a Citi news coming out already makes the market rally like hell... The market was really oversold ... RabbitOne wins...