did you see the Jeff comments on TASR today? Not only does this stuff happen, fake news releases, rumors, innuendos......... every day. Cramer wrote about it , for cryin' out loud.
Ackman is laughing his ass off. http://www.marketwatch.com/news/sto...x?guid={D78121A0-0A7C-44FC-8CBA-CD8CB2982458} SAN FRANCISCO (MarketWatch) -- Ambac Financial and MBIA Inc. will lose more money than they're currently predicting from guarantees they sold on complex mortgage-related securities, according to Bill Ackman, a longtime critic of the bond insurance industry who is betting against the companies. Ambac and MBIA shares fell almost 20% at one point in afternoon trading on Wednesday. The stock market also gave up earlier gains. Ambac (ABK:AMBAC Inc ABK 10.85, -2.08, -16.1%) will incur losses of roughly $11.61 billion from exposure to residential mortgage-backed securities and collateralized debt obligations (CDOs), Ackman, head of hedge fund firm Pershing Square Capital Management, said in a letter to regulators on Wednesday. (MBI 13.96, -2.02, -12.6%) will lose about $11.63 billion from similar exposures, he added. MBIA could lose another $928 million if reinsurance the company bought to cover certain CDO exposures from 2007 doesn't pay out, Ackman said. "Losses to MBIA and Ambac from these exposures are materially higher than suggested by the rating agencies or the bond insurers themselves," Ackman said in the letter, a copy of which was obtained by MarketWatch. MBIA slumped 13% to close at $13.96 on Wednesday, while Ambac shares fell 16% to $10.85. The stocks fell by almost 20% earlier. "It is apparent that Mr. Ackman has been very busy preparing an aggressive case against" bond insurers, Ambac spokesman Peter Poillion said in an emailed statement. "At this point, based on past experience, we say with confidence that there is another story, one that will be communicated fully." MBIA spokesman Williard Hill didn't immediately respond to a phone message left seeking comment on Wednesday afternoon. Ackman also estimated total losses that could hit the bond insurance sector, banking industry and broader capital markets from CDOs backed by other asset-backed securities. Losses on such CDOs sold between 2005 and 2007 will probably be roughly $231 billion, he estimated. So-called super-senior parts of these securities, which are held by some large financial institutions, will account for about $92 billion of these losses, Ackman added. The bond insurance industry as a whole could lose $27.5 billion from its exposure to CDOs backed by other asset-backed securities, he estimated. Bond insurers agree to pay principal and interest when due in a timely manner in the event of a default -- a $2.4 trillion business that offers a credit-rating boost to municipalities and other issuers that don't have AAA ratings. Without those top ratings, insurers' business models may be imperiled. The companies guaranteed billions of dollars worth of mortgage-backed securities and CDOs in recent years. Those exposures are now triggering losses as the mortgage market deteriorates. Some bond insurers have already lost their AAA ratings. The latest victim was Financial Guaranty Insurance Company (FGIC), which is partly owned by private-equity giant Blackstone Group
You guys are buying shit if you own these companies. How stupid can wallstreet be to think that these companies are AAA????? Remember the BSC buyout garbage. Yeah, that shit works both ways. This time it's the truth. The rating agencies have been gagged by NY Insurance Superintendant. Finally, some reality hits the markets. Everyone's lying out there about rosy it is. People are too dumb to realize this. Bernanke needs to do a 180 and quick before it's too late.
Ackman is hoping to grab a great part of the so called losses of 231 Billion for his self. So he will be sure to get as much attenion as he can wheather true or fantasy.
It's already TOO LATE. Q4 GDP was clocked at 0.6% Another Bush appointee shows just how incompetent he is . . . Go back to Princeton Ben!
This just hit the news wires....Bush is gonna bring back "Brownie" to run the Fed. He asked Harriet Myers but she's busy teaching Sunday school.