Commentaries

Calling all banks honoring California IOUs

July 7, 2009

So far, I have Bank of America, Wells Fargo and Chase saying they will honor the California IOUs until Friday.

Hybrids securities come home to roost

July 7, 2009

It’s not just consumer and real estate loans that have wreaked havoc on the banking system, but another favorite financial product championed by big banks during the boom years: hybrid securities.

Sheila Bair gets it right

July 2, 2009

FDIC Chairman Sheila Bair last month told a US Senator her agency would “get it right,” in coming up with a set of rules to govern private equity investments in failed banks. And it appears that’s what Bair has done.

PE bank rules–now that’s news

July 1, 2009

Glad to hear the FDIC is getting close to issuing tough rules for allowing private equity firms to buy the assets of lenders taken over by the regulator. The Wall Street Journal reports on the development today.

Bankslaughter

July 1, 2009

There are criminal investigations into the events of the recent financial crisis. The two managers of the Bear Stearns hedge funds that blew up in the summer of 2007 have been indicted in Brooklyn, and more cases in other venues and more charges against executives will certainly be brought.

Wall Street rebound likely to be impressive

June 30, 2009

The Wall Street Journal has the rundown on how old-fashioned  trading and underwriting is likely to give big banks like JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America their best quarter yet since “the credit crisis erupted” (not sure when they’re dating that exactly though since you could go back to June or Aug 2007 on that one.)

It’s not over till it’s over

June 30, 2009

Over at The Big Picture, Jack McHugh makes some interesting comparisons between the calm seen in the markets now as banks and investors wrap and the quarter and a year ago. His takeaway though is don’t expect a repeat of last year’s second half meltdown.

Still talking about those pesky legacy loans

June 29, 2009

For all the stabilization in the financial markets and talk about the ECB and Federal Reserve weighing exit strategies from the massive amount of stimulus they’ve pumped into the system, the U.S. still hasn’t come up with a viable solution for the toxic plague on bank balance sheets. Though markets don’t seem too bothered since the big banks have been able to raise tens of billions of dollars, it’s the fate of smaller banks that are exposed to construction and development loans that are a real worry.

Commercial real estate in the dumps

June 24, 2009

David Bodamer over at Clusterstock has some interesting color from a commercial real estate conference where the mood was decidedly grim. Rather than being cheered by the hope that the Fed’s inclusion to commercial mortgage bonds its TALF program will alleviate the stress, participants seem resigned that the worst is yet to come.