Lunchtime Links 8-20
Ouch. Colonial left a mark (CalculatedRisk) CR pulls a very helpful chart from BB&T’s investor presentation regarding the Colonial deal. It shows that BB&T marked down Colonial’s loans 37%. It also shows the marks taken on similar transactions over the past year. While Colonial’s loans appear particularly toxic, this gives you a sense for losses that may be embedded in the loan books of other banks.
Average Home Price in Detroit falls to $11,596 (Carpe Diem)
TLGP shrinks (FDIC) Debt outstanding under FDIC’s debt guarantee program fell to $320 billion this month from $339 billion last month as the shortest-term paper matures. My colleague Agnes notes that TLGP is likely to end on schedule this fall. It won’t go to zero for some time, however, as debt previously issued remains outstanding.
Deficit estimate falls (Reuters) Good news: The administration won’t have to ask for as much as $250 billion of additional bailout money for the financial sector, so the estimate for this year’s deficit falls from $1.84 trillion to the positively frugal $1.58 trillion.
BBVA is likely winner for Guaranty Financial (WSJ) More to come…
Nine held in carbon trading swoop (FT) Organized crime getting involved with carbon-trading.
100 (old) pennies worth $1.81 if melted down (Coinflation) Check out the melt value of various U.S. coins. An attentive reader points out that the pennies in question aren’t the ones currently being issued. No, the mint switched over to cheaper zinc pennies in 1982. This is how kings inflated their currencies once upon a time when they were still metallic. They’d instruct citizens to turn in gold coins, melt them down and return an alloyed coin with lower gold content. Sounds like confiscation, yes? That’s what inflation is. FDR pulled a similar stunt in 1933.
Mortgage delinquency rate sets record in Q2 (Mortgage Bankers) “The combined percentage of loans in foreclosure and at least one payment past due was 13.16 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey”
Putpockets give a little extra cash (Reuters)