Lunchtime Links 3-24
BofA to start reducing mortgage principal (Lawder, Reuters) It’s good news that BofA is looking at principal reduction, but this announcement is limited to only a small portion of ultra-toxic loans extended by Countrywide (now a unit of BofA). And BofA isn’t doing this out of the goodness of its heart, they’re doing it because of a settlement with Massachusetts Attorney General Martha Coakley. Here’s BofA’s press release.
Average homeowner in Obama foreclosure program under water (Nasiripour, HuffPo) This is another reason why principal forgiveness is likely the future of mortgage mods. But banks and their investors should be the ones forced to eat losses. Hopefully Treasury isn’t roped into some gimmick to subsidize principal writedowns.
Mindich counts on Film Dept IPO to recover defaulted debt (Weiss, Bloomberg) Would note that since we warned folks to stay away from this IPO (scroll down to “Box Office Blues”), they’ve significantly scaled back the amount they want to raise. They’ve also pushed the offer date back and are likely to do so again. This time they’re blaming Easter/Passover. Also noticed yesterday that they called on Gerard Butler to pitch the stock for their roadshow presentation. ‘cuz that’s who you should be trusting for advice on buying stocks….
First bank IPO since 2007 — FIBK (Yahoo Finance) I saw the Film Dept roadshow while investigating this company, which IPO’d today. If you watch their roadshow presentation, you’ll see that the CEO is salivating over the possibility of buying failed banks. That’s proved a winning recipe for other banks like ABCB, up 90% since they bought their second failed bank last November.
74 institutions miss TARP dividend payments (SNL) Up from 55 last quarter. Not included are the three TARP recipients that failed, nor those who missed other payments owed to TARP, nor AIG…
Bully gets cracked by caped crusader (Break.com) Nerds everywhere wonder where this guy was when they were in school!
Time for your own car (ht CyberSquirt)