Banks Said to Agree on Credit Backup Fund: N.Y. Times

Quote from WaveStrider:

"The country’s three biggest banks have reached agreement on the structure of a backup fund of at least $75 billion to help stabilize credit markets, a person involved in the discussions said yesterday, ending nearly two months of complicated negotiations against a worsening economic backdrop."

Soooo......

That means the Banks who are in deep doo-doo in the subprimes are putting up money to shore themselves up?

Wait - I just took money out of my left pocket and put it in my right pocket and...by gum....it REALLY WORKS!!

I feel a lot better now....
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Good point. I think this whole rescue fund is all window-dressing and using the right moment to create something that would have been impossible to do at another time. What exactly the real purpose is I don't know either, but it's more political than practical and it smells.
 
Quote from jficquette:

They are just doing it to create a vehicle that will allow them to value their level 3 assets.

Its Enron all over.


John
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The PPT is reving its engines for yr end. FNM talking raised limits now that it is back to regular SEC filings. Bernanke talking gov't guaranteed jumbo mortgages on the hill.

earlier this week the bailout fund was apparently in trouble now a complete reversal.

they have a few bullets. Will be interesting to see them try to put a patch on the credit bubble.
 
Quote from ASusilovic:

While I was reading the NYT headlines, another piece of news "occured" :

HSBC to reveal new $1bn sub-prime hit

HSBC will this week reveal a further $1bn (£475m) of bad debts stemming from its American mortgage business, amid mounting fears that the full impact of the global credit crunch has yet to wash up on British shores.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/11/cnhsbc111.xml

never-ending story...:mad:
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Is there any major bank left that hasn't reported subprime hit yet?
 
Quote from jficquette:

They are just doing it to create a vehicle that will allow them to value their level 3 assets.
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That's exactly what I thought. They are able to prop up their unrealistic level 3 valuations by creating a closed market for their own toxic waste. "It's worth what we say it is, damn it."
 
sniffle...

It's a warm, fuzzy feeling to see banks getting along so well colluding this way...

Like - a Norman Rockwell Thanksgiving painting....

sniffle....
 
Quote from ASusilovic:

While I was reading the NYT headlines, another piece of news "occured" :

HSBC to reveal new $1bn sub-prime hit

HSBC will this week reveal a further $1bn (£475m) of bad debts stemming from its American mortgage business, amid mounting fears that the full impact of the global credit crunch has yet to wash up on British shores.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/11/cnhsbc111.xml

never-ending story...:mad:
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You just made me $1000, Sus. Thanks. I saw your post, figured it would be good to add another short to Sterling. Did it, market opened and shot down. Owe ya a drink, mate.
 
Quote from Ivanovich:

You just made me $1000, Sus. Thanks. I saw your post, figured it would be good to add another short to Sterling. Did it, market opened and shot down. Owe ya a drink, mate.
More...

:)
 
A Super-size-it SIV is interesting, but aren't those CDO's bundled loans?

Figuring out what's good and bad means evaluating the individual components of each? Unbundling each CDO? How would they average to a value without the individual numbers?
 
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