C

[scriabinop23]

Quote from newguy05:

No you are the one that is not getting it. With the exception of a few, all the banks will need to start raising cash to cover the additional writedowns. What C did was raising cash by selling its illiquid asset, this accomplishs 3 things right off the bat 1) clean up the balance sheet 2) raise cash 3) no dillution

This is a very smart move, as oppose to what wm and leh (to a much lesser extent) did which only accomplished 1 thing - raising cash at the cost of dillution and continue to keep the garbage on the books risking further deterioration.

Now that i think about it, this is actually insane if c manages to pull the deal off at only 10% loss.

Just remember..

10% loss at 30:1 leverage is a 300% loss.

 

[pumpanddumper]

Smells like shit to me. Sure, give it a pulse up and sell the news.

 

[Mvic]

Perhaps you guys need to read this blog and stop talking out your asses, not that you are the only ones ofcourse, a lot of that going around these days.

http://mrmortgage.typepad.com/blog/

Oh and by the way C had to agree to cover the 1st 20% of losses to get the deal done.

 

[bgp]

remember, this is the best of there junk .

bgp