Another BAILOUT or a $ 1.8 trillion LOOPHOLE
What is the real market value of ABCP’s assets?
Fed creates commercial paper-buying facility
http://www.federalreserve.gov/newsevents/press/monetary/20081007c.htm
The asset backed commercial paper (ABCP) had helped to fuel the housing boom?
The Federal Reserve on Tuesday announced it would create a special-purpose facility, with the Treasury Department’s blessing, to begin buying [...]
NEW YORK (MarketWatch) - Merrill Lynch & Co. could write down as much as $5.4
billion on distressed assets in the second quarter, an analyst for Lehman
Brothers Holdings said Friday. Lehman analyst Roger Freeman upped his estimate
for Merrill’s write-downs by $3 billion and now sees the bank reporting a
second-quarter loss of $2.78 a share, compared to [...]
S&P affirmed its ‘AA-/A-1+’ credit rating on Citigroup Inc. and its ratings on Citigroup’s units. Standard & Poor’s also said that it removed all these ratings from CreditWatch, where they were placed on April 15, 2008, with negative implications. The outlook on all these companies is negative. “Despite the challenges facing Citigroup over the next [...]
Moody’s Investors Service said loss expectations on securities backed by subprime
home-equity deals have gotten worse than expected and could have “material
implications” on the bond insurers’ capital adequacy.
The credit rater also said again that the industry’s two biggest players - MBIA
Inc. (MBI) and Ambac Financial Group Inc. (ABK) - could lose their AAA ratings
because of the [...]
UPDATE: Moody’s: Ambac Still At Risk For Downgrade >ABK
Last Update: 4/24/2008 12:50:09 PM
DOW JONES NEWSWIRES
Moody’s Investor Service said Ambac Financial Group Inc.’s (ABK) operating unit
is still at risk for a downgrade after the bond insurer posted a $1.66 billion
loss on Wednesday.
Moody’s said that any further ratings action would be driven by the performance
of the mortgage [...]
Ambac Financial Group Inc. (ABK) swung into the red in the first quarter on
another $1.73 billion in collateralized-debt-obligation losses and $1.04 billion
in loss provisions as the nation’s second-biggest bond insurer continued to be
weighed down by the credit crunch.
The company reported a net loss of $1.66 billion, or $11.69 a share, compared
with year-earlier net income of [...]
Updates, advisories and surprises
By MarketWatch
Last Update: 4:31 PM ET Apr 10, 2008
(4:18 PM ET) BOSTON (MarketWatch) — Genentech Inc.(DNA)reported a 12% boost in
its bottom-line late Thursday, due largely to increased sales for its cancer
medications. For the quarter ended March 31, Genentech posted net income of $790
million, compared with $706 million for the previous year’s quarter. [...]
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