“From the Financial Times forum in a Peterson Institute for International Economics Anders Aslund article titled: “It can be worse than the Great Depression.” A possibility, not a prediction. Because of “the worst global asset bubble and financial panic” since that time. Because lessons learned then haven’t prevented new mistakes, and unlike in the 1920s, [...]
By Shannon D. Harrington and Abigail Moses
Nov. 6 (Bloomberg) — The most comprehensive report on unregulated credit-default swaps didn’t disclose bets in the section of the more than $47 trillion market that helped destroy American International Group Inc., once the world’s biggest insurer.
A study by the Depository Trust and Clearing Corp. fails to [...]
“The economy is pretty much showing what we thought all along — that we’re slipping into or already in recession,” said Sam Stovall, senior investment strategist at Standard & Poor’s.
“People question Monday’s rally and wonder whether it was a true rally, one to be taken with faith or just an opportunity to get out at [...]
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 state to regulate part of CDS market
By Alistair Barr, MarketWatch
Last Update: 9/22/2008 7:05:00 PM
SAN FRANCISCO (MarketWatch) -Gov. David Paterson said Monday that New York will
begin regulating part of the $62 trillion credit default swap market next year
because a lack of regulation in that area of finance has contributed to the
current credit crisis.
At Paterson’s [...]
AIG shares on course for record slump
Insurer hammered over potential downgrades, capital needs
By Alistair Barr & John Spence, MarketWatch
Last Update: 9/12/2008 3:28:00 PM
SAN FRANCISCO (MarketWatch) — American International Group shares were on course
for a record slump Friday on concern the world’s largest insurer may be
downgraded by ratings agencies, triggering billions of dollars in new capital
needs.
AIG [...]
MBIA rallies on reinsurance deal
Bond, mortgage insurers gain early; investors mull Fannie shakeup
By John Spence, MarketWatch
Last Update: 8/28/2008 1:11:00 PM
BOSTON (MarketWatch) — Shares of mortgage and bond insurers rallied Thursday on
news that MBIA Inc. is in a deal to reinsure billions of dollars in municipal
bonds, showing the embattled bond insurer is able to attract new [...]
Moody’s: Municipal-Only Bond Insurers Might Get AAA
Last Update: 7/31/2008 10:31:20 AM
By Lavonne Kuykendall
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Bond insurers that cover only municipal and public purpose
bonds might be more likely to win a top credit rating than insurers that dabble
in securities backed by consumer and other [...]
Merrill’s Fire Sale Might Leave A Lot Of Fingers Burned
Last Update: 7/29/2008 9:03:18 AM
By Andrew Dowell and Ed Welsch
Of DOW JONES NEWSWIRES
Merrill Lynch & Co.’s (MER) fire sale of toxic assets might burn some other
fingers on Wall Street.
In the world of complex and infrequently traded securities, the venerable
investment [...]
Ambac shares hit record low after new disclosure
Bond insurer reports CDO write-downs, claim payments from April
By Alistair Barr, MarketWatch
Last Update: 2:56 PM ET May 28, 2008
SAN FRANCISCO (MarketWatch) — Ambac Financial shares fell to a record low on
Wednesday after the bond insurer disclosed new information about its operations
in April.
Ambac reported $228 million of write-downs during [...]
DOW JONES NEWSWIRES
Ambac Financial Group Inc. (ABK) said it wrote down $228 million in
collateralized-debt obligations in April as it continues to be weighed down by
the credit crunch.
In a monthly update on its pretax financial data, the second-largest bond insurer
also reported a $53.4 million loss on fair-value changes in its investment
portfolio more than offset [...]
Credit crunch to stretch into 2009: analyst
Pain is far from over for U.S. banks, Oppenheimer’s Whitney says
By John Spence, MarketWatch
Last Update: 1:39 PM ET May 20, 2008
BOSTON (MarketWatch) — Shares of large-cap U.S. banking stocks traded lower
Tuesday after analysts at Oppenheimer & Co. said they see the turmoil in credit
markets lingering at least into next [...]
Moody’s warns on bond-insurer ratings again
This time, second-lien mortgage securities may test ratings, agency says
By Alistair Barr, MarketWatch
Last Update: 4:16 PM ET May 13, 2008
SAN FRANCISCO (MarketWatch) — Poor performance of second-lien residential
mortgage-backed securities could put pressure on the credit ratings of bond
insurers, Moody’s Investors Service said Tuesday.
Bond insurers have significant exposure to second-lien residential
mortgage-backed [...]
SAN FRANCISCO (MarketWatch) — Poor performance of second lien residential
mortgage-backed securities (RMBS) could impact the credit ratings of bond
insurers, Moody’s Investors Service said on Tuesday. Bond insurers have
significant exposure to second lien RMBS, mainly through guaranties on the
securities and, to a lesser extent, through exposure to collateralized debt
obligations backed by such assets, the rating agency [...]
MBIA loses $2.4 billion on write-downs; shares gain
Insurer has $800 mln of actual losses, funnels $900 mln to bond insurance unit
By Alistair Barr, MarketWatch
Last Update: 4:16 PM ET May 12, 2008
SAN FRANCISCO (MarketWatch) — MBIA Inc. reported a $2.4 billion first-quarter
net loss on Monday and said it will pump $900 million into its main bond
insurance [...]
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