Post Tagged with: "financial statements"
De-leveraging
The term deleveraging is one bandied about a lot in the press recently. But, what does it actually mean? De-leveraging is the process by which financial institutions and investors reduce the relative size of their assets to equity ratio. Generally, it means shedding assets in the financial sector, thus reducing credit and slowing the economy.
B&B secures private equity rescue funding
The Times reports today that Bradford and Bingley was rescued from the verge of collapse by private equity investors. This follows their report at the weekend on the dismissal of the Chief Executive and the profit warning they have issued. See my Saturday post on that topic. The events at B&B are absolutely shambolic. Down
Additions to Credit Crisis Timeline: 02 June 2008
Below are only the latest writedown stories from the web as of June 2nd. If you are linking in from DailyKos and looking for the full timeline of writedown news and the credit crisis, visit my credit crisis timeline, the most comprehensive on the web. Also see my list of Bankrupt Global Financial Institutions. Latest
More warnings on regional banks
The President of the Boston Fed, Eric Rosengren, has in effect said that small and regional banks are at risk in the next wave of writedowns for U.S. financial institutions. He sites construction loan exposure in particular as a place to worry. I give the story of small and regional exposure to construction loans six
Irish property dam about to burst
Along with the residential housing bust in Ireland, a commercial real estate (CRE) bust is definitely on the table. According to the newspaper the Irish Independent up to 10 billion euros of writedowns are possible for the Irish property developers and banks
Bradford & Bingley to issue profit warning
This in from the Times today: Bradford & Bingley is in big trouble. They are trying to do a rights issue and issue a profit warning at the same time. Can anyone tell me how one gets shareholders to pony up another 88p to buy a stock that is down from 2 quid 90 and
Another writedown risk: Chapter 7 Bankruptcy
The risks going forward for financial institutions and their capital base are large and growing. The blog CalculatedRisk has reported on yet another story that should give chills to bankers. This one is very significant: Chapter 7 bankruptcy. A judge recently ruled against Cleveland-based regional National City in a case involving stated income loans. These
New Writedown Risk: Alt-A
The bloggers over at Calculated Risk have reported on a story making the rounds in the Internet. This story involves S&P’s downgrade of Alt-A Residential Mortgage Backed Securities (RMBSs). The crux of the matter is that S&P misjudged how much collateral in the underlying value of the homes there was to protect these securities from
Regionals have CRE and Construction exposure
I am wary of regional banks for good reason. KeyCorp came out with a disastrous earnings report yesterday and was promptly whacked by the market. The regionals have way to much exposure to commercial real estate (CRE) and construction loans. And in the next leg down of this downturn, that is where losses may be
Latest additions to Credit Crisis Timeline
2008 05 19 Crédit Agricole boosts risk controls after writedowns hit €3.3bn2008 05 19 Subprime Losses Top $379 Billion on Balance-Sheet Marks: Table2008 05 19 Banks Keep $35 Billion Markdown Off Income Statements2008 05 19 AIG to raise roughly $20 billion in capital2008 05 20 Credit Crisis Will Extend Into 2009, $170 bn in additional
UBS warns on non-US property losses
Surprise, surprise. Consider this a holiday surprise as many are out in the U.S. for Memorial Day and in the UK for the Bank Holiday. Multiple sources were reporting that UBS warned in its 985-page capital raising prospectus late on Friday that it anticipates potential further losses in its non-U.S. property portfolio. Well, I could
Warren goes to Germany
Warren Buffett is in Germany looking for large acquisitions of German companies. He’s been forced to go global as his size and the US’s competitive position has limited his options in the US. I caught a German-language article from Der Spiegel regarding his activities in Germany. While the article wasn’t particularly revealing, it did quote