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CRE Update: CMBS Deterioration Accelerates, L.A.'s 550 South Hope Tower Appraised At Half 2007 Value

Tyler Durden's picture


August CRE trends continued their downward trends, with a bevy of trackers of CMBS performance, Moody's, Fitch, Realpoint and TREPP seeing substantial deterioration in September. According To TREPP the August delinquency rate was up to 4.35% from 4.03. Legacy rating agencies Moody's and Fitch indicated a comparable acceleration in delinquency trends, with September 60-delinquencies at 3.64% and 3.58%, up from 3.04% and 3.23% respectively. New CRE NRSRO Realpoint had an even higher September reading at 4.15% up from 3.47% in the previous month.

This deterioration is in line with the Moody's Real CRE Index, which showed continued decline in apartment value, at 131.9 in June, down 24.4% from a year ago, when TREPP had apartment delinquencies at just 1.72%, and has now risen to 7.05%. Additionally, it sees hotel delinquencies at 6.72%. Practically put, this means that over $8 billion of apartment loans and $5 billion of hotel loans are more than 30 days late. Look for both of these numbers to decline significantly.

The apartment delinquency rate is set to have a step-wise deterioration any second, as the rate does not include $3 billion in securitized debt associated with the Stuy Town which is about to have much bigger problems than mere delinquency, as the $650 million in initial reserves run out in December as Zero Hedge discussed previously. When Stuy Town becomes delinquent, the apartment delinquency rate will finally surpass 10%.

And for a real-life example of the merciless deterioration in CRE, this week's shining example is the 566,000 sq. foot office building at 550 South Hope Street in Los Angeles, which last month was reappraised at a stunning $121 million: a whole $114 million less than its 2007 appraisal value. That was the time when a $165 million mortgage on the property was securitized. As the CMBS deal will now be hit with interest shortfall payments, CMBS investors can not be happy, especially the junior tranches. The way interest shortfall are effected is that master servicers advance payments to bondholders on loans that are delinquent until loans are reappraised. Once appraised, the amount of advances gets reduced by the new collateral value, with the resulting delta called an appraisal subordinate entitlement reduction (ASER) and, as expected, results in a shortfall of interest payments that first impacts the most junior CMBS tranches then goes up the deal.

The other notable thing about the deal is that the CMBS deal securitizing the property, GS Mortgage Securities Corp., II, 2007-GG10, is one of the largest CMBS deals ever issued and is very widely held. The property was part of a major $3 billion portfolio acquisition by near-defunct Maguire Properties, which bought 550 South Hope and several other assets from Blackstone. MPG which earlier this year was on the verge of bankruptcy, stated it would stop subsidizing six properties and work with loan services to dispose of collateral in an orderly fashion. In addition to GG10, MPG also owns $103.5 MM of debt on 500 Orange Tower in Orange, CA., famous for being next door to the Anaheim Angels stadium. This loan is likely to be impaired quickly once MPG's guaranteed payments expire in December, and as expected market-rate lease rolls have failed to materialize, thus putting the expected $11.9 million in needed net cash flow annually in jeopardy.

Via CRE Direct, h/t Bankster


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Sun, 10/25/2009 - 13:39 | 110049 geopol
geopol's picture

And the downturn picks up speed,, in the CMBS. We are now on the edge of massive CRE crash


Sun, 10/25/2009 - 16:03 | 110110 SWRichmond
SWRichmond's picture

So how long before they ban shorting?

Sun, 10/25/2009 - 23:13 | 110380 geopol
geopol's picture



Enjoy my friend Guthrie Govan UK....



Sun, 10/25/2009 - 22:01 | 110327 Anonymous
Anonymous's picture

The "massive CRE crash" may not last very long unless creditors are willing to stick their head in the sand and do nothing, leaving the market paralyzed.

If they act promptly, they will take control of properties and dump them on the market creating massive bargains for buyers funded by private equity and REITs that have issued lots of new debt and equity this year.

At the end of the day, when the properties move into stronger hands at much lower prices, the rents that the new owners can sustain will be so low that they will create a second wave of defaults a few years from now as rents crater.

Am I missing something here?

Sun, 10/25/2009 - 13:45 | 110050 Anonymous
Anonymous's picture

It's a great time to buy REITs and regional banks! (end sarcasm)

Sun, 10/25/2009 - 20:34 | 110275 Ghettomedic
Ghettomedic's picture

Risk and reward. It is a good time to buy REITs. No sarcasm.

Sun, 10/25/2009 - 21:05 | 110292 Charley
Charley's picture

I prefer the web friendly version:

<sarcasm>It's a great time to buy REITs and regional banks!</sarcasm>

Sun, 10/25/2009 - 14:01 | 110056 reading
reading's picture

Sort of feels like Deja Vu...there was all that prelude including subprime will be contained before housing fell off the cliff. Feels like the same thing...ignore, ignore, pretend your ignoring, but at some point investors/holders have to start dumping so they are not the last ones out.  We've tried for six months to will the economy to be strong -- unfortunately however much a lagging indicator people want to call it, if someone doesn't have a job and no longer has their house atm things are not going to magically be better. 

Sun, 10/25/2009 - 14:11 | 110063 geopol
geopol's picture

Hey reading


to will the economy to be strong, ya MSM


You can't will OUT from the laws of physics.

Sun, 10/25/2009 - 14:18 | 110065 Unscarred
Unscarred's picture

It seems appropriate that the South Hope tower will need a Hail Mary from the bank of  Obama Geithner & Co. (O.G. & Co.) to remain solvent.

Sun, 10/25/2009 - 14:52 | 110078 Anonymous
Anonymous's picture

Na Na Pelosi and her fish trick to turn Cali farm land into affordable housing seems to have run into a snag. Real affordable housing is coming though and there is nothing TPTB can do to stop it! This should be fun Pelosi and her husband are neck deep in this. They can't blame Joe6 and predatory lending this time.

Sun, 10/25/2009 - 16:10 | 110117 Anonymous
Anonymous's picture


: )


Sun, 10/25/2009 - 14:46 | 110075 D.O.D.
D.O.D.'s picture

CRBC, she's gonna goooooo! Looks like AIG before the gov't take over, quick, now's your chance to cash in on the next bailout!!!!



Sun, 10/25/2009 - 14:48 | 110077 Unscarred
Unscarred's picture

Now how did I know that right after referencing O.G. & Co. that the CEO HIMSELF was gonna sho-up an' represent?!

Sun, 10/25/2009 - 15:07 | 110083 D.O.D.
D.O.D.'s picture

I prefer Prifitizah, but CEO will work for ya'll white callars...

Sun, 10/25/2009 - 15:44 | 110102 Unscarred
Unscarred's picture

I hear ya, White-Collar Holla-Holla!

Dis is how I git down, Cuz:

Sun, 10/25/2009 - 15:06 | 110084 Fritz
Fritz's picture


Everything below AA rated just turned into a Mezz tranche on CMBS.

What the REIT pumping/yield chasing crowd is missing is the huge amount of 5 year paper issued in '05-06 that was done at high LTV-low amortization.

Got Refi?


Sun, 10/25/2009 - 15:11 | 110089 geopol
geopol's picture

By someone who should know,,

Paul Craig Roberts assistant secretary of the treasury under Ronald Reagan has officially decalred America a failed state..

Sun, 10/25/2009 - 15:14 | 110090 digalert
digalert's picture

Funny, right around that part of downtown there's another infamous place, skid row.

Sun, 10/25/2009 - 15:29 | 110096 geopol
geopol's picture

I'm going to past this here as I think this is so idicative of the macro issues that we are facing. We are now embarking on some very serious shit here. We all post here what we think are relevent opinions and we joke now and then to break the tension, but I'm feeling total dread... This colum from Paul Craig Roberts.

US Joins Ranks Of Failed States

By Paul Craig Roberts 

The US has every characteristic of a failed state.  

The US government’s current operating budget is dependent on foreign financing and money creation.  

Too politically weak to be able to advance its interests through diplomacy, the US relies on terrorism  and military aggression.   

Costs are out of control, and priorities are skewed in the interest of rich organized interest groups at the expense of the vast majority of citizens.  For example, war at all cost, which enriches the armaments industry, the officer corps and the financial firms that handle the war’s financing, takes precedence over the needs of American citizens.  There is  no money to provide the uninsured with health care, but Pentagon officials have told the Defense Appropriations Subcommittee in the House that every gallon of gasoline delivered to US troops in Afghanistan costs American taxpayers $400.

"It is a number that we were not aware of and it is worrisome," said Rep. John Murtha, chairman of the subcommittee.

According to reports, the US Marines in Afghanistan use 800,000 gallons of gasoline per day.  At $400 per gallon, that comes to a $320,000,000 daily fuel bill for the Marines alone.  Only a country totally out of control would squander resources in this way.

While the US government squanders $400 per gallon of gasoline in order to kill women and children in Afghanistan, many millions of Americans have lost their jobs and their homes and are experiencing the kind of misery that is the daily life of poor Third World peoples.  Americans are living in their cars and in public parks.  America’s cities, towns, and states are suffering from the costs of economic dislocations and the reduction in tax revenues from the economy’s decline.  Yet, Obama has sent more troops to Afghanistan, a country half way around the world that is not a threat to America.  

It costs $750,000 per year for each soldier we have in Afghanistan.  The soldiers, who are at risk of life and limb, are paid a pittance, but all of the privatized services to the military are rolling in excess profits.  One of the great frauds perpetuated on the American people was the privatization of services that the US military traditionally performed for itself.  "Our" elected leaders could not resist any opportunity to create at taxpayers’ expense private wealth that could be recycled to politicians in campaign contributions.

Republicans and Democrats on the take from the private insurance companies maintain that the US cannot afford to provide Americans with health care and that cuts must be made even in Social Security and Medicare.  So how can the US afford bankrupting wars, much less totally pointless wars that serve no American interest?

The enormous scale of foreign borrowing and money creation necessary to finance Washington’s wars are sending the dollar to historic lows. The dollar has even experienced large declines relative to currencies of third world countries such as Botswana and Brazil.  The decline in the dollar’s value reduces the purchasing power of Americans’ already declining incomes.

Despite the lowest level of housing starts in 64 years, the US housing market is flooded with unsold homes, and financial institutions have a huge and rising inventory of foreclosed homes not yet on the market.

Industrial production has collapsed to the level of 1999, wiping out a decade of growth in industrial output. 

The enormous bank reserves created by the Federal Reserve are not finding their way into the economy.  Instead, the banks are hoarding the reserves as insurance against the fraudulent derivatives that they purchased from the gangster Wall Street investment banks.

The regulatory agencies have been corrupted by private interests.  Frontline  reports that Alan Greenspan, Robert Rubin, and Larry Summers blocked Brooksley Born, the head of the Commodity Futures Trading Commission from regulating derivatives.  President Obama rewarded Larry Summers for his idiocy by appointing him Director of the National Economic Council.  What this means is that profits for Wall Street will continue to be leeched from the diminishing blood supply of the American economy.

An unmistakable sign of  Third World despotism is a police force that sees the public as the enemy.  Thanks to the federal government, our local police forces are now militarized and imbued with hostile attitudes toward the public.  SWAT teams have proliferated, and even small towns now have police forces with the firepower of US Special Forces.  Summons are increasingly delivered by SWAT teams that tyrannize citizens with broken down doors, a $400 or $500 repair born by the tyrannized resident.  Recently a mayor and his family were the recipients of incompetence by the town’s local SWAT team, which mistakenly wrecked the mayor’s home, terrorized his family, and killed the family’s two friendly Labrador dogs.

If a town’s mayor can be treated in this way, what do you think is the fate of the poor white or black? Or the idealistic student who protests his government’s inhumanity?

In any failed state, the greatest threat to the population comes from the government and the police.  That is certainly the situation today in the USA.  Americans have no greater enemy than their own government.  Washington is controlled by interest groups that enrich themselves at the expense of the American people.  

The one percent that comprise the superrich are laughing as they say, "let them eat cake."

Sun, 10/25/2009 - 15:37 | 110099 RobotTrader
RobotTrader's picture

Heh, watch this one take off....

Biggest underwater landlord in downtown L.A. and Irvine.

Especially in the "O.C.", ground zero for all the subprime lenders...



Sun, 10/25/2009 - 15:43 | 110104 Unscarred
Unscarred's picture

Best looking charts in weeks.  Thanks Robo.

Sun, 10/25/2009 - 16:06 | 110114 SWRichmond
SWRichmond's picture

I like it when they pull on each other's straps like that....I mean, great chart!

Sun, 10/25/2009 - 16:33 | 110131 Lionhead
Lionhead's picture

The "lines" of support & resistance are most impressive. ;)

Sun, 10/25/2009 - 17:43 | 110166 geopol
geopol's picture

Ya, reminds me of cargo nets.

Sun, 10/25/2009 - 17:54 | 110173 Unscarred
Unscarred's picture

I think these last two charts are firm enough to not worry any support lines.  I'll give them another 3 years, maybe 4, until we see some type of sagging.  Of course, when that happens, sell to close IMMEDIATELY.

Sun, 10/25/2009 - 18:12 | 110196 geopol
geopol's picture

I think your are stretching this to far.......

Sun, 10/25/2009 - 18:23 | 110206 Unscarred
Unscarred's picture



Sun, 10/25/2009 - 22:52 | 110365 geopol
geopol's picture

Let's take a rest and listen to Guthrie Govan,,,,


Sun, 10/25/2009 - 15:43 | 110103 Anonymous
Anonymous's picture

"appraised at a stunning $121 million" against a "$165 million mortgage" and the biggest problem is "interest shortfall payments"?!?!

Sun, 10/25/2009 - 15:54 | 110106 Anonymous
Anonymous's picture

The thing that blows me away is - why? o! why? would someone be long an instrument like this CMBS that can't be sold with a mouse click? And, if they're hedged at all, hedged with an identically illiquid instrument?

Sun, 10/25/2009 - 21:33 | 110310 Anonymous
Anonymous's picture


Buying and selling with a mouse click is exactly what got us into this mess.


Sun, 10/25/2009 - 16:04 | 110112 Unscarred
Unscarred's picture


Sun, 10/25/2009 - 16:24 | 110126 Anonymous
Anonymous's picture

The China Containerized Freight Index

Anyone know where we can find charts for this index?



So far Ive got these, looking for good truck tonnage and air freight charts as well.

Rail Index

Baltic Dry Index

Sun, 10/25/2009 - 16:03 | 110111 Anonymous
Anonymous's picture

wow, TD, your story shows up twice in BBG under NI CMBS .

geopol - how 'bout next time using a link instead of copying & pasting a copyrighted story that is 75% longer than the initial post in question, has nothing to do with the subject matter, and instead focusing on the Iraq War and macroeconomic issues. The author is so full of himself, that he closes with a phrase that has been widely proven to have been mis-attributed, and was in fact popularized in a certifiably insane author's book who pushed for socialism and primitivism (that probably isn't a word, yet) publicly, while privately enjoying the high life and orgies (kind of jekyll & hyde, or democrat & republican).

Sun, 10/25/2009 - 17:26 | 110156 geopol
geopol's picture

That was a hell of a  speech...


Your easy

Sun, 10/25/2009 - 17:47 | 110168 Unscarred
Unscarred's picture

Gravitas, geopol.  Gravitas.

Sun, 10/25/2009 - 16:12 | 110119 geopol
geopol's picture

China is no longer shipping to walmart,,so what,,don't be alarmed

Sun, 10/25/2009 - 16:15 | 110120 deadhead
deadhead's picture


Sun, 10/25/2009 - 16:58 | 110142 geopol
geopol's picture

Or we can keep piling up containers at long beach, and turn them into low income housing.

Sun, 10/25/2009 - 17:25 | 110154 deadhead
deadhead's picture

that's funny...good line!

i actually saw one of those 'extreme homes' shows where someone put together a couple of shipping containers to make a home.

Sun, 10/25/2009 - 17:34 | 110162 geopol
geopol's picture

Hey deadhead,

I say that because I really did see where an architect had designs to convert them into low income housing, welding four together, in some configuration. At the time I thought this was over the top, but today, contemporary idea.

Sun, 10/25/2009 - 18:05 | 110183 deadhead
deadhead's picture

the place on extreme homes was really very nice....of course, it cost a fortune based on what they did.

kind of the old "stone soup" parable.

Sun, 10/25/2009 - 18:51 | 110201 geopol
geopol's picture

HGTV,,The network of lost dreams............ Dream home 2010 take a left at hell's kitchen then at the stoplight go.........

Sun, 10/25/2009 - 16:23 | 110125 lesterbegood
lesterbegood's picture

There's a rumor floating around about a 5 trillion dollar lawsuit being prepped and filed against the SEC for negligence?

Sun, 10/25/2009 - 19:45 | 110252 greased up deaf guy
greased up deaf guy's picture

is it still a rumor after 2-1/2 years?  please check the date of the article in your link...

Sun, 10/25/2009 - 16:29 | 110129 Anonymous
Anonymous's picture

Anytime anyone mentions the SEC I get a chill running down my spine

The SEC is full of Ghosts!

booooooooooooo scaaaaaaaaaaaaaaaaaaaaaaaaaaary!!!

You are creeping me out now Lester

: )


Sun, 10/25/2009 - 17:57 | 110175 geopol
geopol's picture

It will take about six hundred grave diggers at  3am to pull the body's out of that place.


Muhahahahahahahaha   Bernie,,,,,,Oh Bernie,,,,,,Bernie M..... where are you!

Sun, 10/25/2009 - 18:21 | 110205 Anonymous
Anonymous's picture

Speaking of which.....cops pulled Bernie's lawyer and accountant out of the deep end....
Musta been the chlorine..fatal for bacteria.

Sun, 10/25/2009 - 18:35 | 110213 lesterbegood
lesterbegood's picture

Speaking of Bernie M...His attorney and accountant took a dive into the deep end...and did'nt come back up. I guess he forgot that chlorine is lethal to bacteria...

Sun, 10/25/2009 - 18:56 | 110222 geopol
geopol's picture

Will this never cease,, And all along I thought shit floated. My high school physics teacher is a charlatan..

Sun, 10/25/2009 - 17:05 | 110144 Zippyin Annapolis
Zippyin Annapolis's picture

TD--you need to get folks on this deal


--recall that Corzine is former GS


--Goldman Sachs Still Paid for Swaps on Redeemed Bonds (Update2)


By Dunstan McNichol

Oct. 23 (Bloomberg) -- New Jersey taxpayers are sending almost $1 million a month to a partnership run by Goldman Sachs Group Inc. for protection against rising interest costs on bonds that the state redeemed more than a year ago.

The most-densely populated U.S. state is making the payments under an agreement made during the administration of former Governor James E. McGreevey in 2003, when New Jersey’s Transportation Trust Fund Authority sold $345 million in auction-rate bonds whose yields fluctuated with short-term interest costs. The agency finances road and rail projects.

“This vividly shows the risk of entering into interest- rate swap agreements,” said Christopher Taylor, former executive director of the Municipal Securities Rulemaking Board in Alexandria, Virginia. “The world’s got to see what stupidity even the sophisticated investors like the transportation fund can get into.”

While New Jersey replaced the debt with fixed-rate securities in 2008 after the $330 billion auction-rate bond market froze, the swap -- in which two parties typically exchange fixed payments for ones based on floating interest rates -- isn’t scheduled to expire until 2019.

The state paid $940,000 under the agreement last month and a total of $11.4 million since the auction-rate bonds were redeemed. The expenditures come as the fund reaches its borrowing limit and Governor Jon Corzine, Goldman’s former chairman who was a U.S. senator when the contract was signed, seeks $400 million in budget reductions as tax receipts fall.

Bond’s Life

“The state has made it clear that true interest costs are measured over the life of bonds,” the New Jersey Treasurer’s office said in an e-mailed statement from spokesman Tom Vincz. “As this swap is applied as it was intended to be applied, with TTFA variable-rate bonds, true interests costs are projected to be below the average true interest costs for TTFA bonds,” the statement said, referring to the Transportation Trust Fund Authority by its acronym.

“Unfortunately, Bloomberg misleadingly measured these costs over a brief window in time, which captured only the influences of the worst credit conditions in U.S. history.”

Harvard Swaps

Municipalities and universities across the U.S. have paid hundreds of millions to terminate swaps on variable-rate debt after interest costs, instead of climbing, fell to record lows in the worst credit crisis since the Great Depression. Harvard University last week disclosed it had given $497.6 million to investment banks to exit such agreements following similar terminations by New York’s Metropolitan Transportation Authority and the Oakland, California-based Bay Area Toll Authority.

In New Jersey, the 3.6 percent fixed rate the trust fund is paying on the swap has pushed the cost to taxpayers of the original $345 million borrowing to 7.8 percent, the most the authority has paid since it was formed in 1985, according to records posted on its Web site.

John McCormac, the Mayor of Woodbridge, N.J., state treasurer at the time of the 2003 deal, declined to discuss the issue in a telephone conversation today.

“I have no recollection of anything,” he said. “Ask the treasurer.”

Corzine spokesman Robert Corrales referred an inquiry today to the treasurer’s office for comment, and Goldman Sachs spokesman Michael DuVally referred to an earlier statement in which the bank said it is working with the state.

Inheriting Swaps

“This administration inherited a large swap portfolio and has worked over the last several years to terminate, reverse and prudently manage the derivatives to the benefit of the taxpayer,” the treasurer’s statement said. “This administration has initiated only two new swaps, which have been used to reverse pre-existing swaps and protect taxpayers from potential financial risks.”

Payments on the swaps without underlying variable-rate bonds are draining money from a dwindling account that may not be able to support new projects because the $895 million in annual gasoline taxes and toll revenue dedicated to the transportation trust fund will be needed to pay debt service on $10.3 billion in debt. To help prop up spending, officials have suggested raising New Jersey’s 14.5 cents-a-gallon gasoline levy, the fourth- lowest among U.S. states, according to research by the Tax Foundation, a Washington, D.C.-based research organization.

Pulaski Skyway

New Jersey’s contract with Goldman Sachs Mitsui Marine Derivative Products L.P., a partnership of the bank and Japan’s Mitsui Sumitomo Insurance Group Holdings Inc., allows the state to terminate the deal without penalty after 2011. Canceling before then would require a payment estimated at $37.6 million on Sept. 30, according to state records.

The state’s payments on the swap in the past year have exceeded the $10 million budgeted to maintain the 76-year-old Pulaski Skyway, the 3-mile (4.8 kilometers) elevated road from Newark to Jersey City.

“I’m sure there’s an explanation,” Corzine, 62, said during a brief interview as he left a contractors’ convention in New Brunswick, New Jersey, on Oct. 14. “They don’t just send money out.”

“We believe treasury should continue to aggressively manage the termination, conversion and management of swaps that this administration inherited, while dealing with the realities of the most difficult credit conditions in history,” Corzine’s spokesman Steve Sigmund said in an e-mail.

Cost Reduction

“Through careful planning and prudent decision-making, we continue to seek out and find ways to reduce or minimize public finance costs supported by the budget and New Jersey taxpayers,” the treasury statement said.

Corzine, a Democrat, is the only U.S. governor seeking re- election this year and tied in this month’s Quinnipiac poll with Republican Christopher Christie, 47, a former federal prosecutor. Each had about 40 percent, with a 2.8 percentage- point margin of error.

New Jersey couldn’t reach acceptable terms when it tried to issue variable-rate bonds last year to replace the failed auction-rate securities hedged by the Goldman swap, the Office of Public Finance said in a three-page response to questions about the transaction. It is unfair to judge the ultimate performance of the 16-year agreement until it concludes in 2019, the agency said in the statement.

“Cherry-picking one date in time for a net payment or net receipt of swap payment does not accurately or objectively reflect the true economics of the contract,” the office said in the e-mailed statement.

Making Adjustment

Goldman Sachs is working with officials to make adjustments in light of “changes in market conditions that have made the transaction less attractive,” spokesman Michael DuVally said in an e-mail. “The economics and risks involved in this transaction were fully understood when the authority decided to enter into this swap six years ago.”

Acacia Financial Group Inc., the Marlton, N.J.-based adviser on the fixed-rate bonds that replaced the auction securities, referred questions to the Office of Public Finance.

“Decisions were made to proceed with the swap,” Vivian Altman, the trust fund’s adviser on the original debt issue in 2003, said in a phone interview.

“I can’t speak to what discussions they had internally,” she said. “I would have no way of knowing. I just have no idea of what information they had been provided.”

New Jersey, which Moody’s Investors Service called “one of the largest users of swaps in the municipal market,” has 28 such contracts outstanding on $4.4 billion worth of debt, according to a monthly valuation report.

Trust Fund Agreement

The trust fund agreement was made three years before Corzine became governor. Auction-rate obligations involved in the transaction were supposed to allow borrowers to realize short-term interest rates on long-term debt by offering the bonds for periodic resale. The market froze after banks that historically volunteered to buy unwanted securities stopped doing so during the global credit crisis.

Kevin Willens, a managing director of Goldman and currently a director of the MSRB, which sets standards for banks and securities firms in the $2.8 trillion municipal market, presented the swaps proposal on the bank’s behalf, authority minutes show.

Charts “described the success rates of swaps,” according to the minutes. Willens was not an MSRB director at the time.,,,,,,,




Sun, 10/25/2009 - 17:20 | 110151 CharlesBronson
CharlesBronson's picture

Call last night from one of Chicago biggest real estate developers. He called to say "Charley, banks are now seizing some of the biggest properties in and around the city.  Just today one of my friends had a single $150,000,000.00 property foreclosed. Remember the other shoe? Well, it just killed a passerby dropping 45 stories below. Things have started here and I'm looking for bigger things to start falling out of windows."



Sun, 10/25/2009 - 17:40 | 110163 geopol
geopol's picture

Man, I always liked Charles Bronson...real man, not to many left..

I can sense this is tipping over, and fast.


Sun, 10/25/2009 - 18:06 | 110184 deadhead
deadhead's picture

Capmark filed today.  on b'berg.


Sun, 10/25/2009 - 18:29 | 110203 geopol
geopol's picture

Ya Just hit on my desktop,,, this I think will be a very interesting week,,whata think?

Sun, 10/25/2009 - 19:03 | 110226 lesterbegood
lesterbegood's picture

Judge feeds shit sandwich to lying lender....$460k-FU-Sandwich-to-Lying-Lender

Sun, 10/25/2009 - 20:50 | 110285 Anonymous
Anonymous's picture

when I grew up in LA I knew Bob Maquire's son. What a douche. I remember a great story about Peter driving his dad Bob's Mercedes in Santa Monica and some black dude in a piece of crap cadilac rear ended him. Peter got out and the guy got in Bob's Mercedes and drove away. Peter ended up driving home in the thief's piece of crap car. True story.

Sun, 10/25/2009 - 21:35 | 110308 geopol
geopol's picture

We all went to Ft. Lauderdale and stopped at a place called Harisons on the inland waterway, drove up in a rented Porsche, and gave the valet parking attendant a twenty dollar bill, and said park it. We went in and had the balls of a dinner. When we came out, we asked the employee, we need our car, where is the valet parking attendant? We don't have valet parking. So this prick, not only stole my car, but coped a twenty dollar bill for gas.. The humiliation....

So I went to the pool to pick up some broads. and it was a gay bar.... Time to fold up the fucking tents.


America, you are so cruel...

Sun, 10/25/2009 - 22:16 | 110341 Anonymous
Anonymous's picture

CRE problems? nah.. they will just keep buying all defaulting loans using the printed paper

Mon, 10/26/2009 - 00:07 | 110409 geopol
geopol's picture

Printed paper??


I knew these bastards would use dead presidents,  their's no expiration date.

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