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Moody's Downgrades $1.9 Trillion Of Subprime RMBS
There is still nearly $2 trillion in subprime out there? Good thing the FASB has allowed all this worthless paper to be carried at par or else we might all realize just how the market trades on vapors, myth and lots of hope. But at least Obama's campaign was based on a promise of transparency. Instead we are getting a Value Added Tax.
Moody's $1.826 trillion downgrade (release below) involves 18 RMBS tranches issued by BNC Mortgage Loan Trust. The collateral backing these deal primarily
consists of first-lien, fixed and adjustable-rate
subprime residential mortgages. In other moves Moody's also downgraded nearly another $30 billion in other RMBS tranches issued by entities such as First Franklin, Citigroup Mortgage Loan Trust, Park Place, First NLC, RASC, and RAMP, .
Release on the BNC downgrade
New York, April 06, 2010 -- Moody's Investors Service has downgraded the ratings of 18 tranches and
confirmed the ratings of 3 tranches from 5 RMBS transactions issued by
BNC Mortgage Loan Trust. The collateral backing these deal primarily
consists of first-lien, fixed and adjustable-rate
subprime residential mortgages.
The actions are a result of the continued performance deterioration in
Subprime pools in conjunction with home price and unemployment conditions
that remain under duress. The actions reflect Moody's updated
loss expectations on subprime pools issued from 2005 to 2007. For
details regarding Moody's approach to estimating losses on subprime pools
originated in 2005, 2006, and 2007, please refer to
the methodology publication "Subprime RMBS Loss Projection Update:
February 2010" available on Moodys.com.
To assess the rating implications of the updated loss levels on subprime
RMBS, each individual pool was run through a variety of scenarios
in the Structured Finance Workstation® (SFW), the cash flow
model developed by Moody's Wall Street Analytics. This individual
pool level analysis incorporates performance variances across the different
pools and the structural features of the transaction including priorities
of payment distribution among the different tranches, average life
of the tranches, current balances of the tranches and future cash
flows under expected and stressed scenarios. The scenarios include
ninety-six different combinations comprising of six loss levels,
four loss timing curves and four prepayment curves. The volatility
in losses experienced by a tranche due to small increments in losses on
the underlying mortgage pool is taken into consideration when assigning
ratings.
Other methodologies and factors that may have been considered in the process
of rating this issue can also be found at www.moodys.com
in the Credit Policy & Methodologies directory. In addition,
Moody's publishes a weekly summary of structured finance credit,
ratings and methodologies, available to all registered users of
our website, at www.moodys.com/SFQuickCheck
Complete rating actions are as follows:
Issuer: BNC Mortgage Loan Trust 2006-1
Cl. A1, Downgraded to Ca; previously on Jan 13,
2010 Caa1 Placed Under Review for Possible Downgrade
Cl. A2, Confirmed at A3; previously on Jan 13,
2010 A3 Placed Under Review for Possible Downgrade
Cl. A3, Downgraded to Ca; previously on Jan 13,
2010 Caa2 Placed Under Review for Possible Downgrade
Issuer: BNC Mortgage Loan Trust 2006-2
Cl. A1, Confirmed at Caa1; previously on Jan 13,
2010 Caa1 Placed Under Review for Possible Downgrade
Cl. A2, Confirmed at Aaa; previously on Jan 13,
2010 Aaa Placed Under Review for Possible Downgrade
Cl. A3, Downgraded to Baa3; previously on Jan 13,
2010 Aa3 Placed Under Review for Possible Downgrade
Cl. A4, Downgraded to C; previously on Jan 13,
2010 Caa2 Placed Under Review for Possible Downgrade
Issuer: BNC Mortgage Loan Trust 2007-1
Cl. A1, Downgraded to Ca; previously on Jan 13,
2010 Caa1 Placed Under Review for Possible Downgrade
Cl. A2, Downgraded to A1; previously on Jan 13,
2010 Aa3 Placed Under Review for Possible Downgrade
Cl. A3, Downgraded to B1; previously on Jan 13,
2010 Baa2 Placed Under Review for Possible Downgrade
Cl. A4, Downgraded to C; previously on Jan 13,
2010 Caa2 Placed Under Review for Possible Downgrade
Issuer: BNC Mortgage Loan Trust 2007-2
Cl. A1, Downgraded to Ca; previously on Jan 13,
2010 B2 Placed Under Review for Possible Downgrade
Cl. A2, Downgraded to Ba2; previously on Jan 13,
2010 A1 Placed Under Review for Possible Downgrade
Cl. A3, Downgraded to C; previously on Jan 13,
2010 B3 Placed Under Review for Possible Downgrade
Cl. A4, Downgraded to C; previously on Jan 13,
2010 Caa2 Placed Under Review for Possible Downgrade
Cl. A5, Downgraded to Ca; previously on Jan 13,
2010 B2 Placed Under Review for Possible Downgrade
Issuer: BNC Mortgage Loan Trust 2007-3
Cl. A1, Downgraded to Ca; previously on Jan 13,
2010 B2 Placed Under Review for Possible Downgrade
Cl. A2, Downgraded to Baa3; previously on Jan 13,
2010 Aa2 Placed Under Review for Possible Downgrade
Cl. A3, Downgraded to Caa1; previously on Jan 13,
2010 A2 Placed Under Review for Possible Downgrade
Cl. A4, Downgraded to C; previously on Jan 13,
2010 B3 Placed Under Review for Possible Downgrade
Cl. A5, Downgraded to C; previously on Jan 13,
2010 Caa2 Placed Under Review for Possible Downgrade
»
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Deep Shah.
Iknow this is long, I have filed a compliant with the FBI and SEC and belive we need a class action lawsuit.
This is a "Florida Issue" and warrants a full blown criminal investigation by the Florida Attorney General's OfficeFlorida stands to lose $1 billion because of Lehman Brothers' bankruptcy
http://www.tampabay.com/news/politics/article1007445.ece
Florida Lost $250 Million on New York’s Stuyvesant Apartments
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMJ6yR9lHQQM
Dear FBI and SEC:
I have been writing to you for several months without response. So now the Federal Reserve Bank on Thursday April 1, 2010 admits it secretly and illegally purchased tens of billions of dollars of equities in companies, from their co-conspirators/insider traders, and did not disclose this information to investors. This was material information that affected the financial stocks that was undisclosed. This is a felony offense for the following reasons.
1. They were not authorized by law to purchase these stocks or equities
2. These were material transactions that effected entire market segment and investors were not made aware of these material transactions.
3. Only insiders knew of these purchases and invested accordingly
Additionally, the owner’s of the Federal Reserve Bank are the same banks and institutions that received this illegal money. They obtained personal benefit from these illegal/insider transactions.
Investors who had short positions or purchased “put options” were defrauded of billions. I purchased short positions and was defrauded. I want to prosecute.
Those guilty by their own admission should be arrested. Those who lost because of this fraud should be compensated for their loss.
Below is my complaint. I have not heard 1 word from the SEC in 4 months. How much more evidence do you need?
Fed Releases Details on Bear Stearns, AIG Portfolios
http://www.bloomberg.com/apps/news?pid=20601087&sid=aymTlczlMmpA&pos=1
Fed in hot water over secret bailouts
http://www.csmonitor.com/Money/Robert-Reich-s-Blog/2010/0401/Fed-in-hot-water-over-secret-bailouts
The Fed Admits To Breaking The Law
http://networkedblogs.com/21Xqv
Geithner: Pickpocketing Trillions from the People to Give to the Oligarchy Was "Deeply Unfair", But We ... Um ... Had To
http://www.washingtonsblog.com/2010/04/geithner-looting-country-for-trillions.html
Why Is The Fed Actively Managing A $25 Billion Maiden Lane MBS Portfolio When Its $2.4 Trillion SOMA Holdings Have A $1 Billion DV01? (And Are Unhedged)
http://www.zerohedge.com/article/why-fed-actively-managing-25-billion-maiden-lane-mbs-portfolio-when-its-24-trillion-soma-hol
Dylan Ratigan states that US Attorney’s office in New York investigating. Re: Lehman Brothers
http://www.msnbc.msn.com/id/21134540/vp/35841681#35841681
The SEC Complaint filed is below
My complaint below was filed in December. I have not heard any info on this complaint. Please send me a confirmation.
Investors have lost billions of dollars taking short positions on financials while you allowed the private central banks to manipulate the banks financial positions without disclosing to investors. Only the bank insiders knew. They made a killing. This is fraud. What are you going to do about it? My complaint that I filed is below.
So how can the central banks secretly loaning banks hundreds of billions of dollars and not tell the public? How can one make market investment decisions when this info is not disclosed?
How can the central banks secretly provide hundreds of billions of dollars to banks and not disclose this information to investors? Isn’t this market manipulation? Where is the SEC? All those with put options or short sales were defrauded. I am one of those persons!
I am beginning to believe that the SEC is part of this fraud on the American people. I have not heard back on this complaint in over 2 months.
Bank of England tells of secret £62bn loan to save RBS and HBOS
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6646923/Bank-of-England-tells-of-secret-62bn-loan-to-save-RBS-and-HBOS.html
Bank of England advisers not told about secret £62bn loan to HBOS
http://www.guardian.co.uk/business/2009/dec/03/bank-england-secret-loan-hbos
Bank gave RBS and HBOS 'secret' £62bn loan
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6929451.ece
Fed Refuses to Disclose Recipients of $2 Trillion
http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc
Fed Fights Request To Disclose Who Got $2 Trillion In Bailouts
http://www.istockanalyst.com/article/viewarticle/articleid/3775032
Is Obama manipulating the stock market?
Economist claims president 'jawboning' economy to boost Dow
http://www.wnd.com/index.php?fa=PAGE.view&pageId=92100
VIDEO: Federal Reserve Manipulating Stock Prices?
http://www.chartingstocks.net/2009/09/video-federal-reserve-manipulating-stock-prices/
Does The Government Actually Manipulate The Stock Market?
http://www.businessinsider.com/does-the-government-actually-manipulate-the-stock-market-2010-2
Sent: Mon 12/28/2009 1:57 PM
To: Will Pitts; 'enforcement@sec.gov'
Subject: RE: Copy of Complaint filed with SEC
How do you find out the status of your complaint?
From: Will Pitts
Sent: Thursday, December 03, 2009 11:54 AM
Subject: Copy of Complaint filed with SEC
Names, Address, Telephone #s and Other Biographical Information about Individuals Involved
Bank of America,
Goldman Sachs,
Citigroup
Royal Bank of Scotland
BlackRock (BLK, Fortune 500)
AllianceBernstein (AB)
Oaktree Capital Management
Invesco (IVZ)
Angelo, Gordon & Co
Marathon Asset Management
RLJ Western Asset Management
The TCW Group and Wellington Management Company.
Federal Reserve Bank
Bank of England
US Treasury
How you Learned about the Transaction or other Activity
From a recent news release it was disclosed that secret transactions between the Central Banks, and the large banks are occurring that results in a manipulation of stock prices and automatically creates insider advantage trading for the banks to purchase each others stocks.
BoE Secretly Loaned $102.9 Billion to RBS
http://www.cnbc.com/id/34126826
Federal Reserve Banks Secretly Lent Out $2.2 Trillion and Refuses to tell Senate Where Money Went
http://www.youtube.com/watch?v=oOpQkRsEfaU
This is the information available to investors. Following this information and by the review of the large banks financials it would make no sense to hold or buy but would make sense to short. Unless you had the inside information that the BoE and Fed was secretly providing hundreds of billions to the banks for the purposes of buying each other’s stocks to pump up the market..
Details About the Transaction(S)
In March and April of 2008 relying upon released financial information from Citigroup and Bank of America showing they were going to experience significant cash flow problems I sold these stocks. A Few months later I took short positions against these stocks relying upon their released financial data. I learned yesterday that the Central Banks and possibly even the US Treasury was secretly providing cash to these banks and even potentially making direct purchases of their stock thus driving the stock prices up. This information and the extent was not disclosed to shareholders and is material information that impacted my decision to sell and my decision to short this stock. Additionally there is reasonable suspicion that insiders at these banks had knowledge of this significant undisclosed investment/loans to the banks and made significant stock purchases and realized gains from having this undisclosed insider information.
As a result of this non disclosure The Federal Reserve Bank and Bank of England are suborning securities fraud and those at the banks that were aware of these transaction that did not disclose are guilty as well.
We deserve to know every transaction and every bank and financial institution that received this $2 trillion and under what conditions it was provided.
Was this material information disclosed to some like Goldman Sachs and RBS and others who made billions?
Was it withheld from shareholders who sold that would not have, had they known the banks cash flow was well supplied? Was it provided to those who shorted the banks stocks and lost?
BoE Secretly Loaned $102.9 Billion to RBS
http://www.cnbc.com/id/34126826
Federal Reserve Banks Secretly Lent Out $2.2 Trillion and Refuses to tell Senate Where Money Went
http://www.youtube.com/watch?v=oOpQkRsEfaU
If on the Internet, All Relevant Internet Addresses
BoE Secretly Loaned $102.9 Billion to RBS
http://www.cnbc.com/id/34126826
Federal Reserve Banks Secretly Lent Out $2.2 Trillion and Refuses to tell Senate Where Money Went
http://www.youtube.com/watch?v=oOpQkRsEfaU
Bank of England tells of secret £62bn loan to save RBS and HBOS
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6646923/Bank-of-England-tells-of-secret-62bn-loan-to-save-RBS-and-HBOS.html
Bank of England advisers not told about secret £62bn loan to HBOS
http://www.guardian.co.uk/business/2009/dec/03/bank-england-secret-loan-hbos
Bank gave RBS and HBOS 'secret' £62bn loan
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6929451.ece
Fed Refuses to Disclose Recipients of $2 Trillion
http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc
Fed Fights Request To Disclose Who Got $2 Trillion In Bailouts
http://www.istockanalyst.com/article/viewarticle/articleid/3775032
Is Obama manipulating the stock market?
Economist claims president 'jawboning' economy to boost Dow
http://www.wnd.com/index.php?fa=PAGE.view&pageId=92100
VIDEO: Federal Reserve Manipulating Stock Prices?
http://www.chartingstocks.net/2009/09/video-federal-reserve-manipulating-stock-prices/
Does The Government Actually Manipulate The Stock Market?
http://www.businessinsider.com/does-the-government-actually-manipulate-the-stock-market-2010-2
PPIP Watch: Banks as Bidders and Sellers...Hmm, Remember Enron
http://seekingalpha.com/article/129639-ppip-watch-banks-as-bidders-and-sellers-hmm-remember-enron
Is this group assembled to manipulate the markets or make investments. If they are manipulating the markets this is a federal offense.
Presidential Working Group on Financial Market Directly Buying Stock in the Stock Market?
http://www.youtube.com/watch?v=X06kz9dzXho
Plunge Protection Team
http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm
Use this area to add any additional information that you wish.
Based upon the following researched information and the non disclosure from the banks of "secret" capital infusions I was defrauded out of my holdings and enticed to take short positions. The economic loss to me is several million dollars.
This is the information available to investors. Following this information and by the review of the large banks financials it would make no sense to hold or buy but would make sense to short. Unless you had the inside information that the BoE and Fed was secretly providing hundreds of billions to the banks for the purposes of buying each other’s stocks to pump up the market.
E.U. to Release Some Bank Stress Test Results - Twenty-two large banks in Europe may have accumulated credit losses of close to €400 billion for this year and next
http://www.nytimes.com/2009/09/26/business/global/26banks.html?adxnnl=1&adxnnlx=1254074645-1PA+ThG/oSOKyEoCHBgpBw
US Losses on Banks' Big Loans: $53 Billion - 9-25-09
http://online.wsj.com/article/SB125383526833139325.html?mod=wsj_share_facebook
2,256 banks an score an "F"
http://www.investorsinsight.com/blogs/thoughts_from_the_frontline/archive/2009/09/18/the-hole-in-fdic.aspx
The Coming Consequences of Banking Fraud
http://seekingalpha.com/article/160619-the-coming-consequences-of-banking-fraud?source=hp_mostpopular
Banks Face Loss of Debt Guarantee - WSJ.com
http://online.wsj.com/article/SB125253151037397187.html?mod=wsj_share_facebook
Are We Facing a Banking Crisis?
http://www.marketoracle.co.uk/Article13110.html
Why I’d Get Short Financial Stocks As Soon As Possible | Daily Markets
http://www.dailymarkets.com/stocks/2009/09/14/why-id-get-short-financial-stocks-as-soon-as-possible/
Some additional relevant information:
How Lehman, With The Fed's Complicity, Created Another Illegal Precedent In Abusing The Primary Dealer Credit Facility
http://www.zerohedge.com/article/how-lehman-feds-complicity-created-another-illegal-precedent-abusing-primary-dealer-credit-f
CIA Says Obama's Deficits Are National Security Threat | The FOX Nation
http://www.thefoxnation.com/business/2010/03/17/cia-says-obamas-deficits-are-national-security-threat
FED GAVE Banks Access to 23.7 TRILLION DOLLARS NOT $700 Billion! http://www.youtube.com/watch?v=lDJc0PZV-Bk&feature=player_embedded
Sticker Shock: $23.7 Trillion Bailout?
http://abcnews.go.com/Business/Politics/story?id=814
Tracking the $19 Trillion Bailout Funds
http://blog.newsweek.com/blogs/wealthofnations/archive/2009/09/22/tracking-the-19-trillion-bailout-funds.aspx
Fed Lends Two Trillion Without Oversight
more info here: http://www.facebook.com/wgpitts?ref=profile#!/note.php?note_id=383150183339&id=1054329942&ref=mfhttp://www.youtube.com/watch?v=oxuqmPyKqcs&feature=player_embedded
Kyrgyzstan
Good luck waking up the FBI, they are very very sleepy unless you are angry at the government. Maybe we can get them to coordinate their activities with state and local authorities in "financial fusion centers".
Nah, probably not.
Grayson?
Value added tax and transparent bureaucracy are both oxymorons. Obama is just a moron, except when it comes to investment advice, then he is a supra-genius:
http://www.usnews.com/articles/news/obama/2009/03/04/obama-says-buy-stocks-now-good-deals-there-for-long-term-investors.html
http://www.bloomberg.com/apps/news?pid=20601109&sid=aKzgH4hvhh.g
Being a genius certainly has its advantages.....
Unfortunately, Obama will be just like his fellow Super Genius, Wile E., chasing a different sort of "roadrunner" all the way to oblivion....
Unfortunately, it seems that when you are the first black POTUS what may look like certain oblivion for all of us only appears as historical change to him.
Chances are pretty good, however, that everything is going to be just fine. 95/5 or maybe even better. Better than I would have ever dreamed of when I was a kid.
I'm thinking of drinking the Kool-Aid. Maybe it will be like washing the car to make it rain.
Switching words around, obama is a genius: the obamacare is a transparent tax sold as a value added bureaucracy
This was predicatable. With the bulk of 5 and 7 year ALT-A ARMS going to reset in in 2010, the banks need to start getting rates higher as well as modify loan requirements in order to deliver the killing blow to the overstreched common man. This will play out well for fellow power grabbers like myself.
Interesting timing
http://www.calculatedriskblog.com/2007/10/imf-mortgage-reset-chart.html
Stocks surge to record highs on the downgrade announcements.
Better than expected!!
"Pay no attention to the man behind the curtain!"
$2T? I thought there were only $1T in subprime loans.
No, there is 3T, and 1900 banks waiting on the FDIC to declare them as failed and seize them.
where s that $1.826 trillion coming from? is that all subprime rmbs stuff out there?
because, then the headline is misleading...
So was the wording of many of the mortgage contracts (if the idiots even bothered to read them).
What started out as Alt A became sub prime in many cases.
Thats not very nice of them. If they downgrade the ratings, it might cause concern among the holders, who might then try to unload them, causing weakness in the market, and preventing recovery. 'Extend and Pretend' requires EVERYONE to continue to play along.
True, and the game goes along until one player figures out that the first one to "get out" of the game is the smallest loser.
Who's books is this trash sitting in now? After all the shuffleing of paper over the last couple of years my guess is the public balance sheet.
If I'm not mistaken, it will soon be on mine and yours as soon as they allow banks to trade in their toxic assest for governement paper.
I'm still trying to learn, but all the fucking acronyms throw me off sometimes.
Give me a "B".....
Give me an "E".....
Give me an "N".....
What does it spell? Cheap money shill!!!
The other dropping shoes are the underlying seconds sitting behind many of these downgraded firsts.....carried at or near par.
Extend and pretend is getting a bit long in the tooth. When the ratings jokers start wandering off the reservation, the legalized fraud becomes much more difficult to hide.
misplaced dup, deleted
Now that should leave a mark. Oh wait.....TPTB would never let a mark be left. Everything remains PAR on the books...in perpetuity.
'A senator asked then Treasury Secretary Henry Paulson whether the "well paid officials and directors of the mortgage companies" should be held accountable. Paulson replied," "I'm not looking for scapegoats."
- Grant's 04/02/10
'Spotted curbside in downtown Washington: Hank Paulson, tanned from a recent trip to Argentina, huddling over a BlackBerry he still is getting acquainted with. As Treasury secretary, he refused to use a BlackBerry, preferring phone calls to email, but he has now succumbed.'
- WSJ Heard on the Street 04/07/10
Paulson tells us in 'On the Brink' that he doesn’t write things down or use email, so the entire book was done from his “facility” for memory.
-marketminder.com
Folks that live in a world of plausible deniability never commit anything to writing.
Deceit and subterfuge are merely precautionary measures. No need to question whether anything said by a person is true or whether the speaker would ever need to stand behind it. The temptation to obtain stuff in writing or have conversations recorded for later use in proving the truth is obviated.
Emails are denounced as cold and impersonal. The conspiracy of silence is the lingua franca.
The Federales 'Wise Guys' realize that those that go 'oobatz get pinched', and that there is never a good time 'to eat alone' lest one becomes 'guests of the state'.
One can only imagine though what the emails of the bureaucratic 'cafones and poveretts' at BLS might one day reveal: they seem to have foregone even making a semblance of precautionary effort as they paint the Potemkin economic village with an 'ever diminishing' credible brush ..
To wit, as mentioned here on March 8th : 'the Federales Household Survey showed that this month the category of 'Men 16 years and older' accounted for 297,000 of the 308,000 jobs gain and last month 'Women 20 years and older' produced 529,000 of the 541,000 jobs gain. Dude, stats happen! Don't blame the soothsaya.'
And now as relayed by the venerable Bill King :'Once again we see chicanery in the March Employment because the Household Survey shows a gain of 264k jobs but ‘Men 20 years & over’ accounted for a 290k job gain. ‘Women 20 years & over’ lost 42k jobs. This is absurd!'
What will be the title of the April's Household Survey? 'Stats from Mars, B$%#*&@t from Venus?'
Pay no attention folks to the fact that the Birth-Death added 81K while ADP subtracted 112K small-business positions. Pay no heed to Gallup reporting the underemployment rate is now over 20%.
Unemployment levels are empirically higher than they were during the worst years of the Great Depression (you can look it up!) but signs of recovery are all around us dontchaknow...
We've tossed trillion of meatballs on to the fire to fuel this V-shaped, scratch that, nascent, scratch that, 'seeds abounding' recovery and yet just a teensy-weensy rate increase might cause the markets to crash!
You, gentle reader, know your humble blogger's take as to the why and wherefores of our blessed custodes paranoia that there are deflationary 'elephants in the womb':'Failure to liquidate the insolvent banksters has led to the liquidation of a large part of the productive economy.A taxpayer financed bailout of rich folks' bad speculative bets has resulted in zombie banks and zombie customers... a fiscal tide that lifts no boats.' (AM Rule #7)
In today's WSJ, yet another example, a listing of the amount of level 3 assets at the major banksters:
J.P Morgan Chase : 130,400,000,000
Bank of America : 103,600,000,000
Citigroup: 96,900,000,000
Goldman Sachs : 46,500,000,000
Maorgan Stanley: 43,200,000,000
WSJ of course mistakes the trees for the forest, describing the toxicity of 'one part of bank balance sheets' while ignoring the fetid swamp that is the 'other part'- the part that if you imbibe of the pablum narrative swill has been Voldemorted out of existence... namely QSPEs and VIEs.
First though, noticed that Smells Fargo was not in the WSJ's top 5 (above)...
For a good laugh I jumped to their 2009 summary (are you ready for this?):
Smells Fargo Level 3 Assets:
Beginning balance at January 1, 2009 (securities owned) : 10,183,000!
Ending balance at December 1, 2009 : 2,068,000!
Oh my stars and quarters!
Un-fricking believable it is. No wonder Warren is cozy with them, truly they can 'bend it' like Buffett. Google(Advanced) search "level 3 assets" and you get 523,000 hits. Google(Advanced) search "QSPE" and you get 41,000 hits. Get folks to ask the wrong questions...
If Level 3 is the elephant in the womb, QSPEs (and VIEs) are truly the elephant in the tomb, a graveyard of lost generational growth, as we pay it backwards... the trillion or so of meatballs at the Reserve nothing more than DIP financing for a generational workout.
For your perusal, once again, a delineation as to the pervasiveness of the rot...
Smells Fargo
Total Qualifying Special Purpose Entities(09/30/09): $1,796,209,000,000
Citigroup
Total Qualifying Special Purpose Entities(06/30/09): $828,300,000,000
J.P. Morgan
Total Qualifying Special Purpose Entities(06/30/09): $574,000,000,000
After a cursory scrubbing of Bank of America and Goldie just couldn't come up with an accurate QSPE count. These numbers do not count the billions upon billions of VIEs.
If this generation was the boomer will the next be called the busted?
A generation busted by liquidity lusted, the foreshadowed truth? denouement of the trusted ...
Or to put it another way ..
After World War 2, our blessed leaders, impressed by German 'organizational' skills crafted a policy of manufacture of consent.Over time these techniques moved to the economic realm in an attempt to manufacture content.Federales now risk the manufacture of contempt, for it is only a Great Depression if they say it is. (AM Rule #1)
From a very good ZH piece today: Guest Post: Bloomberg Takes A First Step At Piercing The Veil Of Secrecy Surrounding CDOs
"After the subprime market began collapsing in 2007, Fitch reviewed a sampling of subprime mortgages with characteristics similar to those held by SAIL 2005-HE3. Fitch found that the vast majority of loans in its sampling were secured by fraud. About 2/3 of the loans involved occupancy fraud. In other words the borrowers claimed the property has their home but lived somewhere else. Almost half of the borrowers falsely claimed to be first-time homebuyers, who, in fact, had held mortgages somewhere else. A slight majority of the loans involved some kind of appraisal fraud. Clearly, a lot of these borrowers were seeking to make quick money by flipping a piece of real estate financed by a lender who didn't ask too many questions. Almost half of the mortgages in the Fitch sampling were in the state with the biggest bubble, California. Of course, none of this was news. Back in 2000, HUD Secretary Andrew Cuomowas alerting everyone that fraud had gone viral in the subprime mortgage sector."
Conclude that banks knowingly packaged up loans that they knew were fraudulently obtained and sold them worldwide. This was done with S&P & Moody's as knowing accomplices assigning a AAA rating to the securities.
Hundreds if not thousands need to be jailed.
And XLF bounds forward ... the banks are healing ... we are all saved