Analysis Topic: Companies Analysis
The analysis published under this topic are as follows.
Saturday, August 30, 2008
Fannie and Freddie GSEs are Too Big to Survive / Companies / Credit Crisis 2008
By: Michael_Pento
Wall Street's recent mantra—emblematic of its support for bailouts, especially of financial firms—is that Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are too big to fail. I've written before about the potential problems associated with the G.S.E.s, but it is now quite clear how much trouble these companies are in, so I thought it was time to write a follow-up.Read full article... Read full article...
Saturday, August 30, 2008
The Greatest Government Bailout of All Time / Companies / Credit Crisis 2008
By: Money_and_Markets
We are now witnessing a rapid-fire 1-2-3 chain reaction of events that's leading to the greatest government bailout of all time ...
Event #1. In the mortgage market, where this crisis first erupted, nearly half of all subprime loans issued in 2006 are now delinquent ... late payments on mid-quality "Alt-A" mortgages have soared 41.5% ... and delinquencies on prime jumbo mortgages are up a staggering 55.2% in the past 6 months.
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Friday, August 29, 2008
Iraqi Bonds Safer than American Banks / Companies / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Iraq Safer Than Ohio Banks Stung by Credit Crisis . Iraq's bonds are delivering the biggest returns in emerging markets as oil export revenue bolsters government finances and violence declines.
The country's $2.7 billion of 5.8 percent bonds due 2028 gained 45 percent since August 2007, according to Merrill Lynch & Co. indexes. Investors demand 4.84 percentage points more in yield to own the debt instead of Treasuries, down from 7.26 percentage points a year ago. The spread is narrower than for notes of Ohio banks National City Corp. and KeyCorp, suggesting Baghdad may be safer for bond investors than Cleveland.
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Thursday, August 28, 2008
US Financial's and Auto's Dead Men Walking / Companies / Credit Crisis 2008
By: John_Mauldin
Last Friday's letter was about the fact that it is not just Freddie and Fannie. There are other problems. The Weekend Edition and today's Wall Street Journal are filled with stories about the problems with Freddie and Fannie. The assumption in so many quarters is that they will soon need government assistance. The only questions seem to be when and in what form? Can this wait until a new president is in place? Congress is leaving town soon. Can it wait until the lame duck session?
As I have been writing for well over a year, the credit crisis is going to be deeper and take longer to correct than the main stream media and economists think. Losses at banks are going to be much larger, and they are going to bleed for a long time. That means we are going to see more banks failing.
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Thursday, August 28, 2008
Pension Benefit Guaranty Corporation Defies Risk Suggesting Another Future Taxpayer Bailout / Companies / Credit Crisis 2008
By: Joe_Nicholson
At the heart of every financial transaction is risk. With few exceptions, the only way to increase what you have using investments is to shoulder some risk. This can work, growing your money and creating much more than id you had not done a thing. And if it doesn't work, you could lose all of the money you invested or just a portion.Read full article... Read full article...
Saturday, August 23, 2008
Banking Systemic Crisis as Losses Pass $500 Billion / Companies / Credit Crisis 2008
By: John_Mauldin
- It's More Than Freddie and Fannie
- The US Banking System Is in Trouble
- $500 Billion and Counting
- Fannie, Freddie, and the Credit Crisis
Yet another crisis confronts us, as we will have to deal with the aftermath of a rather large number of bank failures over the next year, which is likely to overwhelm the ability of the FDIC to insure your bank deposits. Today we look at the banking system, the FDIC, and Freddie and Fannie. It's not pretty, but as realists we must know what we are facing.
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Friday, August 22, 2008
Ten Financial Institutions On The Brink of Collapse / Companies / Credit Crisis 2008
By: Mike_Shedlock
Clearly Lehman (LEH) is on the brink of disaster. I talked about that on Tuesday in Lehman In Deep Trouble . On Wednesday, the Financial Times was reporting Lehman's secret talks to sell 50% stake stall .
Lehman Brothers, the beleaguered US investment bank, held secret talks to sell up to 50 per cent of its shares to South Korean or Chinese parties in the first week of August but failed to reach agreement with either.
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Thursday, August 21, 2008
Profit From the Emerging Markets Investment Banking Boom / Companies / Emerging Markets
By: Money_Morning
Martin Hutchinson writes:Emerging markets are the place for investment bankers to wheel and deal during the next couple of years, as bankers in Asia, the Middle East and Latin America earn an increasing share of investment banking revenue.
Emerging markets share of investment banking revenue has increased both in percentage share and total value over the past few years. In 2005, investment-banking revenue from emerging markets accounted for almost $40 billion, or 16% of the global investment-banking revenue total. Those figures increased to just over $78 billion, a 21% share of the total in 2007.
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Thursday, August 21, 2008
Competition Forces Ebay to Cut Fees By 70% Whilst Insiders Exercise Options / Companies / Tech Stocks
By: Mike_Shedlock
Competition for customers between eBay (EBAY) and Amazon (AMZN) is heating up. In an attempt to win market share EBay Cuts Fixed-Price Fees More Than 70% , Maintains Forecast.
EBay Inc., the world's largest Internet auctioneer, lowered fees for listing fixed-cost items by more than 70 percent to attract additional sellers and compete with Amazon.com. EBay said the changes won't affect its annual earnings projection.
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Monday, August 18, 2008
Bradford & Bingley Rights Issue, Citigroup, UBS left Holding the Bag / Companies / Credit Crisis 2008
By: Mike_Shedlock
The International Herald Tribune is reporting Investors shun rights offer by British lender .Bradford & Bingley, the biggest buy-to-let mortgage lender in Britain, revealed Monday that its bankers have been left with more than 70 percent of its £400 million rights issue, confirming expectations of a poor take-up by investors.
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Thursday, August 14, 2008
Another Geo-strategic Gain for the Chinese Manufacturing Dragon / Companies / China Stocks
By: Money_Morning
Martin Hutchinson writes: There's more bad news for those of you who are worrying about the United States' global geo-strategic position. According to a recent report, starting next year, Chinese manufacturing output will exceed that of the United States .
In concrete figures, of the world's $11.8 trillion of manufacturing value added output expected to be produced in 2009, China will account for 17%, while the United States will account for 16%.
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Wednesday, August 13, 2008
Distressed Bank's Capital Destructive Debt Issuance / Companies / Credit Crisis 2008
By: Mike_Shedlock
Minyan Peter was back posting on Minyanville today after a 3 week hiatus. Peter is a former treasurer for a large Midwest bank and one of the brightest minds you can find anywhere. From Peter:
I am finally back from three weeks away from the markets and would offer two quick thoughts from Europe. Read full article... Read full article...
Wednesday, August 13, 2008
China's Olympic Gold Medal Tech Economy / Companies / China Stocks
By: Money_and_Markets
About 840 million people from around the globe tuned in to watch the opening ceremony for the Beijing Olympics, making it the most watched sporting event in history.
I hope you were one of them because it was an amazing $300 million spectacle that condensed 5,000 years of Chinese history into the most spectacular visual imagery I have ever seen.
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Tuesday, August 12, 2008
Fannie, Freddie Common Stock Now Valued as a Call Option / Companies / Credit Crisis 2008
By: Mike_Shedlock
John Hussman had some interesting comments on Fannie Mae's last earnings statement in Nervous Bunny . With regard to Fannie Mae's report, the most interesting figure wasn't the reported $2.3 billion loss, but rather the much larger deterioration in the reported fair value of Fannie's balance sheet. We can observe what's going on by comparing Table 32 of Fannie Mae's Q2 2008 10Q filing with the same table in Fannie Mae's Q1 2008 10Q filing.
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Sunday, August 10, 2008
RBS Record Loss as Systemic Banking Crisis Deepens / Companies / Credit Crisis 2008
By: Nadeem_Walayat
The Royal Bank of Scotland (RBS) Lost a record £691mln during the first six months of 2008 set against a profit of £5 billion for the same period last year, as the bank continued to write down the value of assets in the face of mounting bad debts as a consequences of exposure to the US subprime housing market. The loss was lower than analysts estimates that had varied to as high as 1.6 billion, following its most recent write down of £6 billion. Read full article... Read full article...
Wednesday, August 06, 2008
BAC's Threatened Default on Countrywide Bonds Triggers Law Suits / Companies / Corporate Bonds
By: Mike_Shedlock
The marriage between Bank of America (BAC) and Countrywide Financial (CFC) was supposed to stave off bankruptcy of Countrywide. It might not work out that way. Let's put together some pieces starting with the Bloomberg report BNY Mellon, Citigroup, JPMorgan, Ambac in Court News . Read full article... Read full article...
Wednesday, August 06, 2008
Investing in Solar Power Energy Technology / Companies / Renewable Energy
By: Money_and_Markets
Sean Brodrick writes: As an energy crisis threatens to derail the U.S. economy, it really bugs me that there is a 170-billion-megawatt fusion reactor we are not taking advantage of.
I'm talking about the sun, which, when you get down to it, is a big ol' fusion reactor — nuclear energy on steroids. Enough sunlight falls on the Earth's surface every hour to meet world energy demand for an entire year .
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Wednesday, August 06, 2008
Investing in Booming Chinese Food Stocks / Companies / Agricultural Commodities
By: Money_and_Markets
Tony Sagami writes: As a teenager, I couldn't wait to get off the family vegetable farm. While the rest of my friends were joyriding around town, swimming, and otherwise having tons of fun, I was always working.
But attitudes sure do change over time. Now I live in Montana to recapture that rural lifestyle that I hated so much as a teenager.
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Wednesday, August 06, 2008
S&P500 Corporations Board and Executive Compensation Payments / Companies / Corporate News
By: Richard_Shaw
Executive compensation and board largess with high paid executives is a hot topic recently. That spurred us to look comprehensively at some factual comparative data on the total cost of boards of directors and top executive teams among the S&P 500 companies (proxy SPY or IVV).
For that purpose, we utilized the corporate governance database provided by The Corporate Library ( www.TheCorporateLibrary.com ) which tracks corporate actions, including executive compensation, and ranks public companies on several dimensions of corporate governance.
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Tuesday, August 05, 2008
Northern Rock Turns Into a Pebble on Huge Loss / Companies / UK Banking
By: Nadeem_Walayat
The government propaganda machine were in full swing today emphasing Northern Rock's repayment of £9.7 billion of the approx £27 billion borrowed, whilst at the same time announcing losses of £585 million over the past 6 months, against a profit of £296 for the same period last year, prompting the government to make an equity injection of £3.4billion, which basically means that loans have been replaced by a high risk equity investment the value of which is subject to market pricing, which given that Northern rock is making an annualised loss of over £1 billion equates to virtually zero. Read full article... Read full article...