HSBC is feeling the sting of the American mortgage crisis also.
European bank HSBC reported a 29% drop in first half profits. In the same half in 2007, HSBC posted a $10.9 billion profit, while in the same half this year they posted a $7.7 billion profit. HSBC...
View ArticleMarket movers of the day from CNBC could be a good sign :)
Today on the front page of CNBC.com they listed the market movers. In the S&P the top percentage gainers include Khols, Amazon, Starbucks, and Abercrombie and Fitch. The highest percentage losers...
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Fannie Mae and Freddie Mac…One Disaster After Another.
Well it’s happening…the government is taking over Fannie Mae and Freddie Mac as soon as tomorrow…well this morning. These two mortgage lenders either back or actually hold HALF of the country’s...
View ArticlePerhaps things aren’t looking as bad for WaMu.
Even after the S&P lowered the savings-and-loan credit rating today Washington Mutual’s shares rose 16% higher than opening. WaMu was one of the largest profiteers from the housing boom and is now...
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What’s to stop the mortgage crisis from happening again?
The government has bailed out a handful of banks and savings-and-loan firms now and spent billions of tax dollars in the process…So the question now is what exactly is preventing such a huge failure...
View ArticleSEC bans short selling on 799 Financial stocks
One day after the UK Financial Services Authority pulled a similar stunt, the SEC temporarily banned the short selling of almost 800 financial stocks. According to the ban, on October 3rd short selling...
View ArticleThings that the bailout should include
The government bailout of the big Wall Street banks has yet to pass. Congress is holding out because they just can’t agree on the terms of the bailout. Unfortunately, with every day that passes these...
View ArticleThey’ve come to an agreement!!
Just after midnight Congressional leaders and members of the Bush administration came to a tentative deal on the bailout. Nancy Pelosi even said all that had to be done was for the agreement to be put...
View ArticleCongress passed the bailout bill…it was a little different than the first one.
So, on Wednesday the revised bailout bill rescue plan was passed in the Senate. Friday the House voted for it then the same afternoon President Bush signed it. So what happens now? Well first the...
View ArticleWachovia will go forward with the Wells Fargo deal.
This deal is getting more confusing by the minute. Weekends tend to be slower when it comes to business news, but this Wachovia buyout is getting interesting. After Justice Ramos filed an injunction to...
View ArticleMore banks to fail in the coming year
Doom and gloom is prevalent around Wall Street, and it doesn’t look like it will be over anytime soon. Even with the $700 billion bailout, more banks will fail in the next year. While it will help...
View ArticleBank stocks increase as government implements $250 billion buy-in
Yesterday the government announced it would be taking $250 billion of the bailout plan and buying preferred non-voting stocks in some banks. Nine major lenders agreed to the government’s purchase of...
View ArticleFinancial Crisis to the Average American: “How does it affect me?”
Anywhere you turn, you will see a story about banks and savings-and-loan giants failing. I do not know how many more banks have to fail until we see the chaos on Wall Street that the 1929 crash brought...
View ArticleLending problems until 2010?
According to a BusinessWeek article, 40% of lenders don’t think the loan markets will recover until 2010. In the article "the Vaults are Still Closed" even a bank that is in an area that was spared...
View ArticleFannie Mae reports record loss
Fannie May said it lost a record $29 billion in the 3rd quarter 2008. The company had to write down almost all of its deferred tax assets. The loss is the fifth consecutive quarterly loss for the...
View ArticleThe Government plans to bailout Citi
The government unveiled a plan today to bail out Citigroup. The plan includes putting a $20 billion stake in the company along with guaranteeing hundreds of billions of dollars in risky assets. The...
View ArticleCommercial mortgage crisis still ahead?
The same bad debt and problems that brought about the residential mortgage crisis may soon bring about the commercial real estate bust. Malls across the country are being forced into foreclosure, as...
View ArticleAlt-A and Option ARM mortgages to reset over the next 3 years…
Another mortgage crisis could be on our hands. Tonight on 60 Minutes there was a segment about how the subprime mortgage lending fiasco was coming to a close. At the same time, the number of people...
View ArticleGenerous gesture leads to bad publicity at Wal Mart
In Lisbon, Connecticut, out of work mortgage lending executive Barry Goldberg wanted to do something generous this holiday season. He intended to dress up as Santa and hand out 130 Wal Mart gift cards...
View ArticleBanks still not lending
So, even after the bailout plan passing and all the money being dealt out to the banks, why are people still not able to get loans? The banks are getting great rates to lend to each other, but lending...
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