INVESTMENT BANK’S LIES IN BLACK & WHITE

Posted on April 13th, 2008 in Daily Stock Market / Economic News - The Real Story

this is a killer. Below are write-down covering all categories including subprime. We know full well these are a SMALL FRACTION of what lies ahead. Wells Fargo is not even on the list despite owning $84 BILLION in Home Equity lines/loans that are presently worth pennies on the dollar. Look at Lehman! Haha. Look at Chase…they have more Home Equity Lines/Loans than Wells Fargo. So does Bank of America. Funny, the CNBC crowd was pushing that it was the ‘kitchen sink quarter’ just like they tried to do in Q3. -Best, Mr Mortgage

UBS (UBS): $37.4 billion
Citigroup (C): $21.2 billion (expected further loss of $18 billion in Q1, 2008)
Merrill Lynch (MER): $19.4 billion
Morgan Stanley (MS): $12.9 billion
Deutsche Bank (DB): $7.1 billion
Bank of America (BAC): $5.7 billion
Royal Bank of Scotland (RBS): $5.6 billion
Credit Suisse (CS):
$4.7 billion
Goldman Sachs (GS): $3.7 billion
Lehman Brothers (LEH): $3.3 billion
Barclays PLC: $3.3 billion
JP Morgan (JPM): $2.9 billion
Bear Stearns (BSC): $2.75 billion
HSBC Holdings: $2.1 billion

http://freundinvesting.com/2008/04/12/a-tally-of-bank-and-ibank-write-downs/

ALSO -this, from a friend regarding Erin Callan, CFO of Lehman, and her earnings call recently. She used the following words the respective times. She is the best spinner out there (no pun intended).

STRONG 24
GREAT 13
INCREDIBLY 8
ATTRACTIVE 6
DIFFICULT 7
CHALLENGING 5
TOUGH 1


3 Responses to “INVESTMENT BANK’S LIES IN BLACK & WHITE”

  1. Just saw this over at Calculated Risk…

    Wachovia to Receive Big Infusion of Capital

    Wachovia Corp., which barreled into adjustable-rate mortgages with the huge acquisition of Golden West Financial Corp. near the peak of the housing market, could announce as soon as Monday that it is getting a capital infusion of several billion dollars from outside investors, according to people familiar with the matter.

    Final terms of the deal were being hammered out Sunday night, but it appeared likely the fifth-largest U.S. bank in stock-market value would receive $6 billion to $7 billion. In return, the investor group would get shares priced roughly $23 to $24 apiece — a 15% discount to Wachovia’s share price Friday.

  2. freaking awesome site man.

    one very important question: you said heloc’s are going for pennies on the dollar, what is your basis for this comment?

    i think i remember you said in one of your videos you had contacts that gave you this info, but after quickly researching this i didnt find any other postings or sources about this premise, aside from your quotes.

    there are certainly some aspects about heloc’s that makes the “pennies on the dollar” value of these assets probable (like that a large portion of them that are likely to be behind 1st mortgages) but are there any other supporting 10-k’s, articles or additional sources for this pennies on the dollar premise?

    once again, freaking awesome site man! love the videos! love the whole freaking site!

  3. Hey Mr. Mortgage,

    Thanks for the pingback to my article. Want to swap links? Give me a shout and we’ll see if we can work out something.

    Regards,
    Ryan Freund
    Founder
    FreundInvesting.com

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