Chris Whalen has serious questions about the Fed’s stress tests
I love Chris Whalen's bank industry analysis. I featured his CNBC commentary yesterday. Today is his commentary from last night's Capital Account.
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Browsing Tag
Housing
Buy or rent as rents rise and house prices fall?
This is a good segment from CNBC on the dichotomy we see in the housing market of still falling house prices and rising rents. Is the rise in rents a foreshadowing of house prices stabilising? Take a look.
Anecdotes of Mortgage Fraud
Appraisers are pursuing class action suits against banks, asserting they were blacklisted if they refused to engage in fraudulent appraisals. The problem is that if they win, they are then subject to suit by homeowners (who are losing their…
Wall Street’s Broken Windows
The troubling paradox is that the strongest proponents of “broken windows” theory and policies in the blue collar crime context are the strongest opponents of applying analogous policies in the elite white collar crime context.
Fannie Putting Dubious Loans Back to BofA, So BofA Will Stick Them to Freddie Instead
It looks like someone at Fannie woke up and realized that any case of a guarantor voiding a policy was prima facie evidence that BofA had breached a rep and warranty about loan quality. Look at the examples: inflated appraisals and incomes.
The current housing bust is much worse than the Great Depression
Great chart from the recently released Economic Report of the President. We suspect the Great Depression housing bust didn’t have the government props to soften the blow as we do today, which, therefore, on a relative basis, makes the…
Will Government Bank Mortgage Deal Help or Hinder Prosecutions?
This Real News Network segment was recorded before the deal was announced today, but the observations are still germane. Yves Q. Smith argues this is just kabuki theater for the masses (ahead of a general election, I would add). Clearly,…
Banks Paying Cash to Homeowners to Avoid Foreclosures
Here's the latest story that's been getting buzz around the internet: banks are trying to get troubled mortgages off their books without having to go through costly foreclosure processes and they are offering homeowners cash incentives to…
More on Banks Making Shed Loads But Fannie And Freddie “Losing Money as a Matter of…
Fannie and Freddie have already been nationalized and the government is already on the hook for hundreds of billions of dollars of losses as a result. Clearly, this makes it a lot easier to use the GSEs as vehicles to pump money into the…
On Canadian and Australian bank risk
Banking sectors in both countries are highly concentrated. The top four banks in Australia account for about three quarters of the banking assets. The top six Canadian banks account for upwards of 90% of the Canadian banking assets.…