What do you do for $:Fed reveals partial data on emergency lending facilities, still mum on discount window
Update: Well, it would appear absolutely EVERYONE got a bailout except the middle class. And I do mean everyone.
Zero Hedge breaks down the 35 foreign banks that the Fed bailed out here.
…$1.27 trillion in agency MBS was traded by foreign banks…
led by the $410 billion by German-based Deutsche Bank ..
…the $382 billion by the Switzerland-based Credit Suisse.
Other highlights of the disclosure include that GE among other commercial endeavors got $ from the Fed, and that the Fed has essentially been taking all the polluted assets from everyone with a pulse (again, except for the US middle class consumer/homeowner who has been lectured about ‘moral hazard’ and whose house has been foreclosed upon):
.the Federal Reserve purchased $1.25 trillion in agency MBS from all participating banks.
Goldman Sachs borrowed 84 times from Fed’s dealer facility (PDCF) from Sept. 15 to 11/26/08 for amounts ranging from $100m to $8b
Bank of America borrowed 118 times from the PDCF from Sept 18 2008 to May 2009, in amount ranging from $375 million to $11 billion.
And even CA Pension funds got in on the bail out action, per ZeroHedge:
Looking at the TALF data, we see that the biggest borrower by subscription is Calpers, with a total of about $5.4 billion
…The data released Wednesday include short-term liquidity moves for financial institutions and companies made as part of the Fed’s traditional role as lender of last resort, liquidity injections directly to borrowers and investors in key credit markets and financial support for Bear Stearns Cos. and American International Group Inc. (See all the data from the Fed)
Fed officials reported details on more than 21,000 transactions from December 2007 to July 2010. The emergency programs caused the size of the Fed’s balance sheet to swell. (See a history of the Fed’s lending)…
Housing: Foreclosures still rising – RealtyTrac confirms earlier UBS’ forecast- won’t peak until 2010…
Here is our post on the UBS forecast for housing foreclosures and mortgage defaults
RealtyTrac concurred with UBS’ position today:
Team TOTUS needs to get the programs that they have already announced properly implemented (HAMP, HASP, PPIP) and either a. working or b. scrap them, cut off the funds, and try something else as far as housing is concerned or we will hit that second leg down in conjunction with a rising tax environment a la Congress and the consumer will go down for a generation IMO…
and don’t even think about anything in the Middle East happening to hit oil prices cuz then we will get another 2 years of TOTUS blaming THAT for his economic failure just as he stops blaming Boooosh!
..The second-most powerful Democrat in the Senate called the Obama administration’s mortgage modification program“a waste of time” Wednesday, hours after the White House released disappointing new data about the program’s effectiveness…
…Mr. Frank has been arguing that if the administration’s loan modification efforts, which rely on voluntary participation by mortgage servicers, don’t improve, then the political winds will move in his favor—and against the banks. “Let me put it this way,” he said at Wednesday’s hearing. “The best lobbyists we have for getting bankruptcy legislation passed are the servicers who are not doing a very good job of modifying mortgages. And if they do not improve their performance, then they improve the chances of that legislation.”…
Meredith Whitney mentioned on CNBC this morning that the banks have increased their MBS holdings of all things, are they buying each other’s properties to avoid taking writedowns after 90 days on foreclosed props??
Is that why people are making market offers and getting turned down by the banks? When will the banks get a CLUE that in THIS political environment their best interest is not served by artificially inflating asset values and failing to make MEANINGFUL modifications with the Federal incentive payments and taking a tiny profit, rather than not doing so and being TOTALLY rolled by Frank and Durbin and thereby starting a cycle of bad loans to people who cannot afford the homes all over again???? Hmmmnnn? Memo to banks suck it up, take the hit, walk it off like consumers do before you get reamed by Team TOTUS’ machine…
Market Mover Monday: FED expanding TALF, no WH FY10 budget forecast yet? GE Capital RE to sell MBS to China…
Market Update: 11:00am EST: DOW down 190.90 to 9130.50; S&P down 23 to 981 and NAS down 48 to 1936 (ouch we were just over 2000 last week)….
CNBC: Federal Reserve is announcing now they will expand TALF to March 2010 from December 2009, commercial securities program through June 2010..
Not a soul reported the WH FY 2010 budget update the WH said they would release Friday at 5:00pm…is it so bad they didn’t release it?If we go to the WH site we will get cookied! Oh Noes! will any journOlist person NOTICE they have not reported the figures to us yet?!
GE Capital RE is about to sell China a bunch of our mortgages with Uncle Sam money isn’t that great? frakkers.
China Investment Corp, the country’s $200 billion sovereign wealth fund, is set to pour up to $2 billion soon into the U.S. mortgage system by hiring mandates under the U.S. Treasury-backed Public-Private Investment Plan (PPIP)..
…Under the PPIP program launched earlier this year the U.S. government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks…
...CIC, established by the Communist government in late 2007, is keen to participate in the PPIP as it expects the U.S. property market to start to recover gradually late this year, said the sources.
This is the same PPIP that had an EPIC FAIL when NO BIG BANK would participate, Jamie Dimon of JPMChase was all, we are eager to get the hexx away from the government, in his own words of course, lol…so the toxic assets still sit on big bank books while Jeff Immelt, (worst CEO in the worrrrld!?!) prepares to sell our loans directly to China..this should go over well with evicted homeowners 😦 maroons.
Midnight Oil courtesy of onlythepianoplayer
JPMC knocked the cover off the ball with their earnings..MiM does not trust any bank earnings as a long term indicator for investment until the underlying toxic crap is off the books, it is not being written down thanks FASB, and not sold, thanks PPIP failure! It is out there sitting..not until unemployment turns around and Team TOTUS stops killing the economy will we be safe there as far as I am concerned..
Team TOTUS is to announce more housing plans today, we shall see how that goes..
But of all the banks Jamie Dimon is the best CEO on the globe IMHO, seriously…if banks are your bag, Jamie is your guy…
…Though the second-largest U.S. bank is widely considered among the healthiest of the nation’s major lenders, the amount set aside for bad loans in the quarter more than doubled from a year earlier, to $9.7 billion.
It said a surge in credit card and loan losses was likely to worsen.
Second-quarter results benefited from improving credit markets as well as federal regulators’ efforts to stimulate the economy by keeping borrowing costs low, bolstering mortgage and other lending activity.
Chief Executive Jamie Dimon’s bank skirted the worst of the credit crisis by largely avoiding losses and writedowns on complex debt and mortgages that hurt many rivals.
Among the six largest U.S. banks, JPMorgan is the only one not to lose money in any quarter since the recession began in 2007….
Jamie agrees with MiM!!!
…Dimon expressed opposition to an Obama administration plan to create a consumer finance protection agency, echoing other banks.
“The more agencies, the more politics and bureaucracy,” he said…
Weekly jobless claims are all whacked due to seasonal auto adjustments and bankruptcy filings:
The number of U.S. workers filing new claims for jobless benefits fell sharply last week to the lowest level since January, the government said on Thursday, but the data was distorted by an unusual pattern of automotive industry layoffs that amplified the drop
Initial claims for state unemployment insurance fell 47,000 to a lower-than-expected seasonally adjusted 522,000 in the week ended July 11, the Labor Department said. Analysts polled by Reuters had forecast claims to be unchanged at 565,000 last week.
A Labor Department official said that far fewer layoffs than anticipated based on past experience in the automotive sector and elsewhere in manufacturing accounted for both the large drop in seasonally adjusted claims last week and in the very steep decline in so-called continued claims.
This was the second week in a row that seasonal factors had affected the data and the official said this would continue for one or two more weeks before this influence faded. “The big drop is not necessarily a reflection of what is going on in the economy,” he said…
In other business headlines, Housing foreclosures rising:
The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released Thursday by foreclosure listing service RealtyTrac.
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Update: Earnings analysis – Bloomberg
There’s our Jamie! We have been wondering where his fire went….
Chief Executive Jamie Dimon said the bank has the money to repay the $25 billion in taxpayer funds it received from the U.S. government in October…(JP Morgan Chase) reported better-than-expected first-quarter profit as improved investment banking performance offset increased losses from credit cards and other consumer debt, sending its shares up as much as 4.5 percent……
…JPMorgan was forced to take the bailout funds under the government’s Troubled Asset Relief Program…“We could pay it back tomorrow,” Dimon said on a conference call, adding that the bank is waiting for guidance from the government on when it can do so…
Jamie is calling the WH bluff, he says he will pay back TARP right NOW without raising capital, AND he said he will NOT sell assets into PPIP or buy any..he has ‘learned his lesson’ about dealing with the government…
He called the TARP the Scarlet Letter…heh heh heh…
…Still, Mr. Dimon says the firm is going to “await the results of the stress test and guidance from the government and see what happens” regarding a capital raise. He then added that “I don’t see why a company with that kind of capital would have to raise capital…we could raise it, and I, you know, what Goldman did is what Goldman did. It has nothing to do with us.”….
…Regarding the government’s private-public investment partnership program, the firm said it does not have plans to use it. “We’re certainly not going to borrow from the federal government because we’ve learned our lesson about that and — but I do think that a PPIP is properly executed, it could be good for the system because it could give some prices to certain loans and help some companies do things they might not otherwise have been able to do,” he says….
BWAAAAAHAAAAAAHAAA!!! Ball in your court Timmeh…heh heh heh….
Update 2: Bloomberg Interview: Video Up…Larry Summers backs off Obama Administration forecast of 4.00% GDP in 2011..
Update 2: Gee Larry gave an awful lot of ‘Exclusive’ interviews today LOL. Here is Bloomberg:
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Maria Bartiromo is doing an EXCELLENT interview with Larry Summers on CNBC now..
She is cornering him left and right and really nailing him down on answers
Heh- He just backed WAAAY OFF the Administration’s 4.00% GDP for 2011, waaaay off
Then she followed up in a one-two with a, ‘well okay if the economy does not grow at 4.00 in 2011 are you prepared to tell him, Obama, to back off raising taxes on top earners?’
He won’t answer, wiggle wiggle, it is expiring Bush Tax cuts he keeps saying, she got him anyway
I will get it up right away when CNBC loads it
Right now, Dow down 102 to 7954, NAS down 20 to 1622 S & P down 11 to 846..