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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 2:31 pm Reply with quoteBack to top

CNBC is reporting that 8 banks have formed a consortium to seek a rescue plan for bond insurers.

The list of 8 banks reads like a who's-who of insolvent banks ... Citi, SocGen, UBS, PNB Paribus, RBS, Wachovia, ...

Last night MBIA was put on downgrade watch -- supposedly this is "code" for you have one week to sure up your funding before we downgrade you. The FED and Treasury are said to be "monitoring" the situation with the gang of 8 banks.

Ambac and MBIA are trading up 10% this morning on the news.

This should be fun to watch.
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Rotag
Wrecking crew


Joined: 01 Nov 2007
Posts: 1722

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 2:52 pm Reply with quoteBack to top

its funny to see the list of the banks involved. all of them probably are the ones who stand to lose the most. Rolling Eyes

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icenvegas
Schumpeter Reincarnate


Joined: 22 Nov 2007
Posts: 3896
Location: Las Vegas

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 2:53 pm Reply with quoteBack to top

in addition, those banks looks like a whose who of investment houses as well.

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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 3:04 pm Reply with quoteBack to top

Update: these banks are only interested in an Ambac bailout - MBIA is not included. And the discussions are being described as being in "very early stages"
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bdc63
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Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 4:06 pm Reply with quoteBack to top

Moody's is now saying that they plan on having their reviews done for all bond insurers by mid-FEB. Additionally they said that there will very likely be some downgrades at that time.

And they aren't just talking about Ambac and MBIA ... PMI Group Inc., Triad Guaranty Insurance Corp., Genworth Financial Inc., Republic Mortgage Insurance Co., MGIC Investment Corp., Radian Group Inc., and United Guaranty Corp. have all been talked about by Moody's in the last few days.
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Rotag
Wrecking crew


Joined: 01 Nov 2007
Posts: 1722

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 4:52 pm Reply with quoteBack to top

Holy S !

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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 5:25 pm Reply with quoteBack to top

http://www.cnbc.com/id/1584023.....amp;play=1
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dreamer
Demolition Man


Joined: 09 Aug 2007
Posts: 2101
Location: Northern California

Re: 8 banks joining together to bailout monolines
PostPosted: Fri Feb 01, 2008 10:07 pm Reply with quoteBack to top

It boggles my mind. Is it the chicken or the egg?

We have the players that wrote the CDOs and MBSs, etc. bailing out the players that insured the CDOs and MBSs, etc. so that the players that insured the stuff won't get rated down and go belly up so they'll still be around to pay off the the insurance to the players that wrote the stuff even though the stuff is really worthless and...

What a tangled web. I'm definitely buying more gold for sure.

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Rotag
Wrecking crew


Joined: 01 Nov 2007
Posts: 1722

Re: 8 banks joining together to bailout monolines
PostPosted: Sat Feb 02, 2008 12:24 am Reply with quoteBack to top

dreamer, thats funny, I did not think of it in comedic terms.

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gnk
Nitroglycerin


Joined: 06 Dec 2007
Posts: 778

Re: 8 banks joining together to bailout monolines
PostPosted: Sun Feb 03, 2008 2:11 pm Reply with quoteBack to top

The rating agencies (Moodys, S&P)are suffering the same conflict of interest that the securities analysts such as Henry Blodgett and Jack Grubman did.

Egan-Jones, an accredited ratings agency with a 97% accuracy rate (They are paid by investors, not the issuers) sees things as worse, much worse.... and remember - no conflict of interest for this smaller outfit unlike Moodys and S&P


http://www.cnbc.com/id/15840232?video=633485538

The Bond Insurers are in deeper poo poo than once thought...

I think I'll be investing in canned food soon. It holds its value pretty well.

Any thoughts on why the market is performing as it is? Are many retail investors clueless? Or will this blow over and we're making too much of a fuss over this? What is the real reality?

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