Relevant:
- Morgan Stanley Said to Freeze Home-Equity Credit Withdrawals
- Insight: A new wave of U.S. mortgage trouble threatens
- Home equity lines due for reset may be looming financial disaster
- Mortgage investors push for banks to write down second liens
- Is Florida's Pam Bondi Living In A Barbie World Paid For By Bank Lobbyists?
2010-04-14 — denninger.net
For all of the bank's moralizing, [the sanctity of contracts] is not what's at issue here. It's the $448 billion in equity lines and other junior loans held primarily by the nation's four biggest banks. If principal writedown is allowed, most of the equity lines involved will be wiped out if the property is underwater. In fact, the plan Obama announced last week for owners of such homes allowed only 10 cents to 20 cents on the dollar for second-lien holders.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.