US banks scrap plans for SIV ’superfund’

This has got to be one of the biggest “non-surprises” of 2007:  a “lack of interest from other banks in providing financial support” killed the “superfund” scheme.  What BlackRock was proposing is ludicrous.  Take a severely under-capitalized group of banks in the US, pool together their crap, and then try to re-market this to other under-capitalized banks / buyers [...]

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Marking to Market

The recent E-trade sale of $2.5 billion of asset backed securities (ABS) to a Citadel led consortium demonstrates the massive write-downs ahead for ABS.  At a range of 11 to 27 cents on the dollar with approximately 73% of loans backed by prime mortgages, that is a dramatic write-down for prime mortgages and is actually worse than [...]

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Analyst Thinks Banks Might Be A Good Buy

A credit crunch wouldn’t seem to be the best time to buy financials, but an analyst from Morningstar says there might be opportunities for investors who want to buy cheap.Sonya Morris, senior analyst at Morningstar, writes that there are ETFs focused on financials that have high-value stocks that could be poised for a turnaround.
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