[capeman]

I shorted into this. If it were such great news then the stock wouldn’t have ended the day after essentially even. BAC was just securing themselves the biggest seat at the table when CFC is cooked. Preferred stock gets paid out first in a liquidation and in a liquidation 2B will likely be half the value of the company or more. This turd is going down and after having to borrow 13.5B in money to stay afloat when they claim to have cash in the bank tells me this will play out in the next couple of weeks if not sooner.

[capeman]

I shorted into this. If it were such great news then the stock wouldn’t have ended the day after essentially even. BAC was just securing themselves the biggest seat at the table when CFC is cooked. Preferred stock gets paid out first in a liquidation and in a liquidation 2B will likely be half the value of the company or more. This turd is going down and after having to borrow 13.5B in money to stay afloat when they claim to have cash in the bank tells me this will play out in the next couple of weeks if not sooner.

[capeman]

I shorted into this. If it were such great news then the stock wouldn’t have ended the day after essentially even. BAC was just securing themselves the biggest seat at the table when CFC is cooked. Preferred stock gets paid out first in a liquidation and in a liquidation 2B will likely be half the value of the company or more. This turd is going down and after having to borrow 13.5B in money to stay afloat when they claim to have cash in the bank tells me this will play out in the next couple of weeks if not sooner.

[capeman]

Average 33% haircut…

An auction of about 135 foreclosed homes in San Diego Saturday provided more sobering news for mortgage lenders. Ramsey Su, an investor and former real-estate broker who attended, calculated that the high bids for the homes averaged 67% of the prices they fetched when they were last sold, mostly in 2004 or 2005. At a similar auction in San Diego in May, the average was 73%. The auction was held by Real Estate Disposition Corp., Irvine, Calif., which promotes such sales on the http://www.usahomeauction.com Web site. REDC officials couldn’t be reached to comment.

Now that’s what I like to see!!

Link to article…

http://online.wsj.com/article/SB118758059074702618.html?mod=hps_us_whats_news

[capeman]

Average 33% haircut…

An auction of about 135 foreclosed homes in San Diego Saturday provided more sobering news for mortgage lenders. Ramsey Su, an investor and former real-estate broker who attended, calculated that the high bids for the homes averaged 67% of the prices they fetched when they were last sold, mostly in 2004 or 2005. At a similar auction in San Diego in May, the average was 73%. The auction was held by Real Estate Disposition Corp., Irvine, Calif., which promotes such sales on the http://www.usahomeauction.com Web site. REDC officials couldn’t be reached to comment.

Now that’s what I like to see!!

Link to article…

http://online.wsj.com/article/SB118758059074702618.html?mod=hps_us_whats_news

[capeman]

Average 33% haircut…

An auction of about 135 foreclosed homes in San Diego Saturday provided more sobering news for mortgage lenders. Ramsey Su, an investor and former real-estate broker who attended, calculated that the high bids for the homes averaged 67% of the prices they fetched when they were last sold, mostly in 2004 or 2005. At a similar auction in San Diego in May, the average was 73%. The auction was held by Real Estate Disposition Corp., Irvine, Calif., which promotes such sales on the http://www.usahomeauction.com Web site. REDC officials couldn’t be reached to comment.

Now that’s what I like to see!!

Link to article…

http://online.wsj.com/article/SB118758059074702618.html?mod=hps_us_whats_news

[capeman]

I wouldn’t count on that hypothesis. I belong to NavyFed and they have a lot of 100% financings sold off and if the mortgages get called back to the bank there could be problems. The auto loans and others given to people with mortgage woes could be in trouble as well. Of the CUs that I know of not a lot are exposed but I would keep an eye out as to whether your’s is or not. Just look on the website and see what kind of mortgage financing they offer. If the requirement is less than 80% LTV then they are not likely at as high a risk as some other institutions.

[capeman]

I wouldn’t count on that hypothesis. I belong to NavyFed and they have a lot of 100% financings sold off and if the mortgages get called back to the bank there could be problems. The auto loans and others given to people with mortgage woes could be in trouble as well. Of the CUs that I know of not a lot are exposed but I would keep an eye out as to whether your’s is or not. Just look on the website and see what kind of mortgage financing they offer. If the requirement is less than 80% LTV then they are not likely at as high a risk as some other institutions.

[capeman]

I wouldn’t count on that hypothesis. I belong to NavyFed and they have a lot of 100% financings sold off and if the mortgages get called back to the bank there could be problems. The auto loans and others given to people with mortgage woes could be in trouble as well. Of the CUs that I know of not a lot are exposed but I would keep an eye out as to whether your’s is or not. Just look on the website and see what kind of mortgage financing they offer. If the requirement is less than 80% LTV then they are not likely at as high a risk as some other institutions.

[capeman]

This is from their site and is not the most reassuring way they could lay this out…

NEW YORK–(BUSINESS WIRE)–E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) released supplemental disclosures today related to the composition and funding sources for its balance sheet. The Company provided a presentation containing additional information to its June 30, 2007 quarterly results, including expanded transparency on the credit quality of its mortgage and securities portfolios. This presentation can be found at https://investor.etrade.com. In addition, the Company stated that it has seen no material changes to date with respect to the availability, pricing or margin on its wholesale funding sources, including repurchase agreements. Management maintains that it does not believe that the current market capitalization accurately reflects the financial strength and performance of the business.

Selected highlights from the presentation include:

* The Company’s $15.7 billion first lien mortgage portfolio is supported by high FICO scores, low Loan-to-Value ratios (LTV) and private mortgage insurance
* All first lien mortgage loans with an 80% or higher LTV are protected by private mortgage insurance
* $9.2 billion, or 74%, of its home equity portfolio is to borrowers with FICO scores of 700 and higher
* $12.6 billion, or 99%, of mortgage-backed securities are rated AAA
* 97% of its Asset-backed Securities portfolio is rated investment grade
* Consistent and growing base of retail customer cash
* $10 billion in excess wholesale borrowing capacity from the Federal Home Loan Bank

As most institutions in the racket of home lending are finding their AAA rated MBS paper coming back as junk I am very worried about their exposure to insolvency. The CFO of the $800mil company I work for phoned in from vacation to warn everyone in the company. My most valued investment advisor wired out more than 500K immediately from Etrade. The next day there was a huge run at the Countrywide branches and a disclosure that >40% of the money in Countrywide accounts is not FDIC insured. I believe a lot of people are taking this pretty seriously. I myself am and I am really worried about what could happen to my short positions in the event of an Etrade shutdown. Scary. Just be careful and stay below the SPIC and FDIC limits in your accounts at any bank.

[capeman]

This is from their site and is not the most reassuring way they could lay this out…

NEW YORK–(BUSINESS WIRE)–E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) released supplemental disclosures today related to the composition and funding sources for its balance sheet. The Company provided a presentation containing additional information to its June 30, 2007 quarterly results, including expanded transparency on the credit quality of its mortgage and securities portfolios. This presentation can be found at https://investor.etrade.com. In addition, the Company stated that it has seen no material changes to date with respect to the availability, pricing or margin on its wholesale funding sources, including repurchase agreements. Management maintains that it does not believe that the current market capitalization accurately reflects the financial strength and performance of the business.

Selected highlights from the presentation include:

* The Company’s $15.7 billion first lien mortgage portfolio is supported by high FICO scores, low Loan-to-Value ratios (LTV) and private mortgage insurance
* All first lien mortgage loans with an 80% or higher LTV are protected by private mortgage insurance
* $9.2 billion, or 74%, of its home equity portfolio is to borrowers with FICO scores of 700 and higher
* $12.6 billion, or 99%, of mortgage-backed securities are rated AAA
* 97% of its Asset-backed Securities portfolio is rated investment grade
* Consistent and growing base of retail customer cash
* $10 billion in excess wholesale borrowing capacity from the Federal Home Loan Bank

As most institutions in the racket of home lending are finding their AAA rated MBS paper coming back as junk I am very worried about their exposure to insolvency. The CFO of the $800mil company I work for phoned in from vacation to warn everyone in the company. My most valued investment advisor wired out more than 500K immediately from Etrade. The next day there was a huge run at the Countrywide branches and a disclosure that >40% of the money in Countrywide accounts is not FDIC insured. I believe a lot of people are taking this pretty seriously. I myself am and I am really worried about what could happen to my short positions in the event of an Etrade shutdown. Scary. Just be careful and stay below the SPIC and FDIC limits in your accounts at any bank.

[capeman]

This is from their site and is not the most reassuring way they could lay this out…

NEW YORK–(BUSINESS WIRE)–E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) released supplemental disclosures today related to the composition and funding sources for its balance sheet. The Company provided a presentation containing additional information to its June 30, 2007 quarterly results, including expanded transparency on the credit quality of its mortgage and securities portfolios. This presentation can be found at https://investor.etrade.com. In addition, the Company stated that it has seen no material changes to date with respect to the availability, pricing or margin on its wholesale funding sources, including repurchase agreements. Management maintains that it does not believe that the current market capitalization accurately reflects the financial strength and performance of the business.

Selected highlights from the presentation include:

* The Company’s $15.7 billion first lien mortgage portfolio is supported by high FICO scores, low Loan-to-Value ratios (LTV) and private mortgage insurance
* All first lien mortgage loans with an 80% or higher LTV are protected by private mortgage insurance
* $9.2 billion, or 74%, of its home equity portfolio is to borrowers with FICO scores of 700 and higher
* $12.6 billion, or 99%, of mortgage-backed securities are rated AAA
* 97% of its Asset-backed Securities portfolio is rated investment grade
* Consistent and growing base of retail customer cash
* $10 billion in excess wholesale borrowing capacity from the Federal Home Loan Bank

As most institutions in the racket of home lending are finding their AAA rated MBS paper coming back as junk I am very worried about their exposure to insolvency. The CFO of the $800mil company I work for phoned in from vacation to warn everyone in the company. My most valued investment advisor wired out more than 500K immediately from Etrade. The next day there was a huge run at the Countrywide branches and a disclosure that >40% of the money in Countrywide accounts is not FDIC insured. I believe a lot of people are taking this pretty seriously. I myself am and I am really worried about what could happen to my short positions in the event of an Etrade shutdown. Scary. Just be careful and stay below the SPIC and FDIC limits in your accounts at any bank.

[capeman]

From everything I heard it was more of the latter. There is not 100% confirmation on this but it came from too many reliable sources to not be of heavy concern.

[capeman]

From everything I heard it was more of the latter. There is not 100% confirmation on this but it came from too many reliable sources to not be of heavy concern.

[capeman]

From everything I heard it was more of the latter. There is not 100% confirmation on this but it came from too many reliable sources to not be of heavy concern.

[Author]

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