Thursday, 22 October 2009 20:00

More Bank Bullsh1t??? Featured

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Among the green shoots sprouting today, we have several lenders reporting things are potentially looking better. Let's glance at two:

Loan Delinquencies Increase For Freddie Mac: Freddie Mac said on Friday its mortgage investment portfolio grew by an annualized 7.3 percent rate in September, while delinquencies on loans it guarantees accelerated.

The portfolio increased to $784.2 billion, for an annualized 3.4 percent decrease year to date...

The portfolio size increased on a year-over-year basis. In September 2008, the portfolio was $736.9 billion.

Delinquencies, which increase stress on the company's capital, jumped to 3.33 percent of its book of business in September from 3.13 percent in August and 1.22 percent in September 2008.

 Hmmm. All big lenders are shrinking their portfolio except for the one's outright nationalized. Oh well, there is one thing they nearly all have in common, and that is they are taking credit losses up the wazoo! Most paper over the losses with cute terminology and accounting gimmicks, but we at know better. After all, if you apply The open source mortgage default model loss rates to these companies' portfolio, the truth is evident.

SunTrust posts 3Q loss but sees some signs improve   22 Oct 2009  -  The Associated Press: ATLANTA - SunTrust Banks Inc. on Thursday posted a big third-quarter loss as it set aside more money to cover bad loans, but said the rate at which mortgages were slipping into delinquency slowed for the first time in a year.

I'm going to review this one in another post since I have so much to say about it.


Read 5830 times Last modified on Friday, 23 October 2009 06:21
Reggie Middleton

Resident Contrarian Badass at BoomBustBlog (you can call me Editor-in-Chief)...

Disruptor-in-Chief at, where we're ushering the P2P Economy.
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