Posted by marketguy on 16th of Sep 2009 at 08:01 pm
holy freaking goodness...what the hell does this
mean? it meant beans as it was going down in late July as the
market powered higher but check out this move!!!! the only
thing I can figure is the market is never going down again and they
are throwing this in along with AIG, FNM, FRE and C...anyone else
have any guesses?
Second worst trading day of my career today...getting close
to throwing in the towel here folks....
Posted by gabebristow on 16th of Sep 2009 at 11:51 pm
I feel your pain, especially back in April and May. But I
think the important thing to remember is ...... You can't fight
it.... seriously no matter what worked yesterday might not work
today.. One of the main things that helped me this week to is
just to cut your position size as well. If you are wrong you
are wright and if you are right well then there you go.. Good
luck and all that jazz
Today was the first PPIP transaction, and the deal was
apparently struck at something like $.70/$1.00 for a package
of toxic mortgage backed assets of one of the FDIC seized
banks. Never mind that the US Government is
lending money AND giving a partial guaranty to the
purchaser. So, for now, the deal is to claim the paper is actually
worth $.70 on the dollar.
Hang in there, the darkest hour is always just before the
dawn.
Here is the full Press Release:
Press Release
Legacy Loans Program – Winning Bidder Announced in Pilot
Sale
The FDIC has signed a bid confirmation letter with Residential
Credit Solutions (RCS), the winning bidder in a pilot sale of
receivership assets that the FDIC is conducting to test the funding
mechanism for the Legacy Loans Program (LLP). The pilot sale was
conducted on a competitive bid basis, and final bids were received
on Monday, August 31, 2009. A total of 12 consortiums bid to
purchase an ownership interest in a limited liability company
(LLC), to which the FDIC will convey a portfolio of residential
mortgage loans with an unpaid principal balance of approximately
$1.3 billion owned by the FDIC as Receiver of Franklin Bank, SSB,
Houston, Texas. The pilot sale involves financing offered by the
receivership to the LLC using an amortizing note guaranteed by the
FDIC. Bidders for the pilot sale were given the chance to bid two
different leverage options, 6-to-1 or 4-1, or to submit a cash bid
for a 20 percent ownership interest.
The bid received from RCS for the financed sale of assets to the
LLC using 6-to-1 leverage was determined to be the offer that would
result in the greatest return for the receivership of all competing
bids. RCS will pay a total of $64,215,000 in cash for a 50 percent
equity stake in the LLC, and the LLC will issue a note of
$727,770,000 to the FDIC as Receiver. The note will be guaranteed
by FDIC in its corporate capacity. Based on the FDIC's analysis and
assumptions, the present value of this bid equals 70.63 percent of
the outstanding principal balance of this portfolio. The FDIC
received various other bids that were very competitive. The FDIC
anticipates selling the note at a future date. After the closing,
which is expected to occur later this month, RCS will manage the
portfolio and service the loans under the Home Affordable
Modification Program (HAMP) guidelines.
The LLP is part of the Public-Private Investment Program announced
in March by the Secretary of the Treasury, the Federal Reserve, and
the FDIC, and is being developed to help banks remove troubled
loans and other assets from their balance sheets so that banks can
raise new capital and be better positioned to provide lending to
further the recovery of the U.S. economy. FDIC conducted the pilot
sale to test this funding mechanism as part of the development of
the LLP. The FDIC will analyze the results of this test sale to
determine whether the LLP can be used to remove troubled assets
from the balance sheets of open banks, and in turn spur lending to
further support the credit needs of the economy.
Further details about the sale will be published after the closing
later this month.
#
# #
Congress created the Federal Deposit Insurance Corporation in 1933
to restore public confidence in the nation's banking system. The
FDIC insures deposits at the nation's 8,195 banks and savings
associations and it promotes the safety and soundness of these
institutions by identifying, monitoring and addressing risks to
which they are exposed. The FDIC receives no federal tax dollars –
insured financial institutions fund its operations.
FDIC press releases and other information are available on the
Internet at
www.fdic.gov, by subscription
electronically (go to
www.fdic.gov/about/subscriptions/index.html) and may also be
obtained through the FDIC's Public Information Center (877-275-3342
or 703-562-2200).
PR-172-2009
That bites. If it makes you feel any better, I recently
implemented a mechanical trading system just in time for it to
SHORT GDX's big breakout the other week! Of all days to
short GDX, and it was short the entire day. Needless to say I
scrapped that system. (Apparently it wasn't sensitive enough.
lol!)
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Subprime index (ABX)...
Posted by marketguy on 16th of Sep 2009 at 08:01 pm
holy freaking goodness...what the hell does this mean? it meant beans as it was going down in late July as the market powered higher but check out this move!!!! the only thing I can figure is the market is never going down again and they are throwing this in along with AIG, FNM, FRE and C...anyone else have any guesses?
Second worst trading day of my career today...getting close to throwing in the towel here folks....
Define Normal
Posted by gabebristow on 16th of Sep 2009 at 11:51 pm
I feel your pain, especially back in April and May. But I think the important thing to remember is ...... You can't fight it.... seriously no matter what worked yesterday might not work today.. One of the main things that helped me this week to is just to cut your position size as well. If you are wrong you are wright and if you are right well then there you go.. Good luck and all that jazz
Title: FDIC actually sells some
Posted by pthoreson on 16th of Sep 2009 at 08:55 pm
Today was the first PPIP transaction, and the deal was apparently struck at something like $.70/$1.00 for a package of toxic mortgage backed assets of one of the FDIC seized banks. Never mind that the US Government is lending money AND giving a partial guaranty to the purchaser. So, for now, the deal is to claim the paper is actually worth $.70 on the dollar.
Hang in there, the darkest hour is always just before the dawn.
Here is the full Press Release:
Press Release
Legacy Loans Program – Winning Bidder Announced in Pilot Sale
FOR IMMEDIATE RELEASE
September 16, 2009
Media Contact:
Andrew Gray (202) 898-7192
angray@fdic.gov
The FDIC has signed a bid confirmation letter with Residential Credit Solutions (RCS), the winning bidder in a pilot sale of receivership assets that the FDIC is conducting to test the funding mechanism for the Legacy Loans Program (LLP). The pilot sale was conducted on a competitive bid basis, and final bids were received on Monday, August 31, 2009. A total of 12 consortiums bid to purchase an ownership interest in a limited liability company (LLC), to which the FDIC will convey a portfolio of residential mortgage loans with an unpaid principal balance of approximately $1.3 billion owned by the FDIC as Receiver of Franklin Bank, SSB, Houston, Texas. The pilot sale involves financing offered by the receivership to the LLC using an amortizing note guaranteed by the FDIC. Bidders for the pilot sale were given the chance to bid two different leverage options, 6-to-1 or 4-1, or to submit a cash bid for a 20 percent ownership interest.
The bid received from RCS for the financed sale of assets to the LLC using 6-to-1 leverage was determined to be the offer that would result in the greatest return for the receivership of all competing bids. RCS will pay a total of $64,215,000 in cash for a 50 percent equity stake in the LLC, and the LLC will issue a note of $727,770,000 to the FDIC as Receiver. The note will be guaranteed by FDIC in its corporate capacity. Based on the FDIC's analysis and assumptions, the present value of this bid equals 70.63 percent of the outstanding principal balance of this portfolio. The FDIC received various other bids that were very competitive. The FDIC anticipates selling the note at a future date. After the closing, which is expected to occur later this month, RCS will manage the portfolio and service the loans under the Home Affordable Modification Program (HAMP) guidelines.
The LLP is part of the Public-Private Investment Program announced in March by the Secretary of the Treasury, the Federal Reserve, and the FDIC, and is being developed to help banks remove troubled loans and other assets from their balance sheets so that banks can raise new capital and be better positioned to provide lending to further the recovery of the U.S. economy. FDIC conducted the pilot sale to test this funding mechanism as part of the development of the LLP. The FDIC will analyze the results of this test sale to determine whether the LLP can be used to remove troubled assets from the balance sheets of open banks, and in turn spur lending to further support the credit needs of the economy.
Further details about the sale will be published after the closing later this month.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-172-2009
That bites. If it makes
Posted by user32 on 16th of Sep 2009 at 08:50 pm
That bites. If it makes you feel any better, I recently implemented a mechanical trading system just in time for it to SHORT GDX's big breakout the other week! Of all days to short GDX, and it was short the entire day. Needless to say I scrapped that system. (Apparently it wasn't sensitive enough. lol!)