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BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES

 
Anonymous Coward
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03/26/2009 09:51 PM
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BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
[link to market-ticker.denninger.net]

The huge subsidy to banks hidden inside of Tim Geithner's public-private partnership program may already be leading banks to load up on securities they plan to sell at inflated prices.

According to the New York Post, Citi and Bank of America have been aggressively buying up Alt-A and ARM mortgage backed securities, sometimes paying more than the going rate of around 30 cents on the dollar.

....

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids.

There's nothing complicated about this at all.

Buy for 30 cents, sell to the PPIP for 50 cents, pocket a quick (and huge) profit immediately and nobody's the wiser.

Oops - now someone is the wiser.

Oh darn.

The reason ALT-A (liar loans) and Option ARM securities are trading at 20-30 cents on the dollar is that nearly all of those "loans" were either made to someone who lied about their income, couldn't afford the reset/recast payment and is underwater on their house (and thus can't refinance), or both.

When those loans default (and most of them eventually will, even if they're paying now) recovery is extraordinarily poor; 30 cents is likely just about right.

Get the BBQ Sauce.
Anonymous Coward (OP)
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03/26/2009 09:53 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
This is a follow up to my original thread here:

Thread: ** MUST SEE ** HOW THE BANKS WILL FUCK US AGAIN UNDER GEITHNER"S NEW PLAN
Scuffalufacus

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03/26/2009 09:55 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Fukkin' schemers. It never ends with these people.
God is a well struck 7 iron
Anonymous Coward (OP)
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03/26/2009 09:59 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
[link to www.businessinsider.com]

It Looks Like Citi And Bank Of America Are Already Gaming The System (C, BAC)
John Carney|Mar. 25, 2009, 1:01 PM|51

The huge subsidy to banks hidden inside of Tim Geithner's public-private partnership program may already be leading banks to load up on securities they plan to sell at inflated prices.
According to the New York Post, Citi and Bank of America have been aggressively buying up Alt-A and ARM mortgage backed securities, sometimes paying more than the going rate of around 30 cents on the dollar.

Mark DeCambre reports:

One Wall Street trader told The Post that what's been most puzzling about the purchases is how aggressive both banks have been in their buying, sometimes paying higher prices than competing bidders are willing to pay.

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids.

This raises serious questions about how the banks are using TARP funds. Instead of stimulating the economy by making new loans, B of A and Citi seem to be spending money to buy up old loans. That's probably a bet that the Geithner plan will create renewed demand for MBS.
Anonymous Coward (OP)
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03/26/2009 10:01 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
And using TAPR money too - just as I predicted in my "wicked fucking sister" thread.
Anonymous Coward (OP)
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03/26/2009 10:05 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Just remember, you read it here at GLP first.

Where is Trinity when you need him?
Anonymous Coward
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03/26/2009 10:21 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
freaking pin this crap
Anonymous Coward (OP)
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03/26/2009 10:49 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
[link to www.businessinsider.com]

It Looks Like Citi And Bank Of America Are Already Gaming The System (C, BAC)
John Carney|Mar. 25, 2009, 1:01 PM|51

The huge subsidy to banks hidden inside of Tim Geithner's public-private partnership program may already be leading banks to load up on securities they plan to sell at inflated prices.
According to the New York Post, Citi and Bank of America have been aggressively buying up Alt-A and ARM mortgage backed securities, sometimes paying more than the going rate of around 30 cents on the dollar.

Mark DeCambre reports:

One Wall Street trader told The Post that what's been most puzzling about the purchases is how aggressive both banks have been in their buying, sometimes paying higher prices than competing bidders are willing to pay.

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids.

This raises serious questions about how the banks are using TARP funds. Instead of stimulating the economy by making new loans, B of A and Citi seem to be spending money to buy up old loans. That's probably a bet that the Geithner plan will create renewed demand for MBS.
 Quoting: Anonymous Coward 643325
Anonymous Coward (OP)
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03/27/2009 12:15 AM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Word is out.

Only question is, will some one try to stop it.
Anonymous Coward
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03/27/2009 12:20 AM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Fuck em - quit dealing with them - ignore them...
Anonymous Coward (OP)
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03/27/2009 12:23 AM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Fuck em - quit dealing with them - ignore them...
 Quoting: Anonymous Coward 115732


Yeah. That'll teach em.

Wake the fuck up idiot!
Anonymous Coward
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03/27/2009 09:26 AM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Damn
Anonymous Coward
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03/27/2009 03:45 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
No body here gets it?
Static357

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03/27/2009 03:50 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Fuck em - quit dealing with them - ignore them...


Yeah. That'll teach em.

Wake the fuck up idiot!
 Quoting: Anonymous Coward 643325

Could we please tone down the language? Name-calling and finger pointing is not conducive to problem solving.
Anonymous Coward
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03/27/2009 04:03 PM
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Re: BANKS ALREADY GAMING GEITHNER"S NEW PLAN - LOADING UP ON SHIT ASSETS TO SELL AT INFLATED PRICES
Fuck em - quit dealing with them - ignore them...


Yeah. That'll teach em.

Wake the fuck up idiot!

Could we please tone down the language? Name-calling and finger pointing is not conducive to problem solving.
 Quoting: Static357


New here? Go fuck yourself.





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