01.20.08

Update subprime bankparade X.

Posted in bank, credit risk, enterprise risk, liquidity risk, operational risk, risk tagged aig, bearn, boa, bofa, cdo, citi, countrywide, deutsche bank, freddie mac, hsbc, liquidity, list of writeoffs, mbs, merrill, mgic, morgan, rabo, radian, rbs, SIV, subprime, swiss, tango, ubs, wachovia, write off at 2:34 pm by peter@riskfriends.net

This week the banks published some impressing losses. Different banks with varying results. Countrywide has been taken over by Bank of America. This isn’t a big surprise. Looking back you can see many Enron similarities the last six months. One man running the company and not surrounded by managers who dare to oppose. The last six months Countrywide was also making news resulting from unethical behavior. When you review the list of news items from Countrywide with that from Merrill there is a shocking resemblance. One exception, the boss of Countrywide stayed until the end.

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*Date*	*Organization*	*Subprime news*
Jan17	MGIC	Dropped 76% in value, capital issues, bond insurer.
Jan16	Countrywide	Bank of America take over $4.1 billion investment
Jan16	Merrill Lynch	$ 9.8 billion loss, write down $14.1
Jan16	Wells Fargo	$ 0.6 billion write off in total for 2007, $1.4 billion provisioned, still making profit and able to provide reliable forecasts
Jan16	JPMorgan	$1.3 billion write down, profit drops 34%
Jan15	Merrill Lynch	$ 6.6 billion cash raised issueing preferred shares
Jan15	Citi	$ 9.8 billion loss, $18.4 billion write down, cutting 4200 jobs, 41% drop in dividend, acquiring $14 billion cash
Jan14	Merrill Lynch	Finra investigating possible front running
Jan11	Merrill Lynch	$15 billion write down expected
Jan10	Countrywide	Foreclosures doubled to 1.4 percent, late payments 7.6 percent from 4.3 percent
Jan10	Bear Stearns	Hedge fund Bear Stearns Asset-Backed Securities closed down
Jan10	ECB	Another $20 billion injection
Jan08	Bear Stearns	CEO James Cayne goner.
Jan08	Countrywide	Forged documents, hmmm Countrywide is really special
Jan07	CIBC	CRO and head whole sale step down following a $ 10 billion subprime exposure
Jan05	Huntington	$ 0.25 billion write off, 1 billion restructured
Jan04	Merrill Lynch	Accused from hiding losses while merger was pending
*Jan03*	State Street	$ 0.28 billion charge and $ 0.68 provisioning legal claims.
*Dec24*	Merrill Lynch	$ 7.5 billion acquired selling shares 13% below market value.
*Dec21*	Canada	Restructured $33 billion swappin short term to long term.
*Dec21*	FED	Fed guarantees unlimited relieve via biweekly Term Auction Facility (TAF).
*Dec20*	MBIA	Bonds insurers $ 31 billion exposure and rating concerns reported.
*Dec20*	Credit agricole	$ 3.5 billion write down, 40 % related to ACA.
*Dec20*	Bear Stearns	$ 0.85 billion loss and $ 1.9 billion write down failing a $ 1.2 billion estimation.
*Dec19*	CIBC	Worries about $1.75 billion “guaranteed” CDO’s. Lehman also makes statement about concerns regarding insurers ability to deliver.
*Dec19*	Citi	$ 3.5 billion cash acquired.
*Dec19*	Wachovia	$ 2 billion cash acquired.
*Dec19*	Goldman Sachs	$ 2.75 billion cash acquired.
*Dec19*	UBS	$ 3 billion cash acquired.
*Dec19*	JP Morgan Chase	$ 3 billion cash acquired.
*Dec19*	Morgan Stanley	$ 9.4 billion write down, $5 billion capital injection from Chinese investor. Although the write down was 3 times the amount foreseen by Morgan, investors are trusting management.
*Dec19*	FGIC	Bond insurer on Fitch watch list, capital adequacy at risk due to exposure SF CDO and RMBS. $1 billion short for an AAA rating.
*Dec18*	ECB	Unlimited funds made available to ease credit crunch at below market rates. Action follows on $40 billion coordinated injection by the Fed, ECB, BoE,BoC, Swiss national bank.
*Dec17*	Centro	76 percent drop in market capitalization, funding problems for property trusts.
*Dec14*	Lehman	Only a 12 percent profit drop in 4^th quarter,only $ 0.83 billion write off.
*Dec14*	Citi	Citi’s senior debt rating to Aa3 from Aa2 and lowered the Bank Financial Strength Rating of Citibank NA to B from A-. Citibank’s rating for long-term deposits and senior debt was lowered to Aa1 from Aaa.
*Dec14*	Citi	$49 billion added to balance sheet (SIV)
*Dec12*	Citi	$15 billion downgrade SIV
*Dec 12*	Lehman	12%profit drop, no write offs,no closure of SIV’s
*Dec 10*	Fannie Mae	Expects $5.5 billion loss next few years.
*Dec 10*	Freddie Mac	Expects $7.5 billion loss next few years.
*Dec 10*	BoA	Closes investment fund, value of assets dropped from $40 billion to $12 billion in a few months.
*Dec 10*	Washington Mutual	Closing 60% of home loan centres, 3000 jobs lost, closure of subprime and investment broker unit, saleof $3.7 billion preferred stock and 73% cut of dividend.
*Dec 10*	Citi	Take over speculations are starting up.
*Dec 10*	UBS	$10 billion write off announced. Capital ratio’s managed via $ 12 billion capital attractions from Singapore and the middle east.
*Dec 6*	Rabo	Adds $7.6 billion to its balance sheet after selling half of the assets from Tango Finance.
*Dec 6*	Citi	Moody’s downgrades 52 tranches or groups of bonds issued by the mortgage unit
*Dec 6*	RBS	$2.6 billion and $ 0.6 ABNAMRO write off beating market expectations.
*Dec 6*	Local government	Various states and cities report impact from degraded SIV’s. Panic resulting in withdrawal of investments resulting in liquidity problems. Reported were Florida, Connecticut, Montana and some cities in Scandinavia.
*Dec 5*	Standared chartered	Adding $ 1.7 billion of whistlejacket SIV to its balance
*Dec 3*	WestLB	German bank guarantees $36 billion invested in SIV’s
*Dec 3*	H&R Block	$ 0.4 billion write off, closing Option One, 600 jobs lost. Effort to sell unit failed.
*Dec 3*	RBS	$ 4 billion expected.
*Dec 1*	Morgan Stanley	CEO Cruz leaves
*Nov29*	Terra securities	Norwegian brokerage bankrupt,Citi connection.
*Nov29*	BoA	$ 1 billion write off Countrywide investment
*Nov29*	Florida	$ 8 billion run on the investment fund
*Nov29*	IKB	$ 9 billion rescue costs provided by German banks.
*Nov28*	Bear Stearns	1500 jobs in total lost, about 10% of work force.
*Nov28*	Freddie Mac	$ 6 billion sale of preferred stocks, dividend reduction of 50 percent
*Nov27*	Citi	$ 7.5 billion sale .
*Nov26*	GMAC	$ 1.6 billion so far and more to come.
*Nov26*	Citi	45.000 jobs at risk in addition to previously announced 17.000 jobs. Almost 20% staff reduction this year.
*Nov26*	JP Morgan	100 jobs gone and CRO replaced
*Nov26*	HSBC	$ 35 billion injection to protect SIV’s.
*Nov23*	News	Delinquency rates rising for real estate and credit card
*Nov22*	News	FSA sees $11 billion exposure for Japanese banks
*Nov21*	News	Fitch downgrades $30 billion CDO’s.
*Nov21*	MGIC	SEC inquiries, restructuring via C-BASS $467 million . $ 0.5 billion difference with last years 3rd quarter results.
*Nov21*	Radian	SEC inquiries, restructuring via C-BASS $467 million and selling service units to raise money. Almost $0.8 billion difference with last years 3rd quarter results.
*Nov21*	AIG	Derivative lawsuit started,accusations of concealing information and personally selling shares.
*Nov21*	Countrywide	Denying bankruptcy threats.
*Nov20*	News	Insured CDO’s at risk due to possible downgrade of insurance companies resulting in inability to make termination payments and effectively wipe out these insurers and subsequently more write offs by banks.
*Nov20*	Citi	Predicted $15 billion write offs next 6 months, downgraded
*Nov20*	Countrywide	Liquidity concerns, signs of bankruptcy
*Nov20*	Freddie Mac	$ 2 billion write off, liquidity problems
*Nov20*	Swiss re	$ 1 billion write off
*Nov16*	Citi	$ 11 billion write offexpected in 4th quarter
*Nov16*	News	Banks reassuring investors,IMF and OECD issue warnings.
*Nov16*	Novastar financial	$ 0.4 billion write off,probably expelled from NYSE
*Nov16*	UBS	$ 7 billion write off.expected in 4th quarter
*Nov15*	Barclays	$ 2.7 billion write off.
*Nov14*	Bear Stearns	$ 1.2 billion write off.
*Nov13*	BoA	$ 3.3 billion write off.
*Nov13*	HSBC	$ 3.4 billion write off.
*Nov13*	News	$ 3 billion exposure for director-and-officer insurances, claims resulting from lawsuits.
*Nov13*	RBC	$ 0.4 billion write off.
*Nov12*	Blackstone	$ 0.8 billion write off
*Nov12*	Citi	$ 25 billion exposure resulting from liquidity puts, survival concerns.
*Nov12*	Etrade	$ 3 billion exposure and ananalyst report resulted in a 60% price drop of shares and concerns about going bankrupt
*Nov12*	Metlife	Insurance company with $ 91.3 billion mbs exposure
*Nov12*	Principal Financial group	Insurance company with $ 12.3 billion mbs exposure
*Nov 9*	CIBC	Canadians reporting $ 0.5 billion write offs, more Canadians to follow.
*Nov 9*	HSBC	Another 120 jobs in addition to the 750 reported in August are lost
*Nov 9*	JP Morgan	4th quarter warnings, exposure $ 8 billion.
*Nov 9*	Wachovia	$ 1.6 billion subprime loss
*Nov 8*	Merrill	SEC starts investigation investments
*Nov 8*	Morgan Stanley	$ 3.7 billion subprime write off
*Nov 8*	News	RBS expects another $250 to $500 billion write offs in level 3 assets in addition to subprime write offs
*Nov7*	Bear Stearns	Expected write offs 4th quarter $3.9 according to CreditSights
*Nov7*	BofA	Expected write offs another $3 to 6 billion, according to Deutsche Bank
*Nov7*	Citi	Shareholders lawsuits
*Nov7*	Commerzbank	$337 million write off
*Nov7*	Goldman	Expected write offs 4th quarter $5 according to CreditSights
*Nov7*	Lehman	Expected write offs 4th quarter $3.9 according to CreditSights
*Nov7*	Merrill	Expected write offs 4th quarter another $9.4 according to CreditSights
*Nov7*	Morgan Stanley	Expected write offs another $4 to 6 billion, according to Deutsche Bank
*Nov7*	News	Level 3 assets concerns, $400 billion downgrade resulting from adjusted ratings.
*Nov5*	Market news	Asian markets drop sharply (5%)
*Nov 3*	Bear Stearns	CEO accused of inappropriate conduct
*Nov 3*	Citigroup	Write off $ 11 billion in addition of the $ 6.8 billion reported 3 weeks ago.
*Nov 3*	Merrill	Merril not aware of inappropriate transactions, not denying it.
*Nov 2*	Credit Suisse`	2.2 billion Swiss francs write down
*Nov 2*	First American	Washington Mutual Accused for inflating mortgage appraisals
*Nov 2*	UBS	Another $ 8 billion expected in addition to the $3.8 billion
*Nov 1*	Citi	Downgrade $30 billion expected loss
*Nov 1*	Deutsche bank	3,2 billion loss, but in control, appraised
*Nov 1*	Federal reserve	41 billion injection
*Nov 1*	State Street	$2,6 billion loss, law suits wrong investment advice
*Oct 31*	General Electric	1 billion at stake, mortgage staff cuts
*Oct 31*	Merrill	Lawsuits by shareholders
*Oct 31*	UBS	3,68 billion loss in francs
*Oct 30*	Countrywide	Offering cds at highest rates
*Oct 29*	Bank of China	$7,9 billion mortgage write off
*Oct 29*	HSBC	Sells mortgage unit, $795 million
*Oct 29*	Market news	Double digit price drop California housing
*Oct 29*	Market news	80% price drop mortgage backed securities
*Oct 29*	Perpetual	Cut first-half profit forecast by 5%, spooked investors
*Oct 28*	Countrywide	Analysts stating CEO is telling lies
*Oct 28*	Fremont Inv & Loan	Approved fast foreclosures
*Oct 28*	Market news	Foreclosures within 11 to 14 months
*Oct 28*	New Century	Fin Corp Approved fast foreclosures
*Oct 28*	WMC Mortgage	Approved fast foreclosures
*Oct 27*	Countrywide	CEO accused for dumping stocks
*Oct 26*	Countrywide	Largest home lender, $1.2 billion loss
*Oct 26*	Moody’s	Cut the ratings of collateralized debt obligations tied to $33 billion of subprime mortgage securities
*Oct 26*	S&P	Lawsuits, wrong rating mortgage backed securities, conflict of interests, rating related to fees
*Oct 25*	AIG	Analysts predicts $9,8 billion loss
*Oct 24*	News	$400 billion write off prognoses
*Oct 22*	BoA	$750 million loss, provisions up $1,5 billion, profit drop with 94%, 3000 jobs lost, blaming risk mgmt.

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