Posted on 11/09/2007 6:52:59 AM PST by Hydroshock
Wachovia said Friday it suffered a $1.1 billion loss on subprime mortgage-related debt in October, while Capital One Financial said more customers are having trouble paying their bills as the U.S. credit crisis deepened.
Wachovia, the fourth-largest U.S. bank said the value of so-called asset-backed collateralized debt obligations it holds fell to $676 million as of Oct. 31 from $1.8 billion on Sept. 30. The $1.1 billion pretax loss is in addition to $347 million in the third quarter, Wachovia said.
Wachovia also said it expects to boost loan losses by $500 million to $600 million this quarter, largely in geographic areas that have faced "dramatic declines" in housing values.
Wachovia shares dropped $1.83, or 4.5 percent, to $38.47 in early electronic trading.
Charlotte, North Carolina-based Wachovia joined a growing list of financial companies -- including Citigroup, Merrill Lynch and Morgan Stanley -- that have reported losses from worsening conditions in consumer credit and capital markets.
(Excerpt) Read more at cnbc.com ...
I work nights. I am off until next week.
No, you have to stop paying them anything for about 6 months before they'll want to talk about settling.
I hope you produce something tangible. The Soviet Union only counted tangibles toward their GDP. Services such as finance were considered costs.
Things must be really bad at Capital One. I haven’t recieved my thrice weekly you are approved letters in a while now.
Read 11 U.S.C. Section 707 first, Condor. It deals with fraud and abuse in bankruptcy. Ten thousand bucks today is not worth the vacation in federal lockup, the fines, and the restitution tomorrow.
The problem with that scenario was/is,people didn't have extra money laying around every month to double their payments.Now that costs have increased on energy and food(basic neccessities),there's even less money to go around every month.
I don't doubt what you're saying, but what kind of idiot pays off unsecured credit cards before he pays his mortgage? You got to have priorities.
What the gov't did was double everyone's minimum monthly payment. Which crunched a lot of people into choosing between mortgage and utilities versus credit card bills. Guess who loses out in that situation?
I do IT, I ahve to be Johnnie on the spot to fix issues on a large network. Hardware, software, ID10T codes what have you.
The more things change, the more they stay the same..............
I just hope they don’t “call in” my mortgage!...............
BINGO.
You get it. The US economy runs on debt.
All the people who were (and still are!) pooh-pooh’ing this credit melt-down, and thinking that it won’t take down the US economy, just don’t “get it” in the big picture.
The entire US economy is run on debt. There are very, very few companies or people who are debt-free. Those who are... sit back and wait. You’ll be able to buy a lot of hard assets for greatly reduced prices a year or two from now.
For those of you who are still pointing to the most recent growth numbers, or export numbers — you can keep pointing all you like. But when the credit markets freeze up as they have, and the money to make things move quits flowing, the economy grinds to a halt, because there simply are not enough smart people out there who have no debt to keep things moving.
In California, even borrowers with good credit are having trouble getting jumbo (> $417K) mortgages. In California, that means a lot of real estate has quit moving.
When one looks at the spread between conforming and non-conforming mortgages now, one sees the true picture of the situation: the only reason why mortgage rates aren’t higher still is that Fannie and Freddie are buying up lots of paper and keeping it - a government bail-out by any other name. The private sector is raising the cost of mortgage borrowing even as the Fed is bringing interest rates down - because the LIBOR rate isn’t coming down.
Bingo. And add in “universal default” where if you miss one payment on one card, every lender suddenly puts you into their highest rate/fee bracket. Even if you’ve had a sterling payment record for years.
This is a mess of their own making.
The banks got themselves into this....and the banks need no bailout.
Let a couple of these mega-banks crash...in the long term it will be better for the economy. No business-socialist bailout should be given.
Agreed!!!!!
"We must increase our cash flow on the books so we can it look like we are growing...(etc). It affects our bonuses, you know, and that's why we work they way we do."
Basically, they used poor and majority deceitful business practices to take investors dollars and stick in in their pockets in the form of stock dividends, bonuses and salary increases. And now, the cat is out of the bag. Can we have an ENRON please???
What kind of idiot pays off unsecured credit first?
The kind of idiot who knows that the laws will now come down on them harder for not paying the credit cards than for defaulting on the mortgage. Foreclosure takes time, a credit card company laying waste to your FICO score is nearly instant.
When I read the report this past March that highlighted the number of first month and early month defaults on sub-prime mortgages, that’s was my first inkling that these oh-so-smart bankers really didn’t do their homework. The mortgage lending industry was completely gob-smacked to find that people with low FICO scores were paying off their cards first, mortgage second. They bundled and sold vast tranches of this sub-prime debt on the assumption (there’s that word — ‘ass’ ‘u’ ‘me’) that the default rate would remain low as in past years.
They didn’t factor in the bankruptcy law changes in 2005, higher interest rates, etc.
The CC companies can try to get blood from a stone.
THE NEW AND IMPROVED RONCO, MORTA-MAGIC!!! Hurry get one while supplies last!
We'll get a good bounce at the end of December from all the mutual fund infusions. I wonder just how much repositioning is occurring with the fund managers right now?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.