Lobbyists and special interests buy our government

The mortgage crisis of 2007 worsens and threatens to tip the economy into a recession. Many are asking where was Washington? Washington was in the same place as always, the question regarding what they were doing, and why, are the issues at the heart of the matter. Of greater interest to me are political contributions …

UBS shows $10 billion subprime writedown

This time it’s an investment bank with problems. Swiss-based UBS announced a $10 billion writedown this week on subprime exposures. An injection of capital from investors in Singapore and the Middle East was also announced. UBS has also slammed on the brakes at its investment bank, where the problems originated. UBS has been the biggest …

HSBC Mum on SIVs Until Moodys Spoke

Does this sound odd to you? HSBC never mentioned anything about HSBC structured investment vehicles, or SIVs. However, in a report found here on Household – HSBC Watch on Thursday, November 8th, 2007 at 10:00 am, Moodys said that it would look at two of HSBC’s SIV’s (and three belonging to Citigroup.) By Monday, November …

Losses much greater than forecast as audits near

One factor undermining investor confidence is that the projected size of this year’s credit shock is now rising rapidly. The US government initially forecast $50bn losses on subprime securities. However, investment banks now expect $200bn-$500bn subprime losses – and additional massive losses in other debt markets, such as credit card loans. End of the year …

Mortgage Bond Trading Between Banks Suspended

European banks agreed to suspend trading in the $2.8 trillion market for mortgage debt known as covered bonds to halt a slump that has closed the region’s main source of financing for home lenders. Banks including Barclays Capital, HSBC Holdings Plc and UniCredit SpA took the step as investors shy away from bank debt on …