From the Star Ledger:
NJ unemployment falls and jobs increase as state shares in slowly growing U.S. economy
New Jersey’s unemployment rate dropped to 9.1 percent last month as private businesses added 4,000 jobs, state officials announced today.
It was the third month in a row that the New Jersey unemployment rate dropped.
“Since January, seven of the nine monthly changes have been positive,” said Rutgers economics professor Joseph Seneca. “The increase since that time, 38,600 private sector jobs, puts the state on the best pace for private sector job growth since the late 1990s.”
Seneca said it was a good sign that in the October unemployment report, the unemployment rate fell and the workforce expanded.
That differed from previous months such as September when the unemployment rate dropped despite lost jobs, perhaps because some people stopped looking for work and weren’t counted for the rate.
Even September’s mixed report got a little rosier this week as the state announced that an estimated loss of 11,000 jobs that month had been revised downward to only 5,000 jobs lost after more information was gathered from employers.
“The pace is not gangbusters, but it’s positive,” said Seneca. “In October, the country added 104,000 private sector jobs. New Jersey added 4,000 of those. It’s participating in the national expansion.”
A continuing negative in New Jersey’s job market was the loss of 1,500 public sector jobs, and Seneca said that trend is likely to continue as the state and local governments grapple with fiscal constraints. (I beg to differ, the fact that we can show gains while reducing the size of goverment is a huge positive – jb)
From the APP:
NJ unemployment dips as state creates 4,000 private-sector jobs
New Jersey’s economy pumped 4,000 jobs into the private sector in October, even as public employment shrunk, the state reported Thursday.
A survey found the state’s unemployment rate fell to 9.1 percent from 9.2 percent in September, according to the New Jersey Department of Labor and Workforce Development.
“This is an encouraging report,” said Rutgers University economist Joseph Seneca. “It affirms that private-sector growth is continuing in New Jersey.”
…
It comes as New Jersey’s labor market has tried to gain traction after a devastating recession cost the state 269,000 jobs.In October, private-sector employment increased by 4,000 jobs, while the public sector, which is still contracting, dropped 1,500 jobs, the state said, for a net gain of 2,500 jobs.
“The rebound in the job count in October, along with the drop in the unemployment rate, suggests that the state’s economy continues to move forward,” said Charles Steindel, chief economist for the New Jersey Department of Treasury, in a statement. “The pace of improvement is much less than we all desire, but we are going the right way.”
(scratches head, definition of insanity?)
From HousingWire:
Freddie Mac to securitize previously delinquent mortgages
Freddie Mac plans to bundle pools of once-delinquent mortgages, calling the strategy “a new avenue for securitization.”
The mortgages to be used as collateral are re-performing loans, current for the last 12 months. However, the mortgages are not modified and the government-sponsored enterprise did not specify the loss-mitigation strategies used to bring the loans current.
The reinstated loans will be pooled into new Freddie Mac participation certificates with the “R” prefix. These certificates may back new Freddie Mac REMIC and Giant securities in the future, the company said in a statement Thursday.
The structured finance pooling will start immediately, though over the course of time loans current for as low as four months may be added to future securitizations.
“By securitizing mortgage loans that were delinquent but reinstated to performing status, Freddie Mac will provide additional needed liquidity to the market using our traditional mortgage security vehicles,” said Mark Hanson, Freddie Mac vice president of securitization and cash execution.
The mortgages are listed as performing, but Freddie Mac said some are still distressed. The mortgage financing giant will continue to pursue resolutions of the delinquencies while the mortgages are held in the portfolio.
Good Morning New Jersey
Welcome to the top 3 NJ!
http://3.bp.blogspot.com/-KYSpJuqsBTc/TsVgrrW9BiI/AAAAAAAALVw/f3THVcxb39E/s1600/MBANDSStateforeclosureQ32011.jpg
From Bloomberg:
U.S. House Backs FHA Loan-Limit Boost Over Republican Objections
The U.S. House of Representatives approved higher limits for mortgages backed by the Federal Housing Administration, bypassing the objections of Republicans who said the increase could threaten the agency’s stability.
Lawmakers voted today for increasing the limit to $729,750 as part of a $182 billion spending bill that included funding for the government through Dec. 16. The legislation, approved in a 298-121 vote, was opposed by 101 members of the House’s Republican majority, some of whom said they opposed the measure primarily because of the loan-limit increase.
“This is an irresponsible action by the folks that should be the fiduciary for the American taxpayer,” Representative Patrick McHenry, a North Carolina Republican, said in an interview. “We need to be reining in our government housing finance programs so the private sector can step in.”
For all of the objections from Republican lawmakers and interest groups, the measure survived congressional negotiations on the strength of last month’s Senate vote in favor of an amendment to boost limits for FHA loans and those purchased by Fannie Mae and Freddie Mac. The increase for Fannie Mae and Freddie Mac loans was dropped during the talks, and today’s vote leaves the FHA increase needing only a Senate vote and President Barack Obama’s signature to become law.
Lawmakers who back higher limits say withdrawing federal support could undermine a housing market that has struggled to recover from the 2008 credit crisis. The limits automatically returned to $625,500 in October, spurring lawmakers and housing lobbyists to press for a return to the higher level.
From the NY Times:
A Rising Rental Market in the North
In northern New Jersey, where several big new buildings opened in the last few months, agents are describing the pace of leasing as “incredible” and “vigorous,” words that haven’t been used about the for-sale market in about five years.
Earlier this month, developers broke ground for three more rental buildings — one in condominium-heavy Fort Lee, another in Jersey City’s historic Paulus Hook neighborhood, and a third at Port Imperial in West New York, with each expressing blazing confidence in the market.
Even investment analysts are sounding kind of bubbly. “Should the current positive trending continue,” said Brian Whitmer, the director of Cushman & Wakefield’s metropolitan area Capital Markets Group, “we could be on pace to revisit prerecession conditions in the near term.”
The average vacancy rate has been tightening, and the average rental rate creeping upward, since the spring of 2010, according to a market report published this month by Cushman & Wakefield.
By the end of this year, the average vacancy rate is expected to fall to 2.4 percent — depths it hasn’t reached since 2007, Mr. Whitmer said. In the first nine months of this year, the average rent rose by 1.2 percent. It is headed back toward peak level of 2008: $1,968 a month.
Of all counties in northern New Jersey, Hudson has the highest average rent, $2,614 a month, according to the market report. And two of the recent groundbreakings were in Hudson.
…
Ms. Macchi and her counterpart at Roseland, Debra Tantleff, who is the vice president for development, spoke of “seriously pent-up demand” for condo-quality rentals.
“For such a long time,” Ms. Tantleff said, “there was no activity, no new product, just turmoil in the marketplace.” When Monaco Towers, Roseland’s 540-unit complex in Jersey City, opened last spring, company officials, and developers from other companies eager to build, exulted at the pace of leasing: 100 units a month in the first few months.
“That is representative of a change in mind-set of the overall marketplace,” Ms. Tantleff said. “If somebody is going to make a move at this point, a lot more people are choosing to live in a rental than in a home.”
Raise the FHA limits? Someone please explain to me how this is not a deliberate, coordinated attempt to create the biggest financial implosion of all time.
Smoke ’em if you got ’em. It’s going from gray to black.
http://dealbook.nytimes.com/2011/11/17/mf-global-is-said-to-use-customer-cash-improperly/?src=tp
So when does this prick get arrested ?
You sure this isn’t a giveaway to the wealthy? Who else is buying in that price range these days anyhow (we’re not talking no-doc loans here)?
I mean really, a drop from $729k to $625k? Who is the marginal buyer in the $626k to $729k range that this really helps?
The fact that the dems backed this, and not the repugs, is a little surprising (or are they really just that stupid, err should I say easily bought?).
Anyway, I’m not necessarily disagreeing about the cess pool this is creating. If you’ve got the income and assets to support it, and you don’t necessarily want to outlay cash to buy a property, this is a nice leveraged play/option on the real estate market. How is this not anything but a gimme for the bettor? If the market recovers, huge gains. If the market tanks, walk away, who cares about a credit score when you don’t need credit.
grim (8)-
Sadly, creating heads-I-win/tails-you-lose schemes are how the financial dirty bomb keeps getting packed with more and more shrapnel.
The same bought-and-paid for kongresscritters and propaganda-dispensing media would much rather have us focus on the dirty, shiftless Occupiers than allow our gaze to fall upon the slow-motion robbery of Amerika.
I heard a funny thing last night: an apologist for Occupy said that the people at Zuccotti don’t have it in for the rich if they want to spend their money buying a yacht. However, they do have a problem when the rich decide they want to buy a Congressman.
The way to play the FHA limit expansion game is, IMO, to go multi-family. The loan limit on a 4-family under the new proposal will go back to over 1mm.
Buy a trashed-out 4-fam in Paterson (claiming you will be an owner-occ, no less)…get a rehab loan…pocket the cash…jam the 4-fam with cash-paying illegals…don’t pay the mortgage, taxes, etc…bust it out…rinse and repeat.
35K to get 1mm to play with. Finance the closing costs. Taxpayer eats it when your one-way bet goes sour. Leverage is the highest good of all goods. If a little leverage is good, lots of leverage is holy.
Is this a great country, or what?
Off to please my taskmaster.
11 – What’s the leverage on a congressman? Do I get higher leverage I the payoff is over or under the table?
The next financial crisis will be hellish, and it’s on its way
By Addison Wiggin | Forbes – Wed, Nov 16, 2011….
“There is definitely going to be another financial crisis around the corner,” says hedge fund legend Mark Mobius, “because we haven’t solved any of the things that caused the previous crisis.”
We’re raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius, chief of the $50 billion emerging markets desk at Templeton Asset Management.
Speaking in Tokyo, he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world’s major banks are tangled up.
Estimates on the amount of derivatives out there worldwide vary. An oft-heard estimate is $600 trillion. That squares with Mobius’ guess of 10 times the world’s annual GDP. “Are the derivatives regulated?” asks Mobius. “No. Are you still getting growth in derivatives? Yes.”
In other words, something along the lines of securitized mortgages is lurking out there, ready to trigger another crisis as in 2007-08.
What could it be? We’ll offer up a good guess, one the market is discounting.
Seldom does a stock index rise so much, for so little reason, as the Dow did on the open Tuesday morning: 115 Dow points on a rumor that Greece is going to get a second bailout.
Let’s step back for a moment: The Greek crisis is first and foremost about the German and French banks that were foolish enough to lend money to Greece in the first place. What sort of derivative contracts tied to Greek debt are they sitting on? What worldwide mayhem would ensue if Greece didn’t pay back 100 centimes on the euro?
That’s a rhetorical question, since the balance sheets of European banks are even more opaque than American ones. Whatever the actual answer, it’s scary enough that the European Central Bank has refused to entertain any talk about the holders of Greek sovereign debt taking a haircut, even in the form of Greece stretching out its payments.
That was the preferred solution among German leaders. But it seems the ECB is about to get its way. Greece will likely get another bailout — 30 billion euros on top of the 110 billion euro bailout it got a year ago.
It will accomplish nothing. Going deeper into hock is never a good way to get out of debt. And at some point, this exercise in kicking the can has to stop. When it does, you get your next financial crisis.
And what of the derivatives sitting on the balance sheet of the Federal Reserve? Here’s another factor behind our heightened state of alert.
“Through quantitative easing efforts alone,” says Euro Pacific Capital’s Michael Pento, “Ben Bernanke has added $1.8 trillion of longer-term GSE debt and mortgage-backed securities (MBS).”
Think about that for a moment. The Fed’s entire balance sheet totaled around $800 billion before the 2008 crash, nearly all of it Treasuries. Now the Fed holds more than double that amount in mortgage derivatives alone, junk that the banks needed to clear off their own balance sheets.
“As the size of the Fed’s balance sheet ballooned,” continues Mr. Pento, “the dollar amount of capital held at the Fed has remained fairly constant. Today, the Fed has $52.5 billion of capital backing a $2.7 trillion balance sheet.
“Prior to the bursting of the credit bubble, the public was shocked to learn that our biggest investment banks were levered 30-to-1. When asset values fell, those banks were quickly wiped out. But now the Fed is holding many of the same types of assets and is levered 51-to-1! If the value of their portfolio were to fall by just 2%, the Fed itself would be wiped out.”
Mr. Pento’s and Mr. Mobius’ views line up with our own, which we laid out during interviews on our trip to China this month.
An Eye on the Next Financial Crisis by Addison Wiggin originally appeared in the Daily Reckoning.
..
The fact that the dems backed this, and not the repugs, is a little surprising (or are they really just that stupid, err should I say easily bought?).
The dems are the biggest s1ut, wh0re pigs that ever walked the planet. They would sell their mother, have her whacked, juice the body and have her whacked again if it meant their personal gain. I’m not in love with the other side of the aisle, but the dems are snakes. Remember, I grew up in Hudson County with close ties to a lot of people.
Meat [10],
A perfect plan. Goldman Sachs would be proud of you.
Meat – sing it together with me “and we’ll all go down together”
Man I hate Billy Joel, but the bloodshed will be epic when this all finally shakes out. Pretend and extend can’t last forever.
A continuing negative in New Jersey’s job market was the loss of 1,500 public sector jobs, and Seneca said that trend is likely to continue as the state and local governments grapple with fiscal constraints.
Why is this a negative? It should be 15,000, not 1,500.
The GS plan would have included sufficient lobbying to guarantee the subsidization/bailout of the renters to eliminate any counterparty risk.
Also, the initial outlay would have been 100% financed through the fed.
Fuck leverage that can be measured in numbers. Infinite leverage is the minimum acceptable.
“Do I get higher leverage I the payoff is over or under the table?”
I have a cigar and blue dress that say the payoff is much better under the table.
FUKING JETS!
Chicago (21):
The Jets got beat by Denver? Tim Tebow???
JJ, can I buy your seats for the Giants game for $10 each?
The end is nigh, high-speed particle physics edition, redux:
http://www.bbc.co.uk/news/science-environment-15791236
The team behind the finding in September that neutrinos may travel faster than light has carried out an improved version of their experiment – and found the same result.
If confirmed by other experiments, the find could undermine one of the basic principles of modern physics.
Critics of the first report had said that the long bunches of neutrinos used could introduce an error into the test.
The new work, posted to the Arxiv repository, used much shorter bunches.
snip
Rex Ryan is a blowhard. I never thought he was a good coach. I could care less about the Jets but I think he s*cks.
http://www.ncpa.org/sub/dpd/index.php?Article_ID=21324&utm_source=newsletter&utm_medium=email&utm_campaign=DPD
Speaking of leverage
Like a true Jet fan the Monday after Jets beat San Diego Chargers I sold my pair as I figured they would choke against Pats and I did not want to go on Christmas Eve anyhow. Face was $285 for pair with parking and I sold them on Stubhub for $840 for the pair. Had to pay 15% selling fee of $126 so I got netted a $429 profit. Which is a 150% return on investment. I am going to Bills game regardless. Only regret is I did not sell Chiefs game. That game took a huge hit. But I figured it was a Sunday one PM game in early December and if Jets Beat Broncos I might like to go.
Any true Jet fan knows 90% of time you can’t go wrong selling last game of season by early November, come year end Jets are either out of the play-offs and/or it is freezing. Jets fans in October picture good weather and an AFC clinching game in December that rarely happens.
All Hype says:
November 18, 2011 at 9:12 am
Chicago (21):
The Jets got beat by Denver? Tim Tebow???
JJ, can I buy your seats for the Giants game for $10 each?
Is Jon Corzine still walking the streets? How about occupy that bearded b-tch. F-cker walks off with 3 billion of peoples cash and the news is talking about Justin beiber. Nothing in paper is safe. In the end it will all be looted.
Jon Corzine only stole from the 1% so he is a hero to Occupie
Nom,
Maybe Jon Corzine will want to buy your trip to Belize in order to hang low for awhile. He may also want to rent your passport too.
Maybe he will want to rent Monica’s blue dress as well, so he can travel incognito.
hmmm… one cannot help but wonder– what with fudged gov’t stats– how much of that fall in unemployment represents people out of work long enough that the gov’t simply no longer counts them as unemployed.
evildoc – lies, damned lies and statistics
What are you, Dan Quayle?
JJ says:
November 18, 2011 at 10:02 am
Jon Corzine only stole from the 1% so he is a hero to Occupie
Grim [1];
Its like the Occupy crowd… They can’t beleive that socialism is a failed concept, its just that we haven’t stolen enough money or killed enough people to get it right yet.
Socialism works until the total weight of the fleas outweighs the dog.
sl
Chifi [33];
“Occupie”
Years ago I tied my freak flag on a couple of times whist visiting friends’ colleges to get better acquiainted with one or two lefty free love protest chicks. “Occupie” isn’t a bad way to put it at all.
See also, http://volokh.com/2011/11/15/occupy/
From the Oxford English Dictionary:
8. a. trans. To have sexual intercourse or relations with. Obs.
Had to pay 15% selling fee of $126 so I got netted a $429 profit.
Good for you JJ, well done. Have a good weekend!
How To Steal Like Wall Street
http://finance.yahoo.com/news/steal-wall-street-050046558.html
Chifi, BAC is offering to swap two of my TRUPs for equivalent jr. Sub bonds and 2.50 for each $1,000 submitted. Should I do it. Also is BAC giving same coupon rate I wonder, cause this coupons are pretty high.
MBNA CAP A CAP SECS-A 8.27800% 12/01/2026
CUSIP 55263BAA9
BANKAMERICA CAP II INCME PFD 8.00000% 12/15/2026
CUSIP 066048AA7
Bank of America is offering to pay each holder who validly delivers, and does not revoke, its consent before the consent solicitation expires, a cash payment of $2.50 for each $1,000 in liquidation amount or $0.0625 for each $25 in liquidation amount (the “Consent Fee”) of Capital Securities, subject to satisfaction or waiver of certain conditions. The effect of the Proposed Amendment for any series of Capital Securities will be, if any Capital Securities of such series are acquired by Bank of America, to permit the delivery of such securities to the property trustee for cancellation in exchange for a like amount of the underlying junior subordinated debt, which would then be presented to the applicable debt trustee for cancellation.
Anyone have any recommendations on who to call when you have a creaky stair problem? Nervous about calling a local general handyman because I want someone with decent knowledge on the topic but a flooring contractor is going to want big $$$ just to hammer a few nails. Would do it myself but no access to the underside of the stairs and would rather a pro do it so I don’t crap up the look of the hardwood.
Thoughts?
[8] grim
Not so surprising when you consider geography. The houses most affected are more likely on the coasts, and thus in Dem districts.
Apologies if someone already made this point.
[40] Li,
You can do it from the top if you are very careful. You can easily find instructions on the internet. The trick is to keep from marring the wood, and for that, I use a wooden shim with a small hole for hammering, and a countersink. Then I wood putty the holes and use a wood coloring pen to match the color. You can’t tell where I sunk nails.
Real difficulty is with solid, hardwood flooring. Very hard to drive nails through this stuff. I would drill my pilot hole, thus preventing splitting. Also, blunt the tips of the nails as this also prevents splitting.
If the stair treads are solid, there is likely no subflooring, so you assume that your stringers are far sides and middle (unless staircase is very narrow). If you have flooring, then it is likely you have subfloor, and can nail in different places (but hitting a stringer helps). Because you will be nailing at an angle, use longer nails.
Anyone who actually knows what they are doing (unlike me) can chime in.
[29] shore
Alas, I was (thankfully) outbid.
If you have young kids you may want to keep those creaky steps when they are teenagers so they cant sneak out.
Li says:
November 18, 2011 at 12:12 pm
Anyone have any recommendations on who to call when you have a creaky stair problem? Nervous about calling a local general handyman because I want someone with decent knowledge on the topic but a flooring contractor is going to want big $$$ just to hammer a few nails. Would do it myself but no access to the underside of the stairs and would rather a pro do it so I don’t crap up the look of the hardwood.
Thoughts?
[21] Chi Fi
YEEAHH BABY!
http://espn.go.com/new-york/nfl/story/_/id/7249314/new-york-jets-mark-sanchez-suffers-embarrassing-loss-tim-tebow
Gator, I know you and little gator are torn, but no worries. Tell him its for the best.
[44] JJ
As usual, the Ultimate Male knows better. Why didn’t I think of that?
[45] Chi Fi,
“For the second time in five days, Sanchez failed miserably in the crucible of a critical AFC game. It’s one thing when you can’t keep up with Tom Brady, but quite another story when you’re upstaged by Tim Tebow. It was, to use Sanchez’s own word, embarrassing.”
I could just keep reading that all day.
#34 Moose – I read and re-read your comment. Are you sure you didn’t mean capitalism?
#15 Gary – They are all wh0res! No difference!
Europe Facing Lost Decade
http://finance.yahoo.com/news/economists-europe-facing-lost-decade-164009743.html
When are the calls on the TruPS?
Chifi, BAC is offering to swap two of my TRUPs for equivalent jr. Sub bonds and 2.50 for each $1,000 submitted. Should I do it. Also is BAC giving same coupon rate I wonder, cause this coupons are pretty high.
MBNA CAP A CAP SECS-A 8.27800% 12/01/2026
CUSIP 55263BAA9
BANKAMERICA CAP II INCME PFD 8.00000% 12/15/2026
CUSIP 066048AA7
Bank of America is offering to pay each holder who validly delivers, and does not revoke, its consent before the consent solicitation expires, a cash payment of $2.50 for each $1,000 in liquidation amount or $0.0625 for each $25 in liquidation amount (the “Consent Fee”) of Capital Securities, subject to satisfaction or waiver of certain conditions. The effect of the Proposed Amendment for any series of Capital Securities will be, if any Capital Securities of such series are acquired by Bank of America, to permit the delivery of such securities to the property trustee for cancellation in exchange for a like amount of the underlying junior subordinated debt, which would then be presented to the applicable debt trustee for cancellation.
You must consent by 11-23 for holders of record as of 11-14. If you consent you get a cash payment of $2.50 for each $1,000 bond. It is not a call, they are paying you to consent. They are also doing this for a lot of their Pref Stock. Here is link. http://money.msn.com/business-news/article.aspx?feed=BW&Date=20111115&ID=14526932&industry=IND_BANKING&isub=
I am thinking of consenting as I am having trouble figuring out downside.
chicagofinance says:
November 18, 2011 at 3:24 pm
When are the calls on the TruPS?
Chifi, BAC is offering to swap two of my TRUPs for equivalent jr. Sub bonds and 2.50 for each $1,000 submitted. Should I do it. Also is BAC giving same coupon rate I wonder, cause this coupons are pretty high.
MBNA CAP A CAP SECS-A 8.27800% 12/01/2026
CUSIP 55263BAA9
BANKAMERICA CAP II INCME PFD 8.00000% 12/15/2026
CUSIP 066048AA7
Bank of America is offering to pay each holder who validly delivers, and does not revoke, its consent before the consent solicitation expires, a cash payment of $2.50 for each $1,000 in liquidation amount or $0.0625 for each $25 in liquidation amount (the “Consent Fee”) of Capital Securities, subject to satisfaction or waiver of certain conditions. The effect of the Proposed Amendment for any series of Capital Securities will be, if any Capital Securities of such series are acquired by Bank of America, to permit the delivery of such securities to the property trustee for cancellation in exchange for a like amount of the underlying junior subordinated debt, which would then be presented to the applicable debt trustee for cancellation.
How weird is this, next door neighbor who bought at absolute peak of housing market is going down fast. Realtor thinks it may soon flip to short sale. He paid like $618 for a house in Spring 2006 that are now going for around $430. House was super mint when he bought it but he has been bleeding out for three years. So house looks a little run down but a lot of minor things, broken gutter, broken sprinkler, broken bricks in patio. When and if it flips to short sale realtor will give me first shot. Owner thinks a mircle will happen as he priced it at $540. But I heard he has to be out ASAP as he can’t make monthly payments.
Do you think it would be weird to buy it or do you think I would be helping him. His house is closest house to my property, and no bushes or nothing in between really. I don’t really need inspection and could pay cash if I had to as he would be lucky to short sale it for $340. Kitchens bathrooms, and stuff are all nice, just needs like 3k to fix minor stuff to rent. Plus owner never greived taxes so prop taxes are high. I can grieve that easy. I offered to grive his taxes for him as I can do it in a few minutes as it would be same info I used for my house and he said no thanks not worth it, we are taking he was paying 3k extra a year, now I know why tax decrease wont take effect to 2013 and he would be long gone.
JJ,
You want tenants to know where you live?
JJ: I am checking around….BE CAREFUL…you may be consenting to letting them buy the TruPS off you at market, not par…..
Read this, and if you find WHAT the consent solicitation is let me know….
http://www.thestreet.com/story/11316120/1/bank-of-america-kicks-off-shareholder-dilution.html
Also, they likely would not have launched unless they were in touch with the TruPS and knew they were going to pull a simple majority. It may be irrelevant whether you consent other than as a logistical step to ensure proper filing to get money.
Where is the current mark on your TruPS?
To be clear, you have a $25 TruPS that you bought at $23, and that is current trading at $21 for example. Some Hedgie backed up the money truck at $18-19 and loaded up, and is happy to sell you out by consenting for $0.0625 because they are in the balck already. You get fcuked…..
just email this guy at dfking and he will send you consent letter. My trups are trading at 94 and I bought them between 91 and 99. No way would I consent to buying below par. But issue is from what I read if majority consents I don’t get the money and I still am screwed.
William Meehan [wmeehan@dfking.com]
I have trups issued in increments of $1,000. Not the pref shares at $25. From what I read they can only be called at par. That part of indenture is not being modified.
I would get a $2.50 consent fee for every 1k consented. I have 100K bonds. From what I read I get $2,500 for consenting all 1ooK bonds. Oddly I can sell bonds the day after I consent and still get consent fee as long as I owned them n 12/14 and owned them on the day I consented. Looks too good to be true so I will be reading this weekend.
JJ [53];
I heard he has to be out ASAP as he can’t make monthly payments.
W(ho) TF are you kidding? If he’s really ready to throw in the towel on making payments, he’s got three years before he’s going anywhere — actually, he’ll be at the back of the line so by the time they get around to him, probably longer.
What is the modification? That is the key…..
JJ says:
November 18, 2011 at 4:29 pm
I have trups issued in increments of $1,000. Not the pref shares at $25. From what I read they can only be called at par. That part of indenture is not being modified.
When I say payments I mean all the payments. I saw sprinkler shut off, lawnservice canceled, couldnt afford to close pool and now he has heating bills coming in. Unless he wants to live in Grey Gardens he has to get out. He can’t afford a small yard shed right now.
Anon E. Moose says:
November 18, 2011 at 4:37 pm
JJ [53];
I heard he has to be out ASAP as he can’t make monthly payments.
W(ho) TF are you kidding? If he’s really ready to throw in the towel on making payments, he’s got three years before he’s going anywhere — actually, he’ll be at the back of the line so by the time they get around to him, probably longer.
mod is right to call at par and replace trup with equiv sub note at at par.
Now I am really beginning to suspect that the Penn State situation is being written by the creators of Soap.
(from a CNN e-mail):
Former Penn State football coach Joe Paterno has a treatable form of lung cancer, a source close to Paterno says.
http://www.fbi.gov/news/podcasts/thisweek/hate-crime-statistics-2010/view?utm_medium=twitter&utm_source=twitterfeed
whats in your wallet
JJ: you tell me….MBNA Capital D 8.125% Trust Preferred Securities, Series D is currently callable at par and is trading at $24 1/8. Why the solicitation? Just call the bitch? I think a backroom deal is afoot…..
The critical definition is “like amount”
The effect of the Proposed Amendment for any series of Capital Securities will be, if any Capital Securities of such series are acquired by Bank of America, to permit the delivery of such securities to the property trustee for cancellation in exchange for a like amount of the underlying junior subordinated debt, which would then be presented to the applicable debt trustee for cancellation.
Chifi [67];
Reads like they’re offsetting invoices. BWTFDIK?
found this….
The thinking has been that the securities would be called at par, but there is a good argument that the realized price may be less than par. Quoting Merrill Lynch “The redemptions could come as call or tender offers. For securities that are trading near or above par, we would expect the redemptions would likely come as calls. For securities trading well below par, companies may opt for a voluntary tender offer—under such a scenario, holders of the security would be given the chance to sell the security back to the company at a price above the market price, but below the par call price.”
We are putting together an update piece for our subscribers to PreferredsOnline. 11 Oct, 02:13 PM0
more…..
Did everyone see the news from BAC Thursday night? They commented in the 10Q that they are considering selling stock to buy back the trust preferreds. Page 10 of the latest 10Q;
“During the third quarter, global economic uncertainty and volatility continued as described more fully in the Executive Summary – Third Quarter 2011 Economic and Business Environment discussion on page 7. Concerns over these and other issues contributed to a widening of credit spreads for many financial institutions, including the Corporation, resulting in lowering of market values of debt and preferred stock issued by financial institutions. The uncertainty in the market evidenced by, among other things, volatility in credit spread movements, makes it economically advantageous at this time to consider retirement of issued junior subordinated debt and preferred stock. As a result of these matters, we intend to explore the issuance of common stock and senior notes in exchange for shares of preferred stock and, subject to any required amendments to the applicable governing documents, certain trust preferred capital debt securities (Trust Securities) issued by unconsolidated trust companies, in privately negotiated transactions. If we pursue the exchange of Trust Securities, we would immediately use the purchased Trust Securities to retire a corresponding amount of our junior subordinated debt that we previously issued to the unconsolidated trust companies. These transactions would increase Tier 1 common capital and, on an after-tax basis, reduce the combined level of interest expense and dividends paid on the combined junior subordinated debt and preferred stock. The senior notes and common stock would be recorded at fair value at issuance, which is expected to be less than the par and carrying value of the preferred stock and/or junior subordinated debt, which would result in the exchanges being accretive to earnings per common share for the period in which completed. The ultimate impact on earnings per common share is not expected to be significant for periods subsequent to the exchange and will not be known until the level of earnings per common share for the period and the exact combination of exchanged preferred stock and Trust Securities are known. We will not issue more than 400 million shares of common stock or $3 billion in new senior notes in connection with these exchanges.”
This passage from above…WTF does this mean?
The senior notes and common stock would be recorded at fair value at issuance, which is expected to be less than the par and carrying value of the preferred stock and/or junior subordinated debt, which would result in the exchanges being accretive to earnings per common share for the period in which completed. The ultimate impact on earnings per common share is not expected to be significant for periods subsequent to the exchange and will not be known until the level of earnings per common share for the period and the exact combination of exchanged preferred stock and Trust Securities are known.
This guy annoys the fcuk out of me…..he is to banks what David Lereah was to real estate….
http://www.cnbc.com/id/45355683
This BAC thing sounds like one of these screwy things where they’re buying bonds for less than face. So they make money (GAAP) by removing them?
Well if you get rid of a $1,000 liability for 980 plus 2.50…… Is that what’s happening?
An awful way to become homeless, in an instant:
http://www.usatoday.com/weather/wildfires/story/2011-11-18/reno-wildfire/51296210/1
Nom,
Has your android device undergone a recent system update?
Chi,
Not an expert, but I suspect that this is a fast way of shedding debt in the front of spinnning off some part of the business. I expect to see ML or CW ejected on very favorable terms.
Maybe the people laid off from Corrine’s last gig will want to chip in to buy him a hippo:
http://abcnews.go.com/blogs/technology/2011/11/pet-hippo-kills-its-owner/
Corzine even
The time is coming and the names have been documented. Its going to get ugly. This I promise you.
And no. When the American people make their move. The military will not interfere. Ive already discussed this over some beers. Its going to be glorious.
(76) shore
Yes
Another 2012 scenario is the planet Melancholia, hiding behind the sun, crashing into earth. Watching Kirsten Duntz takes your mind off the collision though.
A planet crashing into Earth right about now seems like a best case scenario to me.
We should crash and burn the same way the dinosaurs did. We’re at about the same level of intelligence.
85,
Meat,
Far worse. Its a slow motion hiest. Open fraud. Nothing is safe. CFTC, SEC, CME, Congress all bought and paid for. This is indeed your grey to black scenario. Only the smart will survive.
84. An asteroid shower that completely levels DC, Hollywood, and Mecca would work for me.
and yes….I am “Essex”.
I’d incessantly want to be update on new blog posts on this web site , saved to my bookmarks ! .
Yes.
THIS IS HOW MUCH IT COST TO RUIN THE LIFE OF THE MAJORITY.THERE IS ALWAYS A PRICE
A well-known Washington lobbying firm with links to the financial industry has proposed an $850,000 plan to take on Occupy Wall Street and politicians who might express sympathy for the protests, according to a memo obtained by the MSNBC program “Up w/ Chris Hayes.”
The proposal was written on the letterhead of the lobbying firm Clark Lytle Geduldig & Cranford and addressed to one of CLGC’s clients, the American Bankers Association.
CLGC’s memo proposes that the ABA pay CLGC $850,000 to conduct “opposition research” on Occupy Wall Street in order to construct “negative narratives” about the protests and allied politicians. The memo also asserts that Democratic victories in 2012 would be detrimental for Wall Street and targets specific races in which it says Wall Street would benefit by electing Republicans instead.
According to the memo, if Democrats embrace OWS, “This would mean more than just short-term political discomfort for Wall Street. … It has the potential to have very long-lasting political, policy and financial impacts on the companies in the center of the bullseye.”
http://openchannel.msnbc.msn.com/_news/2011/11/19/8884405-lobbying-firms-memo-spells-out-plan-to-undermine-occupy-wall-street
Essex changes names again? Following this is like talking to Sybil.
So, are we starting 2012 with a bang?
http://www.bloomberg.com/news/2011-11-19/iran-s-nuclear-drive-may-end-arming-terrorists-barak-says-1-.html
93. Or Clotpoll :-)
Hey. I keep all my personalities firmly in check.
96. You “are” consistent. Me I’m just anti-social.
Essex, how’s that new git box?
Sold that thing today. Made some cash for the weekend. Last in a long line of gear trades this year. Gonna sell a little stock in january and go shopping baby.
Heck of a game in Waco tonight.