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Originally posted by fromunclexcommunicate
The Dow may retest the Monday low or bounce off 9150 and close at Standers 9272.
Originally posted by stander
And so I was thinking to bounce volume indexed prices into the next day. So I did it and the result is that tomorrow the Dow will gain 54 points. That means not 53 nor 55 -- just cool 54. The problem is that I have to quote myself tomorrow, and if I miss, I have to eat my own sh-t.
Former regulator Lockhart heads to WL Ross
Lockhart will join the investment team at WL Ross & Co. LLC, the distressed investment affiliate of Invesco, which has large stakes in mortgage companies like Assured Guaranty (AGO.N) and BankUnited.
BBVA expected to win Guaranty auction: sources
The FDIC provoked a backlash when it proposed tough guidelines in July, but is expected to soften the policy when it meets August 26.
Ouch. Colonial Left a Mark! (on Loans)
From Peter Eavis at the WSJ: Colonial Bank Marks a New Low for Loans
In doing the deal, BB&T is marking down Colonial loans and real-estate collateral by 37%, a number that reflects a large amount of estimated losses. The biggest mark is on construction loans; BB&T is cutting their value by 67%.
Yes, Colonial had some really bad loans. Peter Eavis quoted Daryl Bible, BB&T's chief financial officer: "When we looked at Colonial's portfolio versus ours, we saw a lot of borrowers we turned away."
Still it appears the BB&T / Colonial marks are the lowest yet.
More at Link...
U.S. deficit estimate to be trimmed to $1.58 trillion
WASHINGTON (Reuters) - The Obama administration will trim its budget deficit forecast for fiscal 2009 to $1.58 trillion, after scrapping money earmarked for bailing out more banks, officials said on Wednesday.
The record deficit has made investors anxious and threatens to thwart Obama's ambitious domestic agenda to overhaul healthcare, reform education and make the country less reliant on fossil fuels.
Polls show the deficit is one of the top concerns of Americans who fear that it could lead to higher taxes.
An administration official said the drop in the projected deficit was due to the elimination of $250 billion that had been set aside for further possible financial rescues.
The new estimate involves a calculated judgment that financial markets have sufficiently stabilized and the administration will not have to go back to the U.S. Congress to ask for additional money to bail out more banks.
Expect banks to be hit with major fees for deposit insurance
WASHINGTON (MarketWatch) -- The manner in which five banks collapsed on Friday, costing the resource-stretched Federal Deposit Insurance Corp. roughly $3.7 billion, is raising concerns about the agency's depleted insurance fund used to protect depositors.
That's driving expectations the agency will look in the short-term to cover losses by slapping large additional special fees on banks, with larger financial institutions taking on the brunt of the costs.
The bank collapses and the FDIC's depleted deposit insurance fund -- $13 billion on hand as of May -- are leading observers to speculate that the agency will hit banks with two large special fees it said it would consider in September and December that could each roughly match a $5.6 billion one-time fee it charged banks in May. That fee is payable by Sept. 30.
So far the FDIC has administered 77 bank failures in 2009, significantly more than the 25 failures in 2008 and 45 collapses in the previous 10 years. According to a May report, 305 institutions were on the agency's "troubled bank" list. A follow up report is expected shortly, as soon as next week.
In addition to the assessment, banks are charged periodic fees -- totaling $15 billion a year-- to fill the fund, which used to pay depositors of failed institutions.
"The first thing they will do to fill the fund is take advantage of their capacity to impose additional fees on financial institutions," said Samuel Golden, managing director at restructuring firm Alvarez & Marsal Financial Industry Advisory Services.
Nancy Bush, director of NAB Research LLC, concurs.
"FDIC has no choice but to impose additional special assessments," Bush said. "Wall Street is beginning to factor these assessments into their budgets, so they know more is coming."
NEW YORK (Fortune) -- Bank regulators have a Texas-sized problem on their hands -- though it's easy to see much of the trouble resides farther west.
Guaranty Bank, an Austin-based savings institution with $13.5 billion in assets, is expected to be seized by the FDIC by the end of the week. According to multiple reports late Wednesday, Spanish bank Banco Bilbao Vizcaya (BBV) has won the bidding for Guaranty.
Spanish bank BBVA has been selected to take over the assets of Austin-based Guaranty Financial Group in a government-assisted transaction. BBVA is Spain's second-largest bank and has 583 branches in the US.
The Office of Thrift Supervision has taken over Guaranty's board functions since it declared last month that is was unable to raise capital and would probably fail.
According to Bloomberg, Blackstone Group LP, Flexpoint and U.S. Bancorp were among other groups considering bids.
Guaranty’s biggest shareholders include Omni Hotels owner Robert Rowling.
Aug. 19 (Bloomberg) -- Banco Bilbao Vizcaya Argentaria SA of Spain was selected to take over assets of ailing Texas lender Guaranty Financial Group Inc. in a U.S.-assisted transaction, said people familiar with the situation.
The acquisition, arranged by the Federal Deposit Insurance Corp., would mark the second of a U.S. bank by a Spanish lender. Banco Santander SA, Spain’s biggest lender, in January acquired Philadelphia-based Sovereign Bancorp Inc., once the second- largest U.S. savings and loan. BB&T Inc. last week acquired Colonial BancGroup Inc. in a deal also arranged by the FDIC.
The purchase shows “those companies didn’t make serious acquisition errors years ago,” said Gary Townsend, president of Hill-Townsend Capital LLC in Chevy Chase, Maryland, and a former bank analyst. “As in the case of BB&T buying Colonial BancGroup, it gives BBVA the opportunity to expand on the cheap.”
Guaranty said last month that it was unable to raise capital as demanded by regulators and will probably fail. The Office of Thrift Supervision has taken over board functions, directed the Austin, Texas-based bank to turn itself over to the Federal Deposit Insurance Corp. and is pursuing transactions likely to wipe out shareholders, Guaranty said in a July 23 filing with the Securities and Exchange Commission.
Bids for the bank were due yesterday, the people said.
Guaranty remains “open for business. We continue to work with our regulators,” John Wessman, a spokesman, said in an e- mailed statement. The bank provides the same FDIC deposit insurance coverage as other member banks, he said.
BBVA spokesman Ed Bilek and FDIC spokesman Andrew Gray declined to comment.
Originally posted by marg6043
This will be interesting to know.
UBS-US Tax Deal Details to Be Revealed Soon
I am glad that my family always bury their gold in the backyard
Details of the settlement are likely to emerge in the news conference, but the Wall Street Journal reported that the settlement is likely to yield about 10,000 account identities and disclose 4,450 client names.
Swiss govt announces sale of stake in UBS
Posted: 20 August 2009 0628 hrs
Photos 1 of 1
The New York office of Swiss banking giant UBS
GENEVA - Switzerland is selling its nine-percent stake in UBS, the federal government said Wednesday, soon after the bank reached a deal with Washington over its tax fraud investigation.
"The Federal Council (government) has decided to immediately and completely end its commitment" to UBS, a finance ministry statement said.
The government had instructed a consortium to place its 332.2 million UBS shares on the market, said the statement.
It had also agreed to sell UBS, for cash, the remaining coupons of its mandatory debt conversion, thus allowing Bern to get back all of its initial investment in the bank and make "an adequate profit," the statement added.
The news came hours after Switzerland and the United States reached a deal under which UBS would disclose details of 4,450 accounts to US authorities in part-settlement of potentially damaging tax fraud charges against the bank.