UNCONFIRMED – Internal Bank of America Memo on Subprime and Alt-A Loans
August 29th, 2007For your Not-News-to-Cryptogon-Readers file…
The music has stopped and all the chairs are taken.
Via: Calculated Risk:
Bank of America’s RMBS Desk has a research note out (not publically available) that attempts to estimate the realistic refinance options, if any, for outstanding subprime ARMs that are facing reset in the immediate future.
The analysis looks at both credit standards and current interest rates on alternative loans, and concludes that refinancing into a new subprime loan or, for those borrowers whose credit profile has improved since loan origination, a new Alt-A loan, is essentially not an option. The interest rates on new subprime and Alt-A, given the current environment, are simply too high to offer any improvement in the monthly payment.
Yes, all the chairs are taken allright and the swindlers are getting out of Dodge and heading to their secure, somewhat undisclosed locations.
http://mparent7777-2.blogspot.com/2007/08/fed-something-big-is-going-to-happen.html
Most likely, Ken Lay will be the doorman upon the FRB members arrival. New face, but he’ll be wearing the white gloves of a butler.
What are they thinking? Do they actually think they can escape the wrath of the world and the US nation?
Suicide was the choice of death for many bankers and other numbnuts who caused the first Depression. Or moving to the south – Charlottesville, Va, housed the Seagrams, Kellogs and other well monied people during the last crash.
One can only hope that this time around there is no escape and that what goes around comes around.
Perhaps Anderson Cooper will provide comic relief and will be crying on CNN when he reports on the deaths of all the bankers who caused the world economy to collapse this time round.
While this doesn’t suggest, without a lot of extrapolation, that Bank of America is in trouble, I am still bothered that I bank there.
I would move my account elsewhere, if I felt assured that some other bank was less exposed to subprime risk. Alas! I don’t think any of those other banks will be confiding in me on that score, either.
Does anyone here have any thoughts on where a person should have a bank account these days? Or whether a person should have a bank account? I’m getting a bit uneasy.
“Does anyone here have any thoughts on where a person should have a bank account these days?” — sharon
Sharon, I’m totally prepared to have everyone tell me they’re even worse than banks, but have you thought about a credit union?
PeterofLoneTree–Thanks for the suggestion. I am actually a member of a credit union, where I have a small amount of cash that’s been sitting there for a decade. I keep forgetting I have it.
I think you may be right. I’ll have to do some investigating.