Tuesday, Mar 20, 2007
How dangerous is this trend?
FT.com: Loan rescues Accredited Home Lenders
Farallon Capital Management has come to the aid of embattled subprime mortgage lender Accredited Home Lenders, lending them $200m over five years to avoid a credit crunch.
Accredited will use the money ,along with proceeds from a planned fire sale of $2.7bn in mortgage loans, to boost working capital after its existing lenders – Morgan Stanley, Goldman Sachs and Merrill Lynch – demanded collateral to cover losses from a recent spike in late payments and defaults.
Huh?!
Posted by lvmreader @ 11:06 PM (207 views) Add Comment
1 Comment
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1. Whiteknight said...
Umm... remind me again why that could possibly be considered a good loan?
I will say this again and again: avoidance of the necessary adjustments just leads to a worse and worse situation in the end.
The plate spinner just got another one in motion .. or the juggler just got passed yet another baton to keep in the air .. whichever you prefer.
Also, keep a close eye on the merger activity of banks and try to keep a track. Mergers could potentially hide a lot of things.
In unrelated news Barclays appears to be moving quickly to complete a merger with ABN Amro in which it will accept such terms as an essential move out of the UK.
I believe Barclays had previously tried to sell off Barclaycard its obviously profitable credit card arm!