Quote of the Day

“The court takes UBS employees at their word when they referenced their Notes, these purported “investment grade” securities which they sold as “crap” and “vomit”, for UBS alone possessed the knowledge of what their product, their inventory, was truly worth.” Pursuit Partners v. UBS A G, No. CV 084013452S, (Sup. Ct. Conn. Sept. 9, 2009)

Drowning in the Desert

Arizona second in underwater loansPhoenix Business Journal – by Jan Buchholz Arizona has more homeowners who are underwater with their mortgages than any other state, save one. About 48 percent of homeowners here owe more on their mortgages than the home is worth. That is second only to Nevada where 65 percent of homeowners have […]

The Case for Transparency

New accounting rules will soon come to fruition and require the banks to add some of their off balance sheet assets to their balance sheets.  In brief, FASB 166 and 167 will require hundreds of billions in assets to be moved from off-balance sheet vehicles onto the balance sheets of the financial institutions. As those […]

Willful Blindness

I can’t tell you how many times I have had opposing counsel (for the banks) assert that the market crash and bubble burst “is not the lender’s fault.”  They say this with such touching conviction but it is dead wrong.  I think that this article by Bill Black (chief regulator during the S&L crisis, a […]