Tag Archives: MBS

Did Securitization Lead to Riskier Corporate Lending?

by Joao Santos, Federal Reserve Bank of New York There’s ample evidence that securitization led mortgage lenders to take more risk, thereby contributing to a large increase in mortgage delinquencies during the financial crisis. In this post, I discuss evidence … Continue reading

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Bloomberg: Misleading on Banks Buying Treasuries

by Lee Adler, The Wall Street Examiner Bloomberg had this headline yesterday: Banks Use $1.77 Trillion To Double Treasury Purchases They led with this: The gap between U.S. bank deposits and loans is growing at the fastest pace in two … Continue reading

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Will There be Life after QE2?

QE2 will be over before the end of June 2011. In simple words, QE (aka quantitative easing) is in effect the same as government buying its own debt. Continue reading

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Federal Reserve Issues Its Consolidated 2010 Financial Statements

The Fed issued its consolidated financial statements for 2010. Continue reading

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Just What is the MBS Putback Exposure for Banks?

The MBS putback exposures of banks appears uncertain. Putbacks, combined with other loan losses and Basel III requirements, will likely depress bank earnings. And all of these things combine to keep the questions about bank solvency open. Continue reading

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Bank Earnings May Not Cover Put-Back Losses.

The Congressional Oversight Panel estimates that banks have not provisioned for $31 billion of mortgage put-backs that are coming in the next 2-3 years. Continue reading

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Explaining the Housing Bubble

In the simplest terms, the housing bubble was caused by a flood of liquidity chasing mispriced risk. Continue reading

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The Mortgage Mess

For more than three months Yves Smith has written daily on the unfolding foreclosure documentation crisis at Naked Capitalism. She has written this exclusive summary of her work for GEI. Continue reading

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