TSX:FFN.PR.A - Post by User
Post by
spazzmanon Sep 17, 2011 4:01pm
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Post# 19054325
Double Dip? maybe
Double Dip? maybe Planned to buy FTN and even FFN this week but pulled by bids when many of the US banks holdings were targeted for downgrades this week due to pending law suits. Add to this US unemployment that keeps moving upwards, the bad housing market & mortgage write offs plus the US exposure to European debt that is far worse then first believed. I fear that the worst is not over. Canadian banks will also drop as a result, but will recover faster and raise to the top as they did in 2009.
Here are just a few news articles from this weeks press.
Thursday, 15 Sep 2011
Reuters reported t that JPMorgan Chase & Co was sued by Wells Fargo & Co. which seeks to force it to buy back more than 800 soured mortgage loans that it oversees as trustee. In a complaint made public on Wednesday in the Delaware Chancery Court, Wells Fargo accused JPMorgan's EMC Mortgage LLC unit of refusing its demands that EMC buy back the loans, which were contained in Bear Stearns Mortgage Funding Trust 2007-AR2. In the complaint, Wells Fargo said EMC and its affiliates routinely approved mortgage loans despite clear defects in loan applications, including faulty appraisals and inflated borrower incomes.
The Associated Press reported that the government on Friday sued 17 financial firms, for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed. Among those targeted by the lawsuits were Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., and The Goldman Sachs Group, Inc. Large European banks including The Royal Bank of Scotland, Barclays Bank and Credit Suisse were also sued.
Jonathan Ratner –
With the situation in and a potential default by dominating the headlines, there is a lot of interest in the exposure banks have to troubled euro zone countries.Datafrom the Bank for International Settlements shows that financials have US$7.3-billion of direct exposure to and US$34.1-billion of indirect gross exposure, primarily through credit protection.
The size of exposure among financials to other countries is much more staggering. Direct exposure to is more than US$50-billion, while indirect gross exposure comes in at roughly US$54-billion. Numbers for Italy come in at more than US$36-billion and US$232-billion, Portugal at US$5-billion and US$41-billion, and Spain at US$47-billion and US$131-billion, respectively.
The analyst reiterated that Citigroup Inc., Regions Financial Corp. and Wells Fargo & Co. are his top picks in the sector.