: iStockAnalyst.com Symbols Feed

The Humility of Realism — II

Fri, 30 Jan 2009 20:36:00 GMT

This post is supposed to be a kind of “catch up” post, where I write about a number of small things that I thought were interesting, but weren’t worth a full post. 1) The government can’t fund everybody. The recent backup in the US treasury note market is a great example of that. As the demands for funds now in exchange for funds later has increased, Treasury interest rates have risen. I have several biases, but one of them is that the Government can’t unilaterally create prosperity. It can create conditions that encourage economic activity, through predictable and fair laws, but it can’t make us immediately better off through deficit spending, or tax-and-spending. The Government does not know what is needed to a better degree than its citizens do individually. But let the government fund or guarantee everybody. When they do that, there is just one overleveraged[More...]

More Cards Set to Fall

Mon, 19 Jan 2009 02:23:00 GMT

That's the thing about a house of cards. Only one of the supporting elements has to wobble or break loose before the rest follow suit. That pretty much sums up where we are nowadays. It started with the subprime mortgage lenders. Then came the banks, the Wall Street firms, the government-sponsored agencies, and the hedge funds. Now, according to the New York Post, in a report entitled "Don't Bank on It," another layer of cards -- er, financial institutions -- appears set to fall. FHLBs Fall; Look for $$ Two-thirds of the Federal Home Loan Banks, their balance sheets weakened by investments in toxic mortgage[More...]

Bailout Nation: FHLBs Next?

Tue, 13 Jan 2009 16:04:00 GMT

Uh oh… it looks like these clowns are going to have to get bailed out next. No biggie though… “the FHLB system has $1.25 trillion of debt, making it the largest U.S. borrower after the federal government.” My ninja senses tell me that 2009 is going to be one wild year. Seattle FHLB Likely Short of Capital on Mortgage Debt (Update1): “The Federal Home Loan Bank of Seattle joined its San Francisco counterpart in suspending dividends and “excess” stock repurchases, after the declining value of mortgage bonds likely led to a regulatory capital shortfall. The shortfall is being caused by “unrealized market value losses” on home-loan securities without government backing, the Seattle bank cooperative said in a filing with the U.S. Securities and[More...]

Shadow Banking Collapse

Sun, 14 Sep 2008 20:25:00 GMT

It is now clear that we are again – as we were in mid- March at the time of the Bear Stearns collapse – an epsilon away from a generalized run on most of the shadow banking system, especially the other major independent broker dealers (Lehman, Merrill Lynch, Morgan Stanley, Goldman Sachs). If Lehman does not find a buyer over the weekend and the counterparties of Lehman withdraw their credit lines on Monday (as they all will in the absence of a deal) you will have not only a collapse of Lehman but also the beginning of a run on the other independent broker dealers (Merrill Lynch first but also in sequence Goldman Sachs and Morgan Stanley and possibly even those broker dealers that are part of a larger commercial bank, I.e. JP Morgan and Citigroup). Then this run would lead to a massive systemic meltdown of the financial system. That is the reason why the Fed has convened in emergency meetings the heads of all major Wall Street firms on Friday and again today to convince them not to[More...]

Paulson tops Gross, Greenspan and Ackman in the Mortgage Battle

Mon, 11 Aug 2008 13:44:00 GMT

The most powerful man in Washington, Treasury Secretary Hank Paulson has shown himself to be quite a shrewd politician. The prevailing wisdom is that he accepted the $300B FHA housing bill so that he could create the Fannie Mae (FNM), Freddie Mac (FRE) and Federal Home Loan Bank (FHLB) backstop. The much talked about unlimited power of the Treasury to lend and buy equity, which will never be needed. I disagree. I believe that Paulson created the heightened GSE anxiety for the express purpose of passing the Frank-Dodd FHA mortgage refinancing bill.Paulson’s high-wire[More...]

In Large, Red, Friendly Letters it Reads, “Don’t Panic!” (GSE Edition)

Fri, 11 Jul 2008 05:34:00 GMT

want to tread a fine line this evening. I am going to argue that a government takeover of Fannie and Freddie would not be as costly as some imagine — it would likely be more expensive than the S&L bailout, but not in inflation-adjusted terms. My post is[More...]

Bank of America Threatens To Ram CFC Debtholders! Is Bear Next?

Fri, 02 May 2008 05:49:20 GMT

Just have to gloat a bit.[More...]

The Insanity Rolls On

Fri, 25 Apr 2008 16:02:59 GMT

Many have said since this "housing crisis" erupted that commercial real estate would not be impacted - it would be "different this time."[More...]

Sarcastic Rant on Fannie and Freddie

Tue, 25 Mar 2008 13:52:21 GMT

Just a quick update on Fannie Mae and Freddie Mac…[More...]

Still at the Forefront - Feb 10 2008 8:54PM

Mon, 11 Feb 2008 00:48:39 GMT

The bad news is that Nouriel Roubini is an economist and an academic.[More...]

From Wall Street to Greenleaf Avenue: Still Feeling the Pain One Year Later

Mon, 14 Sep 2009 16:49:00 GMT

Sep. 14--Start lending again, don't count on any more bailouts, and stop the greed.
They were at the core of President Barack Obama's message to financial chiefs and lawmakers on Monday at Federal Hall in the heart of Wall Street.
That appetite led to a financial crisis that gripped the San Gan Gabriel Valley and Whittier areas even before Lehman Brothers' collapse touched off a panic a year ago.

[More...]

Seattle's Federal Home Loan Bank in Big Money Trouble Again

Sun, 19 Jul 2009 14:45:00 GMT

Jul. 19--Don't look now, but another big Seattle-based bank is struggling under the weight of distressed mortgage-backed securities, declining loan business and the deflated housing market.
This time it's not a consumer-oriented bank such as Washington Mutual, which collapsed last year, but the Federal Home Loan Bank of Seattle, a behind-the scenes funder of mortgage loans that faces its second major financial crisis in five years.
The Seattle FHLB, a cooperative that lends money to its member banks at below-market rates, has accumulated $247 million in net losses over the past four quarters, mainly because of losses in its pile of mortgage-backed securities.

[More...]

Local Banks Accepting IOUs, but Not for Long

Wed, 08 Jul 2009 11:47:00 GMT

Jul. 8--Local banks are redeeming IOUs from cash-strapped California, which hasn't been able to shore up a $24 billion deficit.
East West Bancorp and California General Bank in Pasadena, Chase, Friendly Hills Bank in Whittier, Wells Fargo & Co., Union Bank and Bank of America are all redeeming state IOUs -- but only for so long.
"We'd prefer not to do it," said Bill Hawkins, president of California General Bank in Pasadena, which has set a July 15 deadline to redeem IOUs for customers who had an account there before July 2.

[More...]

Obama Plan Riles Community Bankers

Wed, 24 Jun 2009 13:54:00 GMT

Jun. 24--PASADENA -- President Barack Obama's proposed regulatory overhaul of the financial system has ruffled the feathers of local community banks.
They are concerned that a new consumer protection agency, among other elements of the plan, would prompt more government intrusion in the already heavily regulated banking business.
But Obama's proposed sweeping overhaul, unveiled last week, is a much-needed clamp-down on business practices that led to the nation's financial ills, supporters say.

[More...]

Expert: Economic Hard Times Through Early 2010

Sat, 24 Jan 2009 23:47:00 GMT

SANTA FE SPRINGS - A leading economist recently told a group of business owners and city officials that the economic downturn will not get better until 2010.
Esmael Adibi, director of the A. Gary Anderson Center for Economic Research at Chapman University, spoke before a full house at the Santa Fe Springs Chamber of Commerce's 2009 Economic Forecast program.
Not all the news was bleak for Friendly Hills Bank, which recently opened a branch in Santa Fe Springs.

[More...]

Economist: Hard Times Through Early 2010, Unemployment Numbers to Remain High in the Current Year

Sat, 24 Jan 2009 07:56:00 GMT

SANTA FE SPRINGS - A leading economist recently told a group of business owners and city officials that the economic downturn will not get better until 2010.
Esmael Adibi, director of the A. Gary Anderson Center for Economic Research at Chapman University, spoke before a full house at the Santa Fe Springs Chamber of Commerce's 2009 Economic Forecast program.
Not all the news was bleak for Friendly Hills Bank, which recently opened a branch in Santa Fe Springs.

[More...]

Leaders Have Mixed Reaction to Obama Plan

Fri, 09 Jan 2009 01:49:00 GMT

Jan. 8--Local leaders reacted with a mixture of hope, resignation, and skepticism to Barack Obama's plan to pump billions of federal dollars into the economy.
Though Schiff is a member of the fiscally conservative Blue Dog Coalition, he said the size of the stimulus plan, which could reach nearly $1 trillion, was necessary, even though it would have a "more than temporary" effect on the nation's budget deficit.
But Jeffrey K. Ball, CEO of Whittier-based Friendly Hills Bank, said the burden of the large stimulus plan will ultimately fall on the private sector and prolong the recession.

[More...]

Obama Speech Draws Mixed Reaction From Area Leaders

Thu, 08 Jan 2009 07:57:00 GMT

Local leaders reacted with a mixture of hope, resignation and skepticism to President-elect Barack Obama's plan to pump billions of federal dollars into the economy.
Obama addressed the nation Thursday morning from George Mason University in Virginia, outlining a stimulus plan that would include tax cuts for 95 percent of Americans.
Though Schiff is a member of the fiscally conservative Blue Dog Coalition, he said the size of the stimulus plan, which could reach nearly $1 trillion, was necessary, even though it would have a "more than temporary" effect on the nation's budget deficit.

[More...]

Friendly Hills Bank Continues Growth Through Second Quarter

Tue, 28 Jul 2009 13:51:00 GMT

WHITTIER, Calif., July 28 /PRNewswire-FirstCall/ -- Friendly Hills Bank (OTC Bulletin Board: FHLB) reported results for the second quarter of 2009, its tenth full quarter of operations, since opening on September 18, 2006.
As of June 30, 2009, the bank reported total assets of $69.3 million, a 25% increase from $55.5 million as of June 30, 2008.
The bank's loan portfolio, net of an allowance for loan losses, grew 48% from $29.5 million as of June 30, 2008, to $43.5 million as of June 30, 2009.

[More...]

Friendly Hills Bank Maintains Asset Quality With Continued Growth - May 7 2009 12:51PM

Thu, 07 May 2009 16:46:00 GMT

WHITTIER, Calif., May 7 /PRNewswire-FirstCall/ -- Friendly Hills Bank (OTC Bulletin Board: FHLB) reported results for the first quarter of 2009, its tenth full quarter of operations, since opening on September 18, 2006.
As of March 31, 2009, the bank reported total assets of $66.6 million, a 35% increase from $49.2 million as of March 31, 2008, and a 5% increase from $63.5 million as of December 31, 2008.
The bank's loan portfolio, net of an allowance for loan losses, grew 57% from $22.8 million as of March 31, 2008, to $35.7 million as of March 31, 2009.

[More...]

Friendly Hills Bank Maintains Asset Quality With Continued Growth - May 7 2009 9:58AM

Thu, 07 May 2009 13:53:00 GMT

WHITTIER, Calif., May 7 /PRNewswire-FirstCall/ -- Friendly Hills Bank (OTC Bulletin Board: FHLB) reported results for the first quarter of 2009, its tenth full quarter of operations, since opening on September 18, 2006.
As of March 31, 2009, the bank reported total assets of $66.6 million, a 35% increase from $49.2 million as of March 31, 2008, and a 5% increase from $63.5 million as of December 31, 2008.
The bank's loan portfolio, net of an allowance for loan losses, grew 57% from $22.8 million as of March 31, 2008, to $35.7 million as of March 31, 2009.

[More...]

Friendly Hills Bank Approved for U.S. Treasury Investment - but Elects to Decline Capital Infusion From United States Government; Will Participate in FDIC Transaction Account Guarantee Program

Tue, 23 Dec 2008 11:55:00 GMT

Friendly Hills Bank has received preliminary approval from the United States Treasury to participate in the Capital Purchase Program. With this approval the Bank is now eligible to receive up to $1,600,000 of additional capital in the form of Preferred Stock. However, based on a number of factors, the Bank's Board of Directors has decided not to participate in the program. These factors include the Bank's current Total Risk-based Capital Ratio of 27 percent , confidence that the Bank's capital position is sufficient for the bank to sustain itself through the current economic environment and achieve profitability, the strength of the bank's asset base which has no past due or non-accrual loans and the potentially dilutive impact of the additional capital for current shareholders.[More...]

Friendly Hills Bank Continues Growth Pattern - Oct 31 2008 8:09AM

Fri, 31 Oct 2008 11:56:00 GMT

Friendly Hills Bank reported results for the third quarter of 2008, its eighth full quarter of operations, since opening on September 18, 2006. As of September 30, 2008, the bank reported total assets of $60.9 million, a 34% increase from $45.5 million as of December 31, 2007.[More...]

Friendly Hills Bank Continues Growth Pattern - Jul 24 2008 8:12AM

Thu, 24 Jul 2008 11:56:00 GMT

Friendly Hills Bank reported results for the second quarter of 2008, its seventh full quarter of operations, since opening on September 18, 2006. As of June 30, 2008, the bank reported total assets of $55.5 million, a 22% increase from $45.5 million as of December 31, 2007.[More...]