Headlines...

NEW -> Contingent Buyer Assistance Program
<p>Now we know what B of A did with its money from the discount window. Hmm...</p>

<p>Four banks borrow $500M each, and now $2B of CFC stock is being purchased. The math seems to work.</p>
 
I think more is to come with the purchase of all the preferred stock. I wouldn't doubt that once CFC is able to combine all of its loan operations under a thrift if BofA doesn't purchase them out right.
 
Awgee....it might be a sign of desperation but it is a depressed security. BofA has hoards of cash and being in first position for whatever assets CFC might have will be worth this purchase, I have heard the CFC services tons and tons of loans so that would fit right into the BofA portfolio.
 
mino - Agreed. This is a great move for BoA. They are getting 7.25%, but they aren't exposed to the earnings unless they convert. But, from CFCs standpoint, it looks like a last ditch. I don't know if it is a depressed security. The next quarter's earnings should be radically different, so there is no present metric.
 
<p>The Yen is like a slinky it is back to 115.9.</p>

<p>Asian markets way up with the BOJ keeping the rate down at .5%. Euro markets up slightly. US futures are really on the high side.</p>
 
The money honey will have an interview with Mozillo at 8am. I set the dvr to record it but knowing CNBC they will play clips all day long.
 
IR - It would seem so. After covering last week, it looks like it is time to start putting the short toes back in the water?
 
The Bill Gross article linked to <a href="http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2007/IO+September+2007.htm">here </a>is a good read on our current problems. His proposed solutions are the worst I have read to date, but it is to be expected from a guy who wants to see lower interest rates to help him sell bonds.





<a href="http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2007/IO+September+2007.htm"><strong>Where’s Waldo?


Where’s W?</strong></a>





I have stated in other places that any bailout would be a thinly veiled handout to the lending industry. Here is more evidence:





<em>The ultimate solution, it seems to me, must not emanate from the bowels of Fed headquarters on Constitution Avenue, but from the West Wing of 1600 Pennsylvania Avenue. Fiscal, not monetary policy should be the preferred remedy, one scaling Rooseveltian proportions emblematic of the RFC, or perhaps to be more current, the RTC in the early 1990s when the government absorbed the bad debts of the failing savings and loan industry. Why is it possible to rescue corrupt S&L buccaneers in the early 1990s and provide guidance to levered Wall Street investment bankers during the 1998 LTCM crisis, yet throw 2,000,000 homeowners to the wolves in 2007? If we can bail out Chrysler, why can’t we support the American homeowner?





</em>Notice the BS attempt to link the bailout to homeowners when the real beneficiaries will be the lenders? Expect to see more of this.
 
Awgee....not sure if you have seen this yet on Reuters but kind of coincides with comments you and I made last night.





<em>" In an interview on CNBC television, Mozilo also said he is not contemplating an eventual acquisition of the company by Bank of America Corp (BAC.N: <a href="http://investing.reuters.co.uk/stocks/Quote.aspx?symbol=BAC.N&WTmodLoc=InvArt-C1-ArticlePage1">Quote</a>, <a class="" href="http://investing.reuters.co.uk/stocks/CompanyProfile.aspx?ticker=BAC.N&WTmodLoc=InvArt-C1-ArticlePage1">Profile</a> , <a href="http://investing.reuters.co.uk/stocks/ResearchReports.aspx?ticker=BAC.N&WTmodLoc=InvArt-C1-ArticlePage1">Research</a>). The second-largest U.S. bank on Wednesday invested $2 billion in Countrywide, helping to shore up the latter's finances."





http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-08-23T153843Z_01_N23244893_RTRIDST_0_BUSINESS-COUNTRYWIDE-INTERVIEW-DC.XML





</em>IrvineRenter....welcome back long time no see.
 
<p>Had a ton of respect for Bill Gross...until today. </p>

<p>Looks like he's in favor of a bailout. </p>

<p><a href="http://money.cnn.com/2007/08/23/news/newsmakers/gross_homeowners/index.htm?postversion=2007082312">http://money.cnn.com/2007/08/23/news/newsmakers/gross_homeowners/index.htm?postversion=2007082312</a></p>
 
<p>My first reaction to reading that was he had to be pulling the reporter's leg.</p>

<p>I can only hope he was trying to demonstrate absurdity by being absurd, but I fear that may not be the case.</p>

<p>SCHB</p>
 
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