Comments on: Early Estimates of Losses From MBIA, Ambac Downgrade http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html Mon, 23 Nov 2009 09:23:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9130 Anonymous Sat, 07 Jun 2008 22:11:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9130 For which of the Fed's programs is AA actually eligible? Inquiring minds... For which of the Fed’s programs is AA actually eligible? Inquiring minds…

]]> By: Ian http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9090 Ian Fri, 06 Jun 2008 15:21:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9090 is there a situation in which pension funds and institutions like endowments would have to sell en masse the bonds which have now dropped to less than AAA? If so, I wonder if that is being factored in to loss projections. is there a situation in which pension funds and institutions like endowments would have to sell en masse the bonds which have now dropped to less than AAA? If so, I wonder if that is being factored in to loss projections.

]]> By: Yves Smith http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9076 Yves Smith Fri, 06 Jun 2008 09:59:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9076 I am not certain of the mechanics, but these facilities are fairly short term, although the assumption is that many (most?) banks simply roll the loan. Thus the Fed might demand substitution when the loan matured (14 to 28 days max depending on the facility). Anyone who knows better is encouraged to speak up. I am not certain of the mechanics, but these facilities are fairly short term, although the assumption is that many (most?) banks simply roll the loan. Thus the Fed might demand substitution when the loan matured (14 to 28 days max depending on the facility). Anyone who knows better is encouraged to speak up.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9075 Anonymous Fri, 06 Jun 2008 09:51:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9075 Doesn't the Fed require collateral to be AAA? I don't know what proportion of securities pledged to the Fed rely on insurance/guarantees by MBIA and Ambac for their triple A rating, but presumbly any that does will now have to be replaced or the loan repaid? Doesn’t the Fed require collateral to be AAA? I don’t know what proportion of securities pledged to the Fed rely on insurance/guarantees by MBIA and Ambac for their triple A rating, but presumbly any that does will now have to be replaced or the loan repaid?

]]> By: Cahagnes http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9074 Cahagnes Fri, 06 Jun 2008 08:09:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9074 @Anonymous: assets posted as collateral remain on the balance sheets of the borrowing banks, so any writedowns will hurt them (and not the Fed). @Anonymous: assets posted as collateral remain on the balance sheets of the borrowing banks, so any writedowns will hurt them (and not the Fed).

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9070 Anonymous Fri, 06 Jun 2008 04:47:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9070 Hey Naked,<br/><br/>Thanks for being so timely. I have been wondering about this ever since I read the news. <br/><br/>Anonymous,<br/>Do you think that the collateral is going back to the original owner anytime soon? Hey Naked,

Thanks for being so timely. I have been wondering about this ever since I read the news.

Anonymous,
Do you think that the collateral is going back to the original owner anytime soon?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9069 Anonymous Fri, 06 Jun 2008 04:24:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9069 Don't forget CIBC! Don’t forget CIBC!

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9067 Richard Kline Fri, 06 Jun 2008 03:58:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9067 Sooo $140-200B downdraft? The Fed has double that in head room, sez they, "What, us worry?? We've got yer backstop." Let's get ON with this, methinks: let the chips follow the dips. . . . Look, this isn't gonna be pretty, but it's seldom you can solve a problme without admitting that you have one. Sooo $140-200B downdraft? The Fed has double that in head room, sez they, “What, us worry?? We’ve got yer backstop.” Let’s get ON with this, methinks: let the chips follow the dips. . . . Look, this isn’t gonna be pretty, but it’s seldom you can solve a problme without admitting that you have one.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9066 Anonymous Fri, 06 Jun 2008 03:21:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9066 that begs the question what happens when the collateral pledged at the fed gets returned to the original owner after the swap period is over. thoughts, anyone? that begs the question what happens when the collateral pledged at the fed gets returned to the original owner after the swap period is over. thoughts, anyone?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia.html#comment-9064 Anonymous Fri, 06 Jun 2008 02:08:00 +0000 http://www.nakedcapitalism.com/2008/06/early-estimates-of-losses-from-mbia-ambac-downgrade/#comment-9064 I doubt the writedowns are large from the banks. The FED however, may have to write down a lot. Wait, is the FED subject to GAAP? Probably not. I doubt the writedowns are large from the banks. The FED however, may have to write down a lot. Wait, is the FED subject to GAAP? Probably not.

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