Articles Tagged with ''United States housing bubble''

Second Life: Morgan Stanley Hedge Fund Platform Taps C-BASS Team

At least some mortgage industry participants are finding a second life amid the wreckage of the subprime secondary market. Morgan Stanley's hedge fund platform, FrontPoint Partners, has hired key executives and analysts from troubled scatch-and-dent mortgage operation C-BASS as it looks to launch a new fund that will focus on subprime and Alt-A residential mortgage investment opportunities.
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Mortgage Woes Drive Fourth Quarter Loss of $854 Million at Bear Stearns

Bear Stearns Thursday reported its first-ever quarterly loss, posting a $854 million loss for the fourth quarter as mortgage market woes led to continuing writedowns for mortgage-backed investments and a drop in fixed-income trading revenue. The Wall Street firm said it absorbed $1.9 billion in subprime-led writedowns during the quarter, net of hedges.
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No Mortgage Crunch Here: Goldman Sachs Sees Profits Rise, Beats Analyst Estimates

Goldman Sachs & Co. said it earned $3.22 billion in its fourth quarter ended Nov. 30, or $7.01 per share — up from $6.12 per share in the third quarter and $6.59 per share in its fourth quarter one year ago. Per Bloomberg, the result was slightly better than analyst estimates, who had been expecting earnings of $3.14 billion. Here's the full earnings release.
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Mozilo: Raising Conforming Limits Should Take Priority Over Mortgage Reform

In commentary published Wednesday by the Wall Street Journal, Countrywide CEO Angelo Mozilo argues for an increase in Fannie and Freddie's conforming lending limits, saying that "Congress needs to temporarily raise the limits it now imposes on Fannie Mae, Freddie Mac and FHA mortgages by 50%, to $625,000." Mozilo characterized the conforming limitations as a "more pressing issue" for Capitol Hill than the mortgage reform legislation that recently swept the House and is now under consideration in the Senate.
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Study: Home Prices Weakest in a Decade

Global Insight has released its quarterly report on home prices and housing market valuations, which found that prices posted the weakest year-over-year gain since 1995 during the second quarter. Prices appreciated just 2.6 percent nationally in the yearly comparison, according to the report. Click here to request access to the full report.
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Housing Slump Bites Freddie Mac; Profit Drops 45 Percent

Perhaps shattering the myth that the housing slump won't affect the GSEs, Freddie Mac today reported that quarterly net income dropped 45 percent in the second quarter. Net income declined to $764 million, or $1.02 a share, from $1.4 billion, or $1.93, a year earlier; revenue dropped 4.8 percent to $2.26 billion.
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Countrywide's Move to Thrift Underscores Expected Impact of Industry Regulation

An interesting story over at Financial Week looks at the impact of Countrywide's quiet move from a national bank charter to federal thrift: With Countrywide chairman and CEO Angelo Mozilo describing the ongoing decline in housing prices as the worst he's seen in decades, the bank-turned-thrift's survival may depend on friendlier regulation ...
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