Articles by Diana Golobay

NY Fed Buys $180m Reverse Repo MBS

The New York Federal Reserve Bank bought $180m of tri-party reverse repurchase agreements today as part of what it calls an "operational readiness" program. It's the first transaction geared to test the reverse repo tool, in case the Federal Market Open Committee decides it should be used as part of the Fed's broader exit strategy from mortgage-backed securities (MBS).
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Fannie Mae sells most benchmark debt since early 2009

Fannie Mae, the US government-supported mortgage-finance company, sold $7bn of three- year notes, in the largest sale of its benchmark securities since March 2009. The debt yields 1.057%, or 23.5 basis points more than similar-maturity Treasuries, the Washington-based company said today in a statement. On July 8, Fannie Mae sold $6bn of its three-year benchmark notes at the same spread and a yield of 1.257%
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Lloyds Banking returns to profit in first half

Lloyds Banking Group Wednesday reported its first profit since turning to the government for a bailout 21 months ago, as bad loans more than halved and it made more money from mortgage customers. First-half pretax profit was £1.6bn (US$2.5bn) -- far exceeding analyst expectations -- and loan impairments fell to £6.55bn in the period, compared with a £3.96bn loss in the first half of 2009 when loan impairments had soared to £13.4bn.
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BofA and PNC may divest BlackRock under Basel

Bank of America Corp and PNC Financial Services Group may be forced to sell their stakes in asset manager BlackRock under far-reaching rules proposed last week by the Basel Committee of Bank Supervision. The rules, known as the Basel III capital requirements, would effectively prevent banks from holding big stakes in other companies.
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20m Borrowers Could Be Underwater before 2012: Deutsche Bank

More than 14m borrowers were underwater as of Q110, owing more on a mortgage than the value of the underlying property. But with a further 10.8% decline in house prices expected relative to Q409 levels, another 6m borrowers are likely fall into negative equity by the end of 2011, according to commentary today by Deutsche Bank. It makes for 20m underwater borrowers total before 2012.
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Foreclosed on…by the U.S.

The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.
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RBS sells outlets to Santander for $2.7bn

Royal Bank of Scotland Group, Britain's biggest government-owned bank, agreed to sell 318 branches to Spain’s Banco Santander, a disposal forced on the lender following its taxpayer-funded bailout. Santander will pay £350ms ($558m) more than the branches' net asset value when the purchase is completed by December 2011, the Edinburgh-based lender said in a statement today. That values the branches at about £1.7bn ($2.7bn).
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FDIC seeks CMBS underwriters

The Federal Deposit Insurance Corp (FDIC) is seeking proposals from Wall Street dealers to help issue commercial mortgage-backed securities with loans saddling failed bank balance sheets, according to an FDIC document. Dealers have until August 20 to submit their plans under the FDIC's request for proposal, a copy of which was obtained by Reuters. An FDIC spokesman declined to comment.
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Census Firings Expected to Weigh on Weak July Private Sector Job Growth

Nonfarm private sector employers added an estimated 42,000 jobs to payrolls in July, according to the Automatic Data Processing (ADP) national employment report published today (download here). The ADP's estimates do not include layoffs of temporary workers no longer needed for the 2010 Census, however, and analysts are expecting total payrolls to decline in official data, due Friday.
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Senior Advisor to Bair Out at FDIC

Joseph Jiampietro is leaving his post as senior advisor for markets to Federal Deposit Insurance Corp. (FDIC) chairman Sheila Bair, effective August 13. He served in this position since March of 2009.
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