Items Tagged with 'Public-Private Investment Program for Legacy Assets'


  • What Works for the FDIC, Won't Work for Private RMBS

    When the Federal Deposit Insurance Corp. (FDIC) closed on its recent RMBS, the headline called it a "pilot securitization of performing single-family mortgages from 16 failed banks." Translation: expect more to come. It makes sense to the FDIC to do this, of course, as spreads on the deal indicate a cheap way to finance what is becoming a more and more expensive book to balance. It's a good deal for the investors and a great deal for taxpayers as it stops the need for more funding from Congress.
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  • Reviving Repo Financing - Another Milestone on the Trudge Back to Normal

    Repo was a key source of funding for leveraged investors in private MBS and a host of other "rates" products before disaster struck capital markets. That it dried up with the crisis helped drive the prices of subprime MBS and other structured products to levels well below "intrinsic" value. Now, there are signs that repo financing is reviving, improving 2010 prospects for private MBS markets. First, a Little Background
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  • FDIC OKs Delay of FAS 166, 167 Effect on Capital

    The board of directors at the Federal Deposit Insurance Corp. on Wednesday finalized a new capital rule that addresses industry concerns raised by Financial Accounting Standards (FAS) 166 and 167. FAS 166 and 167, which take effect in January, will require financial institutions to bring certain securitized assets onto balance sheets.
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  • Fed, Treasury Extend CMBS-Eligible TALF

    The Federal Reserve Board and Treasury Department got an early start on financial markets Monday, announcing extensions to a key liquidity program for commercial mortgage-backed securities (CMBS). The regulators extended the deadline for the Term Asset-Backed Loan Facility (TALF) program eligible for legacy CMBS through March 31, 2010. The Fed extended the deadline for the TALF program targeting new issue CMBS through June 30, 2010 "because new CMBS deals can take a significant amount of time to arrange," according to a joint press release.
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  • PPIP Needs to Help Large and Small Banks Says COP

    When the Treasury introduced the Troubled Asset Relief Program (TARP) last fall, its goal was to provide funds to institutions so they could clear the toxic assets off their books. But by the time the legislation creating TARP was passed in October, Treasury went with a different strategy, distributing funds to banks so they could build up loss reserves. Even as banks are beginning to repay the government for the TARP investments, many of those bad assets remain on the books.
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