http://finance.yahoo.com/q/ao?s=FMT


-----Original Message-----
From: Brian Daily
Sent: Sun 3/4/2007 4:22 AM
To: *Tampa 2 Office; *Tampa 1 Office; *ResRe Tampa 1 AE
Subject: Fremont ceasing doing business. 

Teams,

It is with great regret that I must inform you that Fremont Investment and Loan will cease funding loans and doing business.

At 12:35 (pst) Saturday, Fremont General received notice from the FDIC that they are not permitting any more loans to be funded by Fremont. In short, our funding available was terminated by the Federal Home bank.

The suddenness of the change and the shift from our communication literally less then 24 hours previously simply perplexes me. However, this simply validates the volatility on our business. None of us in Hawaii realized or appreciated the gravity of the situation we were facing.

There are many questions that many of you have. There is a conference call that will be conducted on Monday that will answer many of these questions that you will have.

Jerry Casanova will be able to communicate with you more specifics on Monday morning. Please show up for work to receive these instructions. I will be leaving the meeting here in Hawaii early and attempting to return to the office sometime on Monday.

In order to assist our clients with some instructions- I have listed some Q and A's to assist you in your communications:

Q: Do I continue to solicit loans?
A: No. As of the 3rd, we are no longer sourcing new business.

Q: Will I close what is in the pipeline?
A: This will be clarified on Monday. I would suggest to sent back all loans to the broker

Q: What do I tell the brokers?
A: Fremont Investment and loan is no longer conducting business. Any files that are pending or have been submitted will be returned to you.

Q: Will I get paid for the loans closed?
A: Yes.

Q: Does termination take effect immediately?
A: Clarification on this item will be determined on Monday.

Q: What about benefits and severance?
A: This will all be clarified on Monday or the early part of the week.

Everyone, I cannot tell you how sadly I am disappointed this industry has trended so deeply in this direction. You all have accepted me so warmly upon my arrival at Fremont and I will always cherish those relationships forever. At this point, I wish I had more information to share with all of you but I simply do not. My travel logistics are extremely complicated right now and hopefully I will have more information in the next 24 hours.

So I do not lose valuable contact with any of you, please forward to Jo Haynes your cell phone, home phone and home address. I would like to keep this information as we begin to search for alternative strategies to consider.

Faaaak! Ravno zadnjic sem bral Crtov priljubljeni website Whiskey and Gunpowder in je bil omenjen tudi website Mortgage Lender Implode-O-Meter (ml-implode.com/) . Po kratki analizi nastetih lenderjev, se mi je zdelo, da bo Fremont naslednji, ker je od top 10 ih imel najvecji delez svojih poslov v hipotekah. Sam klinc, nimam ne jajc ne denarja, da bi se spravil konkretno shortat.

Uff, se zna zgodit, da bo kitajski kamencek na krilih takihle bankrotov posojilodajalcev prerasel v konkreten plaz in medveda. Kaj pa mislijo bolj izkuseni forumasi?

Crni je napisal(a):
Faaaak! Ravno zadnjic sem bral Crtov priljubljeni website Whiskey and Gunpowder in je bil omenjen tudi website Mortgage Lender Implode-O-Meter (ml-implode.com/) . Po kratki analizi nastetih lenderjev, se mi je zdelo, da bo Fremont naslednji, ker je od top 10 ih imel najvecji delez svojih poslov v hipotekah. Sam klinc, nimam ne jajc ne denarja, da bi se spravil konkretno shortat.

Uff, se zna zgodit, da bo kitajski kamencek na krilih takihle bankrotov posojilodajalcev prerasel v konkreten plaz in medveda. Kaj pa mislijo bolj izkuseni forumasi?

HSBC je ze najavila odpis 10 miljard slabih kreditov (ravno vceraj). Edina ki je ziher nad vodo je baje Wells Fargo, ki je ta biznis delala tako, da je prodala s hipotekami naprej tudi rizik (jaz sem se pa cudil, da Buffet vlaga v ponudnika subprime kreditov, I shoulda know better). New Century je fucked, Novastar je fucked. GMova lending arm je v tezavah, skratka, implodometer bo se kar rastel...

Pazi, opaznejsi reseti obrokov pridejo sele pozneje.

Sem pa dal to v solato, ker je nekak oddaljeno od nas, no, od tebe ni :)

Janez, ali tudi ti delas drugi doktorat iz ekonomije?  Ali samo nabiras denar za stanovanje?

LP MMM

x0 je napisal(a):


HSBC je ze najavila odpis 10 miljard slabih kreditov (ravno vceraj). Edina ki je ziher nad vodo je baje Wells Fargo, ki je ta biznis delala tako, da je prodala s hipotekami naprej tudi rizik (jaz sem se pa cudil, da Buffet vlaga v ponudnika subprime kreditov, I shoulda know better). New Century je fucked, Novastar je fucked. GMova lending arm je v tezavah, skratka, implodometer bo se kar rastel...

pre-market:

new -58%. :)

Bob je napisal(a):

pre-market:

new -58%. :)

Oja, pocakajmo koliko hedge fundov ima te kredite v portfelju, ocenjene na face value :)
(in carry trade pozicije na jen in zlato)

Bob je napisal(a):

pre-market:

new -58%. :)

 
končal je 69% v minusu. še dobro, da se naši ljubljeni krkg, kaj podobnega ne more zgoditi. res ne?:)

Bob je napisal(a):


končal je 69% v minusu, pa tudi after hours je v minusu. še dobro, da se naši ljubljeni krkg, kaj podobnega ne more zgoditi. res ne?:)

Da ne omenjamo agrobanke, a ne :)

Pri FMT me je najbolj sokiralo dejstvo, kako se je vse skupaj odvilo. Nekdo je rekel, da je jeba, ce financne institucije propadajo v nedeljo. Baje (yahoo forumi) je bil celoten management na havajih na neki corporate festi, ko so jim prepovedali prakticno celotno poslovanje (vecina njihovega biznisa je subprime). To je bilo v petek. V nedeljo email v smislu "we are closing the business". Sedaj pa ze govorice o bankrotu... Out of the blue...

agrobanka je nedotakljiva, new že v močnem plusu, krkg pa najboljša farmacevtska firma na svetu, če odštejemo bosnalijek.:)

Crni je napisal(a):
Faaaak! Ravno zadnjic sem bral Crtov priljubljeni website Whiskey and Gunpowder in je bil omenjen tudi website Mortgage Lender Implode-O-Meter (ml-implode.com/) . Po kratki analizi nastetih lenderjev, se mi je zdelo, da bo Fremont naslednji, ker je od top 10 ih imel najvecji delez svojih poslov v hipotekah. Sam klinc, nimam ne jajc ne denarja, da bi se spravil konkretno shortat.

Uff, se zna zgodit, da bo kitajski kamencek na krilih takihle bankrotov posojilodajalcev prerasel v konkreten plaz in medveda. Kaj pa mislijo bolj izkuseni forumasi?

Pazi tole. How fast can you say "Enron!" ? :)

Tekst je o New Century: http://forum.themarkettraders.com/read-m/71/3023/3 023#msg-3023



Financial Fantasy Land

I listened to the New Century Financial conference call today, and I'm convinced the executives of that company are from another planet. I think most of the analysts who called in would agree with me. They seem to be from a fantasy world where financial results according to GAAP are all that matters, and to the extent they can manipulate earnings, they are able to manipulate the truth.

When the call started, the stock was already down about 3.7%, having missed their estimates for the first time in ages. As the call went on and one amazing revelation after another came out, the stock kept dropping and now is down about 10%. Among the things that were revealed:

1. They borrow $1 Billion for 1 day every quarter so that they can show that Cash on their balance sheet.

The Billion dollars they borrow for a day is to help them "explain" their financial situation better. If they didn't borrow that money, then people might be confused and think they didn't have that much cash. As we all know, the amount of cash you own is of course equal to the amount of money people are willing to loan you. We should thank them for simplifying their accounting for us by borrowing money they don't really need right now and putting it where we can see it on their balance sheet.


2. They sell mortgages to themselves because they can report higher gains on the sales than if they sold them on the open market.

They were especially proud of becoming a REIT and all the imaginary benefits that bestowed on their results. While selling mortgages from their lending unit to their REIT unit resulted in nice gains on their income statement, the gains weren't taxable because they weren't real. Talk about the best of both worlds!


3. They aren't assuming any losses on certain portions of their loan portfolios now because most defaults occur later in the life of the loans.

The business of profiting from making bad loans depends on lending more money each and every quarter. People don't usually buy homes if they are already in deep financial trouble. It takes them awhile to get in trouble, so new loans rarely default. Therefore, new loans don't need to allow for losses because losses won't happen until the future. Since there's no guarantee there will even be a future, what's the point in allowing for such losses anyway?


4. They lowered their assumptions of future defaults which boosted earnings by 8 cents per share, and they now think $90 Million is enough reserves for future defaults on $19 Billion worth of loans.

Sure, some of their loans are delinquent, and while its nice to report late fees on these loans as profits , some allowance should probably be made for the remote possibility that there is a tiny inkling of a chance that they might lose money on these a minute faction of these loans, so it wouldn't do too much harm if they reserved a little bit of money for these loans when earnings are good. If they ever have a need, they can lower their assumptions to inflate their earnings, like they did this quarter.

What's that? All you banking analysts don't think they're setting aside enough reserves? By an order of magnitude? Well, let me assure you that their experience during the last 8 years (the greatest housing boom, HELOC expansion and cash out refinancing surge of all time) indicates that loans almost never go bad. All they have to do is rely on past results to indicate what will happen forever into the future. So obviously you are all wrong!


5. They believe that their customers can handle a 34% increase in mortgage fees on their ARMS.

20% of their loans over the past 2 quarters have been interest only, so obviously their customers understand interest. Besides, they have a lot of customers who actually have decent credit ratings. These types of people know how to budget and plan for the future.


6. They believe that housing prices can't go down by 10% and even if they do, their customers won't walk away from loans.

It's never happened before on a national level, and they say that all the talk about a housing bubble is dying down. Besides, they aren't making any more land and housing prices always go up. Plus, once customers learn to account like New Century, nobody will ever have to lose money again!


7. The compression of margins is temporary.

As rising short term rates crashed head long into falling 10-year bond rates, and as increasing competitiveness among mortgage lenders crashed head long into declining demand, margins were squeezed. But relax, this is temporary. It will only last until the weak links are squeezed out of the market. NEW tried to "lead the way" by raising rates higher, but their competitors didn't follow. When they lowered rates back down again, their competitors lowered rates further. Even though demand for loans is still slowing, and the lenders all depend on increasing originations to avoid blowing up their business models, the pressure on margins must decrease!


8. They can hedge away the risk of rising interest rates.

They buy derivatives that pay off if interest rates rise. If rates rise slowly over time, they get clobbered like CFC did. If rates rise rapidly they get to report a nice short term gain, then buy new derivatives at higher prices. If interest rates rise so quickly that their counterparties can't make their payments, then the housing market is doomed anyway, so there's no point in worrying about that single aspect of a meltdown.

Bob je napisal(a):
agrobanka je nedotakljiva, new že v močnem plusu, krkg pa najboljša farmacevtska firma na svetu, če odštejemo bosnalijek.:)

NEW v plusu? :)

Ok, tisti ki se niste videli, tole je tisti proverbial "cliff", kot v "the stock has fallen of the cliff" :)

finance.yahoo.com/q/...s=NEW&t=5d

after hours niha od - nekaj% do + 35%. verjetno kupujejo naši prijatelji iz agrobanke. sicer izgleda new malo bolj solidno kot agrobanka, a določene podobnosti obstajajo.:)

Bob je napisal(a):
after hours niha od - nekaj% do + 35%. verjetno kupujejo naši prijatelji iz agrobanke. sicer izgleda new malo bolj solidno kot agrobanka, a določene podobnosti obstajajo.:)

Mislim da je likvidacijska vrednost NEW ocenjena na $8 na delnico.. tako da je (baje) dober nakup, ce gre pod 8. Nisem pa preprican, mogoce je to veljalo za FMT...

včeraj je končal na 4.56.

Bob je napisal(a):
včeraj je končal na 4.56.

Bum!



http://www.foxnews.com/story/0,2933,258027,00.ht ml

NEW YORK  —  New Century Financial Corp. (NEW ), whose shares fell 25 percent on Thursday amid speculation it would seek bankruptcy protection, said it has received $265 million in financing, but stopped accepting loan applications after some lenders blocked its credit lines.

The Mortgage Mess Spreads
The subprime lending industry is getting hammered, and hedge funds and
investment banks are feeling the pain

Now there's evidence that the pain is spreading to a broad swath of
hedge funds, commercial banks, and investment banks that buy, sell,
repackage, and invest in risky subprime loans.

http://www.businessw...ries_ssi_5< /a>


GM May Take Almost $1 Billion Charge for Mortgages (Update5)

By Greg Bensinger

March 6 (Bloomberg) -- General Motors Corp., the world's largest
automaker, may take a charge of almost $1 billion to cover bad mortgage
loans made by its former home-lending unit, according to a Lehman
Brothers Holdings Inc. analyst.

Residential Capital LLC relies on loans to people with poor or limited
credit records or high debt burdens, for more than three-quarters,
or $57 billion, of its loan portfolio ,

http://www.bloomberg...98g8g7cU&r< /a>

pre-market: - 58%.

jebeš tako borzo, delnice bi morale rasti ne padati, ti glupi američani bi morali na balkan, da se kaj naučijo.:)