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i disappoint in the banks for sitting on all the money and not lending it out. that why feds came in and buy stock to give them money to lend.
but we do not have any troubled mortgage assets. a student loan is different. a student or some one who finish school or did not completed school can not escape repaying those loan. the bk \law said you have to repay them now. it take years for some of those people to start to repay the loans, can find job after getting out school, lost there job, or other reason.
November 12, 2008 · Treasury Secretary Henry Paulson on Wednesday backed away from the government's plan to use $700 billion in bailout funds to buy troubled mortgage assets and instead called for a fresh injection of cash to financial institutions.
Paulson, seeking to defend the unprecedented and controversial Troubled Asset Relief Program from critics, said the government's new goal would be to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans.
To date, no toxic assets have been purchased with the bailout funds. At Wednesday's news conference in Washington, Paulson said, "Our assessment at this time is that this is not the most effective way to use TARP funds. But we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources."
He said the Treasury Department and Federal Reserve had "taken the necessary steps to avoid a broad, systemic failure" of troubled banks and financial institutions.
Credit markets became dangerously logjammed in September as interbank lending and loans to businesses ground to a halt, threatening to bring down the global economy.
The Bush administration responded with a rescue plan passed by Congress in October that had originally been aimed at buying up bad debt from banks so they could continue lending.
But Paulson said the financial industry's situation has worsened since the bill was passed, prompting him to spent nearly $250 billion to buy equity stakes in banks.
"Although the financial system has stabilized, both banks and nonbanks may well need more capital — given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions," Paulson said.
The Treasury secretary warned that the nation's financial system "remains fragile" and that "significant illiquid assets" continued to present difficulties.
But "overall, we are in a better position than we were" two months ago, he said.
Paulson's remarks came on the same day that the Federal Reserve and three other federal banking regulators issued new guidelines to institutions to work with mortgage borrowers to avoid defaults. In addition, the guidance encourages banks to set dividend payments for shareholders and compensation for executives with the current crisis in mind.
Referring to the move, Paulson said that "'ordering' is too strong, but 'encouraging'" best described the guidelines.
He said the Treasury Department was evaluating a second program that would provide government investments that would match private investments in efforts to raise capital.
"In developing a potential matching program, we will also consider capital needs of nonbank financial institutions not eligible for the current capital program," Paulson said.
Earlier, the White House appeared to rule out a rescue for the nation's ailing auto industry, and Paulson on Wednesday reiterated that the financial industry is "where the focus is right now."
He did not rule out expanding the program to car manufacturers, but he warned of the danger of bailing out industries without government oversight.
"I know the automakers are important to the U.S.," he said. "They are a key part of our manufacturing industry. I have said and the administration has said, very clearly, we need a solution, but we need a solution that leads to viability."
As Paulson spoke, U.S. stocks extended early-morning losses that followed on Asian and European markets.
From NPR and wire reports
You know he will be killing himself to get the company in the green again?
Mr. Meyers will receive an annual base salary of $1.00, provided that the Company will accrue an amount equal to $1,000,000 per fiscal year, without interest (the "Accrued Compensation"). The Accrued Compensation will be paid to Mr. Meyers at such time that the Company first generates for a fiscal year (after taking into account accrual and payment of the Accrued Compensation) (i) positive cash flow from operations, and (ii) profit from operations. Following the fiscal year in which Mr. Meyers achieves such financial results, he will receive a base salary of $1,000,000 per fiscal year. Mr. Meyers also received stock options to purchase (a) 2,000,000 shares of the Company's common stock, at an exercise price of $6.00 per share, that will vest and become exercisable as to 25% of the shares underlying the Stock Option on each of the first, second, third and fourth anniversaries of the grant date; (b) 2,000,000 shares of common stock, at an exercise price of $12.00 per share, that will vest and become exercisable in full 90 days after the grant date; and (c) 2,000,000 shares of common stock, at an exercise price of $16.00 per share, that will vest and become exercisable in full 90 days after the grant date. Under certain other circumstances, the stock options will vest and become exercisable before the time periods set forth above. The stock options were granted as an inducement award under Section 303A.08 New York Stock Exchange Listed Company Manual. Mr. Meyers' appointment as President and Chief Executive Officer and as a member of the Board of Directors is subject to any required approvals.
Maybe we get back here soon?
This is the worst performing sector in 2008 so this is the best bet for 2009 for a rebound.
Credit markets are begining to thaw and new agreements are being worked out for a potential new client base.
It does not matter how much ink it takes.
Credit markets are begining to thaw and banks are waiting for a new year to change the balence sheets.
Taxes will be kept low and liquidity will flood market until
markets are flowing agian.
do not think goverment got enought ink on press to do that . think how much they have print so far and press is wide open and going into overdrive.
Securitized consumer bailout from
the government could benifit the student loan companies.
but this company does studen loans. you can not bk from studen loan , and if they quite paying, it may be years before youget your money back.
are you sure? do you have some tea leaves or do you have power of force and can see to the future?
The last 3 months were year end tax selling.
You will see everyone loading up for next year.
Insiders are buying, CEO is working for $1 plus a million shares. The government is buying up bad mortgage debt so they may recover from most of the bad investments.
Massive securitized consumer stimulus will be given to all the student lenders by Q2, this will help the company.
This will be a $12 stock by year end in 2009.
I have been following this company for years
This will be a good buy when the gap fills around .80 cents.For flipping purposes that is.
Oh well. Another with their hands out. Looks like the feds are going to pump money into this company too.
Nice gap this morning. No reason to believe that it won't fill. Messed up last week. Was way oversold and I waited a bit too long. Cudda made a nice flip, but nooooooo, not enough for me. In any case, this could be a traders dream stock for awhile.
Another ominous sign, imo, is when the bid/ask start having percentage of cents in them. Acting very much like a penny stock. Not good. Tells me folks are unloading as opposed to buying.This was a company that has lost over 1,000% in 3 months, not to mention its 52 week high of $33. A slow but steady bleed.
the light may here onway out.
It doesn't look good. They were a leader in student loans but with the poor investments they made in the mortgage arena they are hurting bad. Those financials spell doom. Plus they haven't made any public statements on how they intend to recover. Your guess is as good as mine. Just that the sp movement reminds me so much of WaMu. With nobody doing any lending right now the question is if they can hold on till that changes.
think this company will go under.
My first post on FMD. I have been following this for months. Was waiting for the right level to get in. IMO, this hasn't bottomed yet. Showing classic signs of complete collapse. Hitting lower lows and not rebounding in any substantial way. Their bank holdings are going to be be the demise. I expect bankruptcy or takeover/buyouy on the cheap. I believe they are done. No longer interested in buying. A dog with more than just fleas as far as I can see. Expect a new low from today's already 52 weeker.
yes but no one posting anything. waiting for next well. lot ride on it. hope tom find deal that jump start the company. that deal for mesa. a lot deal fell because they were no good.
Refer to post # 26225 on Charts are Cooooool board.
Can someone post one of those fancy charts for FMD? Looks like mega accumulation here in the 3.60 range all day.
Thanks
Euro
FMD just watching the MM's play their @#$%& games here makes me sick.
I think we see $3.06-$2.95 level for a test then a run to challenge $4.50's,,JMO,,Either way I think it's a safe bet that we see $8 - $10 levels for the long term.Goldman Sachs did'nt pump it with $132mm without it having potential.If GS is in I'm in.Also FMD is 65% institutionally owned,,lots of support.
think this good level to buy. this is not over night play.
Can someone analyze whether this is a good buy at these levels?
Thanks
Euro
FMD Insitutional ownership is 65 % . I can't resist that level of confidence so I have bought in heavy over the last couple of days .
My biggest gainer in 8 years was RNAI which had 37 % insitutional ownership , and that stock went from my buy-in at the mid $1.'s to nearly $12.00 . *** RNAI was acquired and is no longer a trading stock . The point is to follow the Insitutions because they know mountains of information more than retail .
BTW , FMD's PPS held up over $15.00 for over four years so I am hopeful for a recovery to those levels .
Renee
could be winner. will d some more dd on this stock.
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Profile for First Marblehead Corporation - FMD
The First Marblehead Corporation was formed as a limited partnership in 1991 and was incorporated in Delaware in August 1994. It provides outsourcing services for private education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses, education loan marketers and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members. It receives fee for the services it provides in connection with processing and securitizing the clients' loans. First Marblehead focuses primarily on loan programs for undergraduate, graduate and professional education, and, to a lesser degree, on the primary and secondary school market. The Company enables its clients to offer student and parent borrowers competitive loan products, while managing the complexities and risks of these products. It provides its clients with a continuum of services, from the initial phases of program design through application processing and support to the ultimate disposition of the loans through securitization transactions that it structures and administers. The lifecycle of a private student loan consists of a series of processes which are as follows: Program Design and Marketing, Borrower Inquiry and Application, Loan Origination and Disbursement, Loan Securitization and Loan Servicing. First Marblehead offers prospective clients the opportunity to outsource all of the key components of their loan programs by providing a full complement of services, including program design, application processing, underwriting, loan documentation and disbursement, technical support, customer support and facilitation of loan securitization. It offers service in connection with two primary loan programs: Private label programs and Guaranteed Access to Education, or GATE, programs. The private student loan industry is competitive with dozens of active participants. First Marblehead owns the following federally registered trademarks: FIRST MARBLEHEAD, FIRST MARBLEHEAD, diamond design, GATE, GATE FAMILY LOAN, GATE Guaranteed Access to Education, prepGATE and National Collegiate Trust. It provides services in connection with the creation, management and disposition of education loans, a form of consumer loan asset. This business is regulated at both the state and federal level, through statutes and regulations that focus upon: licensure and examination of industry participants; regulation and disclosure of consumer loan terms; regulation of loan origination processing; and regulation of loan collection and servicing.
Business Trends, Uncertainties and Outlook (10Q)
Education loan asset-backed securitizations have been the Company's sole source of permanent financing for its clients' private education loan programs. The conditions of the debt capital markets generally, and the asset-backed securities (ABS) market specifically, rapidly deteriorated during the second quarter of fiscal 2008.
Website: www.firstmarblehead.com
IR contact: Lee Jacobson
Vice President, Investor Relations
(617)638-2186
Email ljacobson@fmd.com
Address: 800 Boylston Street, 34th Flr,The Prudential Towr, Boston, MA, US
Telephone (617) 638-2000
FAX (617) 638-2100
CEO Daniel Meyers
Employees 368
Exchange: NYSE
Market Cap $128 M
Auditors KPMG LLP
Last Audit UQ
CIK 0001262279
Dividends: None
Avg Volume: 656,500
Earning TTM (-4.57)
Industry : credit services
Book value $6.77
NAICS Classification Consumer Lending
SIC Code Personal Credit Institutions (6141)
Outstanding 98.9 M Float 64.4 M
Insider Holdings 34.9% (6/2008)
Institutional Holdings 47% (12/2008)
Total Holdings 43M held by 147 institutions
Union Federal Savings Bank, a federally-chartered thrift located in Rhode Island, is a wholly-owned subsidiary of The First Marblehead Corporation.
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http://www.firstmarblehead.com | |
Download Annual Report |
This deterioration accelerated during the third quarter of fiscal 2008 and has persisted through May 8, 2009. The Company's business has been and continues to be materially adversely impacted by the current market dynamics, including an inability to access the securitization market or alternative interim financing facilities. The Company did not complete a securitization transaction during the second, third or fourth quarters of fiscal 2008 or during the first, second or third quarters of fiscal 2009, and the Company does not expect to complete a securitization in the near-term. In addition, it expects the structure and pricing terms in future securitizations, if any, to be substantially less favorable than in the past.
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