FYI:OT UBS Fined & fees 387M
UBS Group AG is picking up the legal tab of its collapsed Swiss rival. It will pay a total of about $387 million in fines related to misconduct by Credit Suisse Group AG in its dealings with Archegos Capital Management. In a consent order with the Federal Reserve, UBS agreed to pay $268.5 million for “unsafe and unsound counterparty credit-risk management practices” at Credit Suisse, which UBS acquired in June. The Bank of England’s Prudential Regulation Authority fined the bank £87 million ($112 million), which it said was its largest penalty to date. The Fed said Credit Suisse “lacked adequate governance, experienced staff with sufficient stature, and sufficient data quality and model-risk management to ensure that activities conducted with counterparties were properly risk managed.”
Also
Over the last year, the US housing market has held up way better than most people would have guessed. At the end of July 2022, the average 30-year mortgage was around 5.2% per Bankrate. Today it's 7.2%. And yet home prices are back on the rise, and homebuilders continue to do well. One commonly cited dimension here is that there aren't many homes for sale on the market. And one factor here is that employment remains robust, so very few people are forced to sell their homes for economic reasons. a housing strategist at Morgan Stanley, who has been very good on the topic, having consistently predicted housing resilience, in part due to the lack of available supply. One thing that's really interesting though is his argument that even if we were to see a rise in the unemployment rate, it might not induce the supply response many have expected.
Stepping back in time for a second, this was obviously a dynamic in 2007 and 2008. As unemployment went up in that downturn, foreclosures soared, inducing a flood of homes for sale onto the market, helping create the nationwide-housing crash that helped catalyze a financial crisis.
But that was a different time. Underwriting standards were much worse in the mid-2000s. There were numerous instances where people were hardly putting any equity into their homes. And banks didn't have any infrastructure in place to modify home terms, if a homeowner fell into distress. Since then obviously there's been a huge shift in the mortgage market. Borrower quality is higher. Americans are much less leveraged. And in fact, there's a meaningfully smaller share of homes that have any mortgage attached to them at all these days. only 61-62% of houses have any sort of mortgage attached to them. In 2006/2007 it was closer to 70%. One factor is the swelling ranks of Boomers who simply own their homes outright and aren't moving.
Bottom line is there doesn't seem some imminent prospect of tons of homes for sale, even if we were to see an economic downturn. It's a very different housing market than the one we had 15 or 16 years ago.
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Also ,here’s a little diddy, The Dow has an 11 day streak of finishing in the green, longest since 2017
GoGooooooCOOP
Have a great day people,Seya at the close ,maybe , it’s to nice outside to be inside
GLTA-Ts
