Primo Stock Picks

[C C]

takeover....banking stocks.....reason for failures

BANK FAILURE.......this may help in understanding bank stocks
in general

notice General Motors Acceptance Corp. is listed as having problems in this area.....dah 100 lb. BIG GORILLA......
we'r feelin dah affects of it 8 mths ladder

http://investorshub.advfn.com/boards/read_msg.asp?Message_id=20569638&txt2find=bank


SFNN....this info is pertinant to SFNN
may explain why happening

went back on old posts of mine & found these for u

3-7-07

found the Warehouse bank that foreclosed...apparently there are 11 in the USA.... from what I understand

Lenders Direct Capital Corporation Announces Layoffs, Closure of Wholesale Lending Operations
they walked in that morning without warning & sent 50 people home
I wonder just how hungry these realtors are getting, seeing the easy subprime money is basically gone.

Here is a list of Mortgage Bankers closing doors to home lending......50 subprime lenders are going down a day
http://www.mortgagedaily.com/Index0107.asp

"Apparently they have 11 warehouse banks. These banks issue high interest rate lines used to temporarily house loans for sale. These lines are not meant for permanent portfolio holdings. Because of the massive amount of buy-backs from these lines, they are being used up for buy-backs requiring NEW cash in a trust account for essentially a security deposit, which we learned they are having to go back and ask for waivers on.

The problem is these 11 warehouse banks have been upping the lines to accommodate massive buy-backs for a year. We are just hearing about it now. They have thrown enough good money after bad money and most are giving lenders margin calls, not waiving margin requirements. At this point knowing that 5 of 11 have issued a margin waiver and 6 are still outstanding, it is first to collect collateral wins. The 11 warehouse banks have to get those scratch and dent loans that are currently sitting on their lines, try to make them right somehow for sale. The important item to note is the first person in to collect collateral on a margin call wins. They get in first position like a mortgage.

These lines are $1 billion a pop guys - it is not time to mess around. It is time to collect and salvage what you can

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From MarketWatch. “New Century Financial Corp. said late Friday that it’s facing a federal criminal probe and will likely breach a major lending covenant with its financial backers, bringing into question the survival of the second-largest U.S. subprime-mortgage lender.”
“‘Subprime lenders without deposits depend on their warehouse lines,” said analyst Zack Gast. ‘If New Century’s lenders do not grant the requested waivers, the company is likely to be forced to sell or shut down.’”


3-2-07

First Bank Failure in Years

It's been 2-1/2 years since a bank failed, but last week a small bank in Pittsburgh was closed by the Pennsylvania state banking department. Normally, a bank failure wouldn't be big news to anyone except those customers who lost some of their savings. But with the financial markets dropping lower and lower, worries about financial stability creep into the mind. Bob Prechter has faced these worries and written his advice on how to handle them in his New York Times business best-seller, Conquer the Crash. Here's a question to ponder: Have you chosen one of the safe banks listed in Conquer the Crash yet? Read more in this excerpt from Conquer the Crash


New Century Financial Corp., stock halted Friday
3-13-07

Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit are facing financial problems.

That fear hit stocks of homebuilders, as lending obstacles could further cripple the struggling housing market.

Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points in their second-biggest drop of the year, as troubles piled up for subprime lenders.

Investors, bracing for a wilting economy, fled the already deflated subprime mortgage sector on more news that lenders New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit are facing financial problems. Bolstering the belief that the struggles are widespread, the Mortgage Bankers Association said new foreclosures surged to an all-time high in the last quarter of 2006.
Tuesday's selling was accentuated by options expiring soon and by volatility that has increased since the market's big plunge two weeks ago - a 416-point drop in the Dow that was caused partially by the escalating distress among subprime lenders, who provide mortgages to people with poor credit.

the subprime worries have been mounting for weeks now, but came to a head when the New York Stock Exchange took steps to delist shares of New Century shares, which said Tuesday that the Securities and Exchange Commission would be probing accounting errors that inflated its loan portfolio.

"Investors are poking around to see how much rotted wood there is here," said Jack Ablin, chief investment officer for Harris Private Bank





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