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Thursday, May 28, 2009

Worthwhile Reading - May 28

How long will this glut continue? Signals suggest a while. Rebecca Wilder.

Bond carnage, muddled inflation thinking, and Fed options. Yves Smith, naked capitalism.

Treasury matrix. Zero Hedge.

Shadow market may undercut housing rebound. CS Monitor.
Only 30 percent of foreclosed homes are currently on the market nationwide. Could the backlog of hundreds of thousands of empty or rented homes swamp recovery?

Quarterly Banking Profile. FDIC.
summary:
 Net Income of $7.6 Billion Is Less than Half Year-Earlier Level
 Noninterest Income Registers Strong Rebound at Large Banks
 Aggressive Reserve Building Trails Growth in Troubled Loans
 Industry Assets Contract by $302 Billion
 Total Equity Capital Increases by $82.1 Billion
excerpts:
The high level of charge-offs did not stem the growth in noncurrent loans in the first quarter.... Despite the rise in the level of reserves relative to total loans, the industry’s ratio of reserves to noncurrent loans fell for a 12th consecutive quarter, from 74.8 percent to 66.5 percent, the lowest level in 17 years.... Total assets declined by $301.7 billion (2.2 percent) during the quarter, as a few large banks reduced their loan portfolios and trading accounts.... The decline in industry assets and the increase in equity capital meant a reduced need for funding during the quarter.

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