Fee-Only Financial Planning in North Carolina

Contact Us at: (919) 228-6312

Monthly Archives: August 2008

Auction Rate Securities Mess

Issue: Banks are being sued and threatened with suit for fraud. Regulators are claiming that banks and brokerages sold these securities to retail investors as an investment that is as liquid and as safe as treasuries, but with slightly higher yields. Investors bought them up, then found there were virtually no buyers –earlier this year- when the banks & brokerages –as institutions – pulled […] Read the rest of this entry »

Merrill is Toast

Merrill Lynch announced they are selling approx $30.6B of Collateralized Debt Obligations (CDOs) to Lone Star for 22 cents on the dollar ($6.7B). On top of this, Merrill will lend Lone Star 75% of the money required for the purchase. Makes you wonder how toxic the stuff is if they’re almost paying someone to take it off their hands. The plot thickens here…Lehman appears […] Read the rest of this entry »

Fannie & Freddie mess

Fannie Mae (Federal National Mortgage Association – FNMA) and Freddie Mac (Federal Home Loan Mortgage Corporation – FHLMC) are without a doubt the leading economic story in the US over the past month. FNMA: Privately owned company (not government owned, publicly traded) Created in 1938, became publicly traded company in 1968 Role: supply funding to banks in order to provide mortgages to the public […] Read the rest of this entry »