Banks Aiming to Play Both Sides of Coin

Banks Aiming to Play Both Sides of Coin
The Wall Street Journal

Some banks are prodding the government to let them use public money to help buy troubled assets from the banks themselves.

Banking trade groups are lobbying the Federal Deposit Insurance Corp. for permission to bid on the same assets that the banks would put up for sale as part of the government's Public Private Investment Program.

Many modified mortgages will default again, Fitch Ratings projects
Los Angeles Times

Modifying nontraditional mortgages will succeed for many people, but most such modifications will end up in default within a year, a major ratings company predicts.

The Fitch Ratings study examined subprime mortgages, jumbo loans and little-documented home loans that Wall Street bundled up to back mortgage bonds from 2005 through 2007. Those were the last years of the housing frenzy before delinquencies skyrocketed, home prices plummeted and investors' appetite for such "private-label" securities evaporated.

U.S. Home Sales Remain Sluggish as Supply Soars
The New York Times

Sales of previously owned homes picked up last month, an industry group reported on Wednesday, as buyers went looking for bargains and lower-priced houses.

But there were more troubling notes in the housing figures. Home sales are still sluggish compared with a year ago, and the glut of unsold single-family homes, townhouses and condominiums swelled last month, suggesting that a sharp imbalance remains between the supply of housing and demand among potential buyers.

Banks Squeeze Out Profit, but Credit Problems Persist
The Wall Street Journal

WASHINGTON -- U.S. banks were able to report a first quarter profit, buoyed by revenues at a few larger firms, but overall the credit picture remained grim as the number of banks on the brink continued to rise and consumers and businesses increasingly fell behind on their loans.

The Federal Deposit Insurance Corp. said Wednesday that U.S. banks reported a net profit of $7.6 billion for the quarter ended March 31, down from the same quarter in 2008, but a sizable improvement from the $36.9 billion loss recorded by the industry in the fourth quarter of 2008.

Calif. loses crown as worst U.S. home market
Orange County Register

Good news! California is now just the 2nd worst housing market in the country!

That’s according to First American LoanPerformance’s math. Its first crack at April home-pricing data shows Nevada now edges out California with the steepest case of annualized losses in America.

Recession seen ending in '09; then economists see uneven ride
USA Today

WASHINGTON — More than 90% of economists predict the recession will end this year, although the recovery is likely to be bumpy.

That assessment came from leading forecasters in a survey by the National Association for Business Economics released Wednesday. It is generally in line with the outlook from Federal Reserve Chairman Ben Bernanke and his colleagues.