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Comment on Anonymous Banker: TALF’s Legacy CMBS program is an abuse of our taxdollars by anonymous banker

anonymous banker — Thu, 12 Nov 2009 02:11:52 +0000

Dark Space
I’m sorry. But I’m having a hard time mustering up sympathy for the Wall Street Firm who goes out and buys up a bond issue for the sole purpose of borrowing against it through Legacy CMBS TALF and getting my taxpayer guarantee.

They should not be buying ANY investment that they think doesn’t have value, absent the government guarantee.

Additionally, how about the investors that own that same cusip number but held it and didn’t sell to Wall Street. Their bond doesn’t get guaranteed. All the benefits of this TALF program go to those Wall Street investors and none of it comes back to either the other bond holders of the same class bond or the economic recovery.

I’ve been told that a residual effect is in providing “market pricing” for CMBS. I think that argument has no merit. There is no correlation between how a bond is priced that comes with our government guarantee and how a bond is priced that carries all its own risk of failed cashflow.

Legacy CMBS TALF is doing something quite underhanded for a very small group of Wall Street firms.

I just wish I knew how to make them stop.

Comment on Anonymous Banker: TALF’s Legacy CMBS program is an abuse of our taxdollars by Dark Space

Dark Space — Wed, 11 Nov 2009 12:16:09 +0000

I think all the blame lies with the creators of the TALF program in the first place. You actually leave out a step in the TALF process, which is a critical fail point in the actual program.

The investor first identifies and purchases bonds (that meet all the TALF eligibility criteria) through the Street firm and uses a repo line to initially lever up. AFTER they already own it, they go to the FRBNY and ask them if they’ll sign off on it. Keep in mind that the investor has followed all the criteria, but the FRBNY has refused to identify which deals it will ultimately qualify, and it has rejected applications every subscription date except for one. So, now the investor has a bond that everyone now knows is not TALFable, and therefore worth less.

Same goes for New Issue TALF. In addition to the exact issue stated above, some of the explicit criteria make the most likely new issue CMBS loans/deals to get done in this environment (i.e. DDR) ineligible. We’ll see if DDR makes it through, but it obviously does not meet the criteria of being a diverse pool of loans – they all have the same sponsor, and I’m guessing their all shopping centers/malls. I’d much rather see a DDR deal (and I’m not a fan of theirs) get done, then a $400 mm pool with 300 small balance CRE loans get done – who would buy that? (Hartford might, actually).

So, I agree, but would go one step further and just generally say that TALF does not make sense and will not help restart lending. Even the DDR deal makers (Goldman) have already stated that they intend to go forward with or without TALF.

Comment on Anonymous Banker: Banks are the primary barrier to Small Businesses Obtaining Government Contracts by Anonymous Banker: Banks are the primary barrier to Small ... | Loans References

Tue, 13 Oct 2009 02:56:12 +0000

[...] The rest is here: Anonymous Banker: Banks are the primary barrier to Small … [...]

Comment on Anonymous Banker: Banks are the primary barrier to Small Businesses Obtaining Government Contracts by Valuable Internet Information » Anonymous Banker: Banks are the primary barrier to Small …

Mon, 12 Oct 2009 17:15:29 +0000

[...] Excerpt from: Anonymous Banker: Banks are the primary barrier to Small … [...]

Comment on Anonymous Banker: The foundation of this Economic Crisis: The Community Reinvestment Act or the Regulators that enforce it? by Anonymous Banker: The foundation of this Economic Crisis: The … - EFNET & GAME ONLINE

Wed, 07 Oct 2009 21:05:34 +0000

[...] the original post: Anonymous Banker: The foundation of this Economic Crisis: The … Tags: bank, banks, economic, economic-crisis, federal, guaranty, office, regulators, [...]

Comment on Anonymous Banker: More bank bailout? Less Credit for Small Business? by Evening Briefing for September 27th | HighYields.com

Evening Briefing for September 27th | HighYields.com — Mon, 28 Sep 2009 12:21:07 +0000

[...] — Thanks to a wise reader for passing along these insights about banks and lending; [...]

Comment on Anonymous Banker weighs in on the coming business debt debacle by seanolearyoz

seanolearyoz — Tue, 23 Jun 2009 03:49:59 +0000

Agreed. But do not forget the basis of economics and of the economy – production. And the basis of that – engineering. And the basis of that – science. Without an aggressive return to science, the basis of the *physical* economy, don’t expect a “recovery”. Franklin D. Roosevelt’s approach was precisely a re-building of the physical economy, and a putting of people to work on huge projects that enhanced the ability of economic agents to produce. Things like irrigation schemes, roads, railway lines and the rural electrification initiative.

Comment on Anonymous Banker asks: TALF, Trepp LLC and JP Morgan Chase Connection… is there a conflict of interest? by anonymous banker

anonymous banker — Mon, 22 Jun 2009 13:48:25 +0000

Here’s a good example of one of the JP Morgan Chase deals that will be “evaluated for collateral value” by Trepp LLC

http://therealdeal.com/newyork/articles/moskowitz-family-s-53m-soho-office-building-loan-delinquent-cwcapital-asset-management-625-broadway

Comment on Anonymous Banker asks: TALF, Trepp LLC and JP Morgan Chase Connection… is there a conflict of interest? by The Fledgling Conflicts Of Interest At The Nouveau Rating Agencies | Market News - Thecreditcardfiles.com

Mon, 22 Jun 2009 11:08:15 +0000

[...] a piece focusing on some these “nouveau” entrants, Anonymous Banker takes a long hard look at TREPP. His observation: How many Commercial Mortgages will Chase Bank be [...]

Comment on Anonymous Banker Weighs In on the Slashing of Credit to our Small Business Community by ctocmret

ctocmret — Tue, 02 Jun 2009 02:10:43 +0000

well, a lot of americans may think the worst is over, but i believe we “aint seen nothin’ yet!” if small business is in fact the engine of economic growth and sustenance of our economy, when they start closing the doors, the administration will find out what it really means to “RUN OUT OF MONEY.” the “Great Depression” of the 30’s wont hold a candle to what is coming. sorry to be the bearer of bad news, but i think we are on our way to total economic ruin and totalitarianism.