Posted by John_NorCal on 7/22/08 12:54am
Msg #256231

Another lender out of the wholesale business

Just got an email telling me that Wachovia Bank is will no longer do wholesale lending. They used to be a very hard hitting portfolio lender. Looks like things are really tightening up inn the loan business.

Reply by MW/VA on 7/22/08 9:14am
Msg #256265

Yes, news on IndyMac, Fannie Mae & Freddie Mac tells the story.

Reply by MaineNotary on 7/22/08 11:55am
Msg #256290

The Wash Post just reported Wachovia has posted an $8.9B loss.
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/22/AR2008072200600.html?hpid=topnews

Reply by Derrick/MT on 7/22/08 12:14pm
Msg #256292

I wish banks and the news would be more specific about the term "loss". They need to say that they devalued 8.9b in loans that are a potential to be a loss due to none payment. Yes a lot of those loans may go into foreclosure but there is some or most that will continue to pay and get caught up or sell. CEOs are taking advantage of the down turn to show what a hero they are by taking a big hit now and later showing what incredible grow and profits they have shown after the right down of potential bad debt. Any CEO with half a brain could show grow after you move all of your bad debt to non-accrual and only put on good loans.
All, in all it sucks for us because things like this keep popping up in the media and it ultimately becomes a self fulfilling prophecy.