First the Bloomberg………
“The movement in the forward Libor-OIS spreads
is telling you that the market is concerned that things can get even worse before they get better,” said Carl Lantz, an interest-rate strategist in New York at Credit Suisse, one of the 20 primary dealers of U.S. government securities that trade with the Federal Reserve. “Until all banks’ balance sheets are cleaned up and they’ve re-capitalized, there is going to be funding pressure.”
Derivatives trades show that while global markets have rebounded since March, the worst may not be over for banks after racking up $387 billion of losses and writedowns from mortgage- related securities since the start of last year. Lehman Brothers Holdings Inc. has tumbled about 19 percent this week on concern it needs outside funding to shore up its balance sheet.
Concern institutions are having difficulty accessing financing increased this week after Standard & Poor’s lowered credit ratings for Morgan Stanley, Merrill Lynch & Co. and Lehman Brothers on June 2, citing the possibility that the investment banks will have further writedowns on devalued assets……….
……Now the Conde’ Nast Portfolio.com……
……Now the When it emerged that admitted steroid abuser Jose Canseco had lost his Encino, California, home to foreclosure, it was hard to work up much sympathy for the infamous slugger. But Ed McMahon? That’s a different story.
ReconTrust, a unit of Countrywide Financial, filed a notice of default back on February 28 with the Los Angeles County Recorder’s Office on a $4.8 million loan backed by Mr. McMahon’s home. At the time, Mr. McMahon was behind $644,000 in payments on the $5.75 million property.
McMahon’s loan distress serves as another indicator that the housing slump is not just dragging down lower-income Americans.
A spokesman, Howard Bragman, told the Wall Street Journal that 85 year-old McMahon had been unable to work since breaking his neck 18 months ago (hence the financial difficulties). Bragman said that his client is in discussions with the mortgage lender, and it is as of yet unclear whether he and his wife will be able to remain in the home.
As if an anemic California real estate market and recent illness weren’t enough, McMahon is triply cursed to be living near Britney Spears and the paparazzi carnival that surrounds her. That hasn’t exactly been a selling point for his Canyon view mansion, which has been on the market for two years.
“When we were trying to sell the house one time, there were about 100 paparazzi there,” the real estate agent for the house, Alex Davis of Alex Davis Estates, told the Los Angeles Times.
mb007