is there any chance SFI could apply for bank holding company status? i assume they'll probably de-REIT anyway, but i don't really know what's required by the Fed. would seem crazy given what's in their portfolio but then again, Corus is a bank that somehow has eluded seizure...thoughts?
doubt they can crystalize losses quickly enough to entirely wipe out net income in '09 and they need to preserve cash badly. plus if they eventually write off a few billion but somehow avoid bankruptcy (unlikely), they'll have enough NOL's to ride-out the mandatory 4-year waiting period if they wanted to re-elect REIT status someday. REIT structure also limits their flexibility on foreclosure property under REMIC guidelines and generally is a complication that adds no benefit right now that i can think of.