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Investors Bancorp Inc. Message Board

  • brennzn brennzn Jan 23, 2008 9:02 PM Flag

    Boomarang; banks to bail bond insurers

    Did any of you attend the NY meeting today? The worry was no collateral behind the bond insurers who are going bankrupt, and, the banks themselves have no capital to back up the bonds so the banks would/will go broke also.

    The solution is an offshore Manhattan institution; Dire Straights Trust locacated 12.1 miles or more east, near Atlantis, and operantly crediable and integritous, may provide the paper the seal the rupture. Supposidly this will be difficult if already under-water.

    Has anyone seen dad or the organization recently?
    Cramers been checking me for hemroids all afternoon at a cost of $23K


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    • Yikes, oh no, bad news for for the legal linguist in ISBC management: not enough bidders for swaps? You will have to use all buy-back capital to cover the variable rate demand notes put-back to ISBC !


    • see Bloomberg article titled "Banks lose to Deadbeat Homeowners as Loans ...."

    • In conclusion, ISBC has "credit default swaps on asset-backed collateralized debt obligations guaranteed with different bond insurers."

      comrade BRENNZN level E cubed

    • I believe that the same option was posted on friday so there may be an error.
      The only thing that I can guess is that they are making a bet and are willing to lose max of 60 cents a share if it doesnt go above 18.10 but if they bought the stock now it would cost them 15+ a share-much more money. Also they may never plan on buying the stock, only trade the option which would be much more valuable if the stock went up and they won't have to invest as much money.
      The max downside risk is 60 cents times 66,500 shares if they let it expire but they will probably sell the option and lose less money if they feel it wont go to 18 by 7/08.
      Only a guess.

    • The option tab is on the left of the isbc yahoo quote page.

      he is right. $17.50 to expire on july 8, 2008, on 665. not quite sure what this means and if its not a mistake. But if anyone can explain in more detail, please do.

      why would anyone pay 17.50, when it is cheaper now?


    • That's interesting. Thanks for the information.

      Sorry but where do I find the option tab that you mentioned?

    • If you look at the options tab and click on July 08 it appears that 655 call options were traded for 60 cents which means that somebody is willing to pay a premium of 60 cents to buy 65500 shares of isbc at 17.50. It appears that somebody thinks it is going above 18.10.
      I don't understand why they would do this when you can get it for much less now.
      They can always reverse the trade if they change their opinion or this can be an error or some strategy I can't figure out.

    • I am a SIV (not S.O.B.) a Son-IN(a)- Vitch hahaholaugh.

      What I have learned is that this is a big time problem, and I already knew it would re-occur in 2003. I was corresponding to Barrons then and wrote "the forclosure trend was abated after creative mortgages utilized lower standards"

      Will the banking industry PE approximate 7-11 ?

      Today, ISBC can not have earnings of $1.30 this quarter.
      The call is a nickel; $.05 but the truth now is zero!!!! We will wait until next quarter for the factual reaslity.


12.18-0.11(-0.90%)Jul 31 4:00 PMEDT