Construction Loans: additions to reserve at 2% of total loans outstanding: $400 million loss
Residential real estate: additions to reserve at 1% of total loans outstanding: $125 million loss
Home equity loans: additions to reserve at 3% of loans outstanding: $300 million loss
Alt A loans write down: 5% of loans outstanding: $165 million loss
"Specialized Lending": additions to reserve at 5% of loans outstanding: $260 million loss
Total: $1.3 billion in new additions to existing $1 billion in loss reserves.
Anything less is pure fraud. remember: Sarbanes Oxley means CEO and CFO are personally liable for false reporting.
from the GE conference call:"we have at all times somewhere around a $4 billion to $5 billion warehouse. Right now, it’s about $4 billion of loans that we’ve originated to sell. You know, it’s a lower cost or market model. You know, I think taking the mark somewhere from $0.95 down to between $0.85 and $0.89, depending upon the security in the quarter, you know, that was a pretty dramatic move."
"General Electric jolts Wall Street with weak Q1 profit, fading outlook
Print this ArticleEmail this ArticleComments | 0Resize TextBookmark this ArticleFacebookDiggStumble Upondel.icio.usLive BookmarkTechnoratiTOOL HELPStephen Singer, THE ASSOCIATED PRESS
Published Friday April 11th, 2008
HARTFORD, Conn. - Normally reliable General Electric Co. shocked investors with a six per cent decline in its first-quarter profit and slashed its earnings forecast for the full year, sending its own shares down more than 10 per cent and the broader market sharply lower on fresh worries about the weakening economy.
GE blamed disruptions in its financial business late in the quarter for its inability to advise Wall Street ahead of time about the deterioration in its earnings. But analysts - unaccustomed to being surprised by the industrial, financial and media conglomerate - were unnerved by the magnitude and breadth of the decline.
"Disappointments were spread across the GE portfolio, with both industrial and financial businesses well below expectations," Goldman Sachs analyst Deane Dray wrote in a note to investors
Then tell me GE is a good place to park your hard earned cash.
i once worked as a consultant to a subsidiary of GE. I found them to be the best managed and most ethical of any of the large corporations I have ever dealt with. Listen to the conference call today especially regarding commercial real estate. Then tell me BBT is a good place to park your hard earned cash.
No JA won't appreciate this....he doesn't deal in stories and "maybes". He only deals in cold hard reality, such as the fact his stock has appreciated 0% over ten years. I agree Spoor, he would not listen to any of this. He has more important things to do, like spending that $6mm check the Board gave him. waaah hahahaha. What did yoda call you "Professional JA ball washer, you are!!!" waaahh hahahahaha
In the story, we meet a lazy land-owning bear. He's so lazy that he sleeps through growing seasons. We also meet the rabbit family who are not doing well. The rabbit father, Hare, lost a bet with a tortoise and the family doesn't have any food or land to grow food on. Hare wakes up Bear and makes a deal with him. Hare and his family will plant, weed, and harvest and split the crop right down the middle with Bear. Bear agrees. Before he nods back off to sleep, Hare asks if Bear wants the top half of the crop or the bottom. Bear picks top.
Hare and his busy rabbit family plant, weed, and water. The baby rabbits are very cute wrestling with the vegetables that are bigger than they are. When harvest comes we find that the rabbits have grown carrots, radishes, and beets. Bear says that next time he wants the bottom half of the crop. This time Hare plants lettuce, broccoli, and celery. Bear is furious and demands that next time he gets the tops and the bottoms. Hare agrees and says he'll take the middle.
When harvest time comes again we see the rabbits trimming off the roots and tassels of the corn plants. Bear decides from now own he'll plant and harvest his own crops. The rabbit family is able to buy back their land with their profits and they open up a vegetable stand.
Tops & Bottoms is also a Caldecott honor book.
appreciate the help. that comment reminds me of a book i used to read my kids--a bedtime story--where the clever rabbit sold the "tops" of the vegetables to the poor dumb dog (or whatever, it's so long ago i forget) except first he sold the "tops" of carrots and when the dumb buyer complained he said all right you can have the "bottoms" and sold the poor dumb creature the bottoms of lettuces or whatever. fact is, BBT is under reserved with $7.5 billion of a $93 billion loan portfolio composed of construction loans written in the last 2 years. Are these loans 1% bad? 10% bad? 100% bad? Could BBT scoot by this quarter by not taking adequate reserves again? Maybe, but I wouldn't want to be the CFO signing off on that--or a board member in the audit committee--Sarbanes Oxley is still the law of the land and even though Bernanke can get away with making his own laws as he goes along I don't think the CFO of BBT should rely on that.