1.  This is a big deal. – Statement of FHFA Director – James B. Lockhart – … Today we are announcing a major program designed to greatly reduce preventable foreclosures with a simplified, streamlined loan modification program to get struggling homeowners into mortgages that they can afford. …  

2. The mother of all workouts – The Federal Housing Finance Agency, which took over mortgage giants Fannie Mae and Freddie Mac in September, just announced a new plan to modify troubled … – Seattle Post Intelligencer – USA

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Hudson City Bancorp: Grabbing Deposit Market Share and Proud of It -  The largest savings bank in the U.S. with $50 billion in assets and branches in nine of the 50 wealthiest counties, measured by median household income, Hudson City Bancorp is tooting its horn these days. – US Banker

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In this issue of The Institutional Risk Analyst, we comment on the evolving world of bank risk ratings and why using distilled analytics to push US depositors toward stronger depository institutions is the way out of the credit crisis.  – by Chris Whalen 
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wow – Fed Defies Transparency Aim in Refusal to Identify Bank Loans – Mark Pittman, Bob Ivry and Alison Fitzgerald – Bloomberg
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Deflation Is Horrible – Great article in Minyanville last Friday. Agree with author on almost everything. Yes, world economy is in big trouble. Yes, people and businesses are taking on less debt and this is going all the way to the top, i.e. Fed. As a result, inflation in current situation is close to impossible, despite all attempts by Fed and Treasury. The only thing I disagree with is the premise that deflation is good. – Muddling Investor

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Lessons from the Great Depression and One of The Biggest Tax Hikes in History of the U.S. -  Mark Perry -  Carpe Diem
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Insights from a Derivatives Salesman – Roger Ehrenberg – Information Arbitrage 

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People like Chuck Schumer shouldn’t get too overwrought about Wall Street bonuses. Tom Brown explains why at bankstocks.com 
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Fannie Loses $29 Billion in Q3; Alt-A Leads the Way – Paul Jackson – Housing Wire 

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Nowhere to Hide: Special Holiday Edition – Themes on the Economy  – by Diane Swonk, Chief Economist, Mesirow Financial 

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Kashkari: Treasury’s TARP Faces Long Road Ahead – ANA GOLOBAY – The U.S. Treasury Department has taken great strides in the implementation of TARP funds — and it still has a long way to go, said Neel Kashkari, interim assistant secretary for financial stability on the TARP program. In a speech given Monday at the Securities Industry and Financial Markets Association summit on TARP, Kashkari reiterated the intention of the Treasury’s capital purchase program and looked ahead to next steps the Treasury will have to take. – housingwire 

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Bank of America assumes $16.6B in Countrywide debt – … Earlier this year, Bank of America gave no assurances it would assume or guarantee the debt of Countrywide, causing some concern for Countrywide bondholders about potential default. The assumption of $16.6 billion in debt as part of the integration process should alleviate those concerns. … – AP BusinessWeek
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When the Chickens Come Home to Roost -  by Niels Jensen  – Can the credit crisis get any worse? In this week’s Outside the Box my London partner Niels Jensen shows that it indeed can. … next will come a wave of potential losses from yet another source. Niels then goes on to give us a look the size and problems with hedge fund deleveraging … – John Mauldin’s Outside the Box E-Letter 

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Downey Savings – DSL “going concern” warning – by Rolfe Winkler – Back in September, option ARM lender Downey Savings and Loan (ticker: DSL) entered into a “Consent Order” with its regulator, the Office of Thrift Supervision. … They also published this bombshell (see Note 11 on pages 23-24):  The circumstances described above, raise substantial doubt concerning the ability of the Holding Company and the Bank to continue as going concerns for a reasonable period of time. … – optionarmageddon.ml-implode.com