Effect of Bankruptcy Cramdown Legislation Likely to be Varied for US RMBS - Huxley Somerville - riskcenter.com 
————

Cramdowns Unlikely to Trigger Immediate RMBS Downgrades - Allowing bankruptcy judges to alter the terms of mortgages should not have any immediate impact on the ratings of securities backed by the affected mortgages, according to Fitch Ratings: … However, “Due to varying deal language, about 31% of Fitch rated Prime and Alt-A transactions have a greater risk of senior bond downgrades with the remaining 69% having limited risk.” …. - Research Recap

————

Invesco PowerShares Pioneers Non-Agency Mortgage-Backed Securities ETF’s - … Invesco PowerShares Capital Management LLC, … today announced that it has filed registration statements for two new actively managed ETFs focused on the non-agency, Prime and Alt-A residential mortgage-backed securities (RMBS) markets. The anticipated fund names are as follows:
-  PowerShares Prime Non-Agency RMBS Opportunity Fund
-  PowerShares Alt-A Non-Agency RMBS Opportunity Fund
Market Wire 

————

Investment Outlook - Bill Gross - BEEP BEEP! - … To PIMCO, the remedy for this deflationary delevering and mini-depression is simple and almost axiomatic: stop the decline in asset prices. If that can be done, the real economy will level out as well.  … - PIMCO

————

I guess I need to go back to DC - Written by Reggie Middleton -  comments on Bloomberg article about stimulus bill and proposes solutions - Boom Bust Blog

————

Cuomo Said to Eye Return of $4 Billion in Early Merrill Bonuses - By Erik Larson - Bloomberg
————

Bailouts, Bonuses and Clawbacks - Kevin LaCroix - The recent news about the eleventh hour award of nearly $4 billion in bonuses to Merrill Lynch employees is only the latest in a series of events exciting enthusiasm for “clawbacks” of allegedly excessive or undeserved Wall Street bonuses. Reports that New York City financial firms disbursed $18.4 billion in cash bonuses is 2008 added further fuel to the fire. - D&O Diary

————

Fannie Reportedly in Deal to Modify Loans - Fannie Mae has reached an agreement to work with one of its former critics, Neighborhood Assistance Corp. of America, to prevent foreclosures by reworking home mortgages to make them easier to afford, the Wall Street Journal reports. - TheStreet.com

————

one wholesale channel is growing - Seeing Opportunity In Wholesale, Genworth Accelerates Expansion for Reverse Mortgages - … in response to more than 1,300 new lenders entering the reverse mortgage market in 2008.  Genworth Financial Home Equity Access, has hired additional staff and realigned senior management to better serve the needs of its rapidly growing wholesale customer base. - Reverse Mortgage Daily

————

Whiners or satirists? Blog charts woes of dating Wall St bankers - Jill Serjeant - Reuters

————

New Bank Bailout Could Cost $2 Trillion - By DEBORAH SOLOMON, DAVID ENRICH and JON HILSENRATH - Government officials seeking to revamp the U.S. financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, according to people familiar with the matter. - Wall Street Jorunal

————

     Taleb and CDS:
1.  Taleb Says Nationalize Banks, You Can’t Trust Them  - Bloomberg

2.  Bloomberg quotes Nicholas Taleb, originator of the ubiquitous metaphore of the black swan, and author of the book of the same name, as backing a ban on credit default swaps.In the article, he is quoted as saying: “I don’t like credit default swaps. We should probably stop trading derivatives, anything more complex than regular options because I am an options trader, and I don’t understand options. How do you want a regulator to understand them?” 

3.  US Draft Law Would Ban Most Credit-Default Swaps - Bloomberg