A lot has been reported and said about derivatives and their use by Fannie Mae, Freddie Mac, and other financial service institutions. FM Watch, a self-described GSE "watchdog" group thinks the two's $1.4 trillion investment in derivatives is a ticking time bomb. The GSEs and their backers, including several equities analysts, say everything's fine, relax. But what about commercial banks? It's been reported that J.P. Morgan Chase has north of $20 trillion in derivatives. So shouldn't the Federal Deposit Insurance Corp. be concerned? New FDIC chairman Don Powell told National Mortgage News this past week that derivative investments by banks is being watched by the agency but at this time he says it is not an issue -- at all...
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Meanwhile, Mr. Powell is looking to downsize the agency, even though 95 banks with $36 billion in assets are now on its "problem" list compared to 66 and with $4 billion in assets three years ago...
Countrywide Credit Industries -- which is now a bank holding company -- has joined the Financial Services Roundtable , a trade group that represents mega-sized financial service firms. FSR is headed by former Congressman, and former Dallas mayor, Steve Bartlett of Texas. Steve was once a candidate for the top MBA job which went to Paul Reid. Reid resigned last year. CCI will continue to be a member of MBA, but at this time it has no plans to join Anne Canfield's Consumer Mortgage Coalition...
New MBA chief operating officer Jonathan Kempner says the trade group is still searching for someone to head up its legislative affairs unit. "Nothing is imminent on hiring someone," he said last week. MBA is using the search firm of Korn Ferry...
Michael Strauss, chairman and chief executive of American Home Mortgage Holdings, Melville, N.Y., is continuing to sell shares in the retail mortgage company he heads, according to Thomson Financial. His most recent sale involved 2,500 shares at $13.80 a share for total proceeds of $34,500, according to Thomson. AHMH hit a 52-week high of $22 back in October and lately has been trading at $12. The NASDAQ stock has affiliates that include American Home Mortgage Corp., and Marina Mortgage Co. It also operates an Internet mortgage web site at MortgageSelect.com...
Will United Guaranty Inc. dump its 'AAA' rating? General Electric's MI unit is contemplating such a move. So far, UGI president Charlie Reid isn't saying...
