napi21
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Thu May-08-08 04:48 AM
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Something with all the losses in the financial ind. doesn't make sense to me. |
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I just heard that UBS taking another $19 BILLION writedown because of bad home loans. I understand there were millions of bad home loans, but it seems the banks are writing them all off as unrecoverable, but that's not true. Eventually those homes WILL be sold, and I believe the banks will recover at least 60% to 70% of their investment. Are they recording the total loss NOW when the entire banking industry is in a mess, and planning on showing a very good picture in the future when they do recover a high % of their losses?
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izzie
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Thu May-08-08 04:53 AM
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1. Not many banks are ever out of money. Money is their business. |
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I am sure the tax payers are going to pick up the whole mess.
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MannyGoldstein
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Thu May-08-08 06:19 AM
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2. The Writedown Is Based On A *Guess* As To What They'll Get Back |
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The loans are for far more than the writedown amount. So they're doing what you suggest.
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DU
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Thu May 09th 2024, 06:16 PM
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