Relevant:
- SRM seeks to block BofA-Countrywide deal
- The dynamic central banking duo -- ECB balance sheet up over €3.1 trillion mimicking Fed balance that is close to $3 trillion. Shuffling toxic assets into darkness.
- BOJ's balance sheet almost as big as Japanese economy
- Could Covered Bonds Replace Securitization?
- Bank United Non-Performing Loans Doubled in Fourth Quarter
2008-01-31 — housingwire.com
Buried in Countrywide’s $831 million fourth quarter write-down of residual interests, Moody’s said, was a $704 million charge related to “rapid amortization†on home equity line securitizations.
...
It is important to note that this exposure is not reflected in the traditional balance sheet “residual†amount recorded with a securitization transaction. Prior to rapid amortization occurring, or being highly probable of occurring, this exposure is a contingent liability and not reflected on balance sheet.
Don't you just love it when "new" forms of liability suddenly appear on the balance sheet? All these various forms of financial voodoo are coming back to haunt Countrywide and others (of course, after their arrogant CEOs have lept with their golden parachutes).
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