Construction Developer Says Banks Suddenly Playing Hardball, Ask. Today I received an email from "Construction Insider" concerned about banks suddenly playing hardball and calling in construction loans. Construction Insider writes: Hi MishI work in the construction business and something has been creeping to the forefront of my attention for the past few weeks and now it seems to be moving full steam ahead.Banks are forcing developers/builders (especially smaller ones) to give up their properties (unsold homes and lots).Banks say the reason is that the properties in question are no longer performing assets. I am sure there are some loans out there that are not performing and the owners are going under. I am equally sure that there are plenty of developers that are still selling homes - just not at the pace originally planned on the pro formas.Having inside information on one of these scenarios that happened today, I cannot help but wonder what is really going on?
For questions like these, I turn to my "California Business Banker" to see what he thinks. Paris voudrait une taxe sur les banques qui alimente le budget.
Zero Hedge. Senate eyes House-approved tax hike for private equity execs - P. GS. From Level I to Level III, the myth of fair value. The research puzzle : a blog by tom brakke. Saturday, April 17th, 2010 playing in the street Shortly after I became an equity analyst at a large asset management firm, my group director came into my office, closed the door, and said, “We need to talk.” That morning our trading desk had been contacted by one of the West Coast brokerage firms because they heard we might have some stock for sale in a name I covered. I had been fished for information by the salesman the night before, without even realizing it. They piled up over the years.
As fixed income securities became more complex and derivatives became prevalent, still more learning opportunities presented themselves. The firms (the majors especially) often knew facts I didn’t know or figured the odds better than I did. That ethos was taken to a whole new level over the last couple of decades. The more opaque the structure, the higher the fees. And so the logical conclusion is that without internal or external restraint, the firms were bound to go too far.