"Repeal the ethanol mandate and receive appox. a 10% MPG efficiency dividend. About $25 Billion/year..."
Analysts at Credit Suisse have joined the parade of those saying regional banks are in for an even tougher couple of quarters as commercial real estate gets sicker. But you don't have to be first when you put it more pithily than others and say the fourth quarter will be "the kitchen sink of kitchen sinks."
Aug 12, 2009 1:46 PM
Gluskin Sheff economist David Rosenberg points out what several others are saying: As much as housing's collapse has hurt lenders, the expected crash coming in commercial real estate will hurt worse.
Zillow just reported that 23% of U.S. homeowners are “upside down” on their mortgages (negative net equity), up from 21% in 1Q, and under current home price trends, with all deference to the tentative signs of ‘stabilization’ at the low end, that share will rise to 30% next year. That cannot possibly be good news for the U.S. financials, especially since we know that commercial real estate loan defaults are going to be an even bigger problem for the lending community.
Aug 12, 2009 11:40 AM
Morgan Keegan has raised its opinion of Healthcare Realty to 'outperform' from 'market perform.' The Nashville-based REIT (Ticker: HR) earlier this week reported better-than-expected Q2 results. The stock is up about 1 percent in pre-market trading. Over at Goldman Sachs, analyst Joe Stivaletti has lowered his rating of Louisiana-Pacific to 'neutral' after its recent run. The stock (Ticker: LPX) is set to open down about 3 percent.
Aug 12, 2009 8:12 AM
Tortola Partners, the turnaround firm formed this spring by Steve Curnutte and Robert Gonzales, is getting to grips with its first portfolio company, an aluminum producer in Alexandria, Tenn. Gonzales, pictured here, is the company's chief restructuring officer.
"As more and more aluminum processors have filed Chapter 11, or simply gone out of business, scrap dealers have become reluctant to extend trade credit, making it tough for otherwise healthy companies like TriStar," said Mr. Gonzales. "Now that we've filed to reorganize, our trading partners can be confident that obligations going forward won't get stuck as pre-petition debts."
Aug 12, 2009 7:27 AM
The university's enrollment is expected to grow for the 10th straight year, helped in no small measure by the presidential candidates' debate it hosted last fall.
"It will always stand out as one of our most significant moments. It was a chance for us as a university to be an important player on matters of national importance," said McDonald.
Aug 12, 2009 7:23 AM
Jack and Ben Weatherford have stepped down from their executive roles — senior chairman and president/COO, respectively — to help five-year-old MidSouth Bank cut costs.
"The size of this downturn caught all of us a little off guard,'' Jack Weatherford said. "I've been in this 40 years and have been through several cycles, and I've never seen one this severe."SEE ALSO: MidSouth's first-quarter report, which detailed some of the other savings measures already enacted, moves that included cutting director fees and renegotiating the bank's data-processing deal
Aug 12, 2009 7:21 AM
UBS analyst Gail Glazerman says the big jump in Louisiana-Pacific — which doubled in less than a month — is "overdone" and "premature" given the challenges the company still faces. The stock (Ticker: LPX) duly fell more than 6 percent. Then again — and even taking into account the housing market's collapse — wasn't last year's ski slope from $10 to $1.50 overdone and premature, too?
Aug 12, 2009 7:12 AM