Journal Community


  • Lee Godfrey's Comments

    Recommend a comment by clicking the recommendation icon
    Total recommendations for all comments: 22
    • Story: Foreclosure Squeeze Crimps Las Vegas Real-Estate Market (248 days ago)

      Comment: Pat, I admire you for honoring your commitments. You didn't exploit a housing finance system unprepared for the mass of foreclosures which occurred after the bubble burst. You probably have less money, but you've got pride. The guy who lived in a home for 54 months without paying his mortgage is repugnant.

      1 Recommendation
    • Story: Banks Present Own Crisis Plan to Fed (266 days ago)

      Comment: Issuing long term debt would give the banks a source of capital to rebuild equity in event of a crisis. Initially the debt is a liability. Assets equal liabilities plus equity. If the debt is written off (i.e. creditors suffer losses), then equity increases since the bank has extinguished a liability without repaying it. That's why it's called a bail-in. The debt holders effectively recapitalize the bank, instead of regulators and taxpayers bailing out the bank by providing equity capital. Normally equity holders suffer losses before debt holders, so I don't know if the long term debt they are talking about is some form of contingent capital which converts to equity in time of crisis, or has triggers which stop interest payments if capital levels fall below a certain threshold, but the basic accounting is to provide an equity buffer.

      1 Recommendation

Most Recommended