In the meantime, Warren continues to lead the COP. Though the panel has no regulatory authority, it has issued some critical and thoughtful reports on the bailout, including last week's critical report on the GMAC rescue . A report on foreclosures is scheduled for April, and a lending volume paper will come out in May. Save another appointment, she likely heads back to Cambridge when her reports are done."It's tragic to see what Warren has worked for stymied by bankers and politics," says Chris Whalen, a bank analyst and co founder of Institutional Risk Analytics. 
Share:  In the meantime, Warren continues to lead the COP. Though the panel has no regulatory authority, it has issued some critical and thoughtful reports on the bailout, including last week's critical report on the <span class="company">GMAC</span> rescue . A report on foreclosures is scheduled for April, and a lending volume paper will come out in May. Save another appointment, she likely heads back to Cambridge when her reports are done."It's<span class="sent"> tragic to see what Warren has worked for stymied by bankers and politics," says <span class="analyst">Chris Whalen</span>, a bank analyst and co founder of Institutional Risk Analytics.</span> Tweet this 

When I want to know what potential a financial company has to earn profits and manage its risk, I listen to a few experts and one of my favorites is Christopher Whalen of Institutional Risk Analytics. In an interview on st with Southern California Public Radio station KPCC, Whalen talked about the line that AIG walks when it succumbs to public pressure to repay the U. S government by selling valuable assets: . "It's a good thing, but these are some of the best assets that AIG has so I'm not sure we're going to see anything like the proceeds that we need for the government to be paid back in full," he said. "Once you sell the Asian business, which, as I say, is one of the most attractive businesses they have, and you lose that cash flow you lose, that revenue what's left is going to be worthless, by definition," Whalen said. And since AIG still hasn't returned to profitability and may not for some time, what is it investors are buying? 
Share:  <span class="sent">When I want to know what potential a financial company has to earn profits and manage its risk, I listen to a few experts and one of my favorites is <span class="analyst">Christopher Whalen</span> of Institutional Risk Analytics.</span> In an interview on st with Southern California Public Radio station KPCC, Whalen talked about the line that <span class="company">AIG</span> walks when it succumbs to public pressure to repay the U. S government by selling valuable assets: . "It's a good thing, but these are some of the best assets that <span class="company">AIG</span> has so I'm not sure we're going to see anything like the proceeds that we need for the government to be paid back in full," he said. "Once you sell the Asian business, which, as I say, is one of the most attractive businesses they have, and you lose that cash flow you lose, that revenue what's left is going to be worthless, by definition," Whalen said. And since <span class="company">AIG</span> still hasn't returned to profitability and may not for some time, what is it investors are buying? Tweet this 

It called on Treasury to "clearly articulate its exit strategy from GMAC.". GMAC chief Michael Carpenter told the panel last month that the company hopes to conduct an initial public offering within two years to repay taxpayers. But to say observers are skeptical about the prospects for an IPO would be an understatement. "In my view, GMAC badly needs to be restructured before it will have a real possibility of revival," bank watcher Chris Whalen of Institutional Risk Analytics told the panel last month. 
Share:  It called on Treasury to "clearly articulate its exit strategy from <span class="company">GMAC</span>.". <span class="company">GMAC</span> chief Michael Carpenter told the panel last month that the company hopes to conduct an initial public offering within two years to repay taxpayers. But to say observers are skeptical about the prospects for an IPO would be an understatement.<span class="sent"> "In my view, <span class="company">GMAC</span> badly needs to be restructured before it will have a real possibility of revival," bank watcher <span class="analyst">Chris Whalen</span> of Institutional Risk Analytics told the panel last month.</span>...But to say observers are skeptical about the prospects for an IPO would be an understatement.<span class="sent"> "In my view, <span class="company">GMAC</span> badly needs to be restructured before it will have a real possibility of revival," bank watcher <span class="analyst">Chris Whalen</span> of Institutional Risk Analytics told the panel last month.</span> He said the company's misguided expansion beyond car lending "threatens the viability of <span class="company">GMAC</span>.". Thursday's report comes at a time when the prospects for some of the most notorious bailout beneficiaries have started to turn up a bit. AIG ( AIG , Fortune 500 ) is on track to repay $51 billion of federal aid, thanks to two recent asset sale agreements. Tweet this 

Mortgage insurers are rescinding (denying) claims, claiming themselves that the loans were fraudulent and misrepresented to them. "The broker dealers, Bear Stearns, Countrywide even ResCap that was part of GM at the time, they used underwriting standards that were a little bit looser than what we see with the normal conforming market," says Chris Whalen of Institutional Risk Analytics. "In those cases, the default rates are in double digits and there's a lot more claims for what we call rescission or really putting back the loan to the originator by the insurer and saying, 'Hey, this loan wasn't kosher, and I shouldn't have insured it in the first place.'". 
Share:  Mortgage insurers are rescinding (denying) claims, claiming themselves that the loans were fraudulent and misrepresented to them.<span class="sent"> "The broker dealers, Bear Stearns, <span class="company">Countrywide</span> even ResCap that was part of GM at the time, they used underwriting standards that were a little bit looser than what we see with the normal conforming market," says <span class="analyst">Chris Whalen</span> of Institutional Risk Analytics.</span> "In those cases, the default rates are in double digits and there's a lot more claims for what we call rescission or really putting back the loan to the originator by the insurer and saying, 'Hey, this loan wasn't kosher, and I shouldn't have insured it in the first place.'". Tweet this 

Sageview was founded by former Kohlberg Kravis Roberts & Co. executives Scott Stuart and Ned Gilhuly. Sageview is looking to raise about $1 billion from pension funds and similar investors, the presentation said. While the structure makes sense, pension funds would be better off investing in existing banks, said Chris Whalen, managing director of Institutional Risk Analytics of Torrance, California. At those lenders, management will oversee details of buying failed lenders and save pension funds the time and effort needed to launch a new bank, he said. 
Share:  <span class="company">Sageview</span> was founded by former Kohlberg Kravis Roberts & Co. executives Scott Stuart and Ned Gilhuly. <span class="company">Sageview</span> is looking to raise about $1 billion from pension funds and similar investors, the presentation said.<span class="sent"> While the structure makes sense, pension funds would be better off investing in existing banks, said <span class="analyst">Chris Whalen</span>, managing director of Institutional Risk Analytics of Torrance, California.</span> At those lenders, management will oversee details of buying failed lenders and save pension funds the time and effort needed to launch a new bank, he said. Tweet this 

Sageview was founded by former Kohlberg Kravis Roberts & Co executives Scott Stuart and Ned Gilhuly. Sageview is looking to raise about $1 billion from pension funds and similar investors, the presentation said. While the structure makes sense, pension funds would be better off investing in existing banks, said Chris Whalen, managing director of Institutional Risk Analytics of Torrance, California. At those lenders, management will oversee details of buying failed lenders and save pension funds the time and effort needed to launch a new bank, he said. 
Share:  <span class="company">Sageview</span> was founded by former Kohlberg Kravis Roberts & Co executives Scott Stuart and Ned Gilhuly. <span class="company">Sageview</span> is looking to raise about $1 billion from pension funds and similar investors, the presentation said.<span class="sent"> While the structure makes sense, pension funds would be better off investing in existing banks, said <span class="analyst">Chris Whalen</span>, managing director of Institutional Risk Analytics of Torrance, California.</span> At those lenders, management will oversee details of buying failed lenders and save pension funds the time and effort needed to launch a new bank, he said. Tweet this 

Even in Congress, the idea didn't fly. Elizabeth Warren, chairwoman of the Congressional Oversight Panel bird dogging the TARP program, wondered why Citi was the only bank that needed a second bailout after the first. "I just want to understand why Citi is special," she quipped. "His bank has got the highest [credit] loss rate of any of the big four," Christopher Whalen from Institutional Risk Analytics added. "The shorts were just responding 
Share:  Even in Congress, the idea didn't fly. Elizabeth Warren, chairwoman of the Congressional Oversight Panel bird dogging the TARP program, wondered why <span class="company">Citi</span> was the only bank that needed a second bailout after the first. "I just want to understand why <span class="company">Citi</span> is special," she quipped.<span class="sent"> "His bank has got the highest [credit] loss rate of any of the big four," <span class="analyst">Christopher Whalen</span> from Institutional Risk Analytics added.</span> "The shorts were just responding....Elizabeth Warren, chairwoman of the Congressional Oversight Panel bird dogging the TARP program, wondered why <span class="company">Citi</span> was the only bank that needed a second bailout after the first. "I just want to understand why <span class="company">Citi</span> is special," she quipped.<span class="sent"> "His bank has got the highest [credit] loss rate of any of the big four," <span class="analyst">Christopher Whalen</span> from Institutional Risk Analytics added.</span> "The shorts were just responding. the emperor had no clothes.". Tweet this 

But an independent expert, Christopher Whalen of Institutional Risk Analytics, told the panel that the failure of GMAC actually would have helped the auto industry. "Solvent bank and non bank competitors of GMAC would have been eager to capture both the floor plan and auto sales business," Whalen said. 
Share:  <span class="sent">But an independent expert, <span class="analyst">Christopher Whalen</span> of Institutional Risk Analytics, told the panel that the failure of <span class="company">GMAC</span> actually would have helped the auto industry.</span> "Solvent bank and non bank competitors of <span class="company">GMAC</span> would have been eager to capture both the floor plan and auto sales business," Whalen said. Tweet this 

But others were skeptical. Bank analyst Christopher Whalen said GMAC is essentially using deposits as a replacement for commercial paper and said it is extremely difficult for an Internet based bank to be successful. His company Institutional Risk Analytics gave GMAC's Ally an "F" rating, based on its return on equity, charge offs, capital, lending exposure and efficiency . Carpenter said the company plans for a public stock offering within the next year or two, and it will sell additional shares after that, to begin the process of exiting TARP. "The business plan we have developed ..would lead me to the conclusion that we have a high likelihood of repaying the U.S. Treasury and taxpayer in full," Carpenter said. 
Share:  But others were skeptical.<span class="sent"> Bank analyst <span class="analyst">Christopher Whalen</span> said <span class="company">GMAC</span> is essentially using deposits as a replacement for commercial paper and said it is extremely difficult for an Internet based bank to be successful.</span> His company Institutional Risk Analytics gave <span class="company">GMAC</span>'s Ally an "F" rating, based on its return on equity, charge offs, capital, lending exposure and efficiency . Carpenter said the company plans for a public stock offering within the next year or two, and it will sell additional shares after that, to begin the process of exiting TARP. "The business plan we have developed ..would lead me to the conclusion that we have a high likelihood of repaying the U.S. Treasury and taxpayer in full," Carpenter said. Tweet this 

Thain "has begun the process of analyzing the company and how to implement our bank centric model," Ritter said Observers say whoever leads CIT will have a hard time winning regulators' support, especially considering that the $23 billion the Treasury Department invested in the company through the Troubled Asset Relief Program was lost in the bankruptcy "I think regulators are going to be very reluctant to give the company a green light," Shanley said Expanding CIT's deposit business alone will be challenge "You have a large, nonbank finance company with a very small bank subsidiary," said Christopher Whalen, a senior vice president and managing director of Institutional Risk Analytics 
Share:  Thain "has begun the process of analyzing the company and how to implement our bank centric model," Ritter said Observers say whoever leads <span class="company">CIT</span> will have a hard time winning regulators' support, especially considering that the $23 billion the Treasury Department invested in the company through the Troubled Asset Relief Program was lost in the bankruptcy "I think regulators are going to be very reluctant to give the company a green light," Shanley said Expanding <span class="company">CIT</span>'s deposit business alone will be challenge<span class="sent"> "You have a large, nonbank finance company with a very small bank subsidiary," said <span class="analyst">Christopher Whalen</span>, a senior vice president and managing director of Institutional Risk Analytics</span>..."I think regulators are going to be very reluctant to give the company a green light," Shanley said Expanding <span class="company">CIT</span>'s deposit business alone will be challenge<span class="sent"> "You have a large, nonbank finance company with a very small bank subsidiary," said <span class="analyst">Christopher Whalen</span>, a senior vice president and managing director of Institutional Risk Analytics</span> "Growing a deposit base, writing down bad assets and reviving a business model that generates profits will be very daunting" President Obama has pledged $30 billion in Tarp funds to community banks to increase lending to small businesses, and he wants to expand Small Business Administration lending Tweet this