Short post: RBS has taken very few charges on its HELOC buiness. I have pointed out that - at least for some houses the price has fallen to near-zero - and the HELOCs are worthless.
This is true for about half of Detroit (an area laden with Charter One branch originated HELOCs).
I will leave you one factoid from todays Wall Street Journal:
For the first four months of this year, home sales in Detroit, excluding suburbs, totaled 3,360, up 48% from a year earlier, according to the Michigan Association of Realtors. The average price dropped 56% to just $20,514. That average is so low because many of the sales involve decrepit homes in neighborhoods with few jobs.
Does anyone believe - even remotely - that Fred Goodwin or Larry Fish have an iota of credibility? Advice to the board: terminate them for cause. Then resign yourself.
Wednesday, May 28, 2008
Posted by John Hempton at 12:42 AM
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