Covered Bonds - Burying Them Won't Help
Yes, I know what "covered" bonds really means, but still the same, it's just another government intervention. The same folks end up holding title to the land.
This article was published by Marketplace July 28th: Four big banks to kick-start covered bond market
WASHINGTON (MarketWatch) - Appearing alongside Treasury Secretary Henry Paulson, representatives of the four largest U.S. banks agreed Monday to kick-start a market for covered bonds - an alternative way to provide mortgage loans - in the United States.So, instead of borrowing from depositors, who today cannot repaid, but who freely had the choice whether or not to deposit their money in those banks. Now these four banks are going to borrow from ALL the United States taxpayers, who were sold out by their congressional respresentatives and have no free choice on whether or not to shoulder those obligations.Covered bonds were first created in Germany and are in widespread use in Europe.
Under the practice, a bank borrows funds to lend to homeowners and holds the mortgages on its books. It uses the proceeds of the mortgages to repay investors.
On top of this, my problem with the FourBigBanks is that they are like four used-car dealers, all owned by the same folks (with apologies to the used-car business). It is made to appear that there are four individual decisions made to participate with the U.S. Treasury. Taking a closer look, it's really Goldielocks (Goldman-Sachs) and the four bears.
"Covered bonds may be more attractive to investors, in the near future anyway," Durrer said.Don't you like the way they use the word "MAY" and "NEAR FUTURE?"Representatives of Bank of America, Citigroup, JP Morgan Chase & Co and Wells Fargo said that they would help kick start the market.
"We look forward to being leading issuers as the U.S. covered market develops," the four banks said in a statement.
Under this approach, commercial banks may be able to take some market share away from the two mortgage giants, Fannie Mae and Freddie Mac.
Our folks in Washington are sure good at locking the barn door long after the horses and all the hay had already been stolen. Then they act as if they didn't have anything to do leaving the door wide-open in the first place.
Then again: Sometimes The Dragon Wins
NOTE: Vanguard manages three funds that control 2.10%.
Symbol Name Of Corporation GS
Major
HoldersGoldman Sachs Group Inc. (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Barclays Global Investors UK Holdings Ltd 17,075,928 4.31% $3,672,178,316 -.--% Marsico Capital Management, LLC 14,496,210 3.66% $3,117,409,960 -.--% State Street Corporation 14,274,776 3.61% $3,069,790,578 -.--% Vanguard Group, Inc. (The) 11,231,027 2.84% $2,415,232,356 -.--% Wellington Management Company, LLP 9,760,943 2.47% $2,099,090,792 -.--% AXA (Paris, France) 9,240,273 2.33% $1,987,120,708 -.--% FMR LLC 7,831,492 1.98% $1,684,162,354 -.--% Janus Capital Management, LLC 6,791,887 1.72% $1,460,595,299 -.--% Bank of New York Mellon Corporation 6,418,088 1.62% $1,380,209,824 -.--% Northern Trust Corporation 6,357,411 1.61% $1,367,161,235 -.--% % of Shares Held by All Insider and 5% Owners: 9% -.--% Top 10 [0.9%] of 1010 Institutional Holders Control 26.15% -.--% Percentage of Barclays and "Associates" Control 12.87% -.--%
SPDR Trust controls 0.60%.
Janus Capital manages a fund that controls 0.55%.
Fidelty manages a fund that controls 0.45%.
Therefore, the TOP 10 Major Holders control 29.85%, and
Barclays/Associates control 14.02% of Goldman-Sachs.
NOTE: Capital Group manages two funds that control 3.15%.
Symbol Name Of Corporation BAC
Major
HoldersBank of America Corporation (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Barclays Global Investors UK Holdings Ltd 185,100,344 4.17% $7,637,240,193 -.--% Capital Research And Management Company 156,894,940 3.54% $7,887,108,633 -.--% State Street Corporation 154,105,878 3.47% $6,358,408,526 -.--% Vanguard Group, Inc. (The) 132,052,514 2.98% $5,448,486,727 -.--% FMR LLC (Fidelity) 115,977,063 2.61% $4,785,213,619 -.--% AXA (Paris, France) 110,375,309 2.49% $4,554,085,249 -.--% Capital Research Global Investors 106,505,640 2.40% $4,394,422,706 -.--% Wellington Management Company, LLP 96,954,973 2.18% $4,000,362,185 -.--% Capital World Investors 77,785,350 1.75% $3,209,423,541 -.--% Bank of New York Mellon Corporation 56,888,468 1.28% $2,347,218,189 -.--% % of Shares Held by All Insider and 5% Owners: 1% -.--% Top 10 [0.7%] of 1423 Institutional Holders Control 26.87% -.--% Percentage of Barclays and "Associates" Control 8.92% -.--%
Vanguard manages four funds that control 2.78%.
Washington Mutual manages a fund that controls 1.01%.
Therefore, the TOP 10 Major Holders control 33.81%, and
Barclays/Associates control 9.93% of Bank of America.
Capital Group now controls 10.84%.
NOTE: Capital Group manages four funds that control 5.58%.
Symbol Name Of Corporation C
Major
HoldersCitigroup Inc. (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Capital Research And Management Company 230,537,577 4.63% $10,759,188,718 -.--% Barclays Global Investors UK Holdings Ltd 193,733,224 3.89% $5,703,506,114 -.--% State Street Corporation 168,713,733 3.39% $4,966,932,299 -.--% Capital Research Global Investors 152,224,297 3.06% $4,481,483,303 -.--% Vanguard Group, Inc. (The) 147,162,365 2.95% $4,332,460,025 -.--% Capital World Investors 135,231,777 2.71% $3,981,223,514 -.--% FMR LLC (Fidelity) 104,388,753 2.10% $3,073,204,888 -.--% AXA (Paris, France) 85,210,035 1.71% $2,508,583,430 -.--% Bank of New York Mellon Corporation 76,662,587 1.54% $2,256,946,561 -.--% UBS Global Asset Management (Americas) Inc 71,044,110 1.43% $2,091,538,598 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [0.7%] of 1416 Institutional Holders Control 27.41% -.--% Percentage of Barclays and "Associates" Control 8.82% -.--%
Vanguard manages three funds that control 2.13%.
Therefore, the TOP 10 Major Holders control 35.12%, and
Capital Group controls 15.98% of Citigroup.
NOTE: Vanguard manages four funds that control 2.87%.
Symbol Name Of Corporation JPM
Major
HoldersJPMorgan Chase & Co (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 AXA (Paris, France) 162,403,230 4.83% $7,088,900,989 -.--% Barclays Global Investors UK Holdings Ltd 150,034,475 4.47% $6,549,004,833 -.--% State Street Corporation 123,254,206 3.67% $5,380,046,091 -.--% Vanguard Group, Inc. (The) 100,641,666 3.00% $4,393,008,720 -.--% FMR LLC (Fidelity) 89,333,481 2.66% $3,899,406,445 -.--% Capital Research And Management Company 74,443,901 2.22% $3,411,019,543 -.--% Davis Selected Advisers, LP 73,675,380 2.19% $3,215,930,337 -.--% Capital Research Global Investors 66,839,901 1.99% $2,917,561,678 -.--% Bank of New York Mellon Corporation 57,802,612 1.72% $2,523,084,013 -.--% Goldman Sachs Group Inc 46,848,341 1.39% $2,044,930,084 -.--% % of Shares Held by All Insider and 5% Owners: 1% -.--% Top 10 [0.7%] of 1317 Institutional Holders Control 28.14% -.--% Percentage of Barclays and "Associates" Control 11.25% -.--%
Capital Research manages a fund that controls 1.99%.
Davis Selected Advisers manages a fund that controls 0.99%.
Washington Mutual manages a fund that controls 0.91%.
Barclays manages a fund that controls 0.59%.
Legg-Mason manages a fund that controls 0.53%.
Therefore, the TOP 10 Major Holders control 36.02%, and
Barclays/Associates controls 13.28% of JP Morgan Chase.
Capital Group controls 6.20%.
NOTE: Capital Group manages three funds that control 2.66%.
Symbol Name Of Corporation WFC
Major
HoldersWells Fargo & Company (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Berkshire Hathaway, Inc 289,259,868 8.62% $8,732,755,414 -.--% Capital Research And Management Company 139,587,000 4.16% $4,972,088,940 -.--% Barclays Global Investors UK Holdings Ltd 112,321,712 3.35% $3,390,992,485 -.--% State Street Corporation 111,160,088 3.31% $3,355,923,056 -.--% Capital World Investors 110,275,000 3.29% $3,329,202,250 -.--% Vanguard Group, Inc. (The) 97,861,725 2.92% $2,954,445,477 -.--% UBS Global Asset Management (Americas) Inc 70,084,966 2.09% $2,115,865,123 -.--% FMR LLC (Fidelity) 65,437,707 1.95% $1,975,564,374 -.--% Davis Selected Advisers, LP 62,466,514 1.86% $1,885,864,057 -.--% State Farm Mutual Automobile Insurance Co 55,039,014 1.64% $1,661,627,832 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [0.8%] of 1208 Institutional Holders Control 33.19% -.--% Percentage of Barclays and "Associates" Control 6.66% -.--%
Vanguard manages three funds that control 2.17%.
Washington Mutual manages a fund that controls 1.35%.
Davis manages a fund that controls 0.95%.
Barclays manages a fund that controls 0.58%.
Therefore, the TOP 10 Major Holders control 40.90%, and
Barclays/Associates control 8.59% of U.S. Bancorp.
Capital Group now controls 10.11%.
NOTE: Capital Group manages nine funds that control 28.86%.
Symbol Name Of Corporation FNM
Major
HoldersFannie Mae (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Capital Research And Management Company 208,804,896 21.35% $12,697,425,725 -.--% Capital Research Global Investors 115,585,266 11.82% $4,621,098,934 -.--% Capital World Investors 108,644,200 11.11% $4,343,595,116 -.--% AXA (Paris, France) 41,085,324 4.20% $1,642,591,253 -.--% Barclays Global Investors UK Holdings Ltd 38,982,495 3.99% $1,558,520,150 -.--% FMR LLC (Fidelity) 34,875,486 3.57% $1,394,321,930 -.--% State Street Corporation 30,604,604 3.13% $1,223,572,067 -.--% Vanguard Group, Inc. (The) 29,380,820 3.00% $1,174,645,183 -.--% Lord Abbett & Co 28,150,247 2.88% $1,125,446,875 -.--% HSBC Holdings PLC 23,281,575 2.38% $930,797,368 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [1.6%] of 603 Institutional Holders Control 67.43% -.--% Percentage of Barclays and "Associates" Control 7.12% -.--%
Washington Mutual manages a fund that controls 3.40%.
Therefore, the TOP 10 Major Holders control 99.69%, and
Barclays/Associates control 10.52% of Fannie Mae.
Capital Group now controls 73.14%.
NOTE: Capital Group manages four funds that control 17.00%.
Symbol Name Of Corporation FRE
Major
HoldersFreddie Mac (As of 31-Dec-2007)
Top 10 Institutional Holders Shares 2007 Value 2006 Capital Research Global Investors 60,678,100 8.82% $2,067,302,867 -.--% Capital World Investors 42,545,600 6.18% $1,449,528,592 -.--% AXA (Paris, France) 36,630,015 5.32% $1,247,984,611 -.--% Pzena Investment Management, LLC 29,661,962 4.31% $1,010,583,045 -.--% Barclays Global Investors UK Holdings Ltd 27,283,692 3.97% $929,555,386 -.--% UBS Global Asset Management (Americas) Inc 22,649,797 3.29% $771,678,583 -.--% Morgan Stanley 21,698,473 3.15% $739,266,975 -.--% Hotchkis & Wiley Capital Management, LLC 21,245,650 3.09% $723,839,295 -.--% State Street Corporation 21,042,309 3.06% $716,911,467 -.--% Goldman Sachs Group Inc 20,192,696 2.93% $687,965,152 -.--% % of Shares Held by All Insider and 5% Owners: 0% -.--% Top 10 [2.0%] of 489 Institutional Holders Control 44.12% -.--% Percentage of Barclays and "Associates" Control 13.11% -.--%
Washington Mutual manages a fund that controls 1.65%.
Vanguard manages a fund that controls 0.91%.
Therefore, the TOP 10 Major Holders control 63.68%, and
Barclays/Associates control 14.76% of Freddie Mac.
Capital Group now controls 32.00%.
© 2008 by Edward Ulysses Cate
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