Banking, finance, and taxes
As NCC (NCC) Raises Money, Bank Shareholders Shafted Again
Published:
NCC (NCC) was one of those banks that decided the mortgage business was simply an outstanding way to make money. The price of homes and commercial buildings would rise at 10% per annum forever, It was a sure fire way to mint money.
None of that worked out, so NCC is raising over $6 billion from a group lead by private equity firm Corsair Capital LLC. The price of the shares they will buy is well below market. According to The Wall Street Journal "The plan calls for the investors to pay about $5 a share." The stock closed at over $8 on Friday and has a 52-week high of over $38. Stockholders don’t have much left.
The reason NCC has done so badly is not much different from the troubles at Washington Mutual (WM). It is a first cousin of the mortgage-backed paper problems at Citigroup (C) and other large banks and brokerages. Simply stated real estate will always rise and mortgages, no matter what the interest rate, will not fail to pay out.
The greatest fallacy of most banking is that there is no such thing as a bad loan.
Douglas A. McIntyre
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
