Monday, December 03, 2007

Reuters - "PayPal customers' cash exposed to illiquid assets" (12-1-07)

"Illiquid assets in a portfolio investing the cash of eBay Inc customers surged 39 percent in the third quarter, exposing them to a larger chunk of troubled corporate debt, U.S. regulatory filings show. The money market fund of PayPal, eBay's online pay service, invests cash parked by Internet shoppers in a portfolio that holds $1.63 billion in illiquid assets, or 5.5 percent of total holdings, according to the filings. That's up from $1.17 billion, or 4.6 percent of holdings, in the second quarter."

Los Angeles Times - "'Mothballing' -- When builders stop building" (12-1-07)

"Homebuilder Lennar has announced plans to 'mothball' a major development in Irvine: "The company announced that it will build just 259 of the 1,100 homes planned for its Central Park West development in Irvine and will not sell any until the market improves"

The Washington Post - "
Deal in the Works To Freeze Rates on Subprime Loans" (12-1-07)

"Mortgage rates for homeowners with spotty credit histories would be temporarily frozen under a nearly completed agreement between top Bush administration officials and a broad alliance of Wall Street's biggest banks, mortgage investors, nonprofits and consumer groups. The plan, which could be announced next week, is designed to prevent soaring mortgage delinquencies from escalating into a full-blown foreclosure crisis that would threaten the broader economy, according to several people involved in or familiar with the discussions."

The Wall Street Journal - "Some Investors Fault Plan to Aid Home Borrowers" (12-1-07)

"
A government-led plan to freeze interest rates on certain troubled subprime home loans drew criticism both from investors who foresee losses and from some analysts warning that it will merely prolong the pain of the mortgage crisis. But others said the Bush administration was making the right move to stave off dangers in the housing market. Shares of major home lenders moved higher."

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