Supply, meet Demand...
M&T, a big Alt-A lender, admitted the obvious today, that the buyer pool for their Alt-A garbage has dried up, and they're stuck holding the bag.
The BIG Alt-A player, IndyMac, with 70% of their portfolio made up of this cancer, was out pumping their stock last week, trying to make people believe that since they don't have big subprime exposure, all would be fine with their stock and their Alt-A garbage.
Watch for criminal indictments soon at IndyMac I'd say after this stock manipulation effort. Their lead lawyer resigned last week - hmmm... wonder why?
(Note - I'm gleefully short NDE at time of writing)
M&T Shares Fall After Bank Reports Weak Bids on Alt-A Mortgages
Shares of M&T Bank Corp., the western New York bank partly owned by Warren Buffett's Berkshire Hathaway Inc., fell the most since 1998 after saying low bids for Alt-A mortgages it planned to sell will cut earnings by $7 million.
Shares of M&T Bank Corp., the western New York bank partly owned by Warren Buffett's Berkshire Hathaway Inc., fell the most since 1998 after saying low bids for Alt-A mortgages it planned to sell will cut earnings by $7 million.
The stock tumbled $9.18, or 7.9 percent, to $106.65 at 10:30 a.m. in New York Stock Exchange composite trading.
Shares of mortgage lenders have tumbled this year as defaults on subprime loans rose to four-year highs. Companies that offer less-risky Alt-A mortgages including IndyMac Bancorp Inc. and Impac Mortgage Holdings Inc. say investors are mistaking them for subprime lenders and unfairly punishing their shares.
