Rekeda, who became head of structured credit in the Americas, and his team led Mizuho into a business it knew little about, securities backed by U.S. subprime mortgages, where it lost 672 billion yen ($7.1 billion), more than any bank in Asia. Most of the losses were related to defaults on collateralized debt obligations.
“Mizuho never made a penny out of subprime in the good times, they just got left holding the can in the bad,” says David Threadgold, an analyst at Fox-Pitt Kelton Asia Ltd. in Tokyo who has an “underperform” rating on the stock. “They made a very poor decision to launch into the packaging of subprime products at the end of 2006.”
via Mizuho $7 Billion Loss Turned on Toxic Aardvark Made in America – Bloomberg.com.
The results were pushed back several days as federal regulators and the banks have continued to debate the results. Several banks, including Bank of America Corp. and Citigroup Inc., have challenged the government’s findings.
The results are expected to show that several banks may need more capital, or a higher quality of capital, in order to continue lending if the economy worsens through 2010. Government officials have said that any requirement that a bank improve its capital standing does not mean the government thinks the bank is going to fail. In fact, the government has said it would not allow any of the 19 banks undergoing the test to fail.
via U.S. to Release Stress-Test Results on May 7 – WSJ.com.
The FDA has received 23 reports of serious health problems ranging from jaundice and elevated liver enzymes, an indicator of potential liver injury, to liver damage requiring liver transplant. One death due to liver failure has been reported to the FDA. Other health problems reported include seizures; cardiovascular disorders; and rhabdomyolysis, a type of muscle damage that can lead to other serious health problems such as kidney failure.
via FDA Warns Consumers to Stop Using Hydroxycut Products.
