Financial Sector Earnings and Disclosure (Video)

First Business Morning News – January 9, 2008

»VIDEO: Click Here to View Segment

Janet Tavakoli appeared on First Business Morning News to discuss upcoming financial sector fourth quarter earnings disclosures.

Expect large write-downs by any financial institution that bought protection on super senior risk from ACA and future mark-to-market write-downs by financial institutions exposed to other monolines.

Investment banks have potential legal liabilities due to past sales practices related to sales of subprime-backed RMBS and CDOs, particularly to "retail" clients.

[Sophisticated clients may do better in working out their differences directly with the sellers. While underwriters cannot withhold material information, sophisticated investors in private placements have some responsibility to perform due diligence appropriate to the circumstances, particularly if the presence of risky products is disclosed in the prospectus].

Look for disclosures on off-balance sheet vehicles and liquidity lines in the Management’s Discussion and Analysis (“MD&A”) in future Form 10Ks and Form 20Fs.


Clients of Tavakoli Structured Finance also have access to proprietary TSF research, which is not published in any other paid or public forum.

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