Banks Have Bottomed? Ameriquest Mortgage - 5 Funny Commercials; Alt - A Crisis Inbound
"Fannie Mae is insolvent....I will short some more if it rises"
-Jim Rogers on Bloomberg, 14 July 08
The Big Picture found a "Very strange confluence" on banks from the Legacy Media:
"Very strange confluence of media coverage this morning on the banking sector. All three major financial papers (WSJ, NYT, Barron's) have stories on the bottom of the banking sector:"
WSJ: Jitters Ease as Citi, Rivals Show Signs of Bottoming Out
NYT: Hope, and Hints, That Financial Stocks Have Finally Touched Bottom
Barron's: Buy Banks -Selectively (cover story)
I guess in 2 years, we have hit bottom? Or I might guess like Barry Ritholtz banks have hit "a bottom", not "the BOTTOM".
Seemed like a good time to review some material from the industry.How about Ameriquest? Let see if you think this kind of mess can be cleaned out in 2-4 years?
Ameriquest - "Don't Judge to Quickly... We Won't":
Don't Judge Too Quickly... We Won't. - video powered by Metacafe
"Ameriquest was one of the United States's leading wholesale subprime and predatory lenders.
In 2005, Ameriquest Capital and three of its subsidiaries comprised four of the 53 entities that each contributed the maximum of $250,000 to the second inauguration of President George W. Bush.  Writes USA Today, "Inaugural fundraisers Dawn and Roland Arnall found a creative way to pump more than the $250,000 limit into the event. Their mortgage firm, Ameriquest Capital, contributed the maximum, as did three subsidiaries, for a total of $1 million. The company declined to comment on its political giving."
Ameriquest was among the first mortgage companies to use computers to search for prospective borrowers and to speed up the loan process.
Ameriquest was widely known in the United States. It advertised widely on television, had blimpsfootball and baseball stadiums, and sponsored the Rolling Stones (2005 U.S. tour) and NASCAR drivers. Its ad slogan is "proud sponsor of the American dream." that flew over
The home stadium of the Texas Rangers was called Ameriquest Field until March 19, 2007, when in an undisclosed agreement between the two entities, Ameriquest relinquished the naming rights, and the stadium was renamed to the "Rangers Ballpark in Arlington".
Subprime lenders made $587 billion in new mortgages in 2004, up from $390 billion in 2003, according to National Mortgage News. Ameriquest's share of that is estimated at over $50 billion.
On August 31, 2007, ACC Capital Holdings announced that it was closing Ameriquest by no longer taking loans and selling its loan servicing unit to Citigroup."
Ameriquests Website has the ending here "Ameriquest Mortgage Company is no longer accepting loan applications."
This may seem like old news since Ameriquest is gone, but the fall out is far from over. The Alt-A crisis is next. You can watch Mr Mortgage talk about it here:
Mr Mortgage - HERE COMES THE ALT-A CRISIS
Disclosure: Long SRS. Looking to buy SKF, again if it drops low enough....