Looks like all those option adjustable rate mortgages (ARMs) weren’t such a good idea after all: 1% teaser rates and loans that grow rather than shrink over time just aren’t meant for questionable borrowers buying overpriced homes. Newport Beach-based Downey Savings (DSL) the fifth largest originator of option ARMs was seized by federal regulators late Friday. The scraps were sold to US Bancorp (USB) for a song which included almost $10 billion in deposits. Pomona First Federal another Southern California lender highly levered to the real estate market was also taken over by Minneapolis-based US Bank. According to Bloomberg the 2 ...

Not again! Asia was a mess - the Hang Sang was off more than 12%. The Nikkei was off more than 6%. Europe was in the red too. And unfortunately here in the States we're off to a lower open. Penn National Gaming (PENN)  Before the open Penn released its third-quarter results. The company earned $0.50 per share not counting items which was sharply north of the $0.34 per share analysts had been looking for. But I’m pretty concerned about what’s going to happen going forward. After all the competition remains stiff the economy is slow and I have ...

Saddled with mounting losses in its huge mortgage portfolio Wachovia (WB) has become the latest bank to lose its independence.Rumors swirled over the weekend: The company was said to be in advanced talks with both Wells Fargo (WFC) and Citigroup (C) about a potential merger. Formerly the nation's sixth-largest bank Charlotte-based Wachovia would have provided either suitor a retail stronghold in its native southeast. For Wells Fargo in particular this would have nicely complemented their strong presence on the West Coast.In the end Citigroup managed to close the deal with a little help from its friends at the FDIC.Citi ...