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After dropping 15% to $12.63 Thursday, the broker said the "unprecedented volatility" in euro/franc pairs resulted in massive losses for clients, who subsequently owed FXCM about $225 million, leading to a negative equity balance that could put the company in breach of regulatory capital requirements.
Talk to your leaser about rolling your negative equity balance into a new car lease.
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"This raises the spectre of falling house prices, negative equity, bad assets on banks' balance sheets and a return to the so-called great recession we have been so slowly emerging from," he said.
General Motors shows $169 billion of debt on its balance sheet and $59 billion of negative equity to finance $110 billion of assets.
Borrowers with negative equity — that is, with houses worth less than their mortgage balance — cannot get any sort of improvement loan, Mr. Yecies noted.
The fix was in for what a New York Times editorial on Tuesday headlined "Letting the Banks Off Easy" described as "paltry" mortgage relief, reducing by less than $20 billion the balances of 14.5 million underwater homeowners who are "drowning in some $700 billion of negative equity".
Negative equity and repossessions.
He used terms like "negative equity".
Negative equity threatens some home-owners.
Instead, the problem is negative equity.
Now they're in negative equity".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com