[PEN-L:30383] Re: ABS troubles ahead?

["pms" <laflame@xxxxxxxxxxx>]

> ``NextCard cost us $300 million-$400 million,'' says David Barr, a
spokesman for
> the Federal Deposit Insurance Corp., which guarantees U.S. bank deposits.
The
> FDIC stepped in to keep NextCard's asset-backed securities from paying out
early
> by injecting money into NextCard. Most of the company's loans had been
packaged
> into bonds, Barr says.
>

Why is the FDIC bailing out NextCard investors?

Yesterday I saw a commercial for a company called something like VRP,
Voluntary Repo something or other.  The line was, if you're about to have
your car repo'ed, call us and we'll give you up to $1200 and we'll deal with
the bank.  I guess they have to pay the repo man more than that and the
banks pay them even more to get their hands on the car.