Bank Blog

In Banking Terms

By: Josh Pearl

Suppose that Pfizer, a U.S. firm, purchases $1 million worth of laptop computers from Sony, a Japanese firm. The laptops are produced in Japan.

Sony exchanges the $1 million at Tokyo Bank for 100 million yen. Tokyo Bank lends the $1 million to Honda Motor Company, which uses it to expand its automobile manufacturing facility in Indiana.

13.6. Suppose the peso-dollar exchange rate is 11 Mexican pesos per U.S. dollar and the price of a Sony laptop is $2,000. What must the price of a Sony laptop be in Mexico for purchasing-power parity hold? (Express your answer in pesos.)

pesos
Please enter a whole number, with no decimal point

By: bob

Somebody is seeking my help in doing this. He liked the location of a house that was put up for sale, but before he could look at it, it caught fire. It was not a total loss, but the insurance company is purportedly going to pay a claim in the amount of around $100K. The asking price was $225K and now the seller wants $120K for it in damaged condition and in need of $100K in repairs. The buyer works in the building trades (commercial, not residential). He believes that if he was given free reign, he could do some of the grunt work himself and use some qualified friends to do the skilled work, and save some money this way. So my questions are really multiple: Would a bank lend to an individual who is not a contractor for a project like this? How much autonomy would the lender give him in fixing it up? Is the asking price too much? Assuming the deal went through, the seller would be getting close to the original asking price once the insurance money gets factored in. Basically I want to know if this whole idea is crazy or not. If he can’t do it, I’d just as soon let the seller be free to look into other options and not waste any of the seller’s time if it isn’t going to work.

By: Home Run Henry

I own two debt free rent houses that are valued at a combined 140,000 (apprasil district figure) and bring in a combined 1495 monthly rental income. I am wanting to pull some captial out of theese two properties for another investment oppurtunity. Would a home equity be the best method? What ratio of the 140k would a bank lend up to? Mainly Im just looking for the lowest closing cost and interest possible. My Fico is only high 600s(nothing truly bad on there just a short credit history because im in my mid 20s) thanks in advance

By: kate11c

A. They have so much to lend
B. They know not everyone wants their deposits back at the same time.
C. There is a high demand for loans
D. They know how much cash they have in their vault

By: E_HIN

I am trying to sell my home and purchase a new one and I am ticked off that because of the banks lending to buyers with risky credit and giving them adjustable rates is now effecting the sale and purchase of my new home. A few years ago when they decided to lower the standards of credit needed to buy a home everyone jumped in and now that those adjustable rates are catching up with them…the government is supposed to bail them out. It has caused the market to plummet which means I am having to take less for my home (which I qualified for with good credit and a good rate). Not to mention it is damn near impossible for anyone to get approved anymore, because they realized their mistakes and have now set the standards so high that most people don’t qualify at all. I feel bad fro those who are having their homes foreclosed on…I really do….but I busted my as to build good credit, did tons of research to get the best rate and now I will do good to get out of my home what I owe on my mtg
I paid my mortgage on time and done a ton of expensive work to my house and now because of the stupid lenders and government that allowed this to happen, not only can I not get any equity out of my home, but will also have to out down 20% on my new one. It’s a crock that the responsible people are made to suffer while the ones that made the mistake get off scott free.
Hey Dave, I put down 10% even though I was only required to put down 3% cause my credit was fine. Now unless you have perfect credit you have to put down 20% b/c the banks are scared to lend to anyone b/c of all the foreclosures which my house is not, and yes I intend to make a profit since I have worked hard to improve it since I’ve been here. You are ignorant and apparently know nothing about the housing market or the economy for that matter, go to the mens section and continue asking questions on what lotion you should use to jack off and leave the real questions for people with the intelligence to answer them. To everyone else… thanks!

By: begood1977

Money was borrowed from a bank by a corporation whose president negotiated the loan and signed the promissory note. On the first blank signature line of the note, the president wrote the name of the corporation. On the second such line, he signed his own name. The note was negotiated by the lending bank to the Federal Reserve Bank. The note was not paid when due and the Federal Reserve Bank sued the corporation and its president. The president claimed that he was not bound on the note because he did not intend to bind himself and because the money obtained by the loan was used by the corporation.

1.Is the president liable? Please explain.

2. How should such an individual sign a promissory note to best avoid potential individual liability?

By: sexytracie609

I am a business manager at a car dealership and I am looking for banks to bring in to help me with some lower credit people. I am hoping that someone can give me the names and possibly a contact so I can get them in here. I am in RI if that matters. Thank you.

By: rimoneyman

Two years ago my house went into foreclosure. I was engaged at the time and put her name on the house also. When we broke up she wouldn’t talk to me about options on selling, so instead she left her father to do the negotiations.
I truly believe that he was out to get me, regardless of what it would do to his daughters credit score. They wouldnt budge to sell the house and when I found out I was able to get a court order to sell the property, it was too late and it went into foreclosure.
After it foreclosed I felt forced to file Chapter 13 bankruptcy, due to the fact that I was laid off and the house sold at auction for 40,000 less than what was owed.
Since then I’ve moved back in with the parents, been in school for the past two years, and plan on transferring to another university next year.
I’ve been able to save enough to put down 30-40k on a house or condo. I’d rather go that route instead of losing money in dorm costs or apartment rental.
Will a bank lend to me?

By: WAYNE P

We are in escrow. We have submitted six weeks worth of payroll, four months of bank statements and now they are asking for 12 months of proof we paid rent on time. Every time we talk with our mortgage broker we are asked for more proof of funds, credit etc. It is really making us frantic! What will they ask for next?
We are first time home buyers and have no idea if all the documentation is due to the housing market collapse or is it just normal?
Wow Grey….that is just too much info for a mortgage company! Amazing!

And Teri….Our credit score is above 750 and we really thought this would help pave the way and make it easy. But it would seem that even good credit is not everything!
I’d say so too……….
Thanks Candi…After the holiday I think we will go in for a meeting just to get things in perspective! Such as what will come up and what may come up! In the end I want to be prepared and hate having such short notice on getting everything together.
OC mom your scaring me now! I’m also in Cali and do not trust this market at all! If this escrow falls out, we could be screwed by the 18% rise in home buying!

By: jd