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					                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)




     WEEKLY REVIEW CONTENTS
                                                                                                                   Page
      Economic Update                                                                                                   2

      Specialty Finance Headlines
             Credit Cards                                                                                               6

                  Auto Finance                                                                                          7

                  Student Loans                                                                                         8

                  General Consumer Finance                                                                              9

                  Miscellaneous                                                                                       10

      Specialty Finance Industry Common Stock Comparison (Public Comps)                                               11




Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             1
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
           Crisis in the Middle East:
            The Middle East was hit hard last week by an announcement from Dubai World that it may default on some of
             its $88bn debt. Dubai World is expected to be late in paying an interest expense of $188mn on a $2bn bond
             issue. The default could possibly be catastrophic as it would trigger many other defaults, possibly setting off a
             wave of sovereign defaults (with many eyes focused on Greece)
                       o Prior to the Dubai crisis, a business confidence survey released showed strong business sentiment for
                         a global recovery. This survey was based on a group of industrialized and industrializing countries,
                         which included most of the G20 countries. Sentiment was highest in so-called BRIC countries
           Macroeconomic indicators:
            The Chicago Fed released its National Activity Index last week, which came in worse than expected, at -0.67; the
             index is normally positive when the economy is in an expansion. This dampens the mood for the prospect of a
             robust recovery. Nevertheless, the index is far improved from its level at the depths of the recession when it
             fell below -3 (it had only once before fallen this low, in the recession of 1974)
            New home sales increased from 405 thousand in September to 430 thousand in October (expressed in
             seasonally adjusted annualized rates). Home sales are usually a driving force in most recoveries, often driven
             by pent-up demand and low interest rates. In the current recovery, there is little pent-up demand as there is
             still a glut of excess housing left over from the years of the housing bubble. Moreover, interest rates are not
             working their normal magical wonder as the economy has been in a deep funk (i.e. a liquidity trap) and credit
             remains hard for households to tap, even as they are, in theory, supposed to be cheap for consumers
           Real estate market:
            The Case-Shiller index for September was released last week. As expected, the index was up, growing at an
             annualized rate of 4.4% for the 10-city index and 3.3% for the 20-city index. House prices rose in 11 cities and
             declined in 9. Decliners included (annualized rates) Boston (-2.9%), Charlotte (-3.4%), Dallas (-3.8%), Las Vegas
             (-13.3%), New York (-2.6%), Portland (-5.5%) , Seattle (-3.7%) and Tampa (-10.1%)
                       o Even as there are reports of a resurgent housing market, the results are actually quite mixed, with
                          almost half of the cities covered by Case-Shiller still seeing house prices decline (and some by sizeable
                          amounts)
                       o From peak levels the 10-city index is down 30.6% and the 20-city index is down 29.7%. There is a
                          concern that housing may succumb to a double dip – indeed, the recovery of housing prices has taken
                          most housing economists by surprise as most were forecasting that the Case-Shiller index would
                          decline through 2010
                       o San Francisco was the biggest gainer, growing at an annualized rate of 22.6%
            Many pundits are expecting a huge crash in the commercial real estate market, with one estimate released last
             week that banks stand to lose $430bn on soured CRE loans in the coming year. The demise of the CRE is
             probably best exemplified by the problems of Dubai (see first bullet atop). Dubai has been the archetypical
             study of overinvestment in commercial real estate
           Bankruptcies:
            Bankruptcies filings surpassed 1.4 mn through the first 9 months of 2009, a total more than 1/3 higher than for
             the same period last year (the vast majority of which are non-business filings). Bankruptcies are expected to
             total close to 1.9 mn for the year. Bankruptcies were highest, in per capita terms (filings per 1,000), in NV
             (10.49), TN (8.67), GA (7.52), AL (7.41), IN (7.33) and MI (6.73). They were lowest in SD (2.21), SC (2.15), TX
             (2.15), DC (1.84) and AK (1.36). The US national average is 4.52 filings per 1,000 population
            Personal income grew in October by $30.1bn, while disposable income grew by $45.7bn representing
             percentage gains of 0.2%and 0.4%, respectively. But while income grew, personal savings fell from $510.4bn in
             September to $490.3bn in October. The personal savings rate (as a percentage of disposable income) was 4.4%
             in October, down from 4.6% in September
Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             2
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
           Unemployment:
            The unemployment picture looks to be improving in advance of the release of November’s unemployment level
             on December 4th. Initial claims for the week ended November 21 is expected to come in at 466,000 (initial
             estimate), down significantly from the value for the week ended November 14 of 501,000. This would lower the
             4-week moving average of initial claims to 496,500, the first time that the statistic would fall below 500,000
             since November 2008. Moreover, the 4-week moving average for continued claims came in 5.6 mn, its lowest
             value since March
            The unemployment picture is highly unusual in how quickly unemployment deteriorated (albeit it grew at a
             very tepid rate at the beginning of the recession). Twice in the recession, the monthly unemployment rate grew
             by 0.5%. Recoveries also tend to be asymmetric in unemployment, i.e. unemployment grows very quickly
             during a recession, but falls back to its pre-recession level at a much slower rate than its ascent. The nascent
             recovery is expected to be even slower than usual in the path of unemployment recovery with may economists
             forecasting unemployment to be even more sluggish in recovering than in the past two recessions, which were
             themselves characterized by slower-than-normal unemployment recovery
            The Fed came out with a report last week conceding the dismal prospects for unemployment. The report
             predicts that unemployment will stay above 8% until 2012. To give context to that prediction, peak
             unemployment in the last down-business cycle was 6.3%, and was 7.8% in the recession of the early 1990s.
             Under these views, it is hard to see how the Fed can begin restoring normal monetary policy (i.e. have rates
             that are not zero and begin unwinding all the positions they built up when they propped financial and credit
             markets)
           Mortgage market:
            Close to one quarter of all residential properties with mortgages were under water in September 2009, with 2.3
             mn more close to negative equity according to a report form First American Core Logic
                     o The majority of underwater mortgages were financed between 2005 and 2008, with over 40% of
                        underwater mortgages originated in 2006
                     o Underwater properties are typically for new homes built between 2006 and 2008, where the share
                        that are negative equity is over 40%
                     o A majority of underwater properties used adjustable-rate mortgages (ARMs) to finance their
                        purchase, of which the teaser rates have or are mostly expiring and adjusting to a higher rate of
                        interest (and the impetus behind the higher delinquencies and defaults)
                     o The average underwater property was valued at $210,300 (only 78% he value of a all properties, or
                        72% the value of properties that are not underwater). The average mortgage outstanding on
                        underwater properties was $280,000, implying an average underwater debt of close to $70,000. The
                        aggregate property value of properties under water was $2.2tn, with an implied mortgage value of
                        $2.9tn. Thus there is $700bn of exposure, and for properties that go into foreclosure it is generally
                        estimated that one-third to one-half of the value is wiped out, thus the range of exposure is on the
                        order of $2 tn, or about 14% of GDP
           GDP growth:
            The Bureau of Economic Analysis (BEA) revised downward the rate of growth of the economy in Q3 to 2.8%,
             from its initial estimate of 3.4%. The strong growth numbers (albeit they have been revised downwards) are not
             a surprise at all, and are an artifact of the way GDP is calculated. The very steep drops that occurred in the
             economy in Q1 and to a lesser extent in Q2 mean that (when they stop falling) GDP growth has to rebound
             (recovering the same level of GDP is another matter). For this, and other reasons, many economist believe that
             the recovery will be characterized by a short V-shaped recovery for the first few quarters, followed by a return
             to slow growth after the artifacts of GDP accounting (that a halting in the decline of a component in GDP will
             naturally result in it growing in the next period) run its course

Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             3
                                                FG ADVISORS: INVESTMENT BANKING SERVICES
                                                FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                                                Weekly Specialty Finance Industry Review

                                            November 23rd – November 29th, 2009 (Week 48)
                   Percent of loans non-current by asset concentration group (banks)                                     Net charge-offs as % of avg loans by asset concentration group (banks)
    7.0                                                                                                       12.0



    6.0
                                                                                                              10.0


    5.0
                                                                                                               8.0

    4.0

                                                                                                               6.0
    3.0


                                                                                                               4.0
    2.0


    1.0                                                                                                        2.0


    0.0
           1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009      0.0
                                                                                                     (June)          1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

               International banks                Agricultural banks                Credit card lenders                 International banks               Agricultural banks              Credit card lenders
               Commercial lenders                 Mortgage lenders                  Consumer lenders                    Commercial lenders                Mortgage lenders                Consumer lenders
               Other specialised (< $1BN)         All other (< $1BN)                All other (> $1BN)                  Other specialised (< $1BN)        All other (< $1BN)              All other (> $1BN)


                            Net interest margin by asset concentration group (banks)                                              Return on avg assets by asset concentration group (banks)
    12.0                                                                                                      5.0



                                                                                                              4.0
    10.0


                                                                                                              3.0
     8.0

                                                                                                              2.0

     6.0

                                                                                                              1.0

     4.0
                                                                                                              0.0


     2.0
                                                                                                              -1.0



     0.0                                                                                                      -2.0
            1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009           1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

               International banks                Agricultural banks                Credit card lenders                 International banks               Agricultural banks              Credit card lenders
               Commercial lenders                 Mortgage lenders                  Consumer lenders                    Commercial lenders                Mortgage lenders                Consumer lenders
               Other specialised (< $1BN)         All other (< $1BN)                All other (> $1BN)                  Other specialised (< $1BN)        All other (< $1BN)              All other (> $1BN)


     12.00
                                                                           Path of FFR in recoveries (start of recovery = 0)
     10.00
      8.00                                                                                                                                                                                       1958II recovery

      6.00                                                                                                                                                                                       1961I recovery
                                                                                                                                                                                                 1970IV recovery
      4.00
                                                                                                                                                                                                 1975II recovery
      2.00
                                                                                                                                                                                                 1980III recovery
      0.00
                                                                                                                                                                                                 1982IV recovery
     -2.00
                                                                                                                                                                                                 1991II recovery
     -4.00                                                                                                                                                                                       2001IV recovery
                        1                   2       3                  4        5               6         7             8                 9          10             11         12
                                                                                         Months since recovery


      Top left: Percent of loans that are non-current at FDIC-insured institutions, by asset type – cards behave differently.
      Source: FDIC. Top right: Net charge-offs as a percent of average loans and leases at FDIC-insured institutions, by asset type.
      Source: FDIC. Middle left: Net interest margin at FDIC-insured institutions, by asset type. Source: FDIC. Middle right: Return
      on average assets at FDIC-insured institutions, by asset type. Source: FDIC. Bottom: The path of the Federal Reserve funds
      rate (FRR) in recoveries, with the interest rate in the first month of the recovery set to zero. Source: FRB, NBER.

Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                                                                                      4
                                          FG ADVISORS: INVESTMENT BANKING SERVICES
                                          FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                                          Weekly Specialty Finance Industry Review

                                          November 23rd – November 29th, 2009 (Week 48)
                                    Industry assets and number of institutions                                                           Averaeg size of credit card and consumer lender institutions ($BN)
    $600                                                                                                            600   $22.0

                                                                                                                                          Avg size of card lenders ($BN)
                                                                                                                          $20.0
                                                                                                                                          Avg size of consumer lenders ($BN)
    $500                                                                                                            500
                                                                                                                          $18.0


                                                                                                                          $16.0
    $400                                                                                                            400
                                                                                                                          $14.0


                                                                                                                          $12.0
    $300                                                                                                            300

                                                                                                                          $10.0

    $200                                                                                                            200    $8.0


                                                                                                                           $6.0
    $100                                                                                                            100
                                                                                                                           $4.0


                                                                                                                           $2.0
      $0                                                                                                            0
           1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009                  $0.0
              Credit card lenders ($BN)   Consumer lenders ($BN)   Credit card lenders (#)   Consumer lenders (#)                  1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


                        Composition of FDCI-insured insititutions' loan charge-offs                                                                Expansion of commercial bank credit card lines ($BN)
                                                                                                                          $5,000


                                                                                                                          $4,500
                                           4%
                               10%                                                                                        $4,000


                                                                                                                          $3,500


                                                                                                                          $3,000
                                                                                                Real estate
                17%                                                                             Credit cards              $2,500
                                                                         49%
                                                                                                Commerical & industrial
                                                                                                                          $2,000
                                                                                                Other consumer
                                                                                                All other
                                                                                                                          $1,500


                                                                                                                          $1,000


                                                                                                                           $500
                               20%
                                                                                                                              $0
                                                                                                                                     Q1 2007    Q2 2007     Q3 2007        Q4 2007     Q1 2008     Q2 2008   Q3 2008   Q4 2008    Q1 2009   Q2 2009

                                                                                                                                                      Held on balance sheet          Securitised and sold    Unused commitments



      20.0                                                               Year-on-year change in employment (all years)
      15.0

      10.0

       5.0

       0.0

      -5.0

     -10.0
             1940
             1941
             1943
             1944
             1946
             1947
             1949
             1950
             1952
             1953
             1955
             1956
             1958
             1959
             1961
             1962
             1964
             1965
             1967
             1968
             1970
             1971
             1973
             1974
             1976
             1977
             1979
             1980
             1982
             1983
             1985
             1986
             1988
             1989
             1991
             1992
             1994
             1995
             1997
             1998
             2000
             2001
             2003
             2004
             2006
             2007
             2009




      Top left: Assets at credit card and consumer lenders (FDIC-insured institutions), and the number of credit card and
      consumer lender institutions . Source: FDIC. Top right: Average size of credit card and consumer lenders. Source: FDIC.
      Middle left: Composition of loan charge-offs at FDIC-insured institutions. Source: FDIC. Middle right: Breakdown of
      commercial bank credit card lines (majority is unused). Source: FDIC. Bottom: Y-o-y change in total non-farm payroll
      employment; volatility was higher in past, but with a smaller share of the population working. Source: BLS, NBER.

Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                                                                                                                      5
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
     Credit Cards
           Credit card usury bill coming soon in US House
            Several congressional Democrats said last week that they plan to introduce legislation next week to
             cap credit card interest rates
            With unemployment and Wall Street bonuses incongruously rising together, the chairman of the
             House Rules Committee said she will offer a bill to cap rates at 16%, a proposal that could catch a
             wave of populist sentiment in the House
            The proposal will come in a week when the House Financial Services Committee is slated to
             complete its work on tightening bank and capital market regulation
            The full US House of Representatives is expected to vote in mid-December on broad financial
             reforms
            The Senate will debate reforms for months ahead, with final action unlikely until well into 2010
            Little support for usury caps has been detected so far by policy analysts, but the mood in Congress
             may be turning more populist ahead of the 2010 mid-term elections
            A bill on regulating systemic risk in the economy was amended last week in the House Financial
             Services Committee to boost regulators' powers to break up banks deemed “too big to fail”
            Earlier this year, Senator Richard Durbin, an Illinois Democrat, introduced a bill that would place a 36
             percent cap on annual interest rates for all forms of consumer credit – including mortgages, payday
             loans and car-title loans
           Source: Reuters

           Fed urged to stop unfair credit card practices
            The non-profit group Consumers Union last week urged the Fed to crack down on credit card
             companies and put a stop to the onslaught of increasingly abusive lending practices, which have
             intensified over the last six months
            The group, which also publishes Consumer Reports, appealed to the Federal Reserve Board to stop
             the interest rate hikes and other aggressive lending practices, which have followed on the heels of
             the new Credit CARD Act passed in May of this year
            In particular, Consumers Union appealed to the Fed to stop a series of new abusive practices and
             institute additional protections, such as:
                    o Immediately stop interest rate hikes with new, deceptive terms, which will soon be illegal
                       under the new Credit CARD Act
                    o Protect consumers from credit limit cuts that mar credit scores
                    o Ban the new practice of putting a fixed minimum rate on variable rate cards
                    o Give consumers more options to earn their way out of a penalty interest rate
                    o Give written notice about consumers’ new opt-in right for over limit coverage
           Source: Credit Card Guide




Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             6
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
     Credit Cards (cont’d)
           No credit card rate freeze for the holidays
            Consumers hoping for relief from credit card interest rate hikes will have to wait a few months
             longer. Last week Senate Republicans put a “hold” on a bill to freeze credit card interest rates
             immediately, in order to avoid further rate hikes before February 22, 2010 when the new Credit
             CARD Act steps into effect
            Congress gave credit card companies nine months to comply with the new curbs on rate increases.
             That gave card issuers plenty of time to jack up credit card interest rates across the board
            In the beginning of November, a bill to move up the effective date for the new credit card legislation
             passed the House with strong support: 331-92. With the companion legislation now put on hold in
             the Senate, cardholders will likely have to wait until next year to get a break
           Source: Credit Card Guide

           Citigroup would support credit card rate cap on new accounts
            The Federal Reserve announced last week it will sponsor 45-second ads before movie previews at 12
             theaters in major metropolitan areas from Nov 27 through Dec 3 dispending tips to consumers on
             how to avoid unnecessary credit card charges and fees
            The Fed launched the campaign at a time when it faces criticism for doing too little to protect
             consumers from lending practices that helped spark the financial crisis and US economic recession
            The timing of the reminders coincide with the peak shopping season between Thanksgiving and
             Christmas, a time when retailers aim to lure consumers with bargain prices and extended hours that
             many stores count on to produce the year's profits
           Source: Reuters


     Auto Finance
           Chapter 22 for auto-parts suppliers
            Auto-parts makers could be caught in an “airline-style cycle” and be forced to return to bankruptcy
             court as the industry struggles to rebound, according to a recent report from Fitch Ratings
            The rating agency is projecting a 7.8% increase in US vehicle sales next year, but it said modest
             growth may not be enough to prop up auto suppliers that have recently emerged from Chapter 11
             protection or out-of-court restructurings
            Narrow margins and heavy competition have locked suppliers in a cycle that requires them to
             bolster their businesses enough in growth periods to cushion against the next industry decline
            Expected growth in vehicle sales will increase suppliers’ revenue, but profits likely to remain thin
            Auto makers are seeking to consolidate their supply base among fewer, stronger companies, and
             banks remain wary of lending to the industry according to the Global Automotive Industry Group
           Source: Wall Street Journal

Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             7
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
     Auto Finance (cont’d)
           Chrysler may lose 145 dealers on lack of financing
           Chrysler may lose as many as 145 more dealers unless retailers can find lenders to finance their
            new-vehicle inventory
           GMAC, which replaced Chrysler Financial as the preferred lender for Chrysler’s dealers, has been
            negotiating with Chrysler retailers
           The outcome may mean fewer dealerships for Chrysler, which has about 2,400 outlets after
            terminating 789 as part of a government-aided bankruptcy reorganization. Chrysler exited court
            protection after six weeks on June 10 under the control of Fiat. GMAC took over preferred financing
            duties for Chrysler dealers as part of the reorganization
           Of about 1,500 dealers that applied to Detroit-based GMAC to finance their vehicle inventory, about
            90% will qualify
           85 dealers have been refused such financing and 50 to 60 others are still in negotiation
          Source: Bloomberg

     Student Loans
           New York’s student loan program offers favorable rates
            The New York Higher Education Loan Program, will offer New York families very favorable rates on
             loans that will be made available for students attending college this spring
                    o 7.55% interest on loans where principal and interest payments begin when the loan is
                      issued
                    o 8.25% interest on loans where students pay only interest costs while in school and pay full
                      principal and interest costs six months after graduation
                    o 8.75% interest on loans where both principal and interest payments are deferred until six
                      months after graduation
            The program creates a unique public-private partnership with the state, the banking community and
             colleges to ease the burden of financing education for students and their families
           Source: The Associated Press

           Student loan defaults on the rise
            An absolutely dismal job market has driven the student loan default rate to about 7%, nearly twice
             what it was in 2006
            About a quarter of a million people who were supposed to start paying their student loans in 2007
             still are not, not inclusive of recent (2008 and 2009) graduates
            However, if recent graduates can prove that they are hardship cases, it is possible to defer loan
             payments for up to three years
           Source: NPR.org


Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             8
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
     General Consumer Finance
           Consumer credit and loans: A chilly forecast
            In the wake of rising unemployment, collapsing housing prices, and the foreclosure crisis, many
             banks and other lenders appear to have tightened standards for granting credit card, home equity,
             auto, and other consumer loans
            Lenders are now looking for borrowers with strong credit and stable employment
            The deleveraging of the American consumer has proceeded for two years. Consumer credit-card
             debt in September 2009 was roughly equal to that in April 2007, having peaked in September 2008,
             but still very high in relation to income
            The same pattern applies to non-revolving consumer credit, much of which is for car loans. The
             market has seen a radical drop in the home equity consumers have cashed out (“mortgage equity
             withdrawal”), which in 2008 was less than half the amount consumers took out in 2006, at the
             height of the housing boom
           Source: Wall Street Journal

           The real cost of store credit
            There were 539 million store cards in 2008, down 2% from 2007. And consumers charged $143.1bn
             in 2008, down 7% from 2007, according to The Nilson Report, an industry publication
            The Nilson Report showed that some retailers that operate in-house credit cards, such as Nordstrom
             and Target, still had sizable gains
            Macy's credit card program is operated by Citigroup and has a $2 minimum finance charge. On bills
             that have a low balance, the minimum charge can translate to a high interest rate, which maybe
             problematic given the current political environment to rein in credit card
            According to Bankrate.com, using credit has its pitfalls: Charging many items on store credit cards,
             and thus using their credit line, causes credit bureaus to drop credit scores on consumers
           Source: APP.com

           Consumer spending rebounds, as jobless claims fall
            Consumer spending and incomes rose in October, while jobless claims fell under 500,000 last week
             to the lowest level since September of 2008, boding well for economic growth in the fourth quarter
            But demand for long-lasting goods unexpectedly fell in October, brought down by the defense
             sector, and capital spending by businesses tumbled in another sign of the recovery's sluggishness
            Commerce Department data last week showed spending in October rose by 0.7% compared with a
             September decline of 0.6%, while personal income rose by 0.2% for the second straight month
            The core price index for personal consumption expenditures, which excludes volatile food and
             energy, rose a monthly 0.2% in October and by 1.4% y-o-y
            Economists surveyed had forecast consumer spending would rise by 0.6% in October while income
             would increase by 0.1%. The core PCE index was seen rising by a monthly 0.1%
           Source: Wall Street Journal

Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             9
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
   SPECIALTY FINANCE HEADLINES
     Miscellaneous
           Half of banks‘ losses may be unknown: IMF chief
           Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe
            than in the United States, the International Monetary Fund's chief, Dominique Strauss-Kahn, was
            quoted as saying last week
          Source: New York Times

           The swaps market is too big to ban
           Trading in swaps has so far survived the crisis and market reforms are on the way. Barring
            unexpectedly draconian regulatory changes, a comeback in swap-market activity is likely
           The notional volume of outstanding contracts in the first half of 2009 declined by 14%, to $36tn,
            according to the Bank for International Settlements. In part, the decline reflects the efforts of
            dealers to cancel out offsetting contracts. But trading activity has also fallen
           There’s still uncertainty over reforms being mulled by lawmakers and regulators in the United States
            and Europe. Sensibly, they mostly want swaps contracts to be traded through central clearinghouses
            rather than bilaterally, the traditional way of doing business (this way the central clearinghouse will
            have aggregated information over the risk exposures of the market, rather than having individual
            swap holders second guess their counterparty exposures )
           Done right, that ought to reduce the systemic risk of an individual market participant going bust. It
            should also mean collateral requirements are standardized and more uniformly enforced. Both
            reforms would have eased AIG’s troubles
           Central clearing of swaps, and exchange trading would accelerate an existing trend toward
            electronic trading, especially in the US. Standardization could also bring in a wider range of users
          Source: New York Times




Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             10
                            FG ADVISORS: INVESTMENT BANKING SERVICES
                            FG SOLUTIONS: STRATEGIC CONSULTING SERVICES
                            Weekly Specialty Finance Industry Review

                          November 23rd – November 29th, 2009 (Week 48)
                    ANALYSIS OF SELECTED PUBLICLY TRADED SPECIALTY FINANCE COMPANIES




Disclaimer: This analysis ("Analysis") was created by an affiliate of FG Companies, LLC. FG Companies, LLC and its affiliates ("FG Entities") do not
assume responsibility for the accuracy or completeness of the information in this Analysis nor any by-product of such information thereof. Certain
results in this Analysis are forward-looking. These forward-looking results are subject to risks and uncertainties that may cause actual results to differ
materially from the results in this Analysis. No expressed or implied representations or warranties with respect to the accuracy or completeness of any
information, assumptions, forward-looking statements, or results contained in this Analysis are made by any FG Entities.
                                                                                                                                                             11

				
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