Posts filed under “Financial Press”
Every time I read an article like the one below, I get a flashback to that scene towards the end of Animal House, when Kevin Bacon yelling to the crowd "All is Well . . . ALL IS WELL" — just before the mob pancakes him . . .
The beginning is the Pollyanna portion . . . further down, we get to the meat of the issue:
"Few analysts say the banking industry as a whole has turned the
corner. Nearly every major institution is wrestling with surging losses
tied to real estate, credit card and construction loans. But investors
are starting to recognize that the losses may not be as severe as they
had initially feared. They are also realizing that banks may have the
earnings power to offset bad loans and absorb further write-downs.
“It is too early to say things are getting better, but this is
coming off extreme fears,” said Mark Fitzgibbon, the director of
research at Sandler O’Neill & Partners in New York.
Financial shares have swung erratically during the last week and a
half as the Bush administration moved to bolster the nation’s two
largest mortgage finance companies, Fannie Mae and Freddie Mac, and
federal regulators seized a large California lender, IndyMac Bancorp.
But the sector roared back late last week after Wells Fargo, JPMorgan
Chase and Citigroup reported strong results.
Bank of America has another reason for optimism: The Countrywide
Financial Corporation, the troubled mortgage lender it recently
acquired, is now expected to turn profit this year, Bank of America
said Monday. When the acquisition was announced in January, Bank of
America said the deal would have no impact on earnings this year.
Still, investors fear that losses from Countrywide’s $111 billion
loan portfolio could spiral higher, and that Bank of America could be
saddled with billions of dollars in litigation costs stemming from
Countrywide’s business practices."
Now if I can only find that video clip of just him at the end . . .
Bank Beats Forecasts, Reassuring Investors
NYT, July 22, 2008
“DON’T PANIC” – Words inscribed in large, friendly letters on front cover of The Hitchhiker’s Guide to the Galaxy, the ultimate compendium of practical knowledge on practically any conceivable subject, and the most popular book in the known universe. This is partly because it is slightly cheaper than the Encyclopedia Galactica, but is mostly because…Read More
Here’s some sad news that has yet to hit the wires: Herb Greenberg has resigned as a full-time contributor to CNBC. (No, he’s not going to Fox Business).
Here’s what Herb wrote to CNBC:
Just an FYI: I’ve pulled myself out of the contributor
rotation to focus exclusively on my business, which has become
more-than-a-fulltime job. It wasn’t an easy decision to walk away. I’ll still be
available from time to time as a non-contributor guest, as time permits, and I
remain committed to CNBC.
Herb will be missed on CNBC — he is a skeptical voice of reason who oftentimes doubts the nonsense spin we hear all too frequently from corporate executives. And, he’s been proven right far too many times to ignore. He will be missed.
Herb’s new firm is called Greenberg Meritz, and the focus will be "Bridging Financial Journalism and Forensic Analysis."
We wish him luck at his new venture, and if he ever wants to get some info out to a wider distribution, our doors are always open . . .
New Home Completions, 1968-2008 click for ginormous chart Major New Home Building Housing expansions since 1968 are marked as a red horizontal line at bottom. They previously lasted 2-4 years (71-73; 76-79; 83-87) The most recent boom far exceeded all previous expansions, running form 1992 – 2003 — then exploding upwards for another 3 years…Read More