Quote:
Originally Posted by Claeren
Well to be honest, my point was more general and just that the big banks around the world are in serious trouble -- more so than many people who have stopped following the situation since December might realize.
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Well I think whats affecting these banks are the same things, its just the news happening again. No inter-bank lending, debt writeoffs and so on. For sure, European banks (getting nationalized?) is really hurting the confidence of inter-bank lending.
The way I see things, Citi has been messed up for months, and I guess the last bailout (Dec) wasn't enough to savage them so it wouldn't surprise me the least to see Citi nationalized. BoA is getting hammered for heavy ML writeoffs (as well as some of their own) but to my understanding, the feds initially agreed to help BoA acquire some of that bad debt, and it seems like they're doing it again.
Wells Fargo, as far as I can tell, needs to raise capital so they are cutting their dividend, but in the long run, I don't see why they are getting hammered as hard as they are. Its not like this is new news or anything, and Wells Fargo has historically been conservative, no? (Or am I incorrect to say that?) In the long run, I would have to think acquiring Wachoivia a few months ago should really help them.
And, JP Morgan, to my understanding, they are historically quite conservative as well, they got quite a deal in acquiring Bear Sterns and WaMu along with the debt, so is there really that much to write off? Again, I'm not sure why I see why JPM is getting hammered as hard as they are these days.
I actually own JP Morgan, Wells Fargo and BoA (though in heinsight, BoA was a mistake)
