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FTWR, earnings and CC on Friday been good to date
FTWR gonna go soon IMO
Investors eye bank stress tests results
Karey Wutkowski and Paritosh Bansal
Tuesday, May 05, 2009
WASHINGTON/NEW YORK — About half the banks subject to U.S. government “stress tests” may need more capital, although investors remain hopeful the amounts will be manageable, while an expected quarterly loss for AIG will not trigger a fresh bailout of the big insurer.
The news on the stress tests injected a note of caution into financial markets, with the dollar edging up and stocks subdued. Shares have erased their 2009 losses in a rally driven by hopes the worst slump in the global economy in six decades is easing.
Australia's central bank held interest rates at a record low of 3.00 per cent as expected on Tuesday, saying the full effect of past stimulus had yet to be felt and pointing to signs of stabilization abroad, in particular China, whose thirst for commodities has become a key driver of the Australian economy.
Swiss bank UBS AG posted a net loss of 2-billion Swiss francs ($1.76-billion U.S.) on the back of yet more writedowns on illiquid assets and said it remained cautious.
The global recession was triggered by a crisis in the financial sector and U.S. regulators have been poring over the holdings of the 19 largest U.S. banks to determine if they have enough capital to withstand further shocks.
Banks were expected to be briefed later on Tuesday on the final results, which will be published on Thursday.
Reports have pointed to Bank of America Corp. and Citigroup, among others, as needing fresh capital. Citigroup declined comment and Bank of America did not immediately respond to a request for comment.
A source familiar with official talks told Reuters about 10 would be told they needed to increase the size of their capital cushions.
Some banks have complained that regulators have been too harsh in their assessment of how much of a buffer they need to absorb future losses and were underestimating profitability.
“The banking system can handle an awful lot of loss and be OK,” JPMorgan Chase & Co. chief executive Jamie Dimon said on a conference call, adding that he agreed with legendary investor Warren Buffett who said many banks have enough earning power to make up for future losses.
Banks found to need capital could convert preferred stock, raise fresh private capital or seek government help. White House spokesman Robert Gibbs said on Monday the administration saw no need to ask Congress for more funds to support banks and that lenders would be encouraged to tap private sources.
U.S. stock futures eased 0.2 per cent, while the MSCI index of Asia Pacific stocks outside Japan edged up 0.5 per cent. The index has gained nearly 40 per cent since hitting a bottom on March 10.
Several of the biggest U.S. financial institutions have been rescued with government money after booking massive losses tied to a housing market bust.
One, insurer American International Group, is expected to post a first-quarter loss on Thursday, a source familiar with the matter said.
But the source said the loss would be significantly lower than AIG's record fourth-quarter loss of $61.7-billion and would not prompt a fresh injection of government capital.
UBS, which had to turn to the Swiss government for help in October and is also at the centre of a U.S. investigation into possible tax fraud, said its losses were driven by writedowns on risky positions and by losses at its investment bank.
Risky investments by UBS's investment bank in complex U.S. financial products have forced Switzerland's largest bank to make more than $50-billion in writedowns.
“The markets continue to be unsettled and we remain cautious on the immediate outlook for UBS,” the world's largest wealth manager said in a statement.
Bank shares were standout performers on Wall Street on Monday as investors bet their capital shortfalls would be manageable and housing data fuelled hopes the recession is easing.
Pending sales of existing U.S. homes rose unexpectedly in March and U.S. construction spending rose a slim 0.3 per cent the same month, its first increase since September.
There were optimistic comments on the state of the global economy from policymakers in the United States and Switzerland.
The president of the Federal Reserve Bank of Richmond, Jeffrey Lacker, said the U.S. recession was fading and growth would resume this year.
And the vice chairman of the Swiss National Bank, Philipp Hildebrand, told a German newspaper the downturn may be nearing a turning point..
Australia has fared better than most industrialized economies, but the Reserve Bank of Australia has still cut rates by 425 basis points since September as it faces its first recession since 1991.
Tuesday's decision to hold the cash rate steady was widely expected but investors detected an optimistic tinge its post-meeting statement, and moved to price in less chance of further easing and a higher Australian dollar.
“It appears the RBA may think it has done enough for this cycle,” said Peter Jolly, head of research at National Australia Bank. “You would need a faltering in the recovery to drive the RBA back to rate cuts.”
Elsewhere in the region, Indonesia cut its key rate by 25 basis points to 7.25 per cent to support growth as inflationary pressures eased.
And a decline in Philippine inflation to a 16-month low of 4.8 per cent was seen giving its central bank scope to cut rates for a fifth time in as many months when it meets in late May.
I have called this wrong Friday (in at the low $8's)but I say banks down big after a jump from 9am-11am Tuesday...well see but today was just a cash-in for the big boys IMO
WOW finacials are really bieng run up today...i guess the players need to get out before this Bank market goes off a cliff.....
These Fin's will fall off a cliff IMO, We'll see
Wells Fargo told to raise money
Monday, May 04, 2009
NEW YORK — Regulators have told Wells Fargo & Co. to shore up its finances after U.S. government “stress tests” showed the bank would have trouble surviving a deeper recession.
Wells Fargo is one of several banks that regulators will force to hold larger buffers to protect them against possible future losses, according to two people familiar with the matter who spoke on condition of anonymity because of the sensitivity of the process.
Representatives from San Francisco-based Wells Fargo did not immediately respond to requests for comment Monday morning.
Bank of America Corp., denying a media report, said it had no plans to raise $10-billion in common equity, while another report said Citigroup Inc. was looking to raise capital from private investors.
The three are among the 19 U.S. banks undergoing a government “stress test” designed to ensure they each have sufficient capital to withstand a deep recession.
Bank of America, the largest U.S. bank that has received $45-billion in taxpayer funds, denied a Financial Times report it plans to raise $10-billion in common equity.
Citigroup, which has received $45-billion in U.S. taxpayer funds, was looking to raise any additional capital it needed from private investors, according to a Bloomberg report.
Citigroup did not return telephone calls seeking comment on the matter.
U.S. bank shares were higher Monday after analysts said the government stress tests would show most institutions would need less new capital than previously feared.
The Financial Times reported Monday that Bank of America was preliminarily found to need more than $10-billion of capital and the bank was working on plans to raise fresh funds.
“The Financial Times report is completely inaccurate. Bank of America has not been given a final number by the Federal Reserve. The bank is not working on plans to raise $10-billion in common equity,” said Scott Silvestri, a spokesman for the bank.
Regulators have told Citigroup it will not need another injection of taxpayer funds, Bloomberg reported, citing one person familiar with the matter.
Citigroup did not return telephone calls seeking comment on the report.
The bank's discussions with the government are focused on how much of the government's preferred stock investment must be converted into common shares, according to the Bloomberg source.
Private investment might help Citi prevent the government from converting all or part of its $27-billion investment, Bloomberg said. Conversion could give the government more than 50 per cent ownership of the bank.
The amount of capital Citi would need to raise after the test results are finalized would likely be manageable if the bank needed to boost its equity at all, people familiar with the matter told Reuters Friday.
The bank has multiple ways to raise common equity, including expanding its plans to allow investors to swap up to $52.5-billion of preferred shares for common stock, and selling assets.
These measures are expected to be sufficient to meet any capital the government ultimately presses Citigroup to raise, the people familiar with the matter said Friday.
FTWR this ones been real good to me check the chart
Wow, i can't believe this market right now, whats holding it up????
CORS mm's in trouble, this could be explosive today, CORS short squuueeeze 7M!!!
The squeeze is starting today, the stress test pushed out short are in trouble IMO
CORS huge 7M short too, stress test pushed out we could get a nice squeeeeze here
CORS going now
CORS gonna go here IMO
FTWR..this ones been a cash cow for me next move coming check out the finacials too
FTWR looking good!!!
FTWR sweet chart fin's out next week
Check out CORS Chart, huge short too, moves quick and the stress test was bumped out.....
Lik'in FAZ too...loaded today
CORS might get a short squeeze here, shorts were betting on Monday for stress test....might have to cover , 25% short
Corus Bankshares Inc. $ 0.22
CORS 0.01
Short Interest (Shares Short) 7,071,200
Days To Cover (Short Interest Ratio) 9.8
Short Percent of Float 23.47 %
Short Interest - Prior 6,379,300
Short % Increase / Decrease 10.85 %
Short Squeeze Ranking™ -222
CORS might get a short squeeze here, shorts were betting on Monday for stress test....might have to cover , 25% short
Corus Bankshares Inc. $ 0.22
CORS 0.01
Short Interest (Shares Short) 7,071,200
Days To Cover (Short Interest Ratio) 9.8
Short Percent of Float 23.47 %
Short Interest - Prior 6,379,300
Short % Increase / Decrease 10.85 %
Short Squeeze Ranking™ -222
% From 52-Wk High ($ 10.58 ) -4798.15 %
% From 52-Wk Low ($ 0.09 ) 57.87 %
% From 200-Day MA ($ 1.28 ) -492.59 %
% From 50-Day MA ($ 0.22 ) -1.85 %
Price % Change (52-Week) -96.60 %
Shares Float 30,130,000
Total Shares Outstanding 53,710,980
% Owned by Insiders 43.69 %
% Owned by Institutions 40.00 %
Market Cap. $ 11,585,458
Trading Volume - Today 194,100
Trading Volume - Average 719,400
Trading Volume - Today vs. Average 26.98 %
Earnings Per Share -8.41
PE Ratio
Record Date 2009-AprilB
Sector Financial
Industry Regional - Midwest Banks
Exchange
May 7th is what i heard....hope your right i am loaded on FAZ in every account after going to all cash yesterday
IN FAZ
I think today was the begining of a few weeks of red, I sold out everything to cash today except HERO, its been a nice ride but I am thinking we are due to pay the piper now
HERO Sweet EOD with a $300K buy at the bell
HERO breaking out
HERO on fire
HERO
COIN going green?
IN SQNM
Hey BB, ICO took a 5K position today held mine over night good news AH and some price action might gap in the AM
COIN, looks like the Short to drag it down might back fire
COIN bouncing nice from the 1.40
COIN for the bounce here
COIN strong, should break that HOD soon....
COIN gonna blow here again
CORS might come out to play today still a huge short
COIN sweet chart $2+ IMO here
GSAT, Coin looking good
COIN looks good for a multi day