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WFC dilution news just out...WFC should open under $20 tomorrow.
Wells Fargo to sell $6 billion in common stock
By Alistair Barr
Last update: 4:10 p.m. EDT May 7, 2009Comments: 4
SAN FRANCISCO (MarketWatch) -- Wells Fargo (WFC:Wells Fargo & Co
News , chart , profile , more
Last: 25.00-1.84-6.86%
3:59pm 05/07/2009
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WFC 25.00, -1.84, -6.9%) said late Thursday that it plans to sell $6 billion in new common stock to help the bank raise capital to meet requirements from the government's so-called stress test.
FAZ - Weeeeeeeeeeeeeeeeeee
FAZ TO DA MOON HOMIES!!!
BofA to need $34 billion in capital:
http://finance.yahoo.com/news/BofA-to-need-34-billion-in-rb-15143790.html?.v=3.
you mean like there is now?
what time does "Spanky" Bernanke Speak today?
Interesting FAZ analysis/prediction: http://chart.ly/rzxn9b
why do you think FAZ is going to 0?
FAZ looks like it is going to 5.00 before it goes up
he has been right in the past though which does give him credibility
FAZ -ers might wanna see this video...this guy knows what he is talking about IMHO
sounds good to me...GO FAZ - Moonshot is still possible!
FUTURES ARE RED - Down 113 points
http://www.bloomberg.com/markets/stocks/futures.html
Greetings....hope FRE holds this week
(Al Gore’s) Venture capital firm set to reap rewards on swine flu (along with Donald Rumsfeld) http://bit.ly/O02QA
good luck to all this week...may you all survive the swineflu epidemic! (chuckle, chuckle)
this ETF resets every day!
In my own personal opinion, After FAZ rockets skywards, FAS would be the play... I am looking into picking FAS up within 4 months at .85 a share....anyone else with me?
a transparent and honest stock market this is definately NOT!
Freddie Mac CFO found dead… - suicide http://bit.ly/xkXa4
Get ready for tough times!
Want to know the future of financials?
FAZ ROCKS...biggest volume day for the stock at only 11.00 backs a share! Truth will come out about the banks and the economy. rock-n-roll a 100 bucks a share by june 3, 2009
ETF stocks are un-chartable and only are traded with momentum
picassa! you are outstanding...thanks for your prospective!
Largest US Banks At Risk For Failure
http://www.marketwire.com/press-release/Weiss-Research-Inc-972696.html
protect yourselves investors....
Bank of America Needs $36.6 Billion in Capital, Oppenheimer Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.lt0wXZEDQs&refer=home
Bank of America Corp., the largest U.S. bank, will need to raise $36.6 billion in equity to bring its capital ratios in line with other big U.S. lenders, Oppenheimer & Co. said in a report today.
Given reluctance of investors to buy common shares of lenders, Bank of America is more likely to raise capital by converting preferred stock to common shares or issuing 5.2 billion shares through the Treasury Department’s Capital Assistance Plan, Chris Kotowski, an analyst at Oppenheimer, said in the report. Under the Treasury program, Bank of America may issue shares for $6.24 each, the report said.
The report cut quarterly earnings estimates for Bank of America as well as JPMorgan Chase & Co. and Morgan Stanley, and raised the estimate for Goldman Sach Group Inc.
To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net
no it s not wrong to root for FAZ
just bought more at 17.05
Mayo Gives Banks ‘Underweight’ Rating on Loan Losses
http://www.bloomberg.com/apps/news?pid=20601087&sid=a1yCkrhVtOks&refer=worldwide
Mayo Gives Banks ‘Underweight’ Rating on Loan Losses (Update2)
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By Michael J. Moore
April 6 (Bloomberg) -- CLSA analyst Mike Mayo assigned an “underweight” rating to U.S. banks, saying loan losses may exceed Great Depression levels and the government may be forced to take over large lenders.
Financial shares and major U.S. stock indexes dropped after Mayo advised clients to sell banks including Winston-Salem, North Carolina-based BB&T Corp. and Cincinnati’s Fifth Third Bancorp. Mayo said in a report today that he assigned “underperform” ratings to Bank of America Corp. and JPMorgan Chase & Co., the two biggest U.S. banks by assets.
“While certain mortgage problems are farther along, other areas are likely to accelerate, reflecting a rolling recession by asset class,” said Mayo, who joined CLSA from Deutsche Bank AG last month. “New government actions might not help as much as expected, especially given that loans have been marked down to only 98 cents on the dollar, on average.”
The 46-year-old Mayo gained recognition in 1999 at Credit Suisse AG for correctly taking a bearish stance on bank stocks when other analysts remained bullish. After being fired from Credit Suisse, he joined Prudential Equity Group in 2001, where he earned a reputation for criticizing investors and companies who tried to curb objective analysis. At Deutsche, Mayo had “sell” or “hold” ratings on all 18 companies he covered, according to data compiled by Bloomberg.
Shares Decline
Bank of America, based in Charlotte, North Carolina, fell 12 cents, or 1.6 percent, to $7.48 at 4:06 p.m. in New York Stock Exchange composite trading. New York-based JPMorgan dropped $1.08, or 3.7 percent, to $28.20. The KBW Bank Index lost 3.8 percent, the first decline in five days.
Nationalization of banks remains a possibility because government policy remains unclear, Mayo said on a conference call after releasing his report.
Existing government efforts aimed at boosting bank capital don’t “preclude regulators from taking harsher action,” Mayo said. “I don’t want to be a partner with the government in investing in bank stocks.”
Mayo said he expects loan losses to increase to 3.5 percent, and as high as 5.5 percent in a stress scenario, by the end of 2010. The highest level of loan losses in the Great Depression was 3.4 percent in 1934, according to the report. Mayo’s estimate matches the prediction he made on March 10 for Frankfurt-based Deutsche Bank.
Mortgage Losses
Mortgage-related losses are about halfway to their peak, while credit-card and consumer losses are only a third of the way to their expected highest levels, according to Mayo, who declined to comment beyond the report. CLSA is an affiliate of New York-based Calyon Securities.
The nation’s largest banks may be transitioning from a financial crisis marked by writedowns of capital to an economic crisis featuring large loan losses, Mayo wrote. The U.S. government cannot provide much relief because its actions will lead to either banks having to raise new capital or toxic assets remaining on banks’ balance sheets, Mayo wrote.
Mayo said solutions to the banking crisis will take time, as the increase in risk happened over a decade or more.
CLSA’s underperform rating reflects the expectation that the stock will underperform the local market by 0 to 10 percent, while a sell rating expects it to fare worse by more than 10 percent, according to the report.
Seven Deadly Sins
Mayo said banks engaged in “seven deadly sins”: greedy loan growth, gluttony of real estate, lust for high yields, sloth-like risk management, pride of low capital, envy of exotic fees, and anger of regulators. Mayo’s “underweight” rating applies to the entire sector.
Meredith Whitney, who left Oppenheimer & Co. in February to found Meredith Whitney Advisory Group LLC, said in a Forbes interview that banks will continue to write down their mortgage assets as home prices decline further than lenders expected. Home prices are not done falling and will ultimately drop 50 percent from their peak, Whitney said today in a CNBC interview.
The unemployment rate also has exceeded banks’ projections and could lead to further loan losses, Whitney told Forbes. Banks “by and large” will show profits in the first quarter before provisions for loan losses, Whitney said on CNBC.
roll back the video of jim cramer on the jon stewart show
I hear ya...FAZ is the play!
FAZ is the only way to go!
In my personal opinion....artmaniac
US Recovery Is Far Off, Banks Are 'Basically Insolvent': Soros
http://www.cnbc.com/id/30069223
The U.S. economy is in for a "lasting slowdown" and could face a Japan-style period of relatively low growth coupled with high inflation, billionaire investor George Soros said on Monday.
Soros, speaking to Reuters Financial Television, also warned that rescuing U.S. banks could turn them into "zombies" that draw the lifeblood of the economy, prolonging the economic slowdown.
"I don't expect the U.S. economy to recover in the third or fourth quarter so I think we are in for a pretty lasting slowdown," Soros said, adding that in 2010 there might be "something" in terms of U.S. growth.
Soros' view contrasts with the majority of economists, who expect the U.S. economy to stop contracting in the third quarter and resume growing in the fourth quarter, according to the latest monthly poll of forecasts conducted by Reuters.
The recovery will look like "an inverted square root sign," Soros said. "You hit bottom and you automatically rebound some, but then you don't come out of it in a V-shape recovery or anything like that. You settle down—step down."
The healing of the banking system and housing markets is crucial to recovery. "The banking system, as a whole, is basically insolvent," Soros said.
Slideshow: The 15 Companies at Greatest Risk of Default
Slideshow: The 15 Biggest Holders of US Government Debt
What's more, the Treasury's Public-Private Investment Fund is going to work but it won't be enough to recapitalize the banks in a way that they are able to or willing to provide credit.
"What we have created now is a situation where the banks who will be able to earn their way out of a hole, but by doing that, they are going to weigh on the economy," he said. "Instead of stimulating the economy, they will draw the lifeblood, so to speak, of profits away from the real economy in order to keep themselves alive. This is the zombie bank situation."
The stress tests being conducted by Treasury could be a precursor to a more successful recapitalization of the banks, he added.
Dollar is Vulnerable
Soros, whose latest book, "The Crash of 2008 and What it Means," has made prescient calls during the current credit crisis.
Exactly one year ago, he told Reuters that global losses are likely to top $1 trillion from the credit crisis. To date, U.S. and European banks have recorded more than $700 billion in losses and write-downs, as of Feb. 5. 2009, according to Reuters data.
Soros also said the U.S. dollar is under selling pressure and may eventually be replaced as a world reserve currency, possibly by the IMF's Special Drawing Rights, a synthetic currency basket comprised of dollars, euros, yen and sterling.
"I think the dollar is now under question and I think the system will need to be reformed, so that the United States will be subject to the same discipline as is imposed on other countries," said Soros, whose famous bet against the British pound earned his Quantum Fund $1 billion in 1992. "Being the main issuer of international currency, we have been exempt and we have abused that because we have effectively consumed 6.5 percent more than we have produced. That is now coming to an end."
China recently proposed greater use of Special Drawing Rights, possibly as an eventual global reserve currency. "In the long run, having an international accounting unit rather than the dollar may, in fact, be to our advantage so we can't splurge—you know, it felt very good for 25 years but now we are paying a very heavy price," Soros said.
Mayo Says Loan Losses at Banks Will Exceed Levels Seen in Great Depression
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_D/threadview?m=te&bn=87812&tid=82284&mid=82284&tof=5&frt=1#82284
By Michael J. Moore
April 6 (Bloomberg) -- Mike Mayo, who left Deutsche Bank AG to join Calyon Securities, assigned an “underweight” rating to banks on expectations that loan losses will exceed levels from the Great Depression.
“While certain mortgage problems are farther along, other areas are likely to accelerate, reflecting a rolling recession by asset class,” Mayo wrote in a report today. “New government actions might not help as much as expected, especially given that loans have been marked down to only 98 cents on the dollar, on average.”
The 46-year-old Mayo gained a reputation for independence at Deutsche Bank for his willingness to put a “sell” rating on banks and to criticize investors and companies for trying to curb objective analysis. At Deutsche, Mayo had “sell” or “hold” ratings on all 18 companies he covered, according to data compiled by Bloomberg.
Mayo said in the report that he expects loan losses to increase to 3.5 percent by the end of 2010. Mortgage-related losses are about halfway to their peak, while credit card and consumer losses are only one-third of way to their expected highest levels, Mayo wrote.
The changes to mark-to-market accounting rules will impact banks’ balance sheets by one-third or less and will have no impact on the economics of bank troubles, Mayo wrote. Banks committed the “seven deadly sins” of banking in trying to compensate for lower natural growth rates and will now feel the costs of those actions, Mayo wrote.
Mayo gave “sell” ratings to BB&T Corp., Fifth Third Bancorp, KeyCorp, SunTrust Banks Inc. and U.S. Bancorp, while “underperform” ratings were assigned to Bank of America Corp., Citigroup Inc., Comerica Inc., JPMorgan Chase & Co., PNC Financial Services Group Inc. and Wells Fargo & Co.
To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net.
U.K. Has Most Profit Warnings Since 2001, Ernst & Young Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4d4nbkmmxA0&refer=home
well winthorpe...SELL! says randolph
Stocks Rallied Big During The Depression Too
http://www.forbes.com/2009/04/03/dow-jones-industrial-personal-finance-investing-ideas-great-depression.html?partner=yahootix
great reading,,,enjoy
BANKS ARE DEAD - Investors must read! go faz
http://www.pbs.org/moyers/journal/04032009/watch.html
The financial industry brought the economy to its knees, but how did they get away with it? With the nation wondering how to hold the bankers accountable, Bill Moyers sits down with William K. Black, the former senior regulator who cracked down on banks during the savings and loan crisis of the 1980s. Black offers his analysis of what went wrong and his critique of the bailout
FAZ TO THE RESCUE!!!! FAS gonna eat it!
reverse stock split
when do you think the fireworks are going to start?
You Think Things hae bottomed out?
just wait.......
Commercial real estate loan defaults skyrocket
The Associated Press
Thursday, March 26, 2009
WASHINGTON: With loan defaults rising, analysts say the struggling commercial real estate industry is poised to fall into the worst crisis since the last great property bust of the early 1990s.
Delinquency rates on loans for hotels, offices, retail and industrial buildings have risen sharply in recent months and are likely to soar through the end of 2010 as companies lay off workers, downsize or shut their doors.
The commercial real estate market's fortunes are tied closely to those of the sinking economy, especially unemployment, which hit 8.1 percent in February.
"Until jobs start coming back and industry starts doing better we don't see performance increasing" among landlords, said Christopher Stanley, an associate with research firm Reis Inc.
While the commercial real estate industry's woes led to the recession of nearly 20 years ago, this time the industry is "the victim of the economic and financial crisis," said Hessam Nadji, managing director at Marcus & Millichap Real Estate Investment Services in Walnut Creek, California.
Vacancies at retailers, Nadji forecasts, will shoot up to 11 percent by year-end, matching the peak of the early 1990s. Office vacancies are likely to hit 18 percent by year-end, he said, short of the 1990s-era peak of more than 20 percent.
The commercial real estate market is "at the precipice," a report by Detusche Bank said earlier this month. So far this year, delinquency rates are up to 1.8 percent of loans in March, more than four times the year-ago level.
Faring worst were retailers, office building owners and apartment buildings. Hotels and industrial properties posted more moderate increases.
Deutsche Bank's Richard Parkus projects delinquency rates will keep soaring to more than 3.5 percent by year-end and as high as 6 percent by late 2010. He says the industry's woes will be "at least of a similar magnitude as those that the commercial real estate faced in the early 1990s."
Drops in property values of 45 percent from a peak in late 2007 are possible, Parkus said, exceeding those of the early 1990s, as demand for office, retail and other commercial space plummets amid a worsening economy.
Adding credence to those gloomy predictions, the government said Thursday that the U.S. economy shrank at a 6.3 percent annual pace at the end of 2008, the worst showing in a quarter-century.
Funding for commercial loans virtually shut down last year as the financial system unraveled.
There was $12.2 billion in commercial mortgage debt issued last year, the lowest figure since 1991 and down 95 percent from 2007, according to a report by Reis.
Making matters worse, about $216 billion in loans are coming due through 2012.
That is putting landlords in a squeeze.
About $11 billion of distressed commercial property is currently up for sale, compared with a lackluster $2.7 billion worth of properties that were actually sold in February, according to Real Capital Analytics.
A growing imbalance between supply and demand is likely to push down prices in the coming months, analysts say.
Similar to the residential property market, foreclosures and defaults are surging, with nearly $19 billion in commercial real estate loans in default, foreclosure or bankruptcy so far this year, according to Jessica Ruderman, a senior analyst with Real Capital.
More than 20 metropolitan areas nationwide now have at least $1 billion in troubled commercial loans, she said, up from five at the end of last year. Landlords in Las Vegas, Manhattan and Los Angeles are struggling the most.
As the industry's troubles worsen, disputes are breaking out. The Dubai developer helping build the $8.6 billion CityCenter complex on the Las Vegas Strip said Monday it is suing struggling partner MGM Mirage over concerns about the project's viability.
As I mentioned yesterday;the chart of GNTA does not lie...something is definately cooking
GNTA CHART LOOK LIKE ITS ABOUT TO BURST!