Tim Travis'  Instablog

Tim Travis
Send Message
Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
My blog:
T&T Capital Management Blog
  • Deutsche Bank Raising Capital-WSJ 0 comments
    Apr 19, 2012 1:09 PM | about stocks: DB

    This is a big positive as European banks need to raise capital when attractive opportunities exist. Deutsche Bank AG (NYSE:DB) has tremendous earnings power but is one of the most heavily levered institutions so raising capital is the right thing to do. Europe did the right thing with the LTRO in ensuring ample liquidity in the financial markets but they have been waiting too long to work on a T.A.R.P. type program to build capital for the banks. There needs to be an insurance type clause where if the banks can't raise capital on their own, then the ECB, or the individual governments will step in at punitive costs. We know what the issues are in Europe and it is time for them to keep making progress in a positive and constructive way. If they resort to jawboning and trying to assign blame then they will create more turmoil that will only increase the ultimate costs of the crisis. The reason that I believe a constructive willingness to work out problems is so important is simply because the gravity of the problems is so great. There isn't a margin of safety and the sooner everyone realizes that and get's on the same page the better things will turn out.

    http://online.wsj.com/article/SB10001424052702303513404577353751248221854.html?mod=WSJ_hp_LEFTWhatsNewsCollection

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: DB
Back To Tim Travis' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.