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Bachelors in Economics & Corporate Finance Msc in Economics Msc in Marketing Worked as trader in bank Independent researcher and financial advisor (recently) My aim is to explain global financial news daily with regards to commodities, European, Asian and ABD stocks ( mainly blue chips) as well... More
  • One Alternative : Cohesion of Banks! 0 comments
    Sep 11, 2011 10:48 AM | about stocks: GS, HSBC, C, JPM, DB, SCGLY
    As everyone knows, it is the financial sector that stands at the heart of the recent crisis. Nowadays, they are getting more attention as stock markets have tumbled due to slowdown in the global economy. Both US and EU economies are dealing with sovereign debts, unemployment, and decline in their GDPs. As we remember before, there is nothing that monetary policy can also create more than inflationary pressures. In the short run, banks may benefit from expansionary line but not secure. Capital inadequacy, risky portfolios, declining stocks are fundamental problems that banks will deal with for a long time. JP MORGAN (NYSE:JPM), Goldman Sachs (NYSE:GS), Bank Of America (NYSE:BAC) seem uncertain. Last week JP Morgan suggested Deutsche Bank for investingDB). This may be just the nature of banks' planned union at some subjects.

    There can not be an appropriate while other than these days for incorporation for banks! So far, they have tried to survive by making speculations. Now, it is time to establish a reunion. Similar to European countries, banks should also develop a relationship or at least a formal agreement to settle capital deficit, risk management problems. Especially, Bank of America, Deutsche Bank, Societe Generale (SCGL PK), Citi Bank has toruble as well as HSBC and Credit Suisse (NYSE:CS).

    Financial Conjuction

    - Credit Agricole's chief risk stems from its Greek subsidiary Emporiki Bank of Greece SA.

    - Societe Generale has risks of General Bank of Greece

    according to Moodys.

    Possible downgrades may occur for the following weeks for these banks.

    Therefore, banks' connection is one option which is worth thinking at least in a variety of strategic partnership!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: GS, HSBC, C, JPM, DB, SCGLY
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