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First Niagara Financial (FNFG) is downgraded to Hold from Buy at Sterne Agee citing the negative...

First Niagara Financial (FNFG) is downgraded to Hold from Buy at Sterne Agee citing the negative earnings impact from higher rates. Regional banks (KRE) - including First Niagara - mostly rallied or held their own through the June selloff as the thought was a steeper yield curve means both a stronger economy and higher spread income. Sterne Agee apparently isn't so sure.
Comments (1)
  • I can understand downgrading FNFG for their somewhat aggresive(and a bit bumpy) aquisition program but rather than depress earnings, this should give them a wider margin to work with. Income tends to be rather low with 50 and 100 basis point spreads; with the more normal 250-300 point spreads, not so much.
    3 Jul 2013, 11:34 AM Reply Like
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