Seeking Alpha

The big banks have their price targets and Q2 outlooks cut by Keith Horowitz's team at Citi. Net...

The big banks have their price targets and Q2 outlooks cut by Keith Horowitz's team at Citi. Net interest margins have slimmed, credit spreads are widening, and mortgage performance remains poor, say the analysts. XLF -0.6% premarket.
From other sites
Comments (3)
  • sreimer77
    , contributor
    Comments (241) | Send Message
     
    Regulations have forced all banks to increase capital ratios, so in order to meet Basel , all banks have been gobbling up Government Bonds. By forcing banks to buy these bonds, we are forcing them to underwrite deficit spending. Then when questions arise as to the credit quality of a sovereign bond, value falls and banks need capital. Key issue is, the regulations are forcing banks to buy government Bonds knowing that they'll lose value in the future. When they lose value, politicians just blame the banks even though it was policy responsible.. How did Basel work out for Spanish banks who are trying to meet these new rules, by buying bonds that are losing value and lowering your capital ratios in the process. Hypocracy is disgusting! US banks like BAC has highest cap ratios ever, but continues to be downgraded. Why? Because Moodys knows their gonna downgrade Treasuries and that the banks will have to post even more capital. Anarchy anyone?
    28 Jun 2012, 08:44 AM Reply Like
  • MexCom
    , contributor
    Comments (3054) | Send Message
     
    Makes no difference what short term earnings will be. Fear of complete collapse is almost fully baked in. Even if earnings are half of what they currently are the usual financial ratios should eventually mark it at twice the current price.
    28 Jun 2012, 08:56 AM Reply Like
  • geomurp
    , contributor
    Comments (7) | Send Message
     
    Total manipulation by analysts
    28 Jun 2012, 09:15 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector