Seeking Alpha

A break-up of the big banks is on the minds of none other than analysts at the banks themselves....

A break-up of the big banks is on the minds of none other than analysts at the banks themselves. Wells Fargo reckons shareholders might "intensify demands" for it, especially as the likes of Bank of America (BAC), Citigroup (C) and JPMorgan (JPM) trade at discounts of 25-30% to more-focused rivals. JPM's analysts have questioned the viability of running an investment bank "as part of a universal banking business."
Comments (7)
  • benitus
    , contributor
    Comments (1911) | Send Message
     
    Blame the Feds, for forcing the big banks to buy up failing banks (after getting stimulus money) and now, talk of breaking them back up is certainly doing them in. What a raw deal.
    12 Apr 2013, 07:15 AM Reply Like
  • kmi
    , contributor
    Comments (3995) | Send Message
     
    It was a tough call - they weren't possibly ever going to let them fail and the only other options were TBTF or government takeovers... It is however funny how it is starting to hurt based on the market currents' point that they "trade at discounts of 25-30% to more-focused rivals."
    12 Apr 2013, 08:16 AM Reply Like
  • Denkaras
    , contributor
    Comments (8) | Send Message
     
    Organizing and re-organizing in an effort to create the illusion of progress....Petronius Arbiter 27 A.D.
    12 Apr 2013, 09:43 AM Reply Like
  • benitus
    , contributor
    Comments (1911) | Send Message
     
    So true, Denkaras.....the modern lingo is "change for the sake of change", no real progress, which Washington is doing all the time, to justify their promotions and pay-hikes, or increased payrolls, when nothing has actually improved after so much ballyhoo..
    12 Apr 2013, 02:05 PM Reply Like
  • mphill47
    , contributor
    Comments (509) | Send Message
     
    I would like to see BAC breakup ASAP.........Countrywide portion broken off first !!
    12 Apr 2013, 06:58 PM Reply Like
  • benitus
    , contributor
    Comments (1911) | Send Message
     
    BAC will never let go of Countrywide, as a unit by itself, because that would acknowledge their failure in judgment, etc, etc., which will be terrible for the public's confidence in BAC and will continue to fan the flames of detractors to no end. If I'm not wrong, they'll quietly dismantle Countrywide's portfolio and absorb them into BAC's own stable of assets (or liabilities), thereafter de-registering Countrywide, so as to end the controversy for BAC on a high note, i.e. they've the capacity to take on Countrywide's liabilities. Then, they'll liquidate those toxic liabilities that couldn't be saved quietly and systematically during the course of normal business, failing which they'll set up another entity within their organisation and funnel everything (including their own as well) to this entity, before they dispose of this entity, by which time no one will recognize which belongs to which. That's how proper damage control should proceed.
    12 Apr 2013, 10:21 PM Reply Like
  • june1234
    , contributor
    Comments (2553) | Send Message
     
    Translation is spin off the now $700 trillion strong private derivatives markets before they cause another meltdown like they did in 08. Neither the Eurozone or US GDPs fell off a cliff back in 08; the derivatives market dis
    13 Apr 2013, 07:24 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

Next headline on your portfolio:

|