iShares Dow Jones US Regional Banks (IAT)

All Comments on IAT

  • commenter
    Robb
    Oct 09 01:02 AM
    Lack of Integrity: 10th Bank Failure of 2008 on Poor Risk Management [view article]
    The bail out has not proven to open the credit market yet maybe too new to rate. I want to know what the Bail out prgram can offer my family. I have been in my home 20+ yrs and facing foreclosure. I am in retail sales
    worst I've seen in 20 yrs. Wachovia says they can't help me until my "hardship" is over???what about their hardship ??? are we WFB or Citi or Wachovia. C'mon play by the same rules after all I aam footing the bill with every other American !!!
    Thanks,
    Robb.
     Reply
  • commenter
    SmartStops
    Oct 07 12:28 AM
    My Website
    Now's the Time to Buy Bank Stocks [view article]
    If you are going to suggest that this is the bottom and people should go long, then please remind them too that they must have an intelligent exit strategy in place for themselves right from the start. Otherwise, they are just setting themselves up for more possible pain. Reply
  • commenter
    JasonC
    Oct 06 08:06 PM
    6 Emergency Measures to Prevent a Banking Meltdown [view article]
    On the hedge funds losing their liquidity, cry me a river and let them all fail. They tried to smash the entire financial system of the modern world with their reckless end of the world trading, let them end instead.

    The banks are another matter. The Fed should simply direct the open market desk to wade in as a capitalist and buy all the financial name paper yielding over 10%, currently being dumped on the secondary market. Pay for it all with newly created dollars, and keep doing it until spreads narrow. If no private capital is willing to take the risk of standing ahead of bank depositers, let the Fed take that risk and make it good at the same time.     Reply
  • commenter
    BLSH
    Oct 06 10:37 AM
    Now's the Time to Buy Bank Stocks [view article]
    Take a look at FHN Reply
  • commenter
    Takayama
    Oct 06 06:25 AM
    Now's the Time to Buy Bank Stocks [view article]
    Want know the answer? Refer to the history of the Japanese Nikkei meltdown. But put in a multiplier of more than 1.7 to factor in the derivative market contributions, war on terror, Iranian nuclear conflict, wars in Afghanistan and Iraq etc.

    I believe it may be better to put my money in Intel, AMD, MacDonalds and Lenovo.

    Reply
  • commenter
    John Egan
    Oct 05 08:28 PM
    Now's the Time to Buy Bank Stocks [view article]
    Pessimistic Optimist... I think you meant 'increments', not 'encrements'... But then again, you might have meant 'double down in excrement'... Hard to tell...

    jegan ;-)     Reply
  • commenter
    ozcutty2
    Oct 05 07:43 PM
    My Website
    Now's the Time to Buy Bank Stocks [view article]
    Bank stocks aren't cheap, most are up 50% + from their lows Reply
  • commenter
    Investa
    Mania
    Oct 05 07:38 PM
    My Website
    Now's the Time to Buy Bank Stocks [view article]
    This post is pure lunacy as many people have expressed in the comments.

    Jack, has the list of 110 or so regional banks that are in trouble right now not reached you ??? Do you know how much "toxic waste" they are all holding right now?

    This is not just your casual bear market Jack, the market is changing itself. The financials and the banks are not just going to jump up again. Easy credit will no longer be available in the next few years as it was before, lending will be reduced....this all means less fees etc = less profits for all these banks. Moral of the story is that even if there was to be a rebound, the growth would be small in the sector.

    If you're looking to buy, stay away from the financials...if anything, stay away from the equities market because the rocky road has just started.

    Buying anything on banks right now is insanity. After 2 weeks of all major investment banks going down the drain, and banks globally being saved by diff govs....you're saying, alright, lets buy?

    Follow the money...and invest there....that is....buy T-BILLS and don't lose your money     Reply
  • commenter
    Pessimistic
    Optimist
    Oct 05 07:29 PM
    Now's the Time to Buy Bank Stocks [view article]
    Lot of chatter on the right move.. stay out, get in, buy down.. hold, sell . It is a crap shoot. I am sticking with the strategy that there are some great stocks that are now buys because they are too low not to buy and if they continue to drop... dollar cost them down in encrements.. your choice on amount.
    Get the dividend and sit tight. They are not going to zero.. my stance is prove it to me.. I didn't buy high and these under 10's are now speculators.. even under 5 for some.
    WB was a superb ex. of a cheap stock that popped on WFC news. And buddy pal Warren own's only one financial, WFC? Come on.. I'm long JPM and BAC.. I will dance with WB again.     Reply
  • commenter
    Mr Ed
    Oct 05 03:42 PM
    Now's the Time to Buy Bank Stocks [view article]
    Good way to play the banks, the risk is spread out over many names. If you were to play regional names i would stay away and wait for a pull back from 52 week highs and look for quality names with good take over potential because of a large deposit base and great location(foot print). Example STI, a very large Regional with a good foot print and is way below its 52 week high with demographics coming into play, you will be in the right stock. It is still a news driven market, so scale in to any buys. Reply
  • commenter
    pgvinter
    Oct 05 02:28 PM
    Now's the Time to Buy Bank Stocks [view article]
    I also have to say that transparency is critical here. I am very leery of the overly optimistic and rather opaque numbers reported by JPM, WFC, BBT, and to a lesser degree USB. I feel that the lending standards industry wide were relative cookie cutters for each individual asset class (subprime, alt-a, option arms, prime jumbo, GSE saleable, etc.) and that the real qualitative difference was the level of exposure to the given asset classes and business models. Originate-to-securitiz... is pretty much dead. Option ARMs are the most toxic waste still outstanding but the big players (CFC, WB, WM, DSL, FED, BKUNA, AHM) are either dead (AHM, WM) on life support (DSL, BKUNA, WB) or a great short (FED.) The one thing that I think we can really learn from is the approach that institutions have taken to deal with the issues. Those who have maintained relatively high transparency are absolute steals at these prices as long as they are solven. Those who moved held-for-sale assets into held-for-investment in order to avoid taking writedowns and who seem to have default rates which seem lower than those which should come from their lending program mix look very suspicious and like the next CFC or WB. Reply
  • commenter
    pgvinter
    Oct 05 02:21 PM
    Now's the Time to Buy Bank Stocks [view article]
    I could not disagree more with the author. I have followed the banks closely and feel like the supposed "high quality" banks like USB, BBT, WFC, JPM, ZION, Hudson City and others who are trading near Jan 08 levels are ripe for a short while the heavily discounted but still solvent like SOV, FHN, perhaps NCC and others who are beaten up but who have taken the lumps they have coming to them (ALT-A wirtedowns >35% and done with their subprime) will do well on a relative basis. The problem is its very difficult to tell who is still solvent.

    In the case of the "better banks" these valuations are CRAZY. They are trading at a huge premium to the rest of the peer group with no bottom in sight for either the housing market or the economy in general as unemployment continues to increase. Wells and BBT have lots of ALT-A, Prime Jumbo and construction loan exposure. These guys have painted a very optimistic picture by announcing default rates that are still below 1%. This cannot continue and they are being priced as if it can. I am not saying that these well run banks will collapse but simply that they have too high of a price premium relative to their peer group as well as an unrealistic future P/E which does not price in the issues they will inevitably face. In my opinion all of these stock still have anywhere between 25% and 75% downside risk as their earnings see the effect of a 2% to 3% default rate across their loan portfolios.

    As for the "bad banks" some have taken aggressive writedowns on their held-for-investment portfolios which will exceed actual losses. Many have also faced the majority of their portfolio stress test on asset classes which are nearing the peak of their impairment or have even moved beyond that point. I believe that C at $15 or lower is a buy for this reason. I also feel that ALT-A loans should be separated into two distinct categories, Option ARMs which are toxic waste and regular ALT-A which will have high but not astronomic default rates and loss severity. The difficulty lies in identifying the banks who are furthers along in their portfolio stress test but who are still fundamentally solvent. SOV in my opinion belongs on this list. I need to gather more data on FHN and NCC but feel that they are strong candidates.


    Reply
  • commenter
    Shiv
    Oct 05 01:34 PM
    My Website
    Now's the Time to Buy Bank Stocks [view article]
    disagree. An ETF is good for diversification of risk, but it does not address the solvency risk (only reduces it). The sector outlook on an enterprise value basis is positive. However, solvency risks remain elevated - i.e. even if enterprise value increases, the incremental valuation which might accrue to an existing shareholder will greatly depend on the method chosen in implementing the rescue package - for example, dilution by warrants granted to the government can significantly impact shareholder value of present shareholders. Me, I would invest only in entities who are positioned to benefit from the crisis and those whith strong balance sheets. The only one which comes to mind is Berkshire (& perhaps GS/GE but I would rather play those through BRK). Look to enter specific stocks only after specific solvency risks have been addressed. Reply
  • commenter
    Aalan
    Oct 05 01:25 PM
    Now's the Time to Buy Bank Stocks [view article]
    I thought the bit about avoiding the "see and the saw" was well presented.
    OTOH--
    I love the part about selecting stocks at random to "eliminate negative selection bias." Wow! Is there any other kind? Let's all get random.     Reply
  • commenter
    fremont
    realtor
    Oct 05 01:13 PM
    My Website
    Now's the Time to Buy Bank Stocks [view article]
    It ain't over yet for the bank stocks. Expect more writedowns, and more to go under for their lunacy in lending critieria. Reply
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