"Their stock price will get a bump from the fact that the legacy securities are sold for more than their marked at or worth."
What ? That's a pretty big assumption, and not at all a "fact" as you portray it. If you think the pricing services, used by banks to value illiquid assets, are understating their actual bid price in a true open market than you are an idiot. Participation in this program will more likely lead to an acceleration of larger write downs. Your article is comical and extremely naive.
Will Banks Repaying TARP Take Back Their Toxic Waste Now? [View article]
That's brilliant Ed, a year ago when Fifth Third purchased the assets of a distressed of a Florida bank you penned an article how the Fed approval was in essence an all clear signal for FITB. ( I don't think we need to go into what has happened to FITB's stock price since your ridiculous assumption) Now you claim those very same regulators are engaged in a fraudulent scheme to hide under performing assets and staged a rigged stress test. So I guess in your opinion the Fed has gone through a deep metamorphosis in a short year, or could it just be you are clueless, which I expect is the real case. Talk about toxic waste.
Converting TARP's Preferred to Common Stock - Great Idea [View article]
Yeah that would be a valid point except managers bonuses are rarely based on profit but instead usually tied to revenue growth. This of course doesn't always mean more profitability. It also the same formula used in many Executive compensation packages.
On Apr 20 12:35 PM skwestorange wrote:
> I think the author's position is based on the fact that corporate > executives and managers' compensation includes RSUs, options and > stock awards (not fixed income instruments). Hence they are bound > to be more inclined to take care of their own interests. > SK
Five Midget Banks I'm Watching [View article]
Murky Objectives of the PPIP [View article]
What ? That's a pretty big assumption, and not at all a "fact" as you portray it. If you think the pricing services, used by banks to value illiquid assets, are understating their actual bid price in a true open market than you are an idiot. Participation in this program will more likely lead to an acceleration of larger write downs. Your article is comical and extremely naive.
Will Banks Repaying TARP Take Back Their Toxic Waste Now? [View article]
How Much of the Banks' Earnings Are Real? [View article]
Converting TARP's Preferred to Common Stock - Great Idea [View article]
On Apr 20 12:35 PM skwestorange wrote:
> I think the author's position is based on the fact that corporate
> executives and managers' compensation includes RSUs, options and
> stock awards (not fixed income instruments). Hence they are bound
> to be more inclined to take care of their own interests.
> SK
Converting TARP's Preferred to Common Stock - Great Idea [View article]